KVH Industries Q4 Loss Narrows, CEO To Retire; To Reduce Workforce By About 10%

KVH Industries Inc., (KVHI), a provider of innovative, technology-driven connectivity and navigation solutions, reported a loss for the fourth quarter that narrowed from the previous year. The company will reduce its workforce by about 10%. The company’s longstanding President and Chief Executive Officer, Martin Kits van Heyningen, is retiring.

For 2022, the company expects consolidated annual revenue growth between 2% and 5%. It expects that EBITDA will improve significantly, growing from $4 million in 2021 to between $11 million and $15 million in 2022.

The company noted that its net loss for the fourth quarter of 2021 narrowed to $4.1 million or $0.22 per share, from $11.6 million or $0.65 per share, in the fourth quarter of 2020. Analysts polled by Thomson Reuters expected the company to report a loss of $0.08 per share for the fourth quarter. Analysts’ estimates typically exclude special items.

Revenue for the fourth quarter of 2021 was $43.1 million, a decrease of 2% from $44.1 million in the fourth quarter of 2020. Analysts expected revenues of $42.73 million for the fourth quarter.

The company also announced that it will restructure its operations to reduce costs and better reflect a more focused strategy. The company will reduce its workforce by approximately 10% and expects annualized savings of at least $5 million from these actions.

The company anticipates the bulk of associated one-time costs to be incurred in the first quarter of fiscal year 2022, with the benefit to earnings beginning in the second quarter of fiscal year 2022.

In a separate press release, KVH Industries announced that its longstanding President and Chief Executive Officer, Martin Kits van Heyningen, is retiring from his executive and Board roles after more than 40 years at the company.

The company noted that its board has engaged a nationally recognized executive search firm to identify a new Chief Executive Officer. During this process, current Chief Operating Officer Brent Bruun will assume the role of Interim Chief Executive Officer.

The company appointed Cathy-Ann Martine-Dolecki, one of KVH’s current independent directors, to serve as the new Chairman of the Board.

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