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KVH's Fourth Quarter Revenue Grows 60 Percent
Company Expects Strong 2001 Revenue Growth
MIDDLETOWN, R.I., Feb 8, 2001 (BUSINESS WIRE) -- KVH Industries, Inc. (Nasdaq: KVHI chart, msgs) today reported that
revenue for the fourth quarter ended December 31, 2000, grew 60% to $8.8 million from $5.5 million in the fourth quarter of 1999.
The Company also reported fully diluted earnings per share for the fourth quarter of $0.01 compared to a loss of $0.17 per share for the
same quarter of 1999. Operating income for the period was $0.2 million and net income was approximately $0.1 million compared to a
loss of $1.5 million and $1.2 million, respectively, for the same period in 1999.
"In 2000 we set out to return KVH to profitability," said Martin Kits van Heyningen, President and CEO. "We clearly accomplished this
goal by achieving earnings on an EBITDA basis during the second quarter of 2000, followed by increasing net earnings in the third and
fourth quarters of the year. Robust revenue growth in each of our three target markets: Fiber Optics, Mobile Satellite Communications,
and Tactical Navigation are driving our business. KVH's reputation for high-quality products, superior technology, and reliability are
gaining increased recognition and acceptance in these rapidly growing markets. Our strong revenue growth allowed us to achieve
profitability while aggressively investing in new technology development."
For the year ended December 31, 2000, KVH stated that revenue increased 32% to approximately $30.0 million for 2000, compared to
$22.8 million for 1999. The company reported net loss per share of $0.12, compared to a loss of $0.37 per share in the comparable
year-ago period. Operating loss was $1.1 million and net loss was $0.9 million compared to an operating loss of $4.0 million and a net
loss of $2.7 million, for fiscal 2000 and 1999, respectively.
Richard Forsyth, Chief Financial Officer, commented, "Throughout fiscal 2000, we have been highly successful in decreasing quarterly
operating expenses as a percentage of revenue in every cost category, leading to significant improvements in operating profitability. This
quarter we drove our operating efficiencies to the bottom line. Looking ahead to 2001 we anticipate that the positive trends we
experienced during 2000 in our core business will continue. However, the pace of investment in our photonic fiber and mobile
broadband/TV research initiatives will determine the company's overall profitability."
Mr. Kits van Heyningen commented, "During the past year, we made an initial investment in two technologies that, if successfully
developed, could accelerate the growth of KVH Industries. Our goal is to bring the initial products using these technologies to market
within 18 months. We believe these products will address customer requirements in very large markets."
"To fully capitalize on the potential both of these projects have demonstrated during the initial phases of development, we have decided to
invest heavily in these programs. As part of that decision, the company recently completed a private placement of Common Stock for $5
million. As 2001 progresses and we gain a better understanding of the commercial potential for both technologies, we may accelerate the
development efforts. Such acceleration would require our seeking additional outside capital. In addition, acceleration in the programs'
schedules would involve increased R&D spending, which, as a result, may cause us to operate at a net loss during the year. By pursuing
these development programs, we believe we are setting KVH on a long-term course to compete in two multi-billion dollar markets that
we currently don't address."
--On December 12, 2000, KVH Industries announced a two-year, $4.7 million contract to equip the new armored vehicles of an
undisclosed southeast Asian country with KVH's TACNAV(TM) tactical navigation systems.
--On December 6, 2000, KVH Industries introduced the TracVision(R) L3 mobile satellite television antenna in North America.
The TracVision L3 has a gyro-stabilized antenna and receives programming from DIRECTV(R), the DISH Network(TM), and
other high-powered, DVB-compatible satellite systems worldwide.
--On November 6, 2000, KVH Industries announced a $1.5 million contract award for the production of E-Core(TM) Fiber
Optic Gyros, which will be deployed in the Javelin Basic Skills Trainer produced by Orlando-based ECC International
--On October 18, 2000, KVH Industries introduced the latest in its line of marine satellite television antennas - the TracVision G6
and TracVision 6. These systems have a 24-inch antenna enabling them to receive satellite television signals throughout a wider
coverage area than smaller 18-inch antennas.