[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited interim financial statements and management's discussion and analysis of financial condition and results of operations [Interim Financial Statements](index=3&type=section&id=ITEM%201.%20INTERIM%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements for KVH Industries, Inc. as of June 30, 2021, and for the three and six-month periods then ended It includes the balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining the basis of presentation and significant accounting policies [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's financial position, including assets, liabilities, and equity, at a specific point in time Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2021 (unaudited) | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $9,223 | $12,578 | | Total current assets | $94,939 | $101,060 | | Total assets | $176,552 | $183,591 | | **Liabilities & Equity** | | | | Total current liabilities | $42,701 | $40,788 | | Total liabilities | $49,676 | $51,707 | | Total stockholders' equity | $126,876 | $131,884 | | Total liabilities and stockholders' equity | $176,552 | $183,591 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net loss over specific periods Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $43,363 | $36,926 | $85,655 | $73,494 | | Loss from operations | $(5,802) | $(3,436) | $(9,409) | $(11,084) | | Net loss | $(5,673) | $(3,552) | $(9,701) | $(9,766) | | Net loss per common share (Basic and diluted) | $(0.31) | $(0.20) | $(0.54) | $(0.56) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities Consolidated Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $4,815 | $(2,886) | | Net cash (used in) provided by investing activities | $(10,457) | $326 | | Net cash provided by financing activities | $2,311 | $6,432 | | Net (decrease) increase in cash and cash equivalents | $(3,355) | $3,078 | | Cash and cash equivalents at end of period | $9,223 | $21,443 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the consolidated financial statements - The company operates through two reporting segments: the mobile connectivity segment and the inertial navigation segment[25](index=25&type=chunk)[30](index=30&type=chunk) - In May 2020, the company received a **$6.9 million loan** under the Paycheck Protection Program (PPP) The company plans to apply for forgiveness in August 2021[66](index=66&type=chunk)[68](index=68&type=chunk) Net Sales by Segment (in thousands) | Segment | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Mobile connectivity | $33,755 | $29,186 | $64,262 | $58,082 | | Inertial navigation | $9,608 | $7,740 | $21,393 | $15,412 | | **Consolidated net sales** | **$43,363** | **$36,926** | **$85,655** | **$73,494** | Operating Income (Loss) by Segment (in thousands) | Segment | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Mobile connectivity | $580 | $584 | $183 | $(1,715) | | Inertial navigation | $645 | $154 | $2,735 | $(667) | | Unallocated, net | $(7,027) | $(4,174) | $(12,327) | $(8,702) | | **Loss from operations** | **$(5,802)** | **$(3,436)** | **$(9,409)** | **$(11,084)** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the company's financial performance for the three and six months ended June 30, 2021 Net sales increased year-over-year for both periods, driven by growth in both the mobile connectivity and inertial navigation segments However, the company continued to report a net loss, partly due to increased operating expenses, including a significant rise in general and administrative costs related to a stockholder's nomination of a competing director slate The impact of the COVID-19 pandemic, particularly on the KVH Media Group, and the company's liquidity position, supported by a PPP loan, are also detailed [Results of Operations](index=29&type=section&id=Results%20of%20Operations) This section analyzes the company's net sales, costs, and expenses, highlighting key changes between periods Comparison of Three Months Ended June 30, 2021 and 2020 | Metric | Q2 2021 | Q2 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $17.3M (Product), $26.1M (Service) | $13.9M (Product), $23.0M (Service) | +$3.3M, +$3.1M | +24%, +14% | | Costs of Sales | $28.0M | $23.9M | +$4.1M | +17% | | R&D Expense | $4.5M | $3.9M | +$0.6M | +17% | | G&A Expense | $8.7M | $5.8M | +$2.9M | +51% | - The **$2.9 million (51%) increase in General and Administrative expense** in Q2 2021 was primarily due to a $2.6 million increase in professional fees arising from a stockholder's nomination of a competing slate of directors[149](index=149&type=chunk) Comparison of Six Months Ended June 30, 2021 and 2020 | Metric | H1 2021 | H1 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $35.7M (Product), $50.0M (Service) | $27.0M (Product), $46.5M (Service) | +$8.7M, +$3.5M | +32%, +8% | | Costs of Sales | $54.7M | $48.8M | +$5.9M | +12% | | G&A Expense | $15.8M | $12.2M | +$3.7M | +30% | [Segment Discussion](index=32&type=section&id=Segment%20Discussion) This section provides a detailed analysis of the financial performance for each of the company's operating segments - **Mobile Connectivity (Q2 2021 vs Q2 2020):** **Net sales increased 16% to $33.8 million**, driven by a 20% rise in product sales (TracVision) and a 14% increase in service sales (mini-VSAT, from a 13% increase in subscribers) **Operating income was flat at $0.6 million**[153](index=153&type=chunk)[154](index=154&type=chunk)[155](index=155&type=chunk) - **Inertial Navigation (Q2 2021 vs Q2 2020):** **Net sales grew 24% to $9.6 million**, primarily from a 27% increase in product sales (FOG and TACNAV products) **Operating income increased significantly by 319% to $0.6 million from $0.2 