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To: mark joyce who wrote (187)1/7/1998 3:44:00 PM
From: Bill Doolittle
   of 6932
 
Mark: Last year they released year end numbers around the end of February.

Bill

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To: Bill Doolittle who wrote (188)1/16/1998 1:10:00 PM
From: Michael Paul Langley
   of 6932
 
Integration Expenses for New KVH Fiber Optic Unit Expected to Reduce 4Q 1997 and Early 1998 Earnings
--------------------------------------------------------------------------------


MIDDLETOWN, R.I. (Jan. 16) BUSINESS WIRE -Jan. 16, 1998--KVH Industries
(NASDAQ:KVHI) today announced that it expects a short-term decline in
earnings growth for the fourth quarter of 1997 and early fiscal 1998 asit continues to rapidly assimilate the company's recently acquired
fiber optics unit. The company acquired its fiber optics assets, which
include technology, products, staff and a significant patent portfolio,from Andrew Corporation on October 30, 1997, for about $1.8 million in cash and warrants to purchase KVH common stock.

Total revenues for the 1997 fourth quarter ended December 31 are
expected to be down about 25% from the comparable 1996 quarter. While
KVH's core products were the sole source of 1997 fourth quarter
revenues, 51% of revenues in the 1996 fourth quarter was derived from
significant, non-recurring sales of $4.4 million to American Mobile
Satellite Corporation. In a core-product, quarter-to-quarter comparison where the one-time AMSC sales are removed from 1996 fourth quarter revenues, KVH achieved a 60% growth in overall revenues for the 1997 fourth quarter. Navigation revenues increased somewhat in the 1997 fourth quarter over the 1996 comparable quarter. Fourth-quarter communications revenues decreased significantly in 1997 from 1996 as KVH continued its transition away from large, non-recurring sales and towards building direct, recurring business with such products as the newly launched Tracphone 50 and TracVision II.

Start-up costs in the 1997 fourth quarter related to the recent
acquisition are partially offset by fiber optic product revenues during the period. Some one-time charges in the 1997 fourth quarter, which ultimately will reduce KVH's long-term operating expense, will
adversely affect earnings for the quarter. Total operating costs for
the 1997 fourth quarter are expected to increase approximately 35% from the comparable 1996 quarter. The company anticipates that these
congruent events will result in earnings per share in the low single
digits for the 1997 fourth quarter, a decline from $.14 EPS in the 1996 fourth quarter.

"The short-term impact on earnings from our fiber optic unit is well
within the projections we developed prior to completing this important
acquisition as part of our long-term growth strategy," said Martin Kits van Heyningen, president and CEO. "Integration of the fiber optic group has been rapid and significant, and I am very confident that this new capability will be instrumental in positioning KVH as a leader in global, mobile satellite communication and navigation product development. We feel very strongly that these actions will increase shareholder value over the long term, and believe that a return to our historical profitability growth rate is possible in the latter half of
1998."

For the year ending December 31, 1997, overall revenues are expected
to be flat compared to fiscal 1996 An increase of approximately 25% in
operating costs for fiscal 1997 from fiscal 1996 is attributable
primarily to acquisition and new-product expenses during 1997. The
company expects a 15%-20% decrease in EPS for fiscal 1997 from $.35 in
fiscal 1996.

In positioning itself for long-term growth, KVH is focusing on
enhancing capabilities and market share for existing products and
developing new products to establish a full product pipeline and
ongoing revenue stream. To increase market penetration of existing
fiber optic products, the company is leveraging the extensive customer
base and distribution capabilities it developed in marketing other
product lines, such as Tracphone, TracVision and TACNAV. The
consolidated sales staff is focusing particularly on increasing OEM
contracts for fiber optic products. To expand its fiber optic
applications, KVH is pursuing an aggressive plan for using the
technology to enhance the capabilities of its existing marine and land
navigation and communications systems, and to develop a superior range
of high-bandwidth products for satellite communications. Meanwhile, KVH has kept production at its fiber optic facility on track and the
company strengthened management by appointing Sid Bennett vice
president of the business unit. Bennett has been instrumental in
developing the company's fiber optic technology from concept to
commercialization, and he provides strong leadership to the
professional staff which, almost in its entirety, elected to join KVH
after the acquisition.

