MIDDLETOWN, R.I., May 05, 2025 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), will announce its financial results for the first quarter that ended on March 31, 2025, on Wednesday, May 7, 2025. In conjunction with the release, the company will conduct its investor conference call at 9:00 a.m. ET, hosted by Mr. Brent Bruun, CEO, and Mr. Anthony Pike, CFO. A live broadcast of the call will be available online at investors.kvh.com. In addition, an audio replay of the conference call will be available ...

Sales Performance - Global high-throughput satellite (HTS) airtime service sales accounted for 71% of consolidated net sales in 2024, down from 81% in 2023[17] - Product sales represented 15% of consolidated net sales in 2024, an increase from 13% in 2023[17] Business Strategy - The company plans to wind down capital-intensive manufacturing activities by the end of 2025 due to reduced demand and increased competition[21] - The company plans to discontinue most manufacturing activities by the end of 2025, transitioning to third-party hardware for its solutions[59] - Significant inventory is held to support customer demand, with a ramp-up in production to meet anticipated needs before ceasing manufacturing[64] Product Offerings - The KVH ONE OpenNet Program allows vessels with non-KVH VSAT antennas to subscribe to KVH's global HTS network without hardware exchanges[27] - An exclusive multi-year agreement with Kognitive Networks was signed to integrate enterprise-grade network management tools into maritime communication services[28] - The company offers AgilePlans, a Connectivity as a Service (CaaS) model, which includes satellite communication hardware and services for a single monthly fee[24] - KVH Media Group distributes licensed entertainment content, contributing to the company's content service sales[30] - The global HTS network utilizes 182 Ku-band transponders on 31 satellites, with 138 transponders on high-throughput satellites[26] - TracNet H-series terminals offer data speeds of up to 20/3 Mbps for the H90 model, supporting a wide range of vessels from 40 feet to superyachts[38] - TracNet Coastal, introduced in late 2024, provides data speeds up to 300 Mbps and enables automatic switching from satellites to shore-based Wi-Fi[41] - The company began selling Starlink terminals in March 2023 and became an authorized reseller in September 2023, offering a hybrid solution with KVH's services[45] - A distribution agreement with Eutelsat OneWeb was announced in January 2024, aiming to expand multi-orbit hybrid network services with over 630 LEO satellites[46] - The company offers a range of products including TracPhone V30 and TracVision UHD7, catering to both leisure and commercial vessels[40][49] Market Competition - Competition is intensifying, particularly from SpaceX's Starlink and Eutelsat OneWeb, which are entering the high-speed marine market[68] - The company is facing increased competition from providers offering fully managed IT services, which may complicate its competitive position[74] Workforce and Operations - The global turnover rate for the company in 2024 was 37%, primarily driven by a reduction-in-force cost savings initiative[85] - Approximately 40 team members, or 15%, are directly involved in supporting technology in roles such as engineers, technicians, or software developers[84] - The company's total headcount as of December 31, 2024, was 260, including 247 full-time employees[81] - The average length of employee service at the company is 9 years, indicating a stable workforce[86] - The company has established relationships with major universities and professional associations to attract talent, hiring 15 professional level team members in 2024[92] Safety and Compliance - The company's OSHA total recordable incident rate in 2024 was 1.1%, compared to the national average of 2.4%[90] Research and Development - The company is focusing on research and development related to cellular products and emerging non-geostationary satellite orbit (NGSO) products and services[75] - The company anticipates ongoing demand for hybrid connectivity solutions offering GEO, LEO, and 5G/LTE Cellular connectivity in 2025[74] - The company expects to continue offering KVH-manufactured VSAT and satellite TV terminals through 2025 and potentially into 2026[72] Intellectual Property - The patent portfolio includes approximately seven issued patents and one pending application, with expiration dates between May 2031 and May 2037[55]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $26.9 million, a decrease of approximately 4.5% from Q4 2023 and effectively flat sequentially when excluding a $1.7 million revenue reduction from the U.S. Coast Guard [16][17] - Airtime gross margin for Q4 was 28.2%, down from 36.5% in the prior quarter, while excluding depreciation, it was 41.4%, compared to 48.6% in the prior quarter [21][22] - Adjusted EBITDA for Q4 was $0.5 million, with capital expenditures of $0.8 million, resulting in adjusted EBITDA less CapEx of negative $0.3 million [23][24] - Ending cash balance was $50.6 million, up approximately $0.8 million from the beginning of the quarter [25] Business Line Data and Key Metrics Changes - The company shipped over 1,000 Starlink units and approximately 200 VSAT terminals in Q4, marking a record for terminal shipments [8][9] - Active maritime Starlink terminals reached over 2,300 by the end of 2024, with around 1,000 terminals awaiting activation [9][10] - Demand for the CommBox Edge communication gateway remains strong, with Q4 activations doubling compared to Q3 [12] Market Data and Key Metrics Changes - Non-U.S. Coast Guard GEO Airtime revenue contracted by around $1 million in Q4, offset by increased Starlink revenues [16] - The total subscribing vessels at the end of Q4 were just below 7,100, representing a 4% increase from the prior quarter [22] Company Strategy and Development Direction - The company is transitioning from a focus solely on VSAT services to offering multi-orbit multichannel solutions, including LEO solutions like Starlink and a high-speed cellular solution [7] - Strategic initiatives include the addition of OneWeb to the satellite communications service portfolio and the launch of the TrackNet Coastal cellular Wi-Fi system [14][15] Management's Comments on Operating Environment and Future Outlook - Management anticipates that Starlink and other new revenue sources will outpace the decrease in GEO airtime revenue [17] - The company has implemented cost reduction initiatives, bringing recurring operating expenses down by almost 10% for the full year [17] - Management believes the company is in a stronger position now than a year ago and is on a path toward renewed growth and profitability [19] Other Important Information - The company is preparing to roll out new capabilities for the CommBox Edge, including cybersecurity features [13] - The company has made hard decisions to reconfigure operations and streamline costs, focusing on core strengths [19] Q&A Session Summary Question: Expectations for Starlink activations - The company shipped 1,000 terminals in Q4, with approximately 700 Starlink Maritime Terminals activated during the quarter [28][29] Question: Reasons for activation delays - Delays can occur due to terminals being installed on boats not yet taken over by owners or held by OEMs [32][33] Question: Customer base for Starlink - Activations include both new and existing customers, with new customers often transitioning from lower bandwidth systems [34][35] Question: Market response to emerging constellations - Anticipated market response to new constellations, but it is still early for significant impact [37] Question: Challenges with terminal pricing relative to competitors - OneWeb terminals are more expensive than Starlink, but customers seek diversity in network options [40][41] Question: CommBox traction and competitive features - The feature set of CommBox is expanding, particularly in cybersecurity, making it competitive in the market [45][46] Question: Cost management with VSAT terminal losses - The churn rate has decelerated, and the company is managing costs effectively alongside terminal losses [49][50]

