MIDDLETOWN – KVH Industries reported a 13% decline in fourth-quarter revenue from the same period a year earlier, from $36 million in 2022 to $31.5 million in 2023.
The company reported a $12.2 million net loss for the fourth quarter, down from a $788,000 profit in the fourth quarter of 2022. The loss was partly caused by a 71% increase in the costs of product sales to $13.1 million.
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For the full year, KVH posted a $15.4 million loss, down from a $24 million profit in 2022. The Aquidneck Island-based manufacturer said it had revenue of $132.4 million in 2023, down from $138.8 million in 2022.
The financial results, announced March 15, come shortly after the company said in February that it planned to lay off 75 employees – about 20% of its workforce – at its Middletown manufacturing facility. The company said the layoffs would save it an expected $9.3 million.
KVH produces maritime satellite connectivity technology and satellite TV terminals.
“We’ve taken a major step in our transition from a capital-intensive, hardware-focused business to a more nimble, integrated solution-oriented organization through our recently announced reorganization and wind-down of our manufacturing operations, said CEO Brent Bruun.
The company recorded an annual airtime revenue increase of 4%, Bruun said, bringing this financial total to $107 million, and maintained year-over-year subscriber levels.
But “changes in the market impacted our VSAT and satellite TV terminal sales, which have been an essential element of our offering, but are no longer contributing towards the achievement of our profitability goals,” Bruun said in a statement. “As a result, our airtime revenue growth was offset by a decline in hardware sales.
“While we believe these actions will generate significant savings as we go forward, our industry is in transition, with unprecedented change, competition, and uncertainty,” he continued.
KVH anticipates that its 2024 revenue will fall in the range of $125 million to $135 million, Bruun said.
Jacquelyn Voghel is a PBN staff writer. You may reach her at Voghel@PBN.com.