To pursue these opportunities for long-term growth, the company is
increasing funding for R&D, manufacturing enhancements and marketing
scale-up. Consequently, the company expects that in the short term
expenses will outpace revenue growth and that quarterly net losses may
occur.

"As KVH enters its fiscal 1998 year, we anticipate that revenues from
fiber optic products will rise as we increase their visibility in the
market," said Chief Financial Officer Richard Forsyth. "We also expect
our fiber optic technology to be instrumental long term in establishing a more even revenue stream and reducing sales fluctuations that the company has experienced in the past. TracVision II and Tracphone 50 also are expected to achieve increased market penetration during 1998, and the anticipated launch of Tracphone 25 during the first quarter may further contribute to our communications line. Some of these revenues may be offset near term by periodic softness in military orders and the possibility that Asian markets will continue to struggle for awhile."

KVH Industries produces digital navigation systems and mobile
satellite communications products for commercial, military and marine
applications. The company's headquarters are in Middletown, Rhode
Island, and additional offices are located in Hoersholm, Denmark,
Orland Park, Illinois, and St. Petersburg, Florida.

This press release may contain certain forward looking statements that
involve risks and uncertainties. The actual results realized by the
Company could differ materially from the statements made herein.
Factors that might cause such differences include, but are not limited
to: successfully integrating and leveraging new fiber optics
technology; implementing mobile satellite communications technology;
market potential and penetration; reliability of outside vendors,
service providers and products; regulatory issues; maintaining
appropriate inventory levels; disparities between forecast and realized sales; and design delays and defects. Additional factors are discussedin the company's Annual Report on Form 10K filed with the Securities and Exchange Commission on March 27, 1997. Copies are available from the company's Corporate Communications Department.

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To: david james who wrote ()2/1/1998 9:27:00 AM
From: SirAlexx
   of 6932
 
KVH people, keep an eye on this company FTRK. They just signed Lockheed to a manufacturing agreement;

quote.yahoo.com

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To: david james who wrote ()2/11/1998 4:44:00 PM
From: Roy F
   of 6932
 
Launch of Tracphone 25 StrengthensKVH Role As Mobile Satellite Communications Leader


