KVH Industries posted a 15% decline in revenues in the second quarter, from $33.6 million for to $28.7 million year-over-year.
Airtime revenue was down by the same percentage, which translated to a decrease of $3.9 million to $23 million for the quarter. “Employee termination costs of $1.2 million were incurred as the company scaled down manufacturing in Middletown, R.I.
“The maritime communications industry continues to undergo significant changes driven by the emergence of LEO networks,” CEO Brent C. Bruun said in a statement. “We have taken aggressive steps this year, both in anticipation of and in response to these changes, in order to position the company to adapt to new market realities.”
Bruhn said that the company’s recent reorganization should result in a decrease of about $5 million in operating expenses. He also said KVH had a minor increase in total subscribing vessels in the second quarter and that it has activated more than 1,000 new Starlink terminals for new and existing customers.
Net loss in the second quarter was $2.4 million, or $0.12 per share, compared with net income of $800,000, or $0.04 per share, in the previous year. Service revenues for the quarter were $24.7 million, a decrease of $4.1 million due primarily to a $3.9 million drop in airtime service sales.
For the six months ended June 30, revenue was $57.9 million, a decrease of 14% year-over-year. Service revenues for the first six months of the year were down 14%, including a $7.4 million decline in airtime service sales.