Revenue Performance - Fourth quarter 2024 total revenues decreased by 14% to $26.9 million from $31.5 million in the fourth quarter of 2023[6]. - Airtime revenue for the fourth quarter of 2024 decreased by $5.1 million, or 20%, to $20.8 million compared to the same quarter in 2023[5]. - Full year 2024 revenue was $113.8 million, a decrease of 14% compared to $132.4 million for the year ended December 31, 2023[10]. - Full year 2024 service revenues were $96.4 million, a decrease of 16% compared to the previous year, primarily due to a $17.1 million decrease in airtime service sales[11]. - Net sales for Q4 2024 were $26,917 million, a decrease of 14.5% compared to $31,455 million in Q4 2023[23]. Profitability and Loss - The net loss for the fourth quarter of 2024 was $4.3 million, or $0.22 per share, an improvement from a net loss of $12.2 million, or $0.63 per share, in the fourth quarter of 2023[6]. - The net loss for Q4 2024 was $4,310 million, compared to a net loss of $12,193 million in Q4 2023, showing a significant improvement[23]. - Non-GAAP adjusted EBITDA for the fourth quarter of 2024 was $0.5 million, down from $2.3 million in the fourth quarter of 2023, impacted by a $2.2 million reduction due to the U.S. Coast Guard contract downgrade[5]. - The company reported a non-GAAP adjusted EBITDA of $512 million for Q4 2024, compared to $2,284 million in Q4 2023, highlighting ongoing operational challenges[27]. Cost Management - Operating expenses decreased by $8.1 million to $47.1 million for the year ended December 31, 2024, compared to $55.2 million in 2023[13]. - Total costs and expenses for the year ended December 31, 2024, were $125,711 million, down from $149,724 million in 2023, reflecting cost-cutting measures[23]. - Research and development expenses for the year ended December 31, 2024, were $8,439 million, down from $9,399 million in 2023, indicating a focus on cost management[23]. Asset and Liquidity Position - Total assets decreased to $155,081 million in 2024 from $172,634 million in 2023, reflecting a reduction in cash and cash equivalents[25]. - Cash, cash equivalents, and marketable securities decreased to $50,572 million in 2024 from $69,771 million in 2023, indicating liquidity pressures[25]. - Interest income for the year ended December 31, 2024, was $3,039 million, down from $3,646 million in 2023, indicating a decline in interest-earning assets[23]. Future Outlook - For full year 2025, the company anticipates revenue in the range of $115 million to $125 million and adjusted EBITDA between $9 million and $15 million[5]. - Starlink terminals shipped exceeded 1,000 in the fourth quarter, with over 2,300 activations in 2024, marking it as the fastest growing product line in the company's history[4]. - Product revenues for the fourth quarter of 2024 increased by 24% to $4.6 million, driven by a $1.2 million increase in Starlink product sales[8]. Goodwill and Asset Valuation - The company incurred a goodwill impairment charge of $5,333 million in 2023, which was not repeated in 2024, suggesting improved asset valuation[23]. - The weighted average number of common shares outstanding for Q4 2024 was 19,453 million, slightly up from 19,250 million in Q4 2023[23].

