KVHI - Earnings call transcript Q3 2019

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Operator

Good day, and welcome to the KVH Industries, Incorporated Third Quarter 2019 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Don Reilly, Chief Financial Officer. Please go ahead, sir.

Donald Reilly

Operator. you, Thank everyone. Good morning, the joining quarter us fourth KVH for included to and morning. published today and our third in is results, which XXXX all Industries’ release guidance we full-year, this Thanks of discuss earnings for quarter the

Officer; this Executive Brent me Company's on Van the Chief is call With Bruun, Kits our Martin Heyningen, Chief and Officer. Operating

department. is and also Investor Relations website available from our on release earnings The our

access a If like can today's listen call, a website. to of replay you recording webcast would to our on you

you submit are listening free If via the questions feel web, to to ir@kvh.com.

no will Forward-Looking from to assumptions materially our any revise This contain conference update to may results subject actual that those many expressed call or uncertainties cause obligation that statements. certain undertake forward-looking Statements in differ are these to and We statements.

GAAP also of available will and these of Investor Form Company's well those in website. to We SEC and measures, certain non-GAAP statements to financial made these find our measures We as discuss you Release in definitions our will Factors be comparable review the in our is measures. as Xst, reconciliations filed this XX-Q on encourage heading Information March filed section afternoon, Risk cautionary of specifically under and Press filings expected you the the measures SEC our non-GAAP filings, directly XX-K from which the to our

Martin. to this to At over the Martin. like time, I would call turn

Martin Kits Van Heyningen

last compared flat were made with per $XX.X third million, for Net busy of areas progress a guidance. $X.XX in loss good the strategic generally for and in revenue with Thanks Thanks, Don Results we of our share, net our was joining loss QX share morning everyone. quarter solid was in-line per quarter business. Total this is of one year. QX XXXX. was for about us $X.XX as us. to the a several

portion and million profitability initiatives our begin of last plan $XX business call, that discussed how the of earnings proceeds In we and training the key long-term for in and announced quarter a our revenue growth. sale the we to small Videotel, drive last the will investing strategic

like IoT new a update and technology. an as of service AgilePlans, Watch, our achieve share connectivity KVH would to on In those initiatives connectivity our photonic business, offering including mobile I to excellent we continue our results. chip each

revenues quarter, increase the For were of XX% airtime an third $X.X year-over-year, up million.

two continued Airtime as the margins have to around up QX. than to year-over-year. year. exit points Airtime expect expect up still were subscribers we XX% and improvement margins see XX% we were more in year-over-year, We

as commitment fleets, a capabilities of enjoy proposition Our AgilePlans�� demand unique commercial high our connectivity Network. service value all-inclusive, its to no the as speed to well program HTS as continues and global thanks among

last commercial two up As make XX% represented total launched year. of VSAT of to AgilePlans' quarter. remarkable, XX% of result, shipments revenue VSAT QX AgilePlans maritime years entire compared a that we is base subscribers given and for now up subscriber ago. this our the just XXX%, over was It AgilePlans

sea through at revolutionary our show out demand of the a result communication worked. strong barriers set it's to model have We business reduce next-generation to and that

are especially AgilePlans, service globe. marketing for key generation providers investing expanding our around demand We now and with initiatives the in

to In scale enable improved our we margins. and digitizing platform addition, business us to efficiently

milestone shipment leisure enabled VSAT systems. of celebrated last market achieve success XX,XXX week, and us in our commercial to the as the both exciting Our we an

fast the network and the reliable, more and that demand our When we satellite cost-effective data communications services monitoring VSAT we more in make security, adoption launched goal speeds, seafarers. connectivity, systems our deliver. our proactive The value-added to accelerating airtime affordable and to accessible TracPhone reflects more is for systems of TracPhone maritime IoT our network,

is advantage solution, reality. The integrated fully a a tremendously ship as KVH to leisure becoming to our commercial rapidly desirable industry part business. leisure a offer to remains connected which as ability is in we as the both market Our well boaters which valuable see of

we of boaters from consecutive attest, X. Excellence Association that XX the our the Lauderdale the range newest the Marine Fort unveil Boat will National Show, leisure TracVision believe TV solutions International today of Product full for as offer We Electronics our award best at will system UHD and satellite

