Revenue Performance - Net sales decreased by $4.2 million, or 13%, for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to a $4.6 million decrease in airtime service sales [118]. - Service sales decreased by $5.0 million, or 17%, to $24.4 million for the three months ended September 30, 2024, driven by a decline in VSAT-only subscribers [118]. - Net sales decreased by $14.0 million, or 14%, for the nine months ended September 30, 2024, with service sales down 15% to $74.1 million and product sales down 9% to $12.8 million [131]. Cost Management - Costs of sales decreased by $1.1 million, or 5%, to $19.7 million for the three months ended September 30, 2024, compared to $20.7 million in the same period in 2023 [121]. - Costs of service sales decreased by $1.3 million, or 8%, to $15.0 million for the three months ended September 30, 2024, primarily due to a decrease in airtime costs [122]. - Costs of sales decreased by $5.1 million, or 8%, to $58.8 million for the nine months ended September 30, 2024, with costs of sales as a percentage of net sales increasing to 68% from 63% [133]. Product and Service Sales - Product sales increased by $0.8 million, or 20%, to $4.6 million for the three months ended September 30, 2024, primarily due to a $1.2 million increase in Starlink product sales [120]. - For the three months ended September 30, 2024, costs of product sales increased by $0.2 million, or 5%, to $4.7 million from $4.5 million in the same period of 2023, with costs of product sales as a percentage of product sales decreasing to 103% from 119% [123]. Research and Development - Research and development expense for the three months ended September 30, 2024 decreased by $1.0 million, or 41%, to $1.4 million from $2.4 million for the same period in 2023, representing 5% of net sales compared to 7% in 2023 [124]. - Research and development expense for the nine months ended September 30, 2024 decreased by $0.6 million, or 8%, to $6.8 million, representing 8% of net sales compared to 7% in 2023 [137]. Operating Expenses - Sales, marketing, and support expense for the three months ended September 30, 2024 increased by $0.1 million, or 2%, to $4.9 million, with the expense as a percentage of net sales rising to 17% from 15% [126]. - Sales, marketing, and support expense remained flat at $15.7 million for the nine months ended September 30, 2024, with the expense as a percentage of net sales increasing to 18% from 16% [138]. - General and administrative expense for the three months ended September 30, 2024 decreased by $0.6 million, or 13%, to $3.8 million, maintaining 13% of net sales for both periods [127]. Cash Flow and Financing - As of September 30, 2024, the company had $49.8 million in cash, cash equivalents, and marketable securities, with $108.1 million in working capital [143]. - Net cash used in operations was $13.6 million for the nine months ended September 30, 2024, compared to $2.7 million for the same period in 2023, primarily due to increased cash outflows related to prepaid expenses and other current assets [145]. - Net cash provided by financing activities decreased to $0.1 million for the nine months ended September 30, 2024, down from $2.3 million for the same period in 2023, representing a decrease of $2.2 million [147]. - The decrease in net cash provided by financing activities was primarily due to a $2.5 million decrease in cash inflows from the exercise of stock options and employee stock purchase plan purchases [147]. - Cash outflows related to the repurchase of common stock decreased by $0.2 million, which partially offset the overall decrease in cash inflows [147]. Strategic Changes - The company expects continued decline in quarterly revenues from VSAT service sales due to competition from LEO satellite service providers [119]. - The company announced a staged wind-down of its product manufacturing operations, reducing headcount by approximately 75 employees, or 20% of its total workforce [109]. - The company prepaid $17.0 million for access to a large block of Starlink Mobile Priority data at favorable rates, enhancing flexibility in developing custom airtime plans [110]. - The company plans to continue facilitating customer transitions to third-party hardware products compatible with its mobile satellite communications services [108]. - An impairment charge of $1.1 million was recorded for the property at 75 Enterprise Center, as its carrying value exceeded fair value less costs to sell [111].

