|So, I've been thinking about what questions are worth asking regarding the annual meeting and frankly there are so many, I don't know where to start.|
To begin with, why is KVH in a TacNav business that requires so many resources and little payback. If they spend years on a product like TacNav 3D and get zero sales, why the effort? Aren't these resources better off used on products that don't destroy shareholder value? TacNav has singlehandedly destroyed value. If KVH had abandoned this product line, the market would have repriced. Instead, TacNav has shrunk overall revenues for going on 4 years.
2nd why doesn't KVH have a MEMs line. It appears KVH doesn't have its finger on the pulse of the end user. A lower price product line would give KVH more insight into what direction the market is really going. Because they are offering just a high end product there is no visibility and KVH has seen flat FOG sales for the past 5 years. This is during the same period in which the exciting markets are taking off. And with such an abysmal record, why bet it all on a product that is taking too long to make? The market is moving forward. The innovators, such as Waymo and Tesla have obviously decided FOG based technology is either too expensive or doesn't add enough value to justify the Investment. Clearly they are using an INS system and FOGs aren't apart of the equation. LIDAR innovation and price reductions were talked about two years ago and KVH is just getting around to it now? The slow direction of the whole G&S line escapes common sense.
Why not include new hardware and a tiered low and high end pricing structure with the new Agile plans? I actually think these plans are disruptive but I also believe they are low margin under $1k/month. With newer and smaller products that take full advantage of HTS, the margins would be much better and KVH would have an upgrade path that would drive users up the value chain. Clearly KVH has passed up the spring convention season so the smaller, faster products with new modems that MKVH suggested months ago won't arrive until the earliest, in the late fall.
KVH has dramatically increased head count with little results to show for it. What the hell are all these people doing? Competitors are performing better with a smaller headcount.
I could go on and on. Martin needs to get his act together. If his name wasn't part of the company, he would have been fired years ago.
I'm actually more optimistic than these questions suggest but MKVH needs to be on notice we are done waiting. I'm voting no on everything.