DirecTV local for in This HD the new exclusive Ultra channels, to technology, around water, from America antenna offers at the three XK resulted DirecTV's for waters receives the try improved support experience antenna on at in Caribbean. plus Central including and the our Network DVR Dish home support thanks different full and programming, satellites signals simultaneously, which TV support full U.S.,

demand Beyond in growing for market, VSAT the seeing also level Connectivity. highest is particularly at

yard Our weekly operators and new data either Elite charter option service streaming to enables no overages. dedicated KVH to a monthly with or high-speed owners and subscribe bandwidth unlimited

available Eastern Caribbean. be will the in the follow to is starting in from time the of islands the for Elite XXXX, service KVH Mediterranean charter coverage there. Florida including Caribbean in November, season expected with through

ARPU to HDS. buy use meter by yard to customers, KVH our services increase both the team. the the new activate our simply Unlike new additional VX cm high-value service TracPhone of optimize equipment supported with HCS The configures HDS don't network. through and our our subscribers Elite services, VXX competing enables and pursue super XX VSAT This one need business us to

IoT business Watch, manufacturers Network also IoT IoT connectivity service HCS new a our remote is leverages solution product unique application style a AgilePlans KVH as and our initiative for intervention providers. end-to-end maritime and maritime connectivity model. The equipment This monitoring communication equipment successful Our and service. by

equipment be partner also introduce our expense June, very were been calls working we that service service. together real will development we have optimal of minimizing performance. with announce them able pleased in IoT completing KVH ensuring closely connectivity. time, and When Manufacturers would Kongsberg of Watch the to in for time, be Watch KVH Since act the the in to first

America's connectivity, to announce we for the with in pilot that Cup. vessel. lastly, month for Kongsberg the underway we is in commercial pleased first a are for an aboard installation Magic American were live its last official supplier Now mobile challenge And

the meaning Americas There heritage for Cup very for special first America's since a product for part of the developed preparing yard with XXXX has meter KVH's Cup. a XX is us

the gyros the advanced the for are efforts supporting VSAT, including boats LTE systems available race for and we our their - most in with boat. fiber-optic team equipment aid our Now LTL, to our our high-performance performance and teams sensors communications

inertial navigation orders. fiber-optic some partly Moving year. sales were large compared down timing to on was gyros our of to result of This last X.X%, business, a

for our FOG a in business and a have shipments solid quarter. QX this see We backlog expect we to rebound

for backlog weapon at in FOG a defense as million years. navigation more stands currently station Our $X inertial for that for systems a five aerospace total and is use Kongsberg remotely million CROS. the known order than $XX received from operated U.S. in common highest our We Army's level

part of be CROS while next have at many years. been stabilization shipments Thanks to - of end high weapon ability completed is Our speed. control are the the year. for The moving even to by their precision vehicle for program to expected the quarter and provide this

from while TACNAV be other the in of continue some totaling expected QX. systems and $X.X had also orders Shipments in one will business We one QX quarter based to the for these is military new two through customers. TACNAV continuing five our shipping for million fourth during orders this announced use year, starting XXXX. completed by success notable Our of

And finally, in productization development in our pleased technology. report the made to progress photonic I'm we and outstanding chip of

in ahead and is rapidly to have enabled We our efforts to us equipment, invested manufacturing move in new technology this engineering that to bring talent market.

testing verification to a currently Our military be by design expect photonic chip and is we aviation year-end. product in in qualified it