Financial Performance - Total revenues decreased by 13% in Q3 2024 to $29.0 million from $33.2 million in Q3 2023[2] - Airtime revenue decreased by $4.6 million, or 17%, to $22.8 million in Q3 2024 compared to Q3 2023[2] - Net loss in Q3 2024 was $1.2 million, or $0.06 per share, compared to a net loss of $4.4 million, or $0.23 per share, in Q3 2023[3] - Non-GAAP adjusted EBITDA was $2.9 million in Q3 2024, down from $4.4 million in Q3 2023[4] - Service revenues for Q3 2024 were $24.4 million, a decrease of $5.0 million compared to Q3 2023[8] - Product revenues for Q3 2024 were $4.6 million, an increase of 20% compared to Q3 2023, driven by a $1.2 million increase in Starlink product sales[9] - Net sales for the three months ended September 30, 2024, were $28,971,000, a decrease of 12.5% compared to $33,195,000 for the same period in 2023[24] - Service sales decreased to $24,410,000, down 17.5% from $29,397,000 year-over-year, while product sales increased to $4,561,000, up 20.1% from $3,798,000[24] - The net loss for the three months ended September 30, 2024, was $1,199,000, compared to a net loss of $4,369,000 for the same period in 2023, representing a 72.6% improvement[24] - Non-GAAP adjusted EBITDA for the three months ended September 30, 2024, was $2,932,000, compared to $4,385,000 for the same period in 2023, reflecting a decrease of 33.1%[28] - The company reported a loss from operations of $1,991,000 for the three months ended September 30, 2024, compared to a loss of $5,150,000 for the same period in 2023[24] Expenses and Assets - Operating expenses decreased by $6.3 million to $11.3 million in Q3 2024 compared to $17.6 million in Q3 2023[10] - Total costs and expenses for the three months ended September 30, 2024, were $30,962,000, a decrease of 19.1% compared to $38,345,000 in the same period last year[24] - Cash, cash equivalents, and marketable securities decreased to $49,765,000 as of September 30, 2024, down from $69,771,000 at December 31, 2023[26] - Total current assets increased to $131,666,000 as of September 30, 2024, compared to $118,818,000 at December 31, 2023, marking an increase of 10.8%[26] - Stockholders' equity decreased to $142,698,000 as of September 30, 2024, down from $147,372,000 at December 31, 2023, a decline of 3.7%[26] Strategic Developments - KVH expanded its Starlink maritime options and achieved a new subscriber milestone in August 2024[15] - The company is adapting to technological disruptions and increasing hybrid LEO/GEO deployments to meet customer demands[5] - KVH plans to sell its warehouse building and surface parking lot in Middletown, Rhode Island, leading to non-cash impairment charges of $1.1 million[3] Shareholder Information - The weighted average number of common shares outstanding for the three months ended September 30, 2024, was 19,433,000, compared to 19,231,000 for the same period in 2023[24]

Core Points - KVH Industries, Inc. received the 2024 Product of Excellence Award for its TracVision® UHD7 satellite TV system at the 2024 NMEA Conference, marking the 27th consecutive year a KVH TracVision system has been recognized in the marine satellite TV category [1][2] Company Overview - KVH Industries, Inc. is a global leader in maritime and mobile connectivity, founded in 1982 and based in Middletown, RI, with operations in research, development, and manufacturing [4] - The company offers 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 [4]

Financial Data and Key Metrics Changes - Second quarter airtime revenue was $23.0 million, down $3.9 million from Q2 2023, with total revenue for the quarter at $28.7 million, representing a 15% decrease year-over-year [4] - Airtime gross margin decreased to 36.0% from 41.8% in the prior quarter, primarily due to churn in traditional VSAT vessels [9] - Adjusted EBITDA for the quarter was $2.6 million, with capital expenditures also at $2.6 million, resulting in adjusted EBITDA less CapEx of 0 [11] Business Line Data and Key Metrics Changes - The company experienced a slight increase in subscriber vessel count, reversing the decline from Q1, and shipped a record number of communication antennas for the second consecutive quarter [5] - Product gross profit for Q2 was negative $0.3 million, including $0.5 million in employee severance charges, but excluding these charges, product gross profit was positive $0.2 million compared to negative $1.4 million in Q1 of the previous year [10] Market Data and Key Metrics Changes - The maritime industry is undergoing significant changes due to the emergence of NGSO networks, impacting the company's service offerings and market positioning [4] - The company signed a bulk data distribution agreement with Starlink, enhancing its ability to develop and sell custom data plans [5] Company Strategy and Development Direction - The company has completed reorganization efforts aimed at repositioning for future growth, expecting annualized operating expense savings of approximately $5 million [4] - New product and service enhancements are underway, including the rollout of OneWeb service and expanded capabilities of CommBox Edge [7] Management's Comments on Operating Environment and Future Outlook - Management noted that the industry is changing rapidly, with a decline in stand-alone VSAT service subscriptions, but they are seeing growth in hybrid solutions [8] - The company anticipates subscriber growth in Q3 and is optimistic about achieving strategic, financial, and operational goals for 2024 [8] Other Important Information - The ending cash balance was $49.3 million, down approximately $17 million from the beginning of the quarter due to a payment related to the Starlink agreement [11] - The company expects 2024 revenue to be in the range of approximately $117 million to $127 million, with adjusted EBITDA expected between $6 million and $12 million [11] Q&A Session Summary Question: Clarification on cost savings - Management confirmed $5 million in annualized operating expense savings, correlating with previously mentioned figures [13] Question: Customer bundling trends - Existing customers are both swapping for Starlink and adding it to their existing VSAT services, with trends observed across leisure and commercial markets [14][15] Question: ARPU trends - ARPU is currently flat, with Starlink being a relatively small portion of the overall business [16][17] Question: Impact of maritime market dynamics - No significant negative impact from broader market dynamics, but Starlink is opening up new markets for both leisure and commercial vessels [19] Question: Status of OneWeb service - OneWeb service is currently in testing and expected to launch later this quarter [20] Question: Competitive landscape beyond Starlink - The next significant competitor expected is Amazon Kuiper, with OneWeb launching soon [26]

