Technology StocksKVH Industries, Inc.

Previous 10 Next 10 
To: Sector Investor who wrote (1337)7/23/2002 10:24:50 AM
From: Sector Investor
   of 7024
Part 3 - final.

16:35 Q&A

Greg Weaver, Kern Capital

Q. Hi. Just a follow-up on that last question. On the smart bomb thing, are you competing with a quartz or a silicon gyro there?
A. No. The current technology is based on Ring-Laser Gyros. The Quartz and silicon technologies are really in a lower performance class than what's required for this particular application.

Q. So, how much of a ASP reduction is required to make this feasible relative to normal fiber optic gyro pricing?
A. That's a good question. I think that our technology is inherently less expensive, so we are talking about system sales which are approximately in the same ballpark as our current products, so it's not something where we have to design a product for half the price from where we are today.

Q. So the Ring-Laser costs about the same then?
A. Ring-Laser is more expensive than our current technology.

Q. Umm. OK. Just a series of other questions. Just in a general sense, on the revenue guidance, if I'm doing the math right, you're implying that your revenue will be sequentially down from this quarter. Is that correct?
A. Yeah. The third quarter is historically less than Q2, you know, when we give guidance we are talking about growth over last year, so the guidance we gave for 30%-40% growth was for the Year over year figure, not 40% growth sequentially quarter to quarter.

Q. Oh, no, no, I understand, but I just did the math for the whole year. I didn't realize you were saying by quarter. I figured you were saying for the whole year right? I mean you did $33 [million] last year? Multiply that by 35% right?
A. Right.

Q. So that's gets you about $45 [million], so I backed into the last two quarters and that is about $11 million a quarter, assuming they were equivalent?
A. I think that's a reasonable assumption. I think that what we are trying to say is that we are not forecasting 61% growth going forward indefinitely.

Q. All right. I guess what I'm after then is where is it falling off?
A. We have a normal third quarter seasonal dip, and then it should pick up again in the fourth quarter, and we're giving you a range, when we discuss the forecasts, and we could certainly exceed that range. There are a lot of very positive things out there right now that could allow us to do that.

Q. OK. And a little more color. You had a great number on the satellite side. What is it, you are up about a third sequentially here. What portion of that satellite sales from Q1 to Q2 is attributable to that OEM deals, and is there any kind of channel fill going on there?
A. No there isn't. We watch that very closely, and actually a very small percentage, uh, we just, in the month of June we just began on the OEM products, so I would say it is less than 5%-10%.

Q. Of the total satellite revenue?
A. Correct. Less than 5 [percent] I would guess. The real importance there, uh, we had a question earlier on backlog, and for the first time we've got a fairly substantial backlog, and it's all attributable to that OEM business. So we see real momentum there, and a source for some real growth. When you combine that with the positive impact that those volumes have on our overhead, - I had mentioned a 4-point swing year to date in bringing that overhead down. In the quarter it was actually 5% improvement, and that was strictly due to volume. So it has a very positive impact on us going forward.

Q. So, if you just did what you have in backlog, - I assume that satellite backlog from the OEMs is shippable in the current quarter, right?
A. Well some of that's - we also get some visibility out quarter, because it is based on annual production rates. But those aren't always commitments for a specific delivery. Some of that is we are committing to do just-in-time deliveries as they build vehicles.

Q. So that 15% of your $7.4 million backlog attributable to those guys isn't necessarily third quarter stuff?
A. I would say that's true, but I have to check that with Dick. In other words, we might have backlog that's in there that would be for out quarters as well. The point is that that's unusual. Normally we don't get any visibility on satellite sales, until the order comes in and it gets shipped that day. About 10% is attributable to the current quarter.

Q. Two thirds of it?
A. Correct.

Q. OK. So that applies, you know, you are doubling or so sequentially, - I mean, that makes sense if you've only been shipping for one month and you get three months now, at the same production rate? You should at least double? So, something else has fallen off there on the satellite side?
A. Well traditionally, the Marine market is seasonal. If you look at the company's historic revenue numbers, and typically Q3 is one of the lowest, is somewhat lower than Q1 for example or Q4, so, but it's not dramatic, the Marine market isn't a huge percentage of the total revenue. Obviously defense isn't seasonal, so …

Q. What's it, the satellite between the Marine and land?
A. The majority of the units are on the land, although the Marine products tend to be more expensive, so my guess is that approximately that 30%-40% of the revenue number is coming from Marine, and that's the component that is seasonal, uh, Q3 being slower.