We this have performance see cost technology existing expect into and to begun improvements. and integrating both we products,

and the inertial of deliver wide chip integration customers for expected along a with offer systems to manufacturing size, margin is of range required our power, While performance enhancements reliability technology weight, our application. and us. for benefits The photonic performance existing for

at the car pricing The levels primary inertial of self focus high-end to automotive, is development performance MEMS system for driving market. this provide

services our conclusion, in great and in So innovative model. have business our technology confidence strategy our and and we

very a balance cash. $XX strong in sheet and with debt have We no million

Our stock. Company's million of program Board a recently shares of up of common the repurchase authorized share Directors outstanding to one

With initiatives to for and a VSAT we to QX. joined will on business, our building team discuss growth members Analyst we progress of accelerate Investor leverage by Also strength our value. during first that, like our and will ever backlog improvements Day at we which mention in towards I technologies, significant Management shareholder would here Senior long-term showcase strategic in expect continued intend solid our to newest KVH, how November our be inertial XXth, I

over I Don like turn call numbers. would Now back to to the for

Donald Reilly

Mark. you Thank

the that in met earnings and of the operation have XX-Q. the included second have we and quarter We know, the Videotel in you discontinued our dispositions of second our the in concluded XXXX. way in that dispositions reflected quarter, in criteria a we release As Videotel

The used estimates discontinued financial the by the this change the business to certain for due in final determining quarter gains. finalization in statements the of the pulmonary is and changes operations that

our As type revenue was $XX.X to of third which positive a Martin sales includes relating prior adjustment quarter mentioned earlier, leases. million $X.X million, period

upon the component XXX transaction other the and in of we instead transactions, were in shipment. lease same which hardware as means of VSAT the Airtime lease of the sales we transactions short, ASC immediately treated VSAT limitation In term our the combined pipe manner over recognizing of

revenue generated just with as quarter been million, when slightly in or past Going bundled not the quarter forward, correction - recorded future XXXX. to of the be upfront to arrangements it under This significant Without any lease ASC have to is this it airtime. a technical was correction, third lower revenue XXX, would recognized is and we accounting will even third than prior really period. $XX.X compared

the of third of prior quarter revenue the of Service the million, in the $XX.X or million, from $XX.X quarter last was for $X.X an revenue X% a or year. of year. decrease XXXX third XX% million $XX.X quarter third of for million the quarter third $X.X increase $XX.X million million in was from Product the

decreased sales million By segment, revenues Connectivity to FOG primarily segment in $X.X quarter. our due Navigation this product million Navigation product decrease our Inertial from segment increased or Revenue to our XX%, Mobile $X.X $X decreased and million. Inertial in million segment our $X.X

in Marine product land Mobile discussed, I due In partially $X.X increased $XXX,XXX X%. sales by in Mobile million sales, the Communication of of which product a $XXX,XXX segment, revenues our increase by was that This a adjustment increase Mobile product Communication primarily offset or decrease includes sales. to Connectivity our

Service to broadband million revenues service were Connectivity many in in airtime due or VSAT up the basis this X% airtime of to and to an increase year, a broadband $X.X revenue year, on XX%. HDS increased compared segment success QX Sequentially, last year primarily AgilePlans continued in the Mobile from revenues XX%, this of period many VSAT QX by a year-to-date Network. of dollars driven of same million the $X.X X% and higher

of approximately ago. to the XX% unit a XX% now total which With quarter few respect XX% was helped to of XX,XXX our days this VSAT which shipments all and of just commercial shipments program, our shipment, were our us our Agile agile orders, announced of represents achieve Agile subscribers.

