Technology StocksKVH Industries, Inc.

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To: Roy F who wrote (290)10/21/1999 8:00:00 AM
From: Roy F
   of 7024
KVH Announces 3Q 1999 Financial Results

October 21, 1999 07:02 AM
MIDDLETOWN, R.I.--(BUSINESS WIRE)--Oct. 21, 1999--KVH Industries, Inc. KVHI today announced financial results for the third quarter ending September 30, 1999. Revenues for the 1999 third quarter were $4.8 million, a 9% decline from $5.3 million in the comparable 1998 quarter. Gross margin declined to $1.5 million or 31% of sales in 1999 from $2.2 million or 41% of sales in 1998.

Operating expenses increased in the 1999 third quarter to $3.0 million and resulted in an operating loss of $1.6 million. This compares to operating expenses of $2.2 million and an operating loss of $61,000 in the same 1998 quarter. The company's net loss for the quarter was $1.0 million or $.14 a share compared to a profit of $258,000 or $.04 a share in 1998.

"I was pleased during the third quarter by a 104-percent growth in communications sales, led by significant orders for our land mobile satellite television system," said Martin Kits van Heyningen, president and CEO. "We also achieved a 67 percent increase in communications sales year-to-date and a 9 percent increase in total revenues for the year. For our navigation product lines, KVH has been selected to provide tactical systems for a range of military programs and has a number of fiber optic gyro (FOG) OEM orders in the pipeline. Also, I am pleased to announce that shortly after the end of our third quarter we received our first order for tactical navigation systems enhanced with our fiber optic gyro. Our investments in new development and marketing outreach are producing results, and we believe KVH is well positioned for growth with expectations of continued success for our mobile satellite systems and increased navigation product sales."

Revenues for the 1999 nine months increased to $17.3 million from $15.9 million in the 1998 period. Gross profit increased to $5.9 million from $5.7 million in 1998. Nine-month operating expenses were $8.4 million in 1999 compared to $7.8 million in 1998. The net loss of $1.5 million or $.21 a share for the 1999 year to date compares to a net loss of $886,000 or $.12 a share for the 1998 period.

"We have been experiencing a shift in product mix throughout 1999 with communications sales growing and a softness in high-margin military and FOG sales," said Kits van Heyningen. "Communications growth during the quarter was attributable primarily to our land mobile satellite television system, which has exceeded expectations since it was introduced. The land mobile system brought us additional recognition recently when it was named Best New Installation Product for 1999 by Camping World. A decline in navigation revenues that strongly affected our product mix during the quarter was due to unforeseen delays in finalizing contracts, both on military projects for which we have been selected and on FOG sales that are under negotiation. However, we expect these orders to ship during 2000."

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 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: volatility and uncertainties in communications and defense, the primary two industries targeted by the Company; failure to develop and market fiber optic products; lack of reliable vendors, service providers and outside products; continued poor military sales cycles; unforeseen changes in competing technologies and products; worldwide economic variances; poor or delayed research and development results; and disparities between forecast and realized sales. Additional factors are discussed in the company's Annual Report on Form 10K filed with the Securities and Exchange Commission on March 24, 1999. Copies are available from the company's Corporate Communications Department.

KVH Industries, Inc. and Subsidiary
Consolidated Statements of Operations

Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998

Net sales $4,781,389 5,307,323 17,280,203 15,906,164
Cost of sales 3,295,606 3,142,975 11,349,188 10,221,027
Gross profit 1,485,783 2,164,348 5,931,015 5,685,137

Operating expenses:

& development 1,158,263 908,266 3,068,103 2,941,186
& marketing 1,389,290 883,193 3,783,490 3,158,416
Administration 524,340 433,999 1,576,299 1,697,951
Total operating
expense 3,071,893 2,225,458 8,427,892 7,797,553

Loss from
operations (1,586,110) (61,110) (2,496,877) (2,112,416)

Other income 6,017 27,906 53,672 230,038

Loss before
income taxes (1,580,093) (33,204) (2,443,205) (1,882,378)

Income tax
benefit 538,509 291,293 948,884 996,466

Net (loss)
income $(1,041,584) 258,089 (1,494,321) (885,912)

Per share information:

