KVH Announces Results for Third Quarter.MIDDLETOWN, R.I. -- KVH Industries KVH Industries Incorporated is an electronics firm based in Middletown, Rhode Island. The company produces electronic compasses, fiber optic gyroscopes, and control systems for satellite dishes. External Links
--Quarterly Revenue of $16.7 Million, Up 22% Year over Year --Profit of $0.05 Per Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. Share KVH Industries, Inc., (Nasdaq: KVHI), a leading provider of mobile satellite products and defense navigation and guidance systems, today reported its results for the third quarter ended September 30, 2005. Revenue for the period was $16.7 million, up 22% from $13.8 million for the third quarter ended September 30, 2004. Net profit for the period was $0.7 million, or $0.05 per diluted share. By comparison, KVH KVH Keith Van Horn (basketball player) KvH Katrina vanden Heuvel (editor; The Nation) recorded a net loss of ($1.6) million, or ($0.11) per share for the same period last year. For the nine months ended September 30, 2005, revenue increased 15% to $53.4 million from $46.3 million for the nine months ended September 30, 2004. KVH reported a net profit of $1.9 million or $0.13 per diluted share for the 2005 period, versus a net loss of ($6.4) million or ($0.46) per share in the year ago period. "Solid results from military, marine, automotive, and fiber optic product sales offset the weakness in the recreational vehicle market to produce 22% revenue growth and our fourth consecutive profitable quarter," said Martin Kits van Heyningen, KVH's president and chief executive officer. Third quarter and year-to-date sales of the company's mobile satellite products increased 4% compared to the respective periods in 2004. "Strong marine sales led the way with a 30% increase over last year's third quarter, with excellent growth in both our North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. and European markets," explained Mr. Kits van Heyningen. "Sales of our TracVision(R) A5 automotive satellite TV system were up strongly both on a sequential and year-over-year basis as we continue to build momentum in the automotive market. Despite this, sales in the land market declined 21% over the third quarter of last year as our RV sales felt the effect of increased competition among mobile satellite TV products, higher fuel prices, and a substantial reduction in sales of Class A recreational vehicles, which has had a corresponding effect on our sales of TracVision systems to RV manufacturers." For the third quarter of 2005, defense-related sales, including those for KVH's TACNAV TACNAV Tactical Navigation (R) military navigation systems A GPS-based electronic system in a car or truck that provides a real time map of the vehicle's current location as well as step-by-step directions to a programmed destination. See GPS and vehicle tracking. and fiber optic gyro (FOG) solutions, were up a combined 79% on a year-over-year basis. Year to date, defense revenue was up 63% compared to the first nine months of 2004. "Overall, our defense backlog remained steady compared to the end of the second quarter of 2005 thanks to new orders for both our TACNAV vehicle navigation See GPS and vehicle tracking. system and our fiber optic gyro products," Mr. Kits van Heyningen said. "Significantly, we announced a multi-year order from Raytheon for our TG-6000 inertial measurement unit
torpedo, in naval warfare, a self-propelled submarine projectile loaded with explosives, used for the destruction of enemy ships. Although there were attempts at subsurface warfare in the 16th and 17th cent. . The value of the initial production order is roughly $3.2 million. If all of the additional options are exercised, the total order is potentially worth more than $15 million between now and 2009, potentially making it the single largest order for any product in our company's history." "Our operational improvement program continues to show results," remarked Patrick Spratt, KVH's chief financial officer. "We've achieved tighter spending management, reductions in product costs, higher productivity, and efficiency improvements in many areas of the company. For the third quarter of 2005, gross margin was 42%, an 8-percentage point improvement on a year-over-year basis resulting in a 51% year-over-year increase in gross profit. Our asset management continued to improve, led by accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). at 49, a decline of 1 day from the second quarter and 2 days from the prior year. Although our net inventory level was $0.2 million below the June level, inventory turns declined slightly to 4.9 on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis due to the sequential decline in cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold . Together, all of these factors contributed to strong third quarter positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses of $2.7 million." Commenting on the company's expected performance during the