KVH Industries, Inc. has announced its financial results for the third quarter of 2023. Total revenues from continuing operations in the third quarter were $33.5 million, a 5% decrease compared to the same period last year.
Notably, VSAT airtime revenue increased by $0.7 million, or 3%, in the third quarter of 2023 compared to the third quarter of 2022. However, the company reported aggregate non-cash impairment charges of $6.0 million against goodwill and long-lived assets for the KVH Media Group and Mobile Broadband reporting units.
Including the impairment charges, the net loss from continuing operations in the third quarter of 2023 was $4.2 million, or $0.22 per share, compared to a net loss of $0.1 million, or $0.01 per share, in the third quarter of 2022. Excluding the impairment charge, net income from continuing operations would have been $1.8 million instead of a net loss of $4.2 million.
Non-GAAP adjusted EBITDA from continuing operations, adjusted to exclude the impairment charges, was $4.5 million, compared to $3.9 million in the third quarter of 2022.
CEO Brent C. Bruun commented on the results, highlighting KVH’s new relationship as a Starlink reseller and their exclusive maritime agreement with Kognitive Networks. These initiatives are part of KVH’s strategic evolution into a multi-orbit, multi-channel integrated solution provider. Bruun believes that incorporating Starlink technology and Kognitive’s network and bandwidth management tools will enhance their mobile communication service offerings and deliver the integrated network connectivity desired by commercial and leisure vessels.
In summary, KVH Industries reported a decline in total revenues and net loss from continuing operations in the third quarter of 2023. Nevertheless, the company is actively pursuing partnerships and expanding its service offerings to adapt to evolving market demands for maritime connectivity.