the third to in our adjusted gross to XX.X% to XX.X% quarter margin margin our consolidated approximated margin XX.X%, year, year. compared the XX.X%, decreased Navigation last profit For last Inertial excluding again gross XX.X% year. while gross to a XX%, our mobile of compared compared the segment quarter, connectivity perspective, third From last as was adjustment

million $XX.X XXXX photonic $XX.X million service Operating chip-based our initiatives primarily such the as the third due to key up our third in increased gyros. X% support quarter spending expenses for were to delivery from the on focus year, and of of prior quarter

and million to expenses In the quarter in loss revenue, of million, $X.X compared quoted from in of in a loss XXXX. operations margins third $X.X operating QX resulted of these changes the

profit year Our an had loss the last compared operating of our segment Navigation last while of year. a with loss compared mobile Inertial connectivity with quarter profit for $XXX,XXX segment an $X.X $XX,XXX, million operating generated $XXX of of

year from per from $XXX,XXX last this $X.X $X.X year. loss to million Our quarter increased million operations unallocated

XX.X% of discontinued the operations the Our resulted the against of quarter benefit the from rate tax lease for tax by valuation Videotel. allowance was was impacted expense effective the and sale third a of

as had million, million the our On net non-GAAP last basis, was with of excludes in loss third $X.X a gains For amortization tax foregoing a net same evaluation change of stock-based from a transaction $XXX,XXX $X.X and year. last period which effect of losses, foreign exchange $X.X of year. quarter, loss continuing operations the we loss compensation recorded the compared with the compared intangibles, allowance, and net million,

to $X.XX per share, year. last quarter compared per per of the $X.XX a net loss per And for $X.XX last share year. loss quarter third a a EPS share share, net EPS the compared for was of $X.XX with loss was Non-GAAP

unfavorably a the adjustment $XXX,XXX quarter results impacted described to earlier. due third that were or The by $X.XX I

of adjusted the with million of for was compared third recorded quarter Our $X.X gain a year. $X.X last EBITDA a loss million,

However, a things are here. there couple to note

impacted third unfavorably for catch been the we have and $XXX,XXX. would further EBITDA our quarter was EBITDA by of $XXX,XXX adjustment the EBITDA period First, this have our out a included about through calculation in loss a adjustment of up,

Further, made we the a loss been had a continue third our adjustment, of $XXX,XXX had adjust only and that gains of would losses. not foreign impact out gain If about we calculation, the $XXX,XXX. of backed EBITDA In have was we quarter, EBITDA out. to that this exchange

this our release please refer measures, earlier For that a complete published non-GAAP reconciliation morning. of to was our earnings

operations in $X.X compared third $X.X year. Capital million, the quarter last was continuing of perspective, used for operations quarter. an increase expenditures were cash to of $X.X a From net million, million

We free - are and of cash end virtually the the debt quarter approximates at million. our $XX balance

Total backlog and of to to is services million for approximately remainder during at million Backlog of $X approximately September which scheduled end our the is scheduled be of delivered Navigation remainder the at of delivered of the $XX the Inertial which be was end was XXXX. during million products $XX $XX September of XXXX. approximately million

turn quarter the that, With full-year. and now will I for outlook fourth

our sales estimate lower-than-expected revenues FOG for a reduced primarily year. the and in of the our earnings third sales guidance have reduction quarter of due We FOG full-year products and to remainder of

per be follows. guidance as Our a quarter a range of in revenue to Fourth quarter in million to be of $XX $X.XX fourth for is million $XX is the GAAP estimated negative range and to EPS negative positive a positive share. positive is from be to $X.XX EPS EBITDA adjusted estimated $X.XX be share range per $XXX,XXX of $X.XX and Non-gap is negative $X.X in million. to to to expected

to $XXX.X full-year million $XXX.X million. revenue guidance is

is EPS Our negative expectations to $X.XX your for negative share. of GAAP per $X.XX a range

Now non-GAAP EBITDA and million. negative our range to negative per $X.XX the negative $X.X million is EPS in and from share is expected be be to $X.XX negative expecting to of $X.X adjusted

to AgilePlans expect throughout our in airtime our continue the And gross flow grow to be will fourth will continue quarter. positive the margin year. program We cash then

amounts therefore prior excludes this reminder, Videotel periods. only is operations based a completely, As including guidance historical on continuing and from

assumes be $XX in exchange expect million be For million. This our no will XXXX be will we capital no and quarter. there expenditures changes to to $XX the orders foreign range significant also guidance shipped in to larger of booked the in currency rates and national

portion concludes This this Operator. line open over our to the the And Q&A turn will prepared call operator I the the to of call. for now morning's remarks.