Q. OK. Gotcha. What's your plans for Capex for the rest of the year in terms of dollars?
A. About $1.2 million.

Q. And what's that being spent on mainly?
A. New product tooling. We have some building improvements, but those are really the two large categories.

Q. So that implies you are doing positive $700K of operating cash flow for the rest of the year?
A. Pretty good.

Q. Yeah. OK. And on the Gross Margin front, what's the model or target gross margin? I guess, you know, in a year or two?
A. I think longer term we can see our way through to about 45% on the Gross Margin line. It could be much higher, but you know, we are selling consumer electronics, and you don't get the same kind of pricing with those products as you do with some other kinds of products.

Q. OK. And on the Defense side, you talk about new funding right, but, I mean my sense is that there is a long lead-time on a lot of this stuff? So, is this just …
A. Well that's what I was trying to point out with the uh, you know the fact that the growth we've seen in defense now, most of those orders, all of those sales, and most of the actual orders were booked prior to 9/11, so , right, because of the long lead time you don't get the rapid buildup that you would expect, so, that doesn't mean it doesn't happen. So, what we are saying is that starting, really now and going into the next two quarters and going into next year, we should start to see the type of buildup that you would expect to see for the types of products that we make, which, as I pointed out are exactly the type of products they need. And these products are being used right now for the Counter terrorism activities that the military is being funded to do.

Q. So, seeing an order increase in the back half of the year isn't surprising, but I guess maybe I'm more surprised by - unless I misinterpreted your comments you expect the back half of the year for revenues to improve for defense. Is that correct?
A. Yeah, and one of the uh, if you look at our cash position and our orders that we are expecting, we've ordered some long lead materials in advance of the orders, and we did that really to help out our military customers, and US military with their requirements. But we've taken some careful steps, but never the less we incurred some risk in buying this inventory, but we are confident that we are going to ship this order in the second half of the year.

Q. OK. And I guess this lastly relative to the models on the street, um, on your Op-ex side of your income statement, the numbers came in higher than expected. I mean, that's something you guys can't control, - most companies are struggling with a good top line, so I guess I'm trying to understand, why do you suppose that is the case? Is there some surprise, or is it just some mis-communication with the street, or …
A. Well, I think we have to be careful in talking about the street, we only have currently one analyst, so I don't want to speak specifically to a specific model, but I think that Dick has addressed, you know, we had some one time expenses we had visibility on, and perhaps people who are not inside the company didn't have as good visibility. Dick, you may want to talk just a little bit about the magnitude of, you know, expenses that were incurred in Q2 that we don't expect to recur.
Right. In my call, in some of the sections, I talked about one-time expenses. If you were to sum those together, they made up about $640,000. Now, because they were one time expenses that were unusual in nature, certainly not recurring, Pierre Maccagno really didn't have any visibility to those, but if we were to net that out of our net loss, we'd be looking at something on the order of $200,000, - just about a penny, so we had about 6 cents of non recurring items, between commissions and recruiting fees and things like that, that will help us going forward. Without those things, we came very close to breaking even for the quarter.

Q. So, it is safe to assume then that your Opex is declining by at least $650,000 sequentially? I mean because you are talking about other cuts too.
A. Well, I think that's a reasonable estimate. You know our goal is to reduce our spending and get closer to breaking even, and I think that's about as much guidance as we are willing to give at this stage.


David Lorens?, Advantis? Capital

Q. Good morning. When can we expect the roll out of the low profile antenna?
A. What we've talked about is we are probably launching that product in the back half of this year, and we don't have any significant revenues in the plan for it this year. But it will be a marketing launch based around trade shows, and when the right time is to introduce the product. But it will be this year.

Q. OK. And, in regards to the DOD certification process, where are you in regards to that?
A. Uh, certification for what?

Q. DSP-5000 - ongoing discussions with the department of Defense.
A. The DSP-5000 is a non-military product, so it's already good to go as far as that product is concerned.

Q. Then that - there was a certification process in regards to, uh, For your FOG.
A. Right. You might be talking about the Smart bomb effort?

