Company: KVHI
Filing Date: 2025-03-10
Form Type: 10-K
Source: 0001007587-25-000003
Chunk: 170

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-03-10
Form: 10-K
Item: Item 1
Chunk 170
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 excess purchase order obligations, both relating to the reduced demand for our hardware products, which led to the staged wind-down of our manufacturing activities at our facility in Middletown, Rhode Island noted above. Please see Note 14 of our accompanying financial statements for additional details surrounding the wind-down of our manufacturing activities.

Supply Chain

During 2023, we continued to experience delays in the availability and delivery of certain raw material components. We also experienced increased raw material costs. We are continuing to monitor global developments, including the impact of inflation, and are prepared to implement actions that we determine to be necessary to sustain our business.

Results of Operations

The following table provides, for the periods indicated, certain financial data expressed as a percentage of net sales:

 Year Ended December 31, 20242023Sales:Service84.7 %86.6 %Product15.3 13.4 Net sales100.0 100.0 Costs and expenses:Costs of service sales52.7 49.4 Costs of product sales 16.3 22.0 Research and development7.4 7.1 Sales, marketing and support 18.5 15.8 General and administrative14.5 14.3 Goodwill impairment charge— 4.0 Long-lived assets impairment charge1.0 0.5 Total costs and expenses110.4 113.1 Loss from operations(10.4)(13.1)Interest income2.7 2.8 Interest expense— — Other expense, net(1.6)(1.1)Loss before income taxes expense (9.3)(11.4)Income tax expense0.4 0.2 Net loss(9.7)%(11.6)%

28

Years ended December 31, 2024 and 2023 

Our net sales for 2024 and 2023 were as follows:

Change Year Ended December 31,2024 vs. 2023 20242023$% (in thousands)Service sales$96,446 $114,622 $(18,176)(16)%Product sales17,382 17,757 (375)(2)%Net sales113,828 132,379 (18,551)(14)%

Net sales decreased by $18.6 million, or 14%, in 2024 as compared to 2023. Service