remainder of the year, Mr. Spratt noted, "We expect that fourth quarter revenue will continue to show solid year-over-year growth, in the range of 10 to 15 percent. We also expect to achieve profitable results in the fourth quarter with earnings per share roughly in line with or slightly better than our third quarter results. We also have a number of exciting new products in the pipeline and we plan to begin introducing them over the course of the fourth quarter." "I am very pleased with our overall results for the third quarter," concluded Mr. Kits van Heyningen. "Our defense business has been growing, spurred on by several long-term program opportunities that resulted in multi-year contracts. We have continued to build momentum in the automotive market and marine satellite sales have remained strong. I believe that our ongoing cost improvement and new product efforts will help us maintain our leadership position in each of our key business areas, including the RV market. We are well positioned to achieve our goals for the fourth quarter and the year as a whole." Recent Highlights: --October 8, 2005 - Two autonomous vehicles A passenger vehicle that drives by itself. Also known as the "driverless car," it automatically steers the vehicle by sensing the painted lines in the road or a magnetic monorail embedded in the road. In the late 1990s, prototype systems were built in Italy and the U.S. See automotive systems. developed by Carnegie Mellon University's Red Team and each equipped with KVH DSP (1) (Digital Signal Processor) A special-purpose CPU used for digital signal processing applications (see definition #2 below). It provides ultra-fast instruction sequences, such as shift and add, and multiply and add, which are commonly used in math-intensive fiber optic gyros This article is about the food dish. For other uses, see Gyro. Gyros or gyro (Greek: γύρος, "turning") (IPA: [ˈjɪːɹəʊ] , finished second and third in the Defense Advanced Research Projects Agency Defense Advanced Research Projects Agency (DARPA), U.S. government agency administered by the Department of Defense (see Defense, United States Department of). (DARPA DARPA: see Defense Advanced Research Projects Agency. (Defense Advanced Research Projects Agency) The name given to the U.S. Advanced Research Projects Agency during the 1980s. It was later renamed back to ARPA. ) Grand Challenge. --September 14, 2005 - Raytheon Integrated Defense Systems Raytheon Integrated Defense Systems, a subsidiary of Raytheon Company, is headquartered in Tewksbury, MA. Its president is Dan Smith. It has more than 12,700 employees. External Links About IDS placed a $3.2 million production order for KVH's fiber optic gyro-based TG-6000 precision inertial measurement unit. The TG-6000 IMU Noun 1. IMU - a terrorist group of Islamic militants formed in 1996; opposes Uzbekistan's secular regime and wants to establish an Islamic state in central Asia; is a conduit for drugs from Afghanistan to central Asian countries will serve as a key component within the guidance system of the U.S. Navy's next-generation MK54 lightweight torpedoes The list of torpedoes includes all torpedoes operated in the past or present, listed alphabetically. See also:
18" Mark VII
--August 11, 2005 - KVH received three new orders for its TACNAV vehicle navigation systems and T-FOG(TM) fiber optic gyro upgrade. Together, the orders are valued at more than $2.4 million. KVH is webcasting its third quarter conference call live at 10:30 a.m. Eastern Time today through the company's web site. The conference call can be accessed via the company's web site at http://www.kvh.com/InvRelations. The audio archive and an MP3 podcast (iPOD broadCAST) An audio broadcast that has been converted to an MP3 file or other audio file format for playback in a digital music player or computer. The "pod" in podcast was coined from "iPod," the predominant portable, digital music player, and although podcasts are will also be available on the company web site within three hours of the completion of the call. KVH Industries, Inc., designs and manufactures products that enable mobile communication, navigation, and precision pointing 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 (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001-certified company, KVH has headquarters in Middletown, Rhode Island Middletown is a town in Newport County, Rhode Island, United States. The population was 17,335 at the 2000 census. It lies to the south of Portsmouth and to the north of Newport on Aquidneck Island, hence the name "Middletown. , with a fiber optic and military navigation product manufacturing facility in Tinley Park, Illinois Tinley Park is a village located primarily in Cook County, Illinois, United States with a small portion in Will County. The population was 48,401 at the 2000 census, and 58,322 in the 2007 census. Tinley Park is one of the fastest growing suburbs south of Chicago. , and a European sales, marketing, and support office in Kokkedal, Denmark.
