KVH’s Q2 results marked a distinct turning point for the company.  Going forward there is no denying that Starlink has jumped to the front of the competitive queue and the entire legacy industry is searching for a path to coexistence.  KVH’s OpenNet strategy could become an important tool for growing its subscriber base through market share gains, but the legacy industry pie may be poised to shrink in the years ahead (LEO broadband competition). 
 While management’s sharp pivot on the 2023 outlook prompted many investors to hit the exits, investors can take some solace that even with a sharply lowered 2023/2024 outlook, we are still forecasting KVH to generate positive free cash flow in2024 (first positive FCF year since 2016).
VSAT airtime revenues up 4%. Slowest since 1Q18 due to growing Starlink competition.
Subscribers up 8% y/y with modest sub growth (30% below 2020 levels).
VSAT margins topped 40% for the 6th straight quarter. Management cutting margins ~500 bp with new pricing plans intended to counter Starlink.
Product revenues declined for the 6th consecutive quarter.  The TracVision product line is likely dead.
Product margins were negative for the 4th consecutive quarter (-22%). Is breakeven achievable?