Company: KVHI
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001007587-25-000008
Chunk: 4

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 2
Chunk 4
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 and these revenues typically decline in the third and fourth quarters of each year, compared to the first two quarters.

Critical Accounting Estimates

The discussion and analysis of our financial condition and results of operations are based upon our consolidated interim financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these interim financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosure at the date of our interim financial statements. Our significant accounting policies are summarized in Note 1 to the consolidated financial statements in our annual report on Form 10-K for the year ended December 31, 2024.

Critical accounting estimates are those estimates made that involve a significant level of estimation uncertainty and have had or are reasonably likely to have an impact on our statement of operations. We believe that our accounting estimates for intangible assets and other long-lived assets are the only estimates critical to an understanding and evaluation of our financial results for the three months ended March 31, 2025, as discussed below.

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Results of Operations

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

Three Months Ended March 31, 20252024Sales:Service85.2 %85.6 %Product14.8 14.4 Net sales100.0 100.0 Cost and expenses:Costs of service sales56.0 48.0 Costs of product sales14.7 18.1 Research and development4.7 10.4 Sales, marketing and support19.5 18.4 General and administrative13.9 18.1 Total costs and expenses108.8 113.0 Loss from operations(8.8)(13.0)Interest income2.2 3.1 Other expense, net— (0.7)Loss before income tax expense(6.6)(10.6)Income tax expense0.1 0.3 Net loss(6.7)%(10.9)%

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Three months ended March 31, 2025 and 2024 

Net Sales

Our net sales for the three months ended March 31, 2025 and 2024 were as follows: 

ChangeFor the three months ended March 31,2025 vs. 202420252024$%(dollars in thousands)