February 11, 1998 04:37 PM

MIDDLETOWN, R.I.--(BUSINESS WIRE)--Feb. 11, 1998--Today's launch of the compact Tracphone(R) 25 telephony system by KVH Industries, Inc., KVHI further solidifies the company's position as the leading manufacturer of mobile satellite communication products for the world's marine markets. Tracphone 25 is the most recent, and the smallest, member of a mobile telephone product line that KVH is continuing to expand. The new baby of the family is the smallest available Inmarsat mini-M system to utilize a 3-axis, gyro-stabilized system that maintains global marine communications by providing consistent satellite tracking. Inmarsat's mini-M satellites provide the broadest and most powerful worldwide coverage for voice, fax and data transmission and reception available to mariners. KVH is the only organization with two Inmarsat mini-M systems on the market as the company also produces Tracphone 50, the first system in the world to earn mini-M type approval and be immediately available to users after its introduction in September 1997. "Preliminary response to Tracphone 25 has been enthusiastic, and we anticipate that sales will contribute significantly to communications revenues during 1998," said Martin Kits van Heyningen, president and CEO. "Each KVH initiative that enhances our current mobile satellite telephone and television product lines is a strategic step towards our long-term goal of creating systems for the promising high-bandwidth market." Tracphone 25 measures only 10 inches in diameter and is suitable particularly for any boat where space is at a premium. It delivers superior voice quality, data and fax transmission and provides better fringe area coverage than comparable Inmarsat mini-M units, all at a competitive price. In its preliminary debut at the recent major boat shows in New York City and London, Tracphone 25 received an enthusiastic response for both its size and technical features. The larger Tracphone 50 is the company's highest-gain Inmarsat system, and meets the expanded needs of commercial vessels and pleasure craft 35 feet or longer. From pleasure boats to commercial vessels, and modest sizes to behemoths, KVH's proprietary 3-axis gyro stabilized antennas have earned widespread recognition from mariners for maintaining satellite contact even during heavy seas. While Tracphone 25 and Tracphone 50 owners can obtain Inmarsat service through any provider, KVH offers users a turnkey activation option. Through an agreement with Station 12, the world's largest Inmarsat service provider, KVH can pre-activate a unit for Altus service and save owners the effort. Any active SIM card can be utilized with the systems to ensure security and accountability. Altus service packages available through Station 12 provide global use for as little as $2.70 a minute, including all long distance charges. It is the combination of KVH's telephone and television product lines that have established the company as a number one provider of mobile satellite communications systems. KVH mobile television systems also have made their marks in the marine industry, beginning with TracVision(R), the first such system in the world to achieve approval for delivering DIRECTV(R) and USSB(R) television programming. In another ground-breaking move, the company recently launched TracVision II, the world's smallest fully stabilized satellite television system. The smaller size of TracVision II makes it ideal for vessels 35 feet and longer, and it provides, up to 100 miles off the US coastline, the same high-quality video and sound as TracVision. The advanced tracking capability of TracVision II also positions the system for receiving the data broadcast transmissions that now are being delivered by DBS service providers over their networks. "KVH is further solidifying its leadership position in satellite communications with several new mobile marine products," said Kits van Heyningen. "TracVision Galaxy for DIRECTV service in Latin America will debut tomorrow at the Miami Boat Show. GM Hughes Electronics is expected to activate its new Galaxy satellite system during the first quarter of 1998, and we plan to begin shipping soon after. We also are developing TracVision 45 for Europe to further expand our global reach into the mobile satellite market." KVH Industries utilizes its proprietary fiber optic, autocalibration and sensor technologies to produce navigation and mobile satellite communications systems for commercial, military and marine applications. The company has headquarters in Middletown, RI, (USA) with offices in Illinois, Florida and Denmark.

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To: Roy F who wrote (191)6/5/1998 9:59:00 PM
From: Roadkill
   of 6932
 
I started accumulating today at 3. I plan to buy more over the next few months to replace the position I dumped when we broke 7.

I'm accumulating based on core communications revenue. Once we get 4Qs away from the AMSC revenue, we'll begin to see steady revenue growth again. I expect that will happen by 4Q 98 or 1Q 99. I don't really expect spectacular growth, but enough to warrant accumulation here. Neither do I expect to make a quick buck. I suspect this will be dead money for a while, but that will give me time to buy more. I've got a three-year+ time frame.

In addition, margins should stabilize by 3Q or 4Q 1998, bringing us back to profitability. KVH has always had fat margins and impressive marketing/distribution for such a small company. Last Q's missed number doesn't really faze me; KVH is in uncharted waters with this transition, and due to the small number of shares outstanding it's easy to miss by a few cents (three to be exact). I think it's clear that KVH missed the number not because its products stink, but because they were paying a bunch of FOG people who weren't yet generating or selling any products yet. That should change by 3Q 98, or 4Q at the latest.

Also, I find the valuation here difficult to deny. I'd be surprised if it went much lower (although I've been wrong many times before!). PE is irrelevant due to substantial expenses associated with FOG acquisition. PSR is a better gauge, and based on non-AMSC revenue it currently stands about 1. For a tech company that manufactures high-margin products with proprietary technology, I'll take that kind of PSR any day.