Q. Yes.
A. And that would be something that our prime would be tasked with. In other words we make a sub-component, and they would qualify the entire sub-system. And then the Prime would be responsible for qualifying the entire program. I'm not sure if that answers the question.

Q. Are there any of your products in process for that type of certification currently?
A. No. All the products that we manufacture now are already quality approved for their intended use.

Q. OK.
A. Everything we are making today is ready to be sold, and all our defense products are not awaiting any certification that would impact revenues in Q3 or Q4. If that answers your question?

Q. Yes. And in regards to back log going forward you said $7.4 billion [sic] at Q2 end? Has that increased since then?
A. It was million, not billion. No, the backlog is where it is. We are only a few weeks away from the quarter end. We certainly hope it grows, and we have every expectation that it will.
Q. Great. Thank you

James Pugh? Dolphin(?) Asset management

Q. I'm still a little bit confusing on the revenue breakdown. The commercial revenue is $7.9 [million], fiber optic is $900,000, and Defense is $2.6-$2.7. There is a million missing here.
A. What you have there is we generally group our products in that fashion, but we have other products that are legacy kinds of products, OEM products, Marine products, things like that, and we group all that into a category we describe as Navigation.

Q. And that's roughly a million?
A. Yes.

Q. OK. So that's a fourth category, or is just commercial?
A. We don't want to break it out as a fourth category. Most of the revenues for those products are in the Marine area - our older Marine navigation products, so generally we don't break it out

Q. What has been the trend in the past few quarters for this particular line of product?
A. They're declining. They are legacy products. If it's under a million a year we generally don't break it out as a separate category.

Q. Well, it's a million a quarter, right?
A. I was talking about the Marine navigation products, which are on the order of a million dollars per year, not per quarter. We also have some OEM products which are digital compass based and they are on the order of $500,000 per quarter. We have funded engineering work, which is also a revenue item.

Q. OK. So we can expect about a million going forward on this particular category, where you can't really credit to any of those three categories?
A. Yes. Right.

Q. That's about the number? A million a quarter?
A. Right. And what we do is we typically will aggregate the sales into one of the other categories, when we consolidate, in terms of when we give a breakdown, like in our 10-Q, all the revenue will be aggregated into one of the larger categories. So we've actually given you more detail here. Which is the sub component that's just satellite sales. And the reason we do that is that these are the new products, and this is really the part of the company that's been the engine for growth, and that's the part of our business that's been growing so rapidly. So not only is it the majority of our sales, it's also the part of our business that's growing the fastest.

Q. OK. And also, I know you haven't broken down the Gross Margins for different products? I mean, commercial, defense, fiber optic? Can you talk about that? The rough range of margins?
A. We generally don't do that for competitive reasons, but I will say that the highest gross margins tend to be military and fiber optic products themselves are large gross margin products, but we have a dedicated factory, which is currently underutilized, and the net margin on those products is low. On our communications products, the average margin is sort of in the middle between those

Q. OK. So going forward the margin improvement which you anticipated, will largely come from fiber optic and defense?
A. Well, I think that, yes, increasing the margin on the fiber optic gyro business is related primarily to increasing the volume, so that the fixed overhead is spread. The military margins are very stable and don't change, and the satellite products, the margin is improving in terms of the cost, but offsetting that you've got some new OEM customers that have some pricing that's not very different from retail pricing. So again it's difficult to make general statement about the margins when each category has a host of different products within it that have a pretty wide margin range.

Q. The contract with the three major OEM customers, uh, I understand that you are delivering it now and next quarter.
A. Yes.

Q. Do you expect any sort of ?egalization on the retail side because of these contracts?
A. No we don't, because these are replacing competitive products so in other words these vehicles were already, uh, a lot of them had optional equipment that was installed which wasn't ours in the past so

Q. Oh I see.
A. So, these are new sales for us and sales losses for our competitors, and in the case of some of these vehicles we are really reaching down into a class of vehicle that currently was not our primary target customer. So, while conceivably what you are suggesting is possible, we've looked at it very carefully and we don't think that's going to happen at all.

