KVH Industries Posts Mixed Q4 On Supply Chain Challenges, Plans 10% Workforce Reduction, CEO To Retire

KVH Industries Inc KVHI reported a fourth-quarter FY21 revenue decline of 2% year-on-year to $43.1 million, beating the consensus of $42.7 million
Product revenues declined 24% Y/Y to $15.9 million due to lower inertial navigation sales.
Service revenues increased 17% Y/Y to $27.2 million due to higher mobile connectivity service sales.
Non-GAAP EPS loss of $(0.17) missed the consensus loss of $(0.08).
KVH held $24.5 million in cash and equivalents.
Management Transition: KVH appointed COO Brent Bruun as interim CEO as Martin Kits van Heyningen is retiring as the CEO and Chair. The board initiated the search for a new CEO.
KVH appointed Cathy-Ann Martine-Dolecki, one of KVH's current independent directors, as the new Chair.
Interim CEO said, "We delivered mixed results in the fourth quarter, concluding a challenging year. For both the full year and the fourth quarter, our strong revenue gain in our Mobile Connectivity Segment was offset by a reduction in Inertial Navigation revenue, primarily driven by supply chain challenges and a decline in TACNAV product sales, which were only partially offset by an increase in FOG sales."
KVH looks to reduce its workforce by ~10%, targetting an annualized savings of at least $5 million.
Outlook: KVH sees FY22 revenue growth of 2% - 5%, representing $175.2 million - $180.4 million, below the consensus of $191.2 million.
Price Action: KVHI shares closed higher by 0.72% at $8.44 on Friday.