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KVH Industries Inc. (KVHI-0.19%) has submitted its annual report on Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details KVH's operations as a provider of connectivity solutions, primarily serving maritime commercial, leisure, and military/government customers. The company offers global high-speed Internet and Voice over Internet Protocol (VoIP) services via satellite, as well as commercially licensed entertainment content.
KVH reported net sales of $113.8 million for 2024, a decrease from $132.4 million in 2023. Service sales accounted for $96.4 million, primarily driven by airtime services, while product sales contributed $17.4 million.
The company announced a wind-down of its manufacturing operations in February 2024, aiming to discontinue capital-intensive activities by the end of 2025. This decision followed reduced demand for hardware products due to increased competition.
KVH expanded its relationship with Starlink in 2024, entering a bulk data distribution agreement and prepaying $17.0 million for Starlink Mobile Priority data.
The company recorded a net loss of $11.0 million for 2024, compared to a net loss of $15.4 million in 2023. The decrease in loss was attributed to lower costs of sales and reduced general and administrative expenses.
KVH's gross margin on service sales was impacted by fixed costs associated with its VSAT Broadband network, despite improved margins on Starlink airtime services.
The company anticipates ongoing demand for its hybrid connectivity solutions, which include GEO, LEO, and 5G/LTE Cellular connectivity, despite facing intensified competition from new market entrants.
KVH's restructuring efforts included a reduction in workforce by approximately 75 employees. The company incurred $3.9 million in severance charges related to this restructuring.
The filing also highlights KVH's strategic focus on transitioning customers to third-party hardware products compatible with its mobile satellite communications services.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the KVH Industries Inc. annual 10-K report dated March 10, 2025. To report an error, please email earnings@qz.com.