Loss (income)
per share -basic $(0.14) 0.04 (0.21) (0.12)
Loss (income)
per share -diluted $(0.14) 0.04 (0.21) (0.12)

Shares - basic 7,262,510 7,143,916 7,223,215 7,113,545
Shares - diluted 7,262,510 7,304,790 7,223,215 7,113,545

KVH Industries, Inc. and Subsidiary
Consolidated Balance Sheets

September 30, December 31,
1999 1998
(Unaudited) (Audited)


Current assets:

Cash and cash equivalents $ 3,276,345 1,239,227
Accounts receivable, net 3,357,046 4,168,908
Costs and estimated
earnings in excess of
billings on uncompleted contracts 690,766 768,156
Inventories 3,643,286 3,390,787
Prepaid expenses
and other deposits 347,073 360,346
Deferred income taxes 382,905 234,158
Total current assets 11,697,421 10,161,582
Property and equipment, net 7,489,025 7,186,539
Other assets, less
accumulated amortization 870,571 972,365
Deferred income taxes 1,227,091 425,150

Total assets $21,284,109 18,745,636

Liabilities and
stockholders' equity:

Current liabilities:
Current portion long term debt $71,368 --
Accounts payable 1,892,416 853,238
Accrued expenses 793,521 822,533
Total current liabilities 2,757,305 1,675,771

Long term debt 2,887,244 --

Total liabilities 5,644,549 1,675,771

Stockholders' equity:
Common stock 72,628 72,059
Additional paid-in capital 15,502,868 15,439,421
Retained earnings 64,064 1,558,385
Total stockholders'
equity 15,639,560 17,069,865
Total liabilities and
stockholders' equity $21,284,109 18,745,636

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To: robert b furman who wrote (287)10/21/1999 3:41:00 PM
From: Roy F
   of 7024
Hi Bob,

Haven't listened to the CC yet, but it seems there is considerable interest in KVH today. After reading the earnings release, I'm guessing the prospects are improving going forward. I'll give a listen tomorrow a.m.



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To: Roy F who wrote (292)10/24/1999 4:07:00 PM
From: Roy F
   of 7024
CC was interesting, although the quality of the transmission left a lot to be desired.. but that could have been my machine. From what I could glean, they've found a new application for the FOG gyro in the high voltage sensor market. Apparently it's being tested in some European power plants.. it replaces a truck-sized piece of equipment with something the size of a glass coaster. $1B market and with the electric power industry deregulating, could be lucrative. No apparent R & D expense, just a bonus that the magnetic sensors work with the high voltage, too.

I'm going to have to get an e-mail off to Alice to see if I understood what was echoed on the CC recording.. -G-


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To: Roy F who wrote (293)10/25/1999 3:04:00 PM
From: Roy F
   of 7024
Response from Alice Andrews at KVH IR:

In answer to your question about the electrical power industry, yes, we see
real opportunity here. This is a major new (and unexpected) sensor market
has opened up after two years working with a customer to develop a fiber
current sensor. During the past year, we have been testing this technology
key installations in Europe with a KVH unit the size of a drink coaster
replacing a 100 kilovolt current transformer the size of a truck. This is a
breakthrough technology that not only saves the power industry money but
improves performance as our fiber optic sensor is able to respond instantly
changes in current resulting from spikes or lightning strikes. In addition
savings for initial equipment purchase and eliminating repair costs due to
caused by overloads, there are inherent safety benefits since the fiber
cable does not conduct electricity, even at super high voltages.

The annual market for high voltage current sensors is estimated at
$1 billion per year, and with recent U.S. deregulation an increase in demand
high voltage power metering is expected. KVH is pursuing a key partnership
a major industry player and hopes to have a working relationship established
the near future.

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To: Roy F who wrote (294)10/27/1999 8:49:00 AM
From: Roy F
   of 7024
KVH Best in Communications and Navigation With 4NMEA Awards for 2nd Year in a Row

October 27, 1999 08:31 AM
MIDDLETOWN, R.I.--(BUSINESS WIRE)--Oct. 27, 1999--For the second year in a row, two communications systems and two navigation products from KVH Industries, Inc. KVHI have earned "best product" awards from The National Marine Electronics Association (NMEA). TracVision(R) 3, a new 1999 system based upon last year's award-winning TracVision II, was voted Best Satellite Television System, and Tracphone(R) 25 was again named Best Satellite Telephone System. The company's new Azimuth(R) GyroTrac(tm) was named Best Gyro Compass and the Azimuth 1000 was once again voted Best Electronic Compass.