KVH INDUSTRIES, INC. AND SUBSIDIARY
SELECTED FINANCIAL INFORMATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -----------------
2005 2004 2005 2004
------------ ------------ -------- --------
Net sales $16,742 $13,762 $53,442 $46,291
TracVision A5 inventory
and firm purchase
commitment revaluation
charge - - - 2,413
Cost of goods sold 9,642 9,072 31,454 30,044
------------ ------------ -------- --------
Gross profit 7,100 4,690 21,988 13,834
Operating expenses:
Research and
development 1,783 1,356 5,659 4,975
Sales and marketing 3,377 3,957 10,347 11,620
General and
administrative 1,556 1,222 4,322 3,849
------------ ------------ -------- --------
Operating income 384 (1,845) 1,660 (6,610)
Other income
(expense), net 303 184 513 267
Income tax benefit
(expense) (13) 64 (246) (74)
------------ ------------ -------- --------
Net earnings $ 674 $(1,597) $ 1,927 $(6,417)
============ ============ ======== ========
Net earnings per common
share
Basic and diluted $ 0.05 $ (0.11) $ 0.13 $ (0.46)
============ ============ ======== ========
Weighted average common
shares outstanding
Basic 14,596 14,454 14,555 13,983
============ ============ ======== ========
Diluted 14,765 14,454 14,740 13,983
============ ============ ======== ========
KVH INDUSTRIES, INC. AND SUBSIDIARY
SELECTED FINANCIAL INFORMATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, unaudited)
September 30, December 31,
2005 2004
--------------- --------------
ASSETS
Cash, cash equivalents and
marketable securities $ 49,427 $ 45,728
Accounts receivable, net 9,057 9,577
Inventories 7,793 7,251
Deferred income taxes 440 645
Other assets 1,981 1,233
---------- -----------
Total current assets 68,698 64,434
Property and equipment, net 8,282 8,218
Deferred income taxes 3,014 3,014
Other non-current assets 199 248
--------------- --------------
Total assets $ 80,193 $ 75,914
=============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued
expenses $ 7,465 $ 5,678
Current portion of deferred
revenue 10 -
Current portion of debt
obligations 111 107
---------- -----------
Total current liabilities 7,586 5,785
Deferred revenue 111 -
Debt obligations 2,311 2,397
Stockholders' equity 70,185 67,732
--------------- --------------
Total liabilities and
stockholders' equity $ 80,193 $ 75,914
=============== ==============
This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. For example, forward-looking statements include statements regarding our financial and product development goals for 2005, anticipated revenue growth, anticipated profitability, anticipated orders for our satellite communications and military products, and anticipated improvements in our product margins and competitive position. The actual results we achieve could differ materially from the statements made in this press release. Factors that might cause these differences include, but are not limited to: the unpredictability of the new and emerging market for mobile satellite communications products in automobiles; failure to develop and market products suitable for automotive manufacturer use; failure to gain the acceptance of or orders from automotive manufacturers for the TracVision A5; widespread consumer demand for satellite TV service in cars may fail to develop; the appeal and acceptance of satellite TV-equipped rental vehicles to consumers may be lacking; potential difficulties in achieving additional significant cost reductions for the TracVision A5; seasonal declines in demand for our mobile satellite communication and television products; the unpredictability and financial impact of purchasing schedules and priorities of the relatively small number of customers for our defense products; the risk of order cancellations, particularly for longer-term orders; the risk that contract options may never be exercised, depriving us of potential revenue; the potential termination of the multi-year SRWS SRWS Submarine Regional Warfare System or MK54 torpedo programs; the impact of lengthy export license processes on the timing of our international military product shipments; potential reductions in our overall gross margins associated with a general shift in product mix toward our mobile satellite communications products; weather conditions that could disrupt regional sales efforts, including the impact of recent hurricanes; our dependence on single production lines for our products; our dependence on sole or limited source suppliers; our dependence on third-party satellite networks for programming and satellite services; challenges in managing anticipated growth; the impact of continuing increases in fuel prices on the sale and use of motor vehicles and marine vessels; poor or delayed research and development results; currency fluctuations, export restrictions Export restrictions (Restriction on exportation) are restrictions to the quantity of goods exported to a specific country or countries by the government. This is mainly: The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. requirements. These and other factors are discussed in more detail in our Quarterly Report on Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission on August 9, 2005. Copies are available through our Investor Relations Investor relations The process by which the corporation communicates with its investors. department and web site, www.kvh.com. We assume no obligation to update our forward-looking statements to reflect new information and developments. |
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