Q. Ok. The other question is what is the initial order size like and also what should we expect in terms of the timeline going forward in terms of the increasing volumes from these OEM customers?
A. Well, the increase in sales will be starting in Q3, and it will help drive the growth of the land mobile communications satellite line. I don't have an exact number for you in terms of what that will represent in dollars, but we are hoping that this will help continue - you know, we recorded 50% growth in the communications line in Q2. These types of awards are necessary to keep that kind of growth rate going and going forward.

Q. OK One more question on the R&D side. You expect R&D to go down the next two quarters. Do you have a better picture in terms of how low they could go in the next two quarters, and what will be the sustaining level going into "03?
A. We generally don't forecast that kind of information, but we do see a decrease in the two factors that contribute to that. One, we have in our backlog right now, orders that will fund some of the engineering activities. So that we will be transferring costs from internal costs to customer-funded costs. At the same time Martin talked about how we are managing our PhotonicFiber project, and also talked about the nearness to completion on the low profile antenna. Those two events will tend to push back on spending, so, we'll see a convergence of reduced new product initiative spending, coupled with customer funding and that should give us some decreases over the next two quarters.

Q. OK. The backlog was $7.8 million?
A. $7.4 million.

Q. OK. So what was the backlog last quarter?
A. $8.2 [million].

Q. OK. So why the decline?
A. We shipped this quarter $2.2 million in military revenues, and as I discussed earlier, that's the majority of that backlog.

Q. OK. All right. Well, thank you.
A. You're welcome. Thank you.

Closing remarks.

Very good. I understand there was a problem with our web cast which may delay it being available, but it should be back online shortly, so, if you have anybody who had a problem, let them know. Other than that we'll talk to you soon. Thanks.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)

To: Sector Investor who wrote (1338)7/23/2002 10:37:39 AM
From: Sector Investor
   of 7024
Updated Consolidated Links

Date: July 23, 2002 10:37 AM

KVH Industries, Inc., based in Middletown, Rhode Island, is an international leader in developing and manufacturing innovative, mobile, high-bandwidth satellite communications systems, tactical navigation products, and fiber optic products.

Company Overview ---

Earnings and CC related links

Q2 1997 EPS release - Message 1813680
Q2 1997 CC Notes ----- Message 1816064
Q3 1997 downgrade --- Message 2269984
Q3 1997 EPS release -
Q4 1997 warning -------- Message 3187118
Q2 1998 CC analysis --
Q2 1998 CC notes1 ---- Message 5389093
Q2 1998 CC notes2 ---- Message 5512880
Q4 1998 EPS release - Message 8034473
Q4 1998 CC notes ----- Message 8303464
Q1 1999 EPS rel ------- Message 9085267
Q2 1999 EPS rel ------- Message 10705163
Q3 1999 EPS rel ------- Message 11659825
Q4 1999 EPS rel ------- Message 12862196
Q1 2000 EPS rel ------- Message 13470540
Q1 2000 CC notes ----- Message 13474450
Q1 2000 Analysts ------ Message 13476701
Q2 2000 EPS rel ------- Message 14077309
Q3 2000 EPS rel ------- Message 14615735
Q4 2000 EPS rel ------- Message 15318557
Q1 2001 EPS rel ------- Message 15686350
Q2 2001 EPS rel ------- Message 16098259
Q3 2001 EPS rel ------- Message 16543116
Q4 2001 EPS pre ------- Message 16876175
Q4 2001 EPS rel ------- Message 17091602
Q1 2002 Update -------- Message 17273314
Q1 2002 EPS rel ------- Message 17380588
Q1 2002 CC notes1 --- Message 17396999
Q1 2002 CC notes2 --- Message 17397004
Q2 2002 EPS rel ------- Message 17755541
Q2 2002 Fin Tables --- Message 17755543
Q2 2002 CC transcript1 - Message 17779637
Q2 2002 CC transcript2 - Message 17779657
Q2 2002 CC transcript3 - Message 17779670