Operator

Instructions] [Operator with from question you. Thank First Valera comes Needham. Rich

Richard Valera

Thank you.

path. start kind business? like that of you what your do that photonic at the the in FOG there. It and give does that product? First prepared these what Martin question price current on that And of any down we Can lower are metrics? sounds of on timing can incorporating performance products development to color of sort you heading beginning from next your might into the remarks, seeing your year But for do FOGs the competitive your cost

Martin Kits Van Heyningen

Yes, so incorporating now. we are this

So is we timeframe. delivered transition the manufacturing, that the being in have making purchase manufacturing we are November, December to equipment

the in our majority this and expect all high be not of that in the products. IMUs will we the XXXX but starting the XXX% majority series of - QX products So our end

the been also years, which a we qualified for is have right program program. two it And now funded a for being last military is that

product. products, both it into commercial this super our high-end the into track of product, are and parallel So says military release

see products as expect starting should these improvement get QX margin released. in we to So

Richard Valera

I from on And taking to price margins would mean, can just that think of do advantage. you plan think or I you competitive relative a this Do would significant competition. cost more aggressive standpoint, that be give higher margins, you a the in sort you actually in on

Martin Kits Van Heyningen

got have both we think I opportunities.

end performance focusing think So we I products, on the the are higher improvements. that

to and new we much think overall some volumes have the and five which we total that the the but And revenues. effective, opportunity our also level performance, introduce up have market opportunity more we products maintain think will I have cost margins. us and improve are to prices help increase open Company our still

Richard Valera

Are I And hopeful Great. give that, quarter FOG you any FOG thoughts a if that FOG on next Last year? think talked about being can commercial just as are the into expected then evidence business the and about the how that, you you than of headed year. and could seeing any next could. question that on you you activity the just we up be us pick that case side should would lighter

Martin Kits Van Heyningen

Yes.

were overall build sales FOG So, disappointing. backlog We for significantly. the did quarter

So, thing businesses will but that QX good that, happen that I feel is that of that new products. relates we FOG to why to is is be pretty significantly confident think better, the and these jumpstart real the needs

IMU five our current the line series is about years product old. So

should product dramatically gen next this revitalize product sort of line. So, the

it I is quo it be kind quarter two my or sense think status another So, products market. the going is hit of to until those for - new

Richard Valera

then Got quarter tack-nick think specifically I happening. a down but more select last just about program a the you and talked potential it. of question, APNT And

Martin Kits Van Heyningen

Yes.

Richard Valera

can You status about know a there? we subsequent, talk

Martin Kits Van Heyningen

Yes.

which So, that they Collins Aerospace good were that, for winner is announced the us. of

know and to qualified. and So, and is working now we prototypes with on the between is schedule delivered There their next anticipate you overall going them months. this starting program XX be

program the be their systems. press X,XXX up So, release, as part a to of that announced could they total

being deployed. those which So, in FOG don't depending have know on all are if or them will our we vehicles of what

it is the step to caveat Raytheon, it with United Collins I better only some is if program, the it that, that, merger not, but GPS us. has anything a us, part So, is divest the of could Technologies forward for introduce good read for that in the yesterday and I imagine. means know, group is good It probably a delay step

Richard Valera

it. just it for Don. on sure recognized amortizing now forward to is final is probably treatment And will upfront? going make hardware just Got XXX, one that to that associated AgilePlans But clear one you the accounting be be or wanted for still going under with

Donald Reilly

We products depreciated of recognize always a would recognized Well, in Agile recognize is years revenue basis. we and all of shares is on so ownership sale sale. Agile. five never we the Agile new, equipment a - product over service any service guidance number the revenue, monthly never detain on

