SI
SI
discoversearch

   Technology StocksKVH Industries, Inc.


Previous 10 Next 10 
To: Bridge Player who wrote (1558)11/27/2002 2:49:19 PM
From: Sector Investor
   of 6947
 
<<Do you feel that KVHI will/should trade at multiples substantially higher than their growth rate?>>

Which growth rate, revenue or earnings?

Revenue will grow more than 40% this year (projections look like 46%). I view the 20%-30% growth number for 2003 as merely a "placeholder". That can be revised at any time, and with the accelerating service and OEM revenue, growing military prospects, expanding markets, and major new products, any such revisions likely will be UP.

But Earnings growth will exceed that tremendously. KVH has TAX loss carry forwards that cover the first 30 cents or so of earnings.

In Q3 KVH earned a penny. They can easily double or triple that in Q4. Needham is estimating $0.27 for 2003, and IMO, that is going to be low. I think the market will focus more on earnings growth, rather than revenue growth, and that is going to look spectacular in 2003.

So which growth rate were you referring to? <g>

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Sector Investor who wrote (1561)11/27/2002 3:15:55 PM
From: Bridge Player
   of 6947
 
Well, long term I think 40% earnings growth would be just lovely. But I agree with you that in the next year or two earnings will surge as they move to profitability. I'm just not certain that they will cut R&D enough to do the 10% after tax bit any time soon.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Bridge Player who wrote (1562)11/27/2002 3:40:29 PM
From: Sector Investor
   of 6947
 
<<I'm just not certain that they will cut R&D enough to do the 10% after tax bit any time soon. >>

BP,

You forget about all the wild cards out there that can kick up revenue significantly. Those do not figure in 2003 revenue or earnings projections - yet.

The low profile antenna opens major new markets, but it is an unknown as far as sales ramp is concerned.

The Current Sensor is alive and apparently well. We should be hearing more about it soon. The market is sizable and their partner, ABB is one of the biggest electrical generation equipment players in the world.

The joint development with L-3 of a miniaturized FOG IMU should be getting close to completion as well. The IMU is the most expensive part of a smart munitions guidance package, probably $6,000 - $9,000 each. There are more projects than just JDAM (the IMU portion of the last JDAM contract exceeded $150M over 18 months), including MLRS, ERGM and others.

The FBCB2 program reaches a volume award point around mid 2003 and the KVH TACNAV is designed and tested into that military program. This is a multi-Billion dollar market.

FOGs are also just now opening the Turret Stabilization market, which I believe is also a multi-Billion market. FOGs replace mechanical gyros there and increase the life from 5,000 - 7,000 hours or so, to 65,000 hours. There are LOTS of turreted vehicles out there, and the US and NATO militaries must all be getting ready to upgrade those vehicles.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Sector Investor who wrote (1563)11/27/2002 3:43:40 PM
From: Bridge Player
   of 6947
 
Son to Dad: "Yeah, I was wondering if it is time to sell MRVC."

Dad to Son: "Gee, I don't think I'd sell just yet, they haven't even started to ship their new high-end products yet."

Edit: A year ago I thought all those things (about KVHI that you mentioned) were going to happen in 2002.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Bridge Player who wrote (1564)11/27/2002 3:53:59 PM
From: Sector Investor
   of 6947
 
<<A year ago I thought all those things were going to happen in 2002. >>

Not all, BP, only 2 of the five.

They didn't even HAVE the L-3 imu partnership until July, they didn't have any turret stabilization wins until APRIL, and the FBCB2 project had been delayed a year - UNTIL Congress funded TWO YEARS worth of budget for it last month.

The low profile antenna looks to have slipped 6-9 months. The Current Sensor slipped a full year - BUT THEY ARE BOTH ALIVE AND WELL.

Share RecommendKeepReplyMark as Last Read


To: Robert G. Harrell who wrote (1560)11/27/2002 5:41:11 PM
From: robert b furman
   of 6947
 
Hi Bob,

Now You're talkin TURKEY <VBG>

Darn sure a break out !!!

Now lets take a holiday to survey the winning stocks and we'll catch some attention come Friday.

YYYEEEHHHHHHAAAAWWWWWW !!!!! YYYIIIPPPPPPPEEEE !!!

My Thanksgiving just got HUGE.

Now to be thankful for all the really important things.

Happy Thanksgiving to all the great contributors on this thread.

This little gift is especially sweet for those of us who've endured the long wait - hey Roy.hehehe

Bob

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: robert b furman who wrote (1566)11/27/2002 6:18:45 PM
From: Roy F
   of 6947
 
Indeed, Bob, Sector and all,

Enjoy the Thanksgiving Holiday.

Regards,

Roy

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Roy F who wrote (1567)11/28/2002 9:33:05 AM
From: Sector Investor
   of 6947
 
Yes, Happy Thanksgiving to all!

Plus a couple of my posts on Yahoo! to think about while the Turkey is cooking! <g>

messages.yahoo.com

messages.yahoo.com

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Sector Investor who wrote (1568)11/28/2002 10:05:32 AM
From: Roy F
   of 6947
 
139.142.147.218

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Roy F who wrote (1569)11/28/2002 12:04:56 PM
From: Sector Investor
   of 6947
 
Roy,

I extended your chart range to three years to make a point.
It doesn't come out as a link, so you will have to cut and
paste it into the browser window

139.142.147.218

You can basically bold the horizontal $6 and $8 chart lines.
KVHI has been in that channel (with peaks and valleys of
course) for most of that three year period.

But, compare some things between those three years.

Item Description 1999 2002 PCT CHANGE

Annual Revenue (M) $ 22.82 $ 47.50e 108%

Q3 Quarterly Rev(M) $ 04.78 $ 12.44 160%

Q3 Earnings Per Shr $- 0.14 $ 0.01

Q3 Gross margin 31.1% 45.0% 45%

R&D $ 1.16 $ 2.23 92%

SG&A $ 2.54 $ 3.17 25%

R&D Pct of Revenue 24.2 17.9

SG&A Pct of Revenue 40.1 25.4

Backlog (M) $ 0.7 $ 8.0 1042%

Cash (M) $ 3.3 $ 7.6 130%

We were still in the channel earlier this week, but we are
probably leaving it behind now - and the fundamentals
support the move.

Share RecommendKeepReplyMark as Last Read
Previous 10 Next 10 

Copyright © 1995-2017 Knight Sac Media. All rights reserved.Stock quotes are delayed at least 15 minutes - See Terms of Use.