Contract, Service or partnering announcements

1997 Swedish military --------------- Message 1818477
1998 US Army ------------------------- Message 5154917
1998 US Marines --------------------- Message 6641124
1999 River Park teams -------------- Message 11041324
1999 UK Army order ----------------- Message 11652006
1999 Delfin Contract ----------------- Message 11791701
1999 Marathon Coach --------------- Message 12170187
2000 $1.4M Repeat order ---------- Message 13215646
2000 $1.2 million FOG -------------- Message 13460763
2000 Entertain Coaches ------------ Message 13566973
2000 $17M US Army ----------------- Message 13904501
2000 $1M Crossbow partnership - Message 13997834
2000 Sportvision cameras ---------- Message 14021855
2000 First in Europe ------------------ Message 14078705
2000 $1.5 M Javelin Simulator ---- Message 14734776
2000 $4.7M Asian Military ---------- Message 15001558
2001 $3.2M Australian Army ------- Message 15141200
2001 $1.75M golfcart sensor ------- Message 15454327
2001 Russian market entry --------- Message 15471918
2001 UK selects Gyrotrac ---------- Message 15472306
2001 $2.7M French Army ----------- Message 15786386
2001 StagParkway -------------------- Message 15889621
2001 $1.5M New Zealand Military Message 16091879
2001 Swedish Navy ------------------- Message 16506811
2001 Bell ExpressVu ----------------- Message 16537495
2001 $3.9M FOG order -------------- Message 16632688
2002 Thane & Thrane ---------------- Message 17054427
2002 Lockheed-Martin Train system Message 17486946
2002 US Weapons simulators ------ Message 17464265
2002 $700K FOGs -turret stabilization - Message 17538721
2002 Optional equip on Fleetwood RVs - Message 17580267
2002 KVH becomes Inmarsat Global ISP- Message 17596838
……. Inmarsat Information -------------- Message 17597008
……. Comparison of Sat Networks -------
2002 Std equip on Featherlite Coaches -- Message 17661922
……. About Featherlite -----------------
…..... KVH TracVision L3 -------------
……. KVH Tracphone 252 ------------
……. KVH TracNet ----------------------
2002 Rexhall selects KVH antennas ----- Message 17677523
…….. US Class A Motorhome market -- Message 17677556
2002 $1M DSP IMU dev from L-3 Comm- Message 17715075
2002 ABB partners on Current Sensor -- Message 17772501

Product announcements

1997 Trac Phone 50 ------------ Message 2147224
1998 Trac Phone 25 ------------ Message 3404697
1998 Trac Vision 45 ------------ Message 5200344
1999 Trac Vision LM ----------- Message 7402304
1999 KVH hits the road -------- Message 7402304
1999 Trac Vision Cruiser ------ Message 10653331
2000 Trac Vision G4 ------------ Message 12843047
2000 Trac Vision SA ------------ Message 13016180
2000 TracVison G6 DVB ------ Message 14616651
2000 TracVision L3 -------------- Message 14955234
2000 TracVision C3 ------------- Message 15040053
2001 Multilingual TacNav ------ Message 15471658
2001 Trac Vision L3 Truck ---- Message 15471899
2001 Trac Vision L3 vehicle -- Message 15472075
2001 ActiveFiber Technology - Message 15525677
2001 E-Core PM Fiber ---------- Message 15526177
2001 TracNet Server-Marine -- Message 16549100
2001 DirecPC -R Satellite ------ Message 16549104
2001 Tracphone 252 ------------- Message 16555352
2001 TracVision S3 -------------- Message 16677874
2001 TracNet Server-land ------ Message 16706826
2002 TracPhone F77 ------------ Message 17060078
2002 DSP-5000 FOG ----------- Message 17336044

Management or I/R comments posted

1998 Tacnav related -- ------- Message 5191881
1998 general -------- ----------- Message 5678484
1999 mobile internet --------- Message 7177546
2000 Power sensing --------- Message 11697383
2000 CEO Interview ---------- Message 13647777
2002 CEO at Needham ------ Message 16876175
2002 Needham transcript ----- Message 16892251

Facility Tour posts

2000 Home Office Tour -------- Message 13483638
2000 FOG Sensors Tour ------ Message 13742694

KVH major customer list

From the 2001 Mission brochure -- Message 17489301

A few of the US patents

Under KVH Industries ----
Under Dyott ------------------
Dyott applications ---------

Significant Personnel additions

1999 Charles Trimble joins BOD ------- Message 9802059
2000 Larry Dalton on Advisory Bd ----- Message 14592383
2000 John Seavey on Advisory Bd ----- Message 15085660
2001 new COO Joe Bookataub -------- Message 16238135
2002 Steve Buckingham joins KVH ------ Message 17486936
2002 New VP Eng. Dr. Kalyan Ganesan - Message 17553371
2002 New CFO Patrick J. Spratt -------- Message 17755516