Martin Kits Van Heyningen

So, definitely leases. this with with to do nothing It to do is AgilePlans. has

And it so, and we conservative revenue upfront, a antenna determined a we the being approach us more took it lease recognize is airtime if be said then and are and is buys sale. the bundled with if cash, because for $XX,XXX in pays shouldn't overtime we guy paid bundle to that a its

we that But, leases. we recognize are and us way. that, If so that for overtime overtime, going if apparently the all recognize guy the revenue accounting we he the lease paying is airtime, has bundle to upfront same rules the decided recognize have

Richard Valera

gentlemen. it. you. appreciate the Thank I Got clarification

Martin Kits Van Heyningen

Thanks.

Operator

next comes from question Capital. Our Jim McIlree Chardan with

James McIlree

question Thanks. Good responses Rich's Martin rollout. morning. the photonic in about

to end XXX% end Is the hoping products You high high said of QX end over you or timeframe at that takes you you that thought could next the products. have clarified year, incorporate the was year? XXX% something technology? during of would that hope about place what something I the And

Martin Kits Van Heyningen

Well, it in we hope QX. to launch

in in will it products. launched, is it and call end used where are So XXXX what's our we those high products it and all series be once

launch that it for high to all residual And in it, plan inventory, in plan products. So QX. barring is be is our any end will once we the the

James McIlree

program military take the you that you requalified, products? know you don't And photonic other would if said but qualified. to have be I a has going place for you to to said mentioned chip. That Is that new be

Martin Kits Van Heyningen

so this Yes, particular been has program qualified. never

is this get it to qualify. did intentionally we So an opportunity

really us for product there and million program the a period the to interject opportunity customer with get sensors. was $X work. under for And funded a technology and application So for demanding as development this a perfect over it, it's new super this were of qualified tested we new developing inertial is a probably over - funded in most that just is

works the a of that great a we that would great great is that So thought and kind of stuff. way it reliable and endorsement technology to and prove be all

Now that new is a qual.

generally, it if affect For you doesn't to don't really need it. qualify existing fitter products from function, and

XXXX off case-by-case So commercial probably as that a that But shelf series sold the would about with product. basis on any generally, be customer. products specific I'm the are talking a

inside full So to product. we goes have what discretion the change

James McIlree

Right.

Okay. rest product something the migration end, the to line, the non-high the of is that And

Martin Kits Van Heyningen

happen will should course over well. That the quickly as It a fairly of year. be

James McIlree

And there Don, happen that as special programs can XXXX year, are constantly Okay. would off you for coming expenses any being any that QX. address affect Alright. might to then, are to operating that Great. And insight would or be marketing if R&D what added next Expenses. Operating

Donald Reilly

Sure.

I expect higher year quarter can of fourth year. be this operating think in this to you the than of expenses quarter a

we are support of We development, to say, assign the number have going promotion the initiatives to the IoT support increased of that in, development programs - talked chip through R&D let’s marketing program. initiatives, for the initiatives, investing agile look about

higher XXXX other XXXX same - quarter same higher are the reasonably run for than for So we the the to or be any expect on. of fourth operating will indications do third certainly will current increase expenses initiatives the therapy, into the to our rate ever in significantly higher but work quite things reasons year quarter reasons but bit this you going still year. higher, That that quarter a can of be the are working this developing,

James McIlree

it. Got

lot. Fantastic. Okay. Thanks a

Donald Reilly

Thanks. Okay.

Martin Kits Van Heyningen

Great.

Operator

Rich Our Raymond next question comes with James. from Prentiss

Richard Prentiss

into AgilePlans on think could. XX% any as I is on that are as the XX% you you of the up there the rate seasonality those How now about should of far was sales, couple take it A subscribers, we AgilePlans as shipments. to any is said if the on in questions, reason or product? to this is quarter? there XXs that in might time fourth of it commercial point down the then at for out, think any cause back And this drops stay the look into appetite like kind change that strong we commercial to

Martin Kits Van Heyningen

last we your any that down. go don't Starting question, to expect it no, reason would

think seasonal really of vacations more particularly seasonality goes, QX Europe. as commercial a in July that business, in I not August. far it is and lot but as shipping is There

other to our tend reason, slower be that for seasonality than times the business. but just is of So, year that really commercial maritime in no there

do we don’t than general - for to we So, Agile QX both sort QX stronger our for of for expect and be VSAT business.