"It is an honor for our communications and navigation products to once again be recognized by marine electronics dealers from throughout the nation," said Ian Palmer, director of sales, who accepted the awards at the NMEA annual convention ceremony October 23 in Orlando, Florida. "We have a strong commitment to developing and marketing products for the marine market, and to using our core technologies to continue KVH's leadership role in the communications sector of the industry. Our dealers are invaluable partners in marketing, installing and supporting both new and existing KVH products, and we consider their votes in the annual award competition an affirmation of the company's development strategies."

TracVision 3 is unique in that it combines proprietary orientation sensor and antenna pointing technologies that deliver the best satellite tracking performance in its class. The addition of KVH's award-winning GyroTrac allows TracVision 3 to interface with virtually all other on-board navigation systems, including autopilots and radar. Mariners can access 200 channels of direct broadcast satellite television up to 100 miles off the North American coast and at the same time use the earth-referenced gyro sensor for directional data, including True North calculations through an interface with a Global Positioning System (GPS).

"TracVision 3 represents the merger of two core KVH technologies, gyro sensors and unique robotic pointing mechanisms, where our innovation consistently leads to significant advances in marine satellite broadcast and communication products," Palmer said. "Our strong TracVision 3 sales indicate that our decision to combine these two technologies is proving to be even more in demand than our previous television systems."

TracVision 3 features a 19" diameter dome, the smallest in the market. The system is completely compatible with DIRECTV(R), the DISH(tm) Network, and all leading brands of receivers for the direct broadcast satellite (DBS) signal reception off the shores of North America. Dual LNB outputs allow users to watch as many different channels as they have receivers and also to access, through either a TV or computer, broadcast services for weather information, financial data and news. The gyro sensor provides reliable performance in all sea conditions where vessels are subjected to pitch, roll and yaw. A unique digital data link with the satellite signal receiver provides automatic satellite tracking, and a LCD user interface allowing mariners to monitor signal status based on feedback from the DBS receiver unit as well as the robotic pedestal. Tracphone 25 also features proprietary KVH gyro sensors to stabilize the system antennas that provide mariners with worldwide voice, fax and data service through Inmarsat mini-M satellites. KVH also offers a larger telephony system, Tracphone 50, that is used primarily by commercial fleets of bulk carriers where advanced communications capabilities are in heavy demand to meet crew and business needs.

An established, widespread network of dealers supports the KVH marine communications and navigation product lines. KVH has made supporting its dealers a high priority, and is continually striving for new ways to enhance company-dealer communications, collaborate in marketing efforts, extend training and provide rapid, high-quality customer service.

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 (295)11/3/1999 8:52:00 AM
From: Roy F
   of 7024
KVH's High-accuracy TACNAV FOG Selected For Delfin Signal Intelligence Project

November 3, 1999 08:06 AM
MIDDLETOWN, R.I.--(BUSINESS WIRE)--Nov. 3, 1999--KVH Industries, Inc. KVHI today announced that Delfin Systems, a business unit of Titan Corporation, has selected TACNAV(TM) FOG systems to meet highly precise heading and position specifications for its vehicle-mounted signal intelligence system. Delfin is installing TACNAV FOGs, KVH's tactical navigation system with an integrated fiber optic gyroscope, in Interim Prophet Ground Systems that Delfin is developing for the U.S. Army Communications and Electronics Command (CECOM) under a $9.1 million contract.

Delfin Systems is heading the development and installation of its radio direction-finding systems on High Mobility Multi-purpose Wheeled Vehicles (HMMWVs). TACNAV FOG provides the location and heading data that the mobile Interim Prophet Ground System requires to determine the location of detected radio signals.

"We are privileged that Delfin Systems has selected TACNAV FOG as a component of the signal intelligence systems that Titan is developing for the U.S. Army," said Martin Kits van Heyningen, KVH president and CEO. "KVH undertook the development of TACNAV FOG because there are many military applications for a cost-effective, high-accuracy positional system. Delfin's purchase of our first TACNAV FOGs validates our belief in this product."