From a technical/psychological perspective, it appears that we have total capitulation by investors. The break to 2 1/8 a while back and the quick snap-back to about 3 appears to have marked the bottom. Finally, with the expection of yesterday's unexplained spike, volume has been unusually light, even for this lightly-traded stock. Investors appear to have totally lost interest. Heck, this is the first post on SI since mid-Feb. All the things I look for when I bottom-fish :o)

All MHO, of course. I'm interested in hearing some comment/debate on KVHI.

RK

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To: Roadkill who wrote (192)6/5/1998 10:47:00 PM
From: robert b furman
   of 6932
 
Nice to see a bottomfisher tug on the line.Very good recap of situation in your post.I started accumulating this stock at 8 UGH,5 no big deal and 3 3/4 ( I liked it at 8 - I love it at 3 ).

Past holders of this stock are so depressed it is nice to see some fresh attitude . Congrats on your patient good buys.

Agree with margins analysis and future sales expectations.Anyone who hires trains and sends out a sales force of cold call sales generators understands it just doesn't happen because you started doing it.I have ownership in one of the top 50 chevrolet dealership (CSV)in the country - which consists of a field force that contacts potential buyers on a computerized consistent cold call basis and let me tell you it TAKES TIME. Granted we offer mature products not proprietary products.But pounding the pavement for establishing a long term relationship is where it is at - and that takes more time and persistence than can be normally anticipated.

In short I think management is on a correct course for stable growth with dynamic margins. KVHI is in a very niche oriented market - that has future demand and great margins.

It is A long term play and that is OK.My past experience in bottom picking is that 400 -500 percent- averages out very nicely over 2-4 years.Especially when 20 per cent capital gains taxation apply! :-)

Nice to see some value oriented life come into this thread.

Remember: The winner is the one who buys the most at the lowest price!

IMHO

Bob
P.S. Big volume yesterday and spike down into 2's occurred on two blocks of 95000 shares each.Don't know who sold - but Bloomberg referenced a management co. that owned 190,000 shares .Sort of looks like somebody walked up to the Lick Log and said I'm not a long term player - hurt me.(sort makes me feel foolish for not having a GTC lowball Out there to roll in a nice average down position).

No regrets been bottomfishing in other ponds.:-)

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To: robert b furman who wrote (193)6/6/1998 11:54:00 AM
From: Roadkill
   of 6932
 
Nice to hear someone agree that we may be near the bottom. I plan to pick up some more, but want to do it over the course of 4-8 weeks to average in. Makes it less like gambling, more like investing -- at least that's what I tell myself :o)

Thanks for the information about the two 95K blocks. Very interesting. Most intriguing is the fact that the block that sold on Thursday didn't have a substantial impact on the price. 95K worth of buyers? Unlikely at this point, but maybe the MMs are holding some inventory. That can be construed as a good sign.

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To: Roadkill who wrote (194)6/29/1998 7:02:00 PM
From: Roy F
   of 6932
 
REPEAT/KVH to Improve Operating Expenses With Strategic Cost, Staff Reductions
June 29, 1998 05:47 PM


MIDDLETOWN, R.I.--(BUSINESS WIRE)--June 29, 1998--KVH Industries, Inc. KVHI today announced that it has begun implementing a plan that is leveraging information technologies to integrate different divisions and business segments. As a result of the process reengineering, the company is reducing its costs by approximately 20 percent overall through restructuring certain practices and personnel reductions in manufacturing, research and development, sales and marketing and administration.

"The reengineering was a consequence of KVH's commitment to having world-class business practices at every level," said A. Nath Srivastava, COO. "It supports other strategies we have implemented recently, such as the Fiber Optic Group acquisition, to increase product depth and strengthen our international presence."

Efforts are underway to reduce inventory levels, consolidate staff responsibilities, increase focus on high-potential product lines and streamline administrative functions. Production and manufacturing changes resulting from KVH's shift to new markets has enabled the company to reduce staff positions by some 15 percent from 145 employees at its corporate headquarters in Middletown, Rhode Island. The company also is consolidating sales and marketing efforts and streamlining R&D and manufacturing processes. KVH anticipates that these activities will speed product development and manufacturing turnaround times, enhance corporate visibility in the appropriate markets and decrease overhead with the ultimate goal of increasing operating margins.

