United States Coast Guard Selects KVH for New 5-year Small Cutter Connectivity Contract

Rhea-AI Summary

KVH Industries has secured a contract worth up to $69 million from the U.S. Coast Guard to provide a next-generation satellite communications solution for its small cutter fleet, comprising over 140 vessels. This contract includes hardware, airtime, and global support and follows a competitive procurement process. KVH's TracPhone V7-HTS system will enhance connectivity for mission-critical applications. Additionally, approximately 20 new cutters are expected to join the fleet over the next five years, requiring further support.

Positive

• Contract worth up to $69 million enhances revenue potential.
• Continued relationship with the U.S. Coast Guard after 12 years of service.
• Opportunity to support 20 new cutters over the next 5 years, extending market reach.

Negative

• Potential risks from supply chain disruptions affecting costs.
• Uncertainties in defense budget priorities may impact future contracts.

The new contract, worth as much as $69 million, covers hardware, airtime, and global support for USCG small cutters

MIDDLETOWN, R.I., Oct. 25, 2022 (GLOBE NEWSWIRE) -- KVH Industries, Inc., (Nasdaq: KVHI), was selected by the U.S. Coast Guard to supply the next-generation satellite communications solution for its small cutter fleet of more than 140 vessels/platforms. Chosen following a full and open competitive procurement process, KVH’s TracPhone^® V7-HTS Ku-band satellite communications system and mini-VSAT Broadband_sm service will be the U.S. Coast Guard’s Small Cutter Connectivity (SCC) Ku-band System and Airtime Support Services solution. The USCG also anticipates that approximately 20 new cutters will join the small cutter fleet over the next five (5) years, requiring the same level of support that KVH will provide to the already deployed vessels.

“We are honored to have delivered critical satellite communications technology, service, and support to the dedicated professionals of the U.S. Coast Guard for 12 years,” stated Brent Bruun, President and CEO of KVH. “And we are very proud to have been selected to continue to service them with this new award. Our TracPhone V7-HTS provides reliable, secure connectivity and coverage and will serve as a vital tool in the Coast Guard’s mission to ensure the safety and security of U.S. ports and waterways.”

The rugged, commercial-grade TracPhoneV7-HTS is a 60 cm (24 in) VSAT-only system with speeds as fast as 10/3 Mbps (down/up), already deployed on the small cutters as part of the original contract. It promotes uninterrupted communications through automatic fast switching among high-speed network beams, through KVH’s multi-layered, high-throughput satellite (HTS) network, powered by Intelsat. The 3-axis gyro-stabilized antenna includes a 4th axis of automatic skew adjustment, ideal for rough seas and fast speeds. KVH’s hardware and services will continue to be used for remote connectivity to the Coast Guard’s data network, CGOne, for mission essential applications.

Note to Editors: For more information, please visit the KVH TracPhone V7-HTS webpage. High-resolution images of KVH products are available at the KVH Press Room Image Library, kvh.com/Press-Room/Image-Library.

KVH is a mobile tech innovator that provides connectivity solutions for military and government entities, commercial maritime, leisure marine, and land mobile applications on vessels and vehicles, including the TracNet™, TracPhone, and TracVision^® product lines, the global HTS network, and AgilePlans^® Connectivity as a Service (CaaS).

About KVH Industries, Inc.

KVH Industries, Inc., is a global leader in mobile connectivity, content, and value-added services with innovative technology designed to enable a mobile world. KVH develops, manufactures, and provides maritime communication hardware and services worldwide. Founded in 1982, the company has more than a dozen offices around the globe with research, development, and manufacturing operations based in Middletown, RI.

This press release contains forward-looking statements that involve risks and uncertainties. For example, forward-looking statements include statements regarding the potential value of government contracts, the anticipated number of products to be fielded, and the functionality, characteristics, quality, and performance of our HTS products and services. Actual results could differ materially from the statements made in this press release. Factors that might cause these differences include, among others: the uncertain impact of ongoing disruptions in our supply chain and associated increases in our costs; unanticipated changes or disruptions in our markets; changes in customer priorities or preferences; potential customer terminations; the unpredictability of defense budget priorities as well as the order timing, purchasing schedules, and priorities for defense products, including possible order cancellations or decisions by government customers not to expand purchases of our products and services; the uncertain impact of potential budget cuts by government customers; and unanticipated technical and other challenges that arise in providing the HTS products and services. These and other factors are discussed in more detail in KVH’s most recent Form 10-Q filed with the SEC on August 9, 2022. Copies are available through the website, http://investors.kvh.com. KVH does not assume any obligation to update its forward-looking statements to reflect new information and developments.

KVH Industries, Inc., has used, registered, or applied to register its trademarks in the USA and other countries around the world, including but not limited to the following marks: KVH, AgilePlans, TracPhone, TracVision, TracNet, and mini-VSAT Broadband. All other trademarks are the property of their respective companies.

For further information, please contact:
Chris Watson
Vice President, Marketing and Communications
KVH Industries, Inc.        
Tel: +1 401-714-7345
cwatson@kvh.com

 

FAQ

What is the value of the contract KVHI secured with the U.S. Coast Guard?

KVHI secured a contract worth up to $69 million.

How many vessels are involved in KVHI's contract with the U.S. Coast Guard?

The contract covers more than 140 vessels in the small cutter fleet.

What satellite system will KVHI provide to the U.S. Coast Guard?

KVHI will provide the TracPhone V7-HTS satellite communications system.

How many new cutters are expected to join the U.S. Coast Guard fleet supported by KVHI?

Approximately 20 new cutters are anticipated to join over the next five years.

What is the potential impact of supply chain disruptions on KVHI?

Supply chain disruptions could increase costs and affect financial results.