million**[153](index=153&type=chunk)[157](index=157&type=chunk)[159](index=159&type=chunk) - **Mobile Connectivity (H1 2021 vs H1 2020):** **Net sales increased 11% to $64.3 million** The segment reported **operating income of $0.2 million compared to an operating loss of $1.7 million** in the prior year period[173](index=173&type=chunk)[174](index=174&type=chunk)[176](index=176&type=chunk) - **Inertial Navigation (H1 2021 vs H1 2020):** **Net sales rose 39% to $21.4 million**, driven by a 51% increase in product sales The segment **swung to an operating income of $2.7 million from an operating loss of $0.7 million**[173](index=173&type=chunk)[177](index=177&type=chunk)[179](index=179&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, sources of liquidity, and capital management strategies - As of June 30, 2021, the company had **$34.4 million in cash, cash equivalents, and marketable securities**[186](index=186&type=chunk) - **Net cash provided by operations was $4.8 million** for the first six months of 2021, a significant improvement from the **$2.9 million used in operations** in the same period of 2020[187](index=187&type=chunk) - The company received a **$6.9 million PPP loan** in May 2020 and plans to apply for forgiveness in August 2021[190](index=190&type=chunk)[192](index=192&type=chunk) - As of June 30, 2021, **no amounts were outstanding** under the 2018 Revolver, and the **full $15.0 million facility was available for borrowing**[194](index=194&type=chunk)[195](index=195&type=chunk) [Controls and Procedures](index=39&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2021 No material changes to internal control over financial reporting were identified during the second quarter of 2021 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective as of June 30, 2021**[203](index=203&type=chunk) - **No changes in internal control over financial reporting were identified** during the second quarter of 2021 that have materially affected, or are reasonably likely to materially affect, internal controls[204](index=204&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, significant risk factors, and a list of exhibits filed with the report [Legal Proceedings](index=40&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company states that it is not a party to any lawsuit or proceeding that, in management's opinion, is likely to have a material adverse effect on its business, financial condition, or cash flows - In the ordinary course of business, the company is party to various legal proceedings and claims, but **none are expected to materially harm the company**[208](index=208&type=chunk) [Risk Factors](index=40&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section details significant risks to the company's business Key risks include a history of financial losses and uncertainty of future profitability, the operational and financial burden of transitioning from a legacy to an HTS satellite network, intense competition in both mobile connectivity and inertial navigation markets, dependence on third-party suppliers and satellite providers, and the potential adverse impact of the COVID-19 pandemic and global economic conditions - **Financial Performance:** The company has a **history of substantial losses and expects to incur further losses** due to investments in its HTS network and new product development, such as the photonic chip-based fiber optic gyro[211](index=211&type=chunk) - **Operations:** The company is incurring **significant additional costs** by operating both its new HTS and legacy satellite networks simultaneously It plans to terminate the legacy network by the end of 2021, which may result in the **loss of customers** who are unable or unwilling to convert[217](index=217&type=chunk)[218](index=218&type=chunk) - **Industry and Competition:** The company faces **intense competition**, notably from companies competing on price The emergence of competing small maritime VSAT antennas could **reduce the competitive advantage** of its TracPhone V-HTS series[247](index=247&type=chunk)[249](index=249&type=chunk) - **Dependence on Third Parties:** The business **relies on satellite services, gateway teleports, and terrestrial networks from third parties** (e.g., Intelsat, ViaSat), over which it has little control It also **depends on sole or limited source suppliers** for key components, **creating supply chain risk**[227](index=227&type=chunk)[251](index=251&type=chunk) - **Economic Conditions:** The COVID-19 pandemic has **adversely impacted the business**, particularly the KVH Media Group which depends on travel Global economic disruptions could continue to **negatively affect revenues, operations, and the supply chain**[234](index=234&type=chunk)[235](index=235&type=chunk) - **Government Regulation & Sales:** A substantial portion of inertial navigation sales are to government customers, which are subject to **unpredictable funding and potential termination** Exports of certain products are also **subject to complex U.S. export regulations** like ITAR[243](index=243&type=chunk)[265](index=265&type=chunk) [Exhibits](index=53&type=section&id=ITEM%206.%20EXHIBITS) This section lists all supplementary documents and certifications filed as part of the report