Sales Performance - Net sales decreased by $4.9 million, or 15%, for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to a $5.6 million decrease in VSAT service sales driven by a decrease in subscribers[101]. - Service sales decreased by $4.1 million, or 14%, to $24.7 million for the three months ended June 30, 2024, while Starlink service sales increased by $1.7 million[101]. - Product sales decreased by $0.8 million, or 17%, to $4.0 million for the three months ended June 30, 2024, primarily due to a decrease in unit sales volume[104]. - Net sales for the six months ended June 30, 2024 decreased by $9.8 million, or 14%, to $57.9 million compared to $67.7 million for the same period in 2023[114]. - Service sales decreased by $7.8 million, or 14%, to $49.7 million, primarily due to a $9.7 million decrease in VSAT service sales[114]. - Product sales decreased by $2.0 million, or 20%, to $8.2 million, driven by a $2.4 million decrease in VSAT Broadband product sales[115]. Costs and Expenses - Costs of sales decreased by $2.0 million, or 9%, in the three months ended June 30, 2024, to $19.8 million from $21.8 million in the same period in 2023[105]. - Costs of service sales remained flat at $15.5 million for both the three months ended June 30, 2024, and 2023, with costs of service sales as a percentage of service sales increasing to 63% from 54%[106]. - Costs of sales decreased by $4.0 million, or 9%, to $39.1 million, with costs of service sales at 59% of service sales for H1 2024, up from 55% in H1 2023[116]. - Research and development expense for Q2 2024 decreased by $0.1 million, or 4%, to $2.3 million, representing 8% of net sales compared to 7% in Q2 2023[108]. - Research and development expense for H1 2024 increased by $0.4 million, or 8%, to $5.4 million, representing 9% of net sales compared to 7% in H1 2023[118]. - Sales, marketing, and support expense for Q2 2024 increased by $0.2 million, or 4%, to $5.3 million, accounting for 19% of net sales, up from 15% in Q2 2023[109]. - General and administrative expense for Q2 2024 remained flat at $4.1 million, with an increase in percentage of net sales to 14% from 12% in Q2 2023[110]. - General and administrative expense for H1 2024 increased by $0.7 million, or 7%, to $9.4 million, accounting for 16% of net sales, up from 13% in H1 2023[120]. Strategic Changes - The company prepaid $17.0 million for access to a large block of Starlink Mobile Priority data under a new bulk data distribution agreement[96]. - The company expects the trend of declining VSAT service sales to continue, particularly due to the accelerated transition of the U.S. Coast Guard to Starlink services[103]. - The restructuring plan included a reduction of approximately 75 employees, or about 20% of the total workforce, resulting in severance charges of $3.4 million for the six months ended June 30, 2024[95]. - The company anticipates ceasing substantially all manufacturing activity by the end of 2025 as part of its strategic shift towards multi-orbit, multi-channel integrated communications solutions[94]. Customer Growth - Starlink terminal subscribers approximately doubled from March 31, 2024, to June 30, 2024, indicating a significant growth in the customer base for Starlink services[101]. Cash Flow - Net cash used in operations for H1 2024 was $15.5 million, an increase of $12.3 million compared to $3.2 million in H1 2023[125].

Exhibit 99.1 FOR IMMEDIATE RELEASE Contact: KVH Industries, Inc. Chris Watson 401-845-2441 IR@kvh.com KVH Industries Reports Second Quarter 2024 Results MIDDLETOWN, RI, August 1, 2024 — KVH Industries, Inc. (Nasdaq: KVHI), reported financial results for the quarter ended June 30, 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 web ...

MIDDLETOWN, R.I., July 29, 2024 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), will announce its financial results for the second quarter that ended on June 30, 2024, on Thursday, August 1, 2024. 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. KVH Industries, Inc. is a global leader in maritime and mobile connectivity delivered via the KVH ONE® network. The company, founded in 1982, is ...

MIDDLETOWN, R.I., July 29, 2024 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), will announce its financial results for the second quarter that ended on June 30, 2024, on Thursday, August 1, 2024. 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 availabl ...

MIDDLETOWN, R.I., June 25, 2024 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), today announced a greatly expanded relationship with Starlink through a bulk data distribution agreement with Starlink. The new agreement offers KVH increased flexibility in the development and sales of custom, costeffective airtime plans using Starlink's mobile priority service. Under the agreement, KVH prepaid for access to a large block of Starlink data at favorable rates over a period of more than a year. In additio ...

MIDDLETOWN, R.I., June 25, 2024 (GLOBE NEWSWIRE) -- KVH Industries, Inc. (Nasdaq: KVHI), today announced a greatly expanded relationship with Starlink through a bulk data distribution agreement with Starlink. The new agreement offers KVH increased flexibility in the development and sales of custom, costeffective airtime plans using Starlink's mobile priority service. Under the agreement, KVH prepaid for access to a large block of Starlink data at favorable rates over a period of more than a year. In additio ...