Awards and Certifications

1998 Best in category awards ---------- Message 6624271
1999 ISO 9001 standards ---------------- Message 10052445
1999 US Army "Outstanding partner"---- Message 10063051
1999 Camping World award ------------ Message 11465314
1999 NMEA "Best" awards ------------- Message 11717969
2000 NMEA "Best" 3rd yr in row ------- Message 14659699
2001 NMEA "Best" 4th yr in row --------- Message 16596940
2002 StagParkway Peach Award -------- Message 17026775
2002 DOD Outstanding Quality Award -- Message 17611817


1999 Article on Trac vision II ------------ Message 8383221
1999 Briar Patch Invest Opinion ------- Message 8638735
2000 Datron Patent Lawsuit ------------ Message 12864170
2000 Datron response on lawsuit ------ Message 12941582
2000 Patent involved in the suit --------
2000 GPS use poised to take off ------ Message 13600523
2000 Datron lawsuit terminated -------- Message 14139395
2001 $5M private placement ------------ Message 15107364
2001 Featherlite TracVision L3 std ----- Message 15581572
2001 $10M Private Placement ---------- Message 15678840
2001 Completion of financing ----------- Message 15875422
2001 KVH featured in Navy SBIR ------ Message 17487085
2001 Gyrotrac helps Playstation set record - Message 17487087
2002 TracNet Hits the Road w Internet -- Message 17450037
2002 Patent-reduced configuration Gyro Message 17480877
2002 First customers praise new F77 --- Message 17494877
2002 KVH Antenna During Tornados -- Message 17563489

Share RecommendKeepReplyMark as Last ReadRead Replies (1)

To: Sector Investor who wrote (1339)7/23/2002 12:18:10 PM
From: robert b furman
   of 7024
Hi Sector,

Great effort on the transcript -I've listened to the call twice now.

With regard to the most recent sensor announcement.Over on the Yahoo thread it was referenced that Martin said revenue would be 6-9 months out after announcement.

I suspect that electrical engineering blueprints design in the sensors.This will probably be a phase in which includes new construction and perhaps rebuilds.

In that is is less expensive to do vs the old technology it will provide better capabilities and cost savings.That should get it into the mainstream way of doing things quickly but yet an engineering lag.

ABB would certainly be the right spot to begin widespread implementation on a global basis.

As I recall Martin said the electrical industry has very accurate sales data and the replacement market for the old technology was well known ( I thought he said 500 million).

If as in the antennae business the aftermarket is the first place to wins sales - I wonder if the replacement of damaged transformers wouldn't yield the first actual sales?

If there was a retro kit that saved money by installing the sensor vs replacing transformers - we might see revenue before year end.

I'm guessing that is a question the FOG facility could best answer.

Great news none the less.

03 is shaping up to be a very cash flow rich year.

Past growth accelerating with RV antennaes. PLUS new products for low profile antennae and current sensor a reality .

Now to get in the black - a major milestone - that just an order or two from defense will push us


Thanks for all your hard work.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)

To: robert b furman who wrote (1340)7/25/2002 2:25:19 AM
From: Henry D
   of 7024

what do u think of KVHI valuations? r u using price to sales, PEG, etc??? i am not sure how to put a fair price on this puppy. r u getting a divergence on the TA on KVHI MACD? lower hi on the MACD with higher stock prices??? maybe its a liquidity issue.


Share RecommendKeepReplyMark as Last ReadRead Replies (1)

To: Henry D who wrote (1341)7/25/2002 5:31:51 PM
From: robert b furman
   of 7024
Hi Henry,

Last year KVHI raised 20 million selling stock at 6.50.That is the best marker.It has dipped to 6 on insider options selling before the quarter.

Institutional support seems to be giving good support.

In this market anything goes - but future potential is good.

Not many tech companies grow 61% yoy quarterly basis.


Share RecommendKeepReplyMark as Last ReadRead Replies (1)

To: robert b furman who wrote (1342)7/29/2002 3:06:16 PM
From: Sector Investor
   of 7024
News today. I like the pictures.

