Company: KVHI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001007587-25-000012
Chunk: 8

Company: KVH INDUSTRIES INC \DE\
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 8
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 resulted primarily from a $0.3 million decrease in salaries, benefits and taxes and a $0.3 million decrease in facilities expense, partially offset by a $0.2 million increase in professional fees and a $0.2 million increase in warranty expense. As a percentage of net sales, sales, marketing and support expense was 19% for both the three months ended June 30, 2025 and 2024.

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General and administrative expense consists of costs attributable to management, finance and accounting, information technology, human resources, certain outside professional services, and other administrative costs. General and administrative expense for the three months ended June 30, 2025 decreased by $0.6 million, or 13%, to $3.6 million from $4.1 million for the three months ended June 30, 2024. The decrease in general and administrative expense resulted primarily from a $0.5 million decrease in salaries, benefits and taxes, after giving effect to $0.3 million in costs incurred during the three months ended June 30, 2024 related to the reduction in our workforce. In addition, there was a $0.2 million decrease in depreciation expense. These decreases in expense were partially offset by a $0.4 million increase in facilities expense. As a percentage of net sales, general and administrative expense was 13% and 14% for the three months ended June 30, 2025 and 2024, respectively. We currently plan to migrate our Rhode Island operations to a leased facility in the spring of 2026, at which point our general and administrative expense will include lease expense at the rate of approximately $0.6 million for the first year of the lease (excluding three months of free rent).

Interest and Other Income (Expense), Net

Interest income represents interest earned on our cash and cash equivalents, as well as from investments and our sale-type lease receivables. Interest income decreased by $0.3 million to $0.6 million for the three months ended June 30, 2025 from $0.9 million for the three months ended June 30, 2024, primarily as a result of lower cash balances in 2025 as a result of the $17.0 million prepayment in June 2024 for access to a large block of Starlink Mobile Priority data at favorable rates. Of the current period interest income of $0.6 million, $0.5 million is attributable to interest earned