Richard Prentiss

Okay. From at the XX take rate like XX last several been it is is think kind XX, this I XX kind is this should of now so quarters of you've continue.

Martin Kits Van Heyningen

That Yes. is right.

we CapEx customers purchase, their OpEx with they obviously just So, which to us still have because decision. make buying who is versus prefer

I think is go it don't to going XXX%. So,

we think it is two the that as subscriber this purchase Agile, most don't long where or as is to subscriber important is XX where doing growth years the is I stay, probably thing use we the really would we lease after still. care say up why for us I or XX% going get but was and are

Richard Prentiss

sweet seems be struck or nerve spot getting as up. interest a as a to It far hit have going

Martin Kits Van Heyningen

Yes.

Richard Prentiss

you guys see kind to FX was but that a what without EBITDA on how you providing have non-adjusted numbers actually do any of or thoughts kind time reporting how gain, of those Second get basis or we on FX adjusting a adjusted this has FX been. EBITDA question, mentioned

Donald Reilly

which out have so or quarter. backing years been gain ago. There about losses, EBITDA every FX two been we we since started was is Well, gains excluding

So...

Martin Kits Van Heyningen

British of be that, is the that we might case a it in be actually and There to made pound. selling one Videotel was did reasons

an it on So had outside our impact results.

consider U.S. dollars. might our something now we in all of changed business the doing, So, I had are be it that think next because year not sales almost

but, I think in Don didn't to midyear. do that So, want

Richard Prentiss

Sure.

Donald Reilly

we So, will quarter... think first I consider quarter, fourth

Martin Kits Van Heyningen

Right.

adjustment, the So conservative. that I from you see think, overly is accounting news this we were you good know,

think didn't it this of XXXX is adjustment. adjusted out. didn't take We out prior I period the number. EBITDA a We

here. with So parent our conservative clean being I interest think with we reporting very our and are

didn’t us. it even though So help

Richard Prentiss

how Yes. triggered didn't has stock while, and Can a do obviously, a the about to size. is with were obviously, program. helped trying you And, you not And message on hasn't you What little liquidity Yes. help what and a this for your name. send But with hope Board talk came you the bit up it's to the what then achieve? authorized there? little buyback and that huge

Martin Kits Van Heyningen

had a agile in have question lot we now. cash you we the that, current And think looked interest fact time. is flow of in a get shareholder our And, positive doing balance with know, that buyback I sheet. going board Yes, plan the all at the the

of So be cash. instead cash consuming it generating will

good send So to stock we felt our is like time undervalued, that it was prospects. to a we message a market, feel we the

is see have, credit. that the bank of a don't amount that we We need for cash have we cash given still a dramatic line of

way. it changes, send where about message Of time we can be a programs course, stocks positive that felt just could was adjusted to going. the the else change the we something along if But there is for an acquisition these think or appropriate

Richard Prentiss

of stock valuing the And way to growth is the how of think these initiatives? do you and potential consider right the the future

Martin Kits Van Heyningen

of our increasing either we Well, terms in right think that done QX. in the I path on are

XXXXwe giving think but a not think we going it's guidance are I good yet, to year. be

been direction the still the is A-PNT, of inertial see is think orders AgilePlan Company continues We TACNAV is good. foreign XX%, backlog we which these, very as So success. subscribers in way grow strong, our pipeline. going strong. has to we up the It have

So are happy of the overall, direction the business. with very we

for are we some get that. rewarded going point to I at think,

Richard Prentiss

quickly? EBITDA as that the on fairly up shows well, that line Anything

Martin Kits Van Heyningen

goal. Yes, I mean, that our is

built price got We But to the of $X profitable here we decision million have business. - made million it. marine business we that for a sold $X conscious when was We generating a great EBITDA. we Videotel sold to very up

So quickly organic growth. replace grows our the business goal through regular to as that, is

Richard Prentiss

Great.

the Okay, thanks answers. for

Donald Reilly

Okay.

