Underpins KVH's Strategic Evolution to Become Leading Solutions-Driven Provider of Integrated Multi-Orbit, Multi-Channel Connectivity and Services
Announces Wind Down of Hardware Manufacturing, Realignment of Resources and Leadership Changes to Better Address market Dynamics and Long-Term Opportunities
Anthony Pike to Become Chief Financial Officer
Richard Driscoll to Become Chief Technology Officer
MIDDLETOWN, R.I., Feb. 13, 2024 (GLOBE NEWSWIRE) -- KVH Industries, Inc. ("KVH" or the "Company") (NASDAQ:KVHI), today announced plans to wind down its hardware manufacturing operations to focus on strengthening its position as a streamlined provider of multi-orbit, multi-channel, integrated communications solutions. This development follows the Company's recently announced additions of Starlink and Eutelsat OneWeb to its connectivity portfolio and its exclusive maritime agreement with Kognitive Networks. The Company also announced changes to its management team.
Looking ahead, KVH is positioning to maintain its mobile-connectivity leadership as a hardware-agnostic provider of integrated communication solutions with a seamless approach to network management, encompassing versatile bandwidth delivery, cybersecurity tools and other value-added services, all bundled with KVH's recognized global service and support capabilities.
David Tolley, Chairman of KVH, commented, "Today's announcement is the culmination of the Board's extensive examination for how to best position KVH for the future as our markets continue to evolve. We have concluded that the Company should migrate away from capital-intensive manufacturing to become a more agile sales and service-oriented organization, using our expertise and global reach to deliver exceptional value-added solutions to the end markets we serve. We believe this adjustment will enable us to leverage our strong reputation, customer relationships and technology in a more flexible and sustainable manner going forward."
Strategic Realignment of Resources and Corporate Restructuring
As part of the Company's repositioning, KVH will conduct a staged and orderly wind down of manufacturing activities at its Middletown, Rhode Island, facility. During this process, KVH plans to manufacture enough maritime satellite connectivity and satellite television terminals needed to meet demand for the foreseeable future. The Company may explore opportunities to outsource the manufacturing of additional existing or new products, if there is market demand. KVH will continue to conduct its equipment repair and refurbishments, warehousing and shipping and receiving activities at the Middletown, Rhode Island location.
In conjunction with the strategic reorganization, the Company also announced certain management changes and transitions.
Roger Kuebel, KVH's Chief Financial Officer, will be stepping down from his role effective March 31, 2024. The Board of Directors of the Company has promoted Anthony Pike, KVH's Vice President Finance and Corporate Controller, to serve as the Company's Chief Financial Officer, effective April 1, 2024. To ensure a smooth transition, Mr. Kuebel will remain available to the Company through April 12, 2024.
Robert Balog, KVH's Chief Operating Officer with responsibilities for product engineering, will also be departing the Company effective April 12, 2024. Richard Driscoll, KVH's Senior Vice President, Network Operations & Service Development, has taken on the additional responsibilities of Chief Technology Officer, effective immediately.
Brent Bruun, President and CEO of KVH, stated, "I would like to thank Roger, Bob and the other valued employees departing KVH and express my sincere gratitude for their commitment, hard work, and many contributions over the years." Mr. Bruun continued, "While this realignment of resources is difficult for all of us, it is important progress for the Company in its evolution toward becoming a leaner, more agile, hardware-agnostic business focused ...