KVH Industries, Inc.

Good day, and thank you for standing by. Welcome to the Q3 2023 KVH Industries, Inc. Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Roger Keeble, Chief Financial Officer. Please go ahead.

Thank you, Operator. Good morning, everyone, and thank you for joining us today for KVH Industries' third quarter results, which are included in the earnings release we published earlier this morning. Joining me on the call are the company's Chief Executive Officer, Brent Bruin, and Chief Operating Officer, Bob Balog. Before we dive in, the usual announcements. First, if you would like a copy of the earnings release or if you would like to listen to a recording of today's call, both will be available on our website. If you are listening via the web, feel free to submit questions to ir at kvh.com. Further, this conference call will contain certain forward-looking statements that are subject to numerous assumptions and uncertainties that may cause our actual results to differ materially from those expressed in these statements. We undertake no obligation to update or revise any of these statements. We will also discuss adjusted EBITDA, which is a non-GAAP financial measure. You'll find a definition of this measure in our press release, as well as a reconciliation to comparable GAAP numbers. We encourage you to review the cautionary statements made in our SEC filings, specifically those under the heading Risk Factors in our 2022 Form 10-K, which was filed on March 16th, and Form 10-Q, which we plan to file later today. The company's other SEC filings are available directly from the investor information section of our website. Now, to walk you through the highlights of our third quarter, I'll turn the call over to Brent.

Thank you, Roger. Good morning, everyone. Let me start by saying KVH is on the rate track thanks to our successful efforts over the last year and a half. We divested non-strategic businesses, rate-sized our staff in 2022 to focus exclusively on mobile connectivity products and services, grew our subscriber base by more than 1,000 vessels, and maintained a debt-free balance sheet. In our most recent quarter, our airtime sales grew 3% year over year, and we maintained our airtime subscriber base at roughly 7,100 vessels, a slight dip from the all-time high we hit last quarter. Although we are pleased with modest year-over-year growth, it is a bit lower than past quarters due to increased demand for competing data and content streaming services. We are now focused on positioning KVH within a rapidly changing marketplace. Ever since we have entered the satellite space with our maritime TV receive-only antennas and then with our VSAT terminals and network, we won against traditional competitors due to four key differentiators. First, our proprietary terminals. Second, our geosynchronous VSAT network. Third, our Combox integrated network management tools. And fourth, our outstanding global service and support. However, the market has changed as communication solutions require faster speeds, highly competitive data rates, lower cost terminals, and multiple communication options. We believe we are well positioned to maintain our mobile connectivity leadership role as we continue our ongoing strategic evolution as an integrated solutions provider. This evolution includes a terminal agnostic approach that permits us to integrate our VSAT and cellular terminals with new and emerging hardware from Starlink and other manufacturers. A multi-network approach that includes integration of our global VSAT network with cellular, Wi-Fi, LEO, and other services. Our seamless approach to network management that delivers versatile bandwidth management tools along with cybersecurity and value added services. And of course, our global service and support capabilities. In recent months, we have made two major strategic moves critical to our future growth. First, we strengthened our position as a multi-orbit, multi-channel integrated solutions provider when we entered into an agreement to be a Starlink reseller. We are now offering Starlink both as a standalone solution and as a hybrid companion with our TrackNet, TrackPhone, and OpenNet terminals. We are activating the Starlink terminals through KVH's Airtime Services Group, providing 24-7 live technical support and working with leisure boaters commercial customers, and boat builders to deploy the Starlink service as part of a comprehensive KVH solution. Second, we entered into an exclusive maritime distribution agreement with Cognitive Networks, giving us access to their dynamic suite of network and bandwidth management tools. This agreement expands our network management portfolio which already includes our Combox bandwidth management suite of services and managed firewall from Fortinet. The cognitive technology enables us to seamlessly integrate communication channels aboard commercial and leisure vessels, such as LTE, 5G, VSAT, Starlink, and Wi-Fi. We can also deliver sophisticated network and bandwidth management for shipboard operations, crew, owners, and guests over the KVH-1 global hybrid network. I believe this new technology and service will be integral to KBH's multi-orbit, multi-channel communication solutions. We are excited by these two strategic moves and their implication for our long-term strategic direction. Our arrangements with Starlink and Cognitive Networks are examples of how we will continue to expand our position within the mobile connectivity market. Looking ahead, we will continue to leverage our strong distribution channel while drawing on our large pool of agile plan terminals, which will help us reduce CapEx going forward and support our continued focus on free cash flow. We also plan to continue our efforts to adapt to the changing competitive environment by adjusting our operations to improve profitability where we can. I'll now turn it over to Roger for some context regarding our results.