KVH Industries(KVHI) - 2024 Q4 - Annual Results

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$20.8 million compared to the same quarter in 2023[5]. - Full year 2024 revenue was $113.8 million, a decrease of 14$132.4 million for the year ended December 31, 2023[10]. - Full year 2024 service revenues were $96.4 million, a decrease of 16$17.1 million decrease in airtime service sales[11]. - Net sales for Q4 2024 were $26,917 million, a decrease of 14.5$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].