MIDDLETOWN, R.I., March 06, 2025 (GLOBE NEWSWIRE) -- KVH Industries, Inc., (Nasdaq: KVHI), reported financial results for the quarter and full year ended December 31, 2024 today. The company will hold a conference call to discuss these results at 9:00 a.m. ET today, which can be accessed at investors.kvh.com. Following the call, a replay of the webcast will be available through the company’s website. Fourth Quarter 2024 Highlights Total revenues decreased by 14% in the fourth quarter of 2024 to $26.9 millio ...

Company Overview - KVH Industries, Inc. is a global leader in maritime and mobile connectivity, operating through the KVH ONE network [3] - The company was founded in 1982 and is headquartered in Middletown, RI, with research, development, and manufacturing operations also located in Middletown, RI, and over a dozen offices worldwide [3] - KVH provides connectivity solutions for various sectors including commercial maritime, leisure marine, military/government, and land mobile applications, featuring product lines such as TracNet, TracPhone, and TracVision [3] Financial Results Announcement - KVH Industries will announce its financial results for the fourth quarter and fiscal year ending December 31, 2024, on March 6, 2025 [1] - An investor conference call will be held at 9:00 a.m. ET, hosted by CEO Brent Bruun and CFO Anthony Pike [1] Investor Engagement - A live broadcast of the conference call will be available online at investors.kvh.com, with an audio replay accessible for at least two weeks post-call [2] - Investors can submit questions during or after the call via email to IR@kvh.com [2]

Core Viewpoint - KVH Industries, Inc. has announced the sale of its Rhode Island office and factory, expecting to generate approximately $12 million for working capital and strategic opportunities, while also initiating a share repurchase program of up to $10 million [2][5]. Group 1: Property Sales - KVH has entered into a purchase and sale agreement with Knight Capital LLC to sell its property at 75 Enterprise Center, Middletown, Rhode Island, for $8.5 million, including related buildings and assets [2][4]. - The company will remain a tenant under a triple-net lease for an initial term of six months, with the option to extend for an additional three months as it transitions to a new headquarters [3]. - A second agreement was made with 50 Enterprise LLC, a subsidiary of Seacorp, Inc., to sell its property at 50 Enterprise Center for $4.5 million, also including related buildings and assets [4]. Group 2: Share Repurchase Program - The Board of Directors has authorized a share repurchase program allowing the company to buy back up to $10 million of its common stock [5]. - The repurchase may occur through various means, including open market purchases and privately negotiated transactions, with management having discretion over the timing and volume [6]. - The program does not obligate KVH to repurchase a minimum number of shares and can be modified or terminated at any time [6].