TACNAV FOG provides the 100 percent availability of navigation data and Global Positioning System (GPS) enhancement that is the hallmark of other KVH TACNAV systems in use around the world. By itself, GPS is susceptible to data losses if terrestrial interference or hostile activity interrupt signals. TACNAV systems overcome signal interruptions by integrating their heading and position data with information from the GPS.

"Our systems will provide the U.S. Army with a new generation of vehicular-mounted, direction-finding equipment that will ensure it has the world's finest capability to detect and locate HF, VHF and UHF radios being used by potential adversaries," said Project Manager Fredrik Bjornstad of Delfin. "This is an important task, and we are pleased that TACNAV FOG met our project criteria for providing highly precise location and heading data with no interruptions."

In addition to providing positional information, as it does for the HMMWV on the Delfin project, TACNAV FOG can provide precision navigation pointing and dynamic turret pointing aboard main battle tanks and other heavy armored vehicles. TACNAV FOG combines data from a vehicle's onboard systems (e.g., odometer, laser rangefinder, laser warning receiver) with information from TACNAV's digital compass. An array of TACNAV navigational tools that includes steer-to, cross-track, off-course, and target acquisition/reacquisition displays increases the efficiency of a vehicle's driver, commander, and crew. The fiber optic gyro precisely measures the azimuth rotation of a vehicle and integrates tightly with GPS when it is available to offer both a greater degree of accuracy than GPS or TACNAV systems alone and the added capability of far-target location - all at a far lower cost than competing inertial systems.

"As the latest generation in our evolving line of precision navigation, pointing and stabilization products, TACNAV FOG was designed for the most demanding combat vehicle applications," said Jim Dodez, KVH vice president of marketing. "KVH now has a family of products that supports the entire spectrum of combat vehicles, from ambulances to main battle tanks."

The Titan Corporation is a leading provider and integrator of state-of-the-art information technologies, wireless communications systems and services, and medical product sterilization and food pasteurization products and services. The company has annualized sales of about $400 million and a backlog in excess of $1 billion. Titan Corporation is headquartered in San Diego, CA, and has 2,800 employees.

KVH uses its proprietary autocalibration, sensor and fiber optic technologies to develop and market a range of products, from mobile satellite communications systems for land and sea to navigation systems for military and commercial applications. The company has its headquarters in Middletown, RI, and additional offices in Illinois, Florida and Denmark.

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To: robert b furman who wrote (287)11/4/1999 3:26:00 PM
From: Roy F
   of 7024
Bob... are you still there?

It seems we're having pretty good luck with the old resistance level (now support) at ~3... and the volume is increasing. Anything interesting from your end?


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To: Roy F who wrote (291)11/8/1999 12:11:00 PM
From: a.m. fisher
   of 7024
I am liking the looks of this company.
- hot sector
- low valuation
- seemingly good products
- responsive IR

Do they have any plans in leveraging their GM Military Contracts into something with GM's DirecTV subsidiary?

Why is the state of Wisconsin the biggest institutional shareholder?

I have tons of other questions, but will wait until after receiving and reading the IR materia. I'd love to hear any compelling reasons to buy this stock.

looking forward to joinging the thread,

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To: a.m. fisher who wrote (298)11/8/1999 12:20:00 PM
From: Roy F
   of 7024
Welcome A.M.

KVH is a company in transition to the communications area. The military contracts will likely become gravy in the future, however, they are higher margin. I'm not sure what you refer to when you say GM Military Contracts.

I can direct you to their website at for filings and conference call audio, or to Alice Andrews, Investor Relations at

Please enlighten us (or is it just me? >G<) with your findings.


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To: Roy F who wrote (299)11/8/1999 12:45:00 PM
From: a.m. fisher
   of 7024
thanks for the welcome ... I will do more research into who the managers are and also await the Investment Packet from the company.

As for the GM comment, this was from their 10K <<Major defense contractors, including United Defense LP and General Motors Corporation, also incorporate KVH navigation products in manufacturing military land vehicles.>>

So it seems they have "some" relationship with GM Corp. Maybe it can be leveraged into a non-military relationship?

We'll see,

p.s. put in order for 200 shares at 2 15/16 today ... hasn't filled yet.

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