KVH Praised by Congressional Delegation for Contributions to War on Terrorism

Senator Jack Reed and Congressman Patrick Kennedy Cite KVH’s Efforts to Support
U.S. and Allied Counter-terrorism Efforts with New Navigation Technology

MIDDLETOWN, RI – July 29, 2002 – U.S. Senator Jack Reed, Congressman Patrick
Kennedy, and a representative of the Rhode Island Army National Guard Special Forces came
to KVH Industries' Middletown, Rhode Island, headquarters today to commend the company
for its support of military efforts in the war on terrorism. U.S. and Canadian forces conducting
counter-terrorism operations in Afghanistan are using the TACNAV™ tactical navigation
systems manufactured by KVH (Nasdaq: KVHI). Addressing the KVH employees, Senator
Reed declared, "Your technology, your innovation, and your ingenuity have made our fighting
forces superior to any other in the field. The TACNAV system, fiber optic gyros, and digital
sensors can mean the difference between success and failure, life and death. This company is
going to be on the cutting edge of our military development. We’re developing new forces, like
the Interim Brigade Combat Team, that are lighter and faster. What we trade off in armor, we
need to make up for with information, sensors, and technology. KVH will play a major part in
this effort."

KVH TACNAV systems offers every vehicle and every force commander – whether in a
command, support, or combat vehicle – 100% availability of position and other tactical data,
even if the signals from Global Positioning System (GPS) satellites are disrupted or jammed. In
addition to interfacing with the onboard GPS, TACNAV consolidates vehicle location and
heading, turret angle, and far target location into a single-point interface that can be transmitted
via digital Battlefield Management Systems to the force commander and the other units in the
field. More than 7,000 KVH military navigation systems are currently fielded worldwide.

Congressman Kennedy stated "I am proud of the work KVH is doing for our nation’s defense.
The technology produced at KVH will enhance our Special Forces' tactical war fighting
capabilities and allow them to more effectively navigate and maneuver in hostile environments.
The electronic digital compass represents the next generation of high tech navigation equipment
designed specifically to meet the challenges of the most complicated battlefields."

Last year Congressman Kennedy, working with Senator Reed, secured a $1.4 million
appropriation in the Fiscal Year 2002 budget to support the U.S. Army's use of KVH's
TACNAV tactical navigation system. Congressman Kennedy and Senator Reed are members of
the House and Senate Appropriations Committees, respectively. "We at KVH were honored to
have two distinguished members of our congressional delegation here today, together with a
member of the U.S Army Special Forces," remarked Martin Kits van Heyningen, president and
chief executive officer. "Senator Reed and Congressman Kennedy are working diligently to
ensure that the U.S. military has the funding it needs to be fully equipped and prepared for the
challenges that lie ahead. We appreciate their support for our efforts to aid our military forces
and our country in the war on terrorism. Our soldiers deserve to have the equipment they need
to save their own lives as they carry out their mission to defend ours."

"It’s good to have equipment from a Rhode Island company," said a representative of the Rhode
Island Army National Guard Special Forces, who recently returned from operations in
southwest Asia. "When we were thousands of miles away, we could look at this equipment and
feel a bit closer to home."

Share RecommendKeepReplyMark as Last ReadRead Replies (1)

To: Sector Investor who wrote (1343)7/30/2002 2:22:10 AM
From: Sector Investor
   of 7024
A few posts from the Yahoo! thread yesterday. I suspect today's news could be the catalyst for a move to a higher range.

This news is significant. How many OTHER companies can claim an entire Congressional Delegation CAME TO THEM to praise their defense and anti-terrorism efforts? And how about the wording of Senator Reed's comments!

<< Addressing the KVH employees, Senator Reed declared, "Your technology, your innovation, and your ingenuity have made our fighting forces superior to any other in the field. The TACNAV system, fiber optic gyros, and digital sensors can mean the difference between success and failure, life and death.

This company is going to be on the cutting edge of our military development. We’re developing new forces, like the Interim Brigade Combat Team, that are lighter and faster. What we trade off in armor, we need to make up for with information, sensors, and technology. KVH will play a major part in this effort."

Share RecommendKeepReplyMark as Last ReadRead Replies (1)

To: Sector Investor who wrote (1344)7/30/2002 8:39:12 AM
From: robert b furman
   of 7024
Hi Sector,

This is the beginning of a huge move.

