KVH Industries Navigates Challenges in Q2 2024
KVH Industries Navigates Challenges in Q2 2024
KVH Industries, Inc. (NASDAQ: KVHI), a global leader in mobile connectivity solutions, today announced its financial results for the second quarter ended June 30, 2024.
Revenue Decline Amidst Operational Changes
The company reported a revenue of $28.7 million for the quarter, marking a 15% decrease compared to the same period last year. This decline can be attributed to several factors, including a challenging market environment and the ongoing restructuring of the company’s operations.
KVH has been actively streamlining its business to focus on core competencies and improve profitability. As part of this process, the company incurred $1.2 million in employee termination costs related to the wind-down of manufacturing activities at its Middletown, Rhode Island facility.
Financial Performance and Outlook
Despite the revenue decline, KVH managed to generate a non-GAAP adjusted EBITDA of $2.6 million for the quarter. While this represents a decrease from the previous year, it demonstrates the company’s efforts to control costs and improve operational efficiency.
Net loss for the quarter was $2.4 million, or $0.12 per share, compared to net income of $0.8 million, or $0.04 per share, in the second quarter of 2023.
Looking ahead, KVH remains committed to its strategic transformation and expects to emerge from the reorganization as a more focused and competitive company. The company believes that its new bulk data distribution agreement with Starlink will provide additional flexibility in developing and selling custom plans.
About KVH Industries, Inc.
KVH Industries, Inc. is a leading provider of mobile connectivity and content delivery solutions. The company’s TracPhone satellite communications systems and TracVision video entertainment systems are used by commercial and leisure marine customers, land-based mobile enterprises, and government agencies worldwide. KVH is also a premier provider of maritime content. For more information, visit www.kvh.com.
Safe Harbor Statement
This release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements about the Company’s financial performance, business outlook, plans and objectives. Actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors. For a discussion of the factors that could cause actual results to differ materially from any forward-looking statements, please see the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as amended, which is on file with the Securities and Exchange Commission (SEC). KVH Industries undertakes no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this release.