"We have devised a restructuring plan that will maximize our operational efficiencies over the long term, with an underlying strategy that reflects a shift in the company's focus towards the broadband communications and high-end navigation markets that hold significant promise for the future of KVH," said Martin Kits van Heyningen, president and CEO. "KVH is at a juncture where costs related to new-product introductions and intense technological development have been exerting pressure on our earnings, and we are particularly committed to controlling expenses during this interim period."

New satellite communications products are achieving increased market penetration and KVH expects these revenues will be an important factor in improving earnings, particularly in conjunction with the reengineering effort. Communications revenues will be augmented by TracVision 45, which KVH just began shipping for television viewing by European mariners. In the navigation business, orders for TACNAV systems have been increasing. The company is encouraged by the potential for its fiber optic gyroscopes to broaden its product range in the military market.

KVH expects to release financial results of its 1998 second quarter on July 17. Write-offs related to the restructuring will be reflected in second-quarter results.

KVH Industries utilizes its proprietary fiber optic, autocalibration and sensor technologies to produce navigation and mobile satellite communications systems for commercial, military and marine applications. The company has headquarters in Middletown, RI, (USA) with offices in Illinois, Florida and Denmark.


This press release contains certain forward looking statements that involve risks and uncertainties. The actual results realized by the Company could differ materially from the statements made herein. Factors that might cause such differences include, but are not limited to: competing products and technologies; implementation of mobile satellite communications technology; market potential and penetration; reliability of outside vendors, service providers and products; regulatory issues; maintaining appropriate inventory levels; disparities between forecast and realized sales; and design delays and defects. Additional factors are discussed in the company's Annual Report on Form 10K filed with the Securities and Exchange Commission on March 25, 1998. Copies are available from the company's Corporate Communications Department.






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To: Roy F who wrote (195)6/30/1998 2:29:00 AM
From: Roadkill
   of 6932
 
Hmmm . . . Let's see if I've got this right:

>>"Efforts are underway to reduce inventory levels, consolidate staff
responsibilities, increase focus on high-potential product lines and
streamline administrative functions."<<

Read: We're having a fire sale to get rid of these bloated inventories, and had to fire a bunch of people who had nothing to do.

>>"KVH anticipates that these activities will speed product development and manufacturing turnaround times, enhance corporate visibility in the appropriate markets and decrease overhead with the ultimate goal of increasing operating margins."<<

Read: This FOG acquisition has been a little harder to swallow than we thought. Operating margins stink.

>>"We have devised a restructuring plan that will maximize our operational efficiencies over the long term, with an underlying strategy that reflects a shift in the company's focus towards the broadband communications and high-end navigation markets that hold significant promise for the future of KVH"<<

We can't sell the stuff we used to sell, so we're gonna try to sell some new stuff. Stuff we haven't gotten around to inventing yet, but which is gonna be real neat. And fast. "Bandwidth" . . . "high-end" . . . "significant promise" . . . yada yada yada

>> "KVH is at a juncture where costs related to new-product introductions and intense technological development have been exerting pressure on our earnings, and we are particularly committed to controlling expenses during this interim period."<<

Earnings stink, even more than anyone expected.

>> "The company is encouraged by the potential for its fiber optic
gyroscopes to broaden its product range in the military market."<<

"Encouraged"? By "the potential"? Yikes.

>>"KVH expects to release financial results of its 1998 second quarter on July 17. Write-offs related to the restructuring will be reflected in second-quarter results."<<

In case we didn't get it the first few times: Earnings are really going to stink.

Still long but skeptical. Good news: my basis is 3, so I only can lose 3 points!

RK

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To: Roadkill who wrote (196)6/30/1998 9:08:00 PM
From: Step1
   of 6932
 
Glad I have just been watching...

I guess patience will be rewarded this time more than any other time...

Seems like the numbers will really be dismal
sg

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