Most won't recognize it until it is over.

The Tac Nav is a high margin product and utilyzes KVHI's FOG.It is a double whammy for revenue.To be recognized as a protection device - espcially against friendly fire is as American Pie as it gets.

This will move implementation accross the board to allies - globally.Just a retrofit into old tanks and people movers would be huge.

Then the big payoff is the JDAM.The coordinates in the JDAM are only as good as the reckoning/positioning of the special forces on the ground determining the target coordinates.

To Piggy back onto Tac Nav with JDAM is also a prevent friendly fire accident issue that will be impossible to argue against.For the safety of our boys Buy L-3 Jdams.

Gods speed !!!

Huge Revenue Potential.

This is huge !!!


Share RecommendKeepReplyMark as Last ReadRead Replies (1)

To: robert b furman who wrote (1345)8/6/2002 7:35:21 AM
From: Sector Investor
   of 7024
KVH Industries-sponsored J/24 Class Sailboat Captures 2002 World Championship

"There's no reason not to have a Sailcomp on your boat" declares Skipper Brad Read, Three-time World Champion

MIDDLETOWN, RI - August 6, 2002 - Winning a world title in sailing is often determined by a matter of seconds, and a world-class competitor will use whatever tools are available to gain an edge. In 1982, KVH Industries (Nasdaq: KVHI) introduced the Sailcomp®, a breakthrough digital racing compass, and sailor Brad Read was among the first to demonstrate the tactical advantages of the compass in international competition. So when Brad proposed that KVH sponsor his entry in the 2002 J/24 Class World Championship in Kingston, Ontario, as "Team Sailcomp," KVH was thrilled to say "yes." On July 25, 2002, Read captured his second world title as a skipper, leading the Sailcomp-equipped "Blind Squirrel" to victory over 61 other competitors from 10 countries.

"On behalf of everyone at KVH, I want to congratulate Brad and his crew on their phenomenal performance in this year's world championships," said Jim Dodez, vice president of marketing. "KVH, which was originally known as Sailcomp Industries, got its start by developing the finest racing compasses in the world for sailors. While our name has changed and our product lines have expanded, we remain committed to providing world-class equipment for recreational and racing sailors. We are very proud that we were able to help Brad and the members of Team Sailcomp capture another world championship."

Sailcomp is the premier digital compass for racing sailors worldwide, offering ±0.5° accuracy, head/lift, starting timer, and off-course modes, and an ultra-accurate heading sensor to measure wind shifts. Since the introduction of the breakthrough Sailcomp in 1982, the system has been used aboard world-class racing vessels ranging in size from Olympic dinghies to America's Cup contenders. Brad Read estimates that 60 percent of the competitors at this year's world championships were equipped with a Sailcomp.

"There's no boat out there racing that doesn't have a digital compass," explained Read. "However, a great advantage of Sailcomp over the competition is its ability to dampen the movement of the compass when the boat is in motion for greater accuracy. The display is also bigger than anyone else's so it's easy to read. Sailcomp is virtually foolproof, and it's a proven product. There's no reason not to have a Sailcomp on your boat."

Brad Read is currently the executive director of Sail Newport ( ), and was a member of the 1986 J/24 world championship team, which was led by his brother, Ken Read. Brad won his first J/24 world title as a skipper aboard "Blind Squirrel" in the 2000 world championship competition.

KVH Industries, Inc., designs and manufactures products that enable mobile communication, defense navigation, and direction sensing through the use of its proprietary mobile satellite antenna and fiber optic technologies. The company is developing next-generation systems with greater precision, durability, and versatility for communications, navigation, and industrial applications. An ISO 9001-registered company, KVH has headquarters in Middletown, Rhode Island, with a fiber optic manufacturing facility in Illinois, and a European sales, marketing, and support office in Hoersholm, Denmark.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)

To: Sector Investor who wrote (1346)8/6/2002 7:52:22 AM
From: Sector Investor
   of 7024
You can see information about all 62 race entries here along with more pictures of this 5 day race:

Share RecommendKeepReplyMark as Last ReadRead Replies (1)
Previous 10 Next 10 

Copyright © 1995-2018 Knight Sac Media. All rights reserved.Stock quotes are delayed at least 15 minutes - See Terms of Use.