Operator

Quilty Our final Chris question Analytics. with comes Quilty from

Christopher Quilty

late I guys, was to Hi call. the

this. could already rollouts later and of that. work had is, chipset on be addressed design or that just associated But you addition developing if of taking a the and forgive talked development later. how quarter about on electronics photonic So and form in is me again, a the Question that with last feature impacting you going that are you gaiting to some a going you that product around on ahead not some or device done fitting the the into that function, chipset factor

Martin Kits Van Heyningen

great a is That question.

say, going current product start I new our production, products. will are when products. in the it So, for It's a QX, automotive to is releasing this integrated not we

circuit So, new electronics product, boards. market where we the the today's is will that need electronics if replace that automotive and press the single-chip

So, ongoing, that That take going still is more but is to on qualification and after. a different that timescale, work everything is time. the

probably So, a that away. is at year least

Christopher Quilty

And you FOG do significant about ago if year think a your a for. of comments secure a the years of real don't couple types that some a or portion ago, this say you or majority that will for the now feel relative when technologies I that the used a to technology get solution automotive that, based two you solution effort let's undertook or be secondary How you. the trending but on deployed. quarters thoughts primary a since are and I automakers on of automotive OEMs, your had dive deep Got earlier market, know did

Martin Kits Van Heyningen

with people that the it. the our are on Well, we performance with planning they that know happy using from and are we working

think a I solutions. to be going multiple different is that

out. on, being I automotive general people now level goes pushed for public applications As and four time are type think autonomy that five is at looking

and focusing that, But a actually people what and movers forward is delivery people being little bit. vehicles other now saying we our pulled are things are

than good to there thought, I for is probably opportunity product a sooner we going but later So, thought. market gigantic than be is the we think this

there kind in of it's of think I So, terms timing. bag mixed a

Christopher Quilty

the how the we I the opportunity, back about brand them? network. you in solutions including Again, to of are support different are that seeing also that you you again to know, the talking all they're address programs that are with you. market there secure that with DoD fully funded going institutional and a be premium A-PNT is behind lot Got the over If involved switch

Martin Kits Van Heyningen

selected caught know, Aerospace a a beginning, if have Well, they Dave, of that don't program. I sole have now. select made They the you winner Collins but as

moving news. forward. good is that So, It's

deployment is protecting up and XX that earlier, to mentioned is systems. I for As X,XXX schedule month

would been very So, They I solid. think that secure, working this I decades. have program very say for is

trying they are we automotive zero that, the alternate just it find and that is needs what solutions there absolutely deployment I have on delivers in the to So, application. for think solution for phase that really finally appetite to because unlike

vehicles delivered we And, to armored XX,XXX TACNAV systems have world. around the

So, application, very and their can't a jammed. well-developed absolutely this for just is and product be can be mature, very it spoofed works that

Christopher Quilty

that I Okay. missed comments. earlier

Very you and go I much, Alright, guys. transcript. will check So back the very good. thank

Martin Kits Van Heyningen

Thanks. Alright.

Donald Reilly

Chris. Thanks

Operator

to now This Mr. today's I Reilly. conference turn concludes over session. back question-and-answer the would

Donald Reilly

Martin much. may and site. everybody. and Thanks questions Thanks any very available to have questions our come for I course you Brent that be later of will Okay. IR any or may

Operator

This teleconference. everyone. Thank concludes you, today's

disconnect. may You now

KVH Industries (KVHI) 2 Nov 192019 Q3 Earnings call transcript