Core Insights - KVH Industries, Inc. has launched TracNet Coastal and TracNet Coastal Pro terminals, enhancing its maritime connectivity portfolio with a cellular/Wi-Fi system [1][2] - TracNet Coastal offers connectivity in 135 countries, utilizing KVH Fusion eSIM technology for high-performance communication [1][3] - The demand for faster and more reliable connectivity at sea is increasing, with TracNet Coastal providing cellular speeds up to 300 Mbps and data costs as low as $1 per gigabyte [2][3] Product Features - TracNet Coastal is a standalone hybrid communication system that can also enhance existing VSAT and low earth orbit (LEO) services [1][2] - The system features intelligent hybrid switching, allowing automatic switching to marina Wi-Fi when in port, thus saving data costs [2][3] - TracNet Coastal is available in two configurations: a standalone system and a more advanced Pro version that supports additional WAN connections [3] Technology and Innovation - The exclusive KVH Fusion eSIM technology enables seamless global cellular service without the need for physical SIM cards [3] - TracNet Coastal supports Wi-Fi calling and integrates with various WAN connections, including Starlink and OneWeb, providing flexibility for users [3] - The system is designed for easy installation with a single cable and optional mounting brackets, making it user-friendly for maritime applications [2][3] Market Position - KVH Industries is positioned as a global leader in maritime and mobile connectivity, serving various sectors including commercial maritime and leisure marine [5] - The introduction of TracNet Coastal and Pro terminals aims to meet the growing expectations for high-speed connectivity in coastal waters and ports [2][3]

Earnings Overview - KVH Industries held its Q3 2024 earnings conference call on November 7, 2024, with key participants including CFO Anthony Pike and CEO Brent Bruun [1][2][3] - The earnings release for Q3 2024 was published earlier on the same day, and a recording of the call will be available on the company's website [3][4] Financial Metrics - The company discussed adjusted EBITDA, a non-GAAP financial measure, with definitions and reconciliations provided in the press release [5] Forward-Looking Statements - The conference call included forward-looking statements subject to assumptions and uncertainties, which may cause actual results to differ from those expressed [4]

Financial Data and Key Metrics Changes - Third quarter airtime and service revenue was $24.4 million, down $5 million from the third quarter of 2023 [7] - Total revenue for the quarter was $28.9 million, roughly a 13% decrease from a year earlier [8] - Airtime gross margin was 36.5%, up from 36.0% in the prior quarter [17] - Adjusted EBITDA for the quarter was $2.9 million, with capital expenditures of $1.5 million, resulting in adjusted EBITDA less CapEx of $1.4 million [20] - Ending cash balance was $49.8 million, up approximately $0.5 million from the beginning of the quarter [20] Business Line Data and Key Metrics Changes - The company increased its subscribing vessel count for the second consecutive quarter, reaching just below 6,800 vessels, a 2% increase from the prior quarter [19] - The company shipped a record number of communication antennas for the third consecutive quarter, driven by an increase in Starlink terminals and continued demand for VSAT units [8] - Shipments of the CommBox Edge Communications Gateway also increased for the second consecutive quarter [9] Market Data and Key Metrics Changes - Strong demand for mobile priority data service has led to the activation of more than 1,500 terminals since the start of the year [10] - The company is expanding beyond the maritime market with new priority plans for stationary use, including land-based applications in the U.S., Colombia, and Argentina [10] Company Strategy and Development Direction - The company is adapting to technological disruptions by expanding its portfolio of new technology and services, including the introduction of the OneWeb service [15][13] - The hybrid LEO/GEO deployments are increasing to meet the demands for leisure boaters and commercial fleets [16] - The company is focusing on a multichannel portfolio, including Starlink, to enhance communications for commercial and leisure subscribers worldwide [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges but expressed confidence in the path toward growth and profitability [16] - The company is responding to the U.S. Coast Guard's scaled-back airtime and VSAT terminal deployments as part of their annual renewal [13] - Management expects a good portion of prepaid commitments from Starlink to run off in 2025 [31] Other Important Information - The company is working on the final build-out of its manufacturing facility, which has led to an increase in inventories due to the procurement of raw materials [32] - Operating expenses for Q3 were $11.3 million, including a $1.1 million impairment charge related to the reclassification of the U.S. manufacturing facility [19] Q&A Session Summary Question: Follow-up on vessel count and growth between Starlink and VSAT units - Management clarified that while standalone VSAT units are contracting, many are being bundled with Starlink terminals, indicating a shift rather than a complete shedding of VSAT units [22][24] Question: Pipeline growth for Starlink - Management confirmed a robust pipeline for Starlink, with record terminal shipments and an expansion in the number of vessels potentially served [27] Question: Changes in distribution channels - Management stated that the distribution channels are robust and continuously adjusted to reach new potential subscribers, especially with the introduction of Starlink [28] Question: R&D investments outlook - Management indicated that the current R&D team is appropriately sized, and no major increases in R&D spending are anticipated [33] Question: Positioning of OneWeb relative to Starlink - Management noted that OneWeb will not be positioned directly against Starlink but rather as part of a hybrid service offering [36]