Financial Data and Key Metrics Changes - Total revenues increased 16% in Q1 2021 to $42.3 million from $36.6 million in Q1 2020 [7] - Non-GAAP adjusted EBITDA in Q1 was $1.1 million compared to a loss of $3.7 million in Q1 2020 [7][34] - Consolidated gross profit margin improved to 37% from 32.1% in Q1 2020 [26] - Net loss for Q1 was $4.0 million compared to a net loss of $6.2 million in the same quarter last year [33] Business Line Data and Key Metrics Changes - Revenue from the inertial navigation segment increased by $4.1 million year over year with gross margin rising about 14.5 percentage points to 44.1% [26] - Revenue from the mobile connectivity segment increased by $1.6 million with a gross margin of 34.2%, up around 1.5 percentage points [26] - AgilePlans revenues increased by 48% compared to Q1 2020, representing 41% of the VSAT subscriber base [10] Market Data and Key Metrics Changes - Airtime revenue grew to $21.4 million, approximately 11% over the first quarter of last year, driven by a 7% increase in subscribers [30] - Revenue from the HTS network airtime was up 56% year over year [12] - The media and NEWSlink business continued to be negatively affected by the shutdown of cruise ship operations worldwide [10] Company Strategy and Development Direction - The company is focusing on migrating customers from the legacy network to the new global HTS network, expecting to shed roughly $12 million in annual network operating expenses [12] - The introduction of the TracPhone V30 is aimed at strengthening the company's position in the commercial market for fishing vessels and offshore workboats [15] - The company is expanding its IoT tech connectivity initiatives through KVH Watch, anticipating several new announcements in the coming weeks [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for VSAT products and the overall market recovery, particularly in the second half of the year [41] - The company is in a strong position with a solid balance sheet and is evaluating opportunities in a consolidating industry [43] - Management expects to see a nice bump in margins next year as subscriber growth continues [50] Other Important Information - Total backlog at the end of Q1 was $17 million, with approximately $13.8 million scheduled to be delivered this year [35] - Capital expenditures for 2021 are expected to be in the range of $15 million to $20 million, primarily driven by AgilePlans shipments [36] Q&A Session Summary Question: What have you learned in the first few months on the job? - The new CFO expressed confidence in the company's products and markets, noting a strong team and good prospects for growth [39] Question: How should we think about the visibility of customer returns activity by early Q3? - Management indicated that demand for VSAT products is increasing and expects a recovery in the cruise business by Q3 [41] Question: How is the company positioned regarding M&A and joint ventures in the industry? - Management acknowledged industry consolidation and emphasized the company's organic growth strategy, which has allowed it to gain market share without debt [43] Question: Can you clarify the network cost savings? - Management confirmed that the total network costs to be shed are around $12 million, with net savings expected to be closer to $6 million if subscriber numbers remain stable [48] Question: What is the outlook for TACNAV orders and DOD programs? - Management reported that about 70% of the annual forecast for TACNAV is already in backlog, with various smaller programs being pursued [67]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) For the transition period from to Commission File Number 0-28082 KVH Industries, Inc. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number) Delaware 05-0420589 50 Enterprise Center, Middletown, RI 02842 (Address of Principal Executive Of ices) (Zip Code) (401) 847-3327 (Registrant's Telephone Number, Including Are ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-28082 KVH Industries, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 05-0420589 (State or Other ...

KVH Industries, Inc. (NASDAQ:KVHI) Q3 2020 Results Conference Call October 29, 2020 9:00 AM ET Company Participants Donald Reilly - Chief Financial Officer Martin Kits van Heyningen - Chief Executive Officer Brent Bruun - Chief Operating Officer Conference Call Participants Rich Valera - Needham & Co Chris Quilty - Quilty Analytics Ric Prentiss - Raymond James Operator Good day, and welcome to the KVH Industries, Inc. Quarter 3 2020 Earnings Conference Call. Today's conference is being recorded. At this tim ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: September 30, 2020 OR (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number) Delaware 05-0420589 50 Enterprise Center, Middletown, RI 02842 (Address of Principal Executive Of ices) (Zip Code) (401) 847-3327 (Registrant's Telephone Number, Including ...

KVH Industries, Inc. (NASDAQ:KVHI) Q2 2020 Earnings Conference Call July 31, 2020 9:00 AM ET Company Participants Donald Reilly - Chief Financial Officer Martin Kits van Heyningen - Chief Executive Officer Brent Bruun - Chief Operating Officer Conference Call Participants Ric Prentiss - Raymond James Rich Valera - Needham & Company Chris Quilty - Quilty Analytics Operator Good day and welcome to the KVH Industries, Inc. Q2 2020 Earnings Conference Call. Today’s call is being recorded. At this time, I would ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-28082 KVH Industries, Inc. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or ...

KVH Industries, Inc. (NASDAQ:KVHI) Q1 2020 Earnings Conference Call May 1, 2020 9:00 AM ET Company Participants Don Reilly - Chief Financial Officer Martin Kits van Heyningen - Chief Executive Officer Brent Bruun - Chief Operating Officer Conference Call Participants Ric Prentiss - Raymond James Christopher Van Horn - B. Riley FBR Chris Quilty - Quilty Analytics Rich Valera - Needham Operator Good day, and welcome to the KVH Industries First Quarter 2020 Earnings Conference Call. Today's conference is being ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-28082 KVH Industries, Inc. Indicate by check mark whether the registrant has submitted electronically every Interactive Data File ...