Repost of the Q1 2000 data in fixed font format so the tables come out clean.
KVH Announces 1st Quarter 2000 Results Communications Sales
Up 71 Percent
MIDDLETOWN, R.I.--(BUSINESS WIRE)--April 20, 2000--KVH
Industries, Inc. (NASDAQ: KVHI) today announced that it
ended the company's first quarter of 2000 with yet another
dramatic growth in communications sales. In addition to
increasing 71 percent over the 1999 first quarter, combined
revenues from the company's satellite television and
telephony sales in 2000 were up more than 44 percent over
the preceding 1999 fourth quarter.
"We continue to see sales of our TracVision(R) land and
marine systems exceeding our expectations as new products
are introduced," said Martin Kits van Heyningen, president
and CEO. "Our land vehicle product line expanded during the
quarter when we added a system for stationary use to the
highly popular mobile system introduced last year. Our
marine product line also advanced during the quarter,
leapfrogging our competitors with two new systems that
automatically deliver signals from both Digital Video
Broadcasting and Digital Satellite System satellites.
Consumer response to our products is providing clear
evidence that the demand for mobile communications is
increasing exponentially."
Total revenues for the first quarter were $5.7 million
compared to $6.0 million in the 1999 period. The decline in
overall revenues was due primarily to a $1.7 million decline
in military orders, which resulted in lower overall
navigation sales than expected. Cost of sales was flat at
$3.8 million in both the 2000 and 1999 first quarters. Gross
profits declined during the quarter to $1.9 million from
$2.2 million and gross margin as a percentage of net sales
decreased to 33 percent from 37 percent in 1999. Total
operating expenses increased to $3.0 million from $2.6
million and the operating loss increased to $1.1 million
from a $0.4 million loss in 1999. The net loss for the 2000
quarter was $0.9 million or $.12 a share compared to a net
loss of $0.2 million or $.02 per share in 1999.
"We are beginning to see signs of recovery in our military
and fiber optic sales," said Kits van Heyningen. "In the
first quarter, we received a $1.4 million repeat order for
our TACNAV(TM) TLS systems, and yesterday we announced that
two major defense companies have ordered $1.2 million in
fiber optic gyros. We anticipate that momentum in both these
markets will increase as the military begins spending to
upgrade its forces and as we increase the visibility of our
fiber optic products in multiple OEM markets."
According to Richard Forsyth, chief financial officer, "We
improved direct costs as a percentage of net sales during
the quarter by four percent for communications systems and
two percent for navigation products. Our increase in
operations expense during the quarter is attributable in
part to research and development efforts that we are
supporting primarily with company funds. In addition, the
number of new products we introduced during the first
quarter required greater sales and marketing expenditures.
The decrease in gross profit is related to increased
manufacturing overheads and the shift in our product revenue
mix, where communication sales are dominating higher-margin
military sales."
KVH is webcasting its first quarter 2000 conference call
live at 11:30 a.m. Eastern time today through the company's
web site at kvh.com. The audio also will
be archived at the company web site within three hours after
the call is completed.
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: 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; and
poor or delayed research and development results. Additional
factors are discussed in the company's Annual Report on Form
10K filed with the Securities and Exchange Commission on
March 27, 2000. Copies are available through the company's
Investor Relations Department or web site.
KVH Industries, Inc. and Subsidiary
Consolidated Statements of Operations
(Unaudited)
Three months ending
March 31,
2000 1999
Net sales $5,696,515 5,973,170
Cost of sales 3,818,276 3,769,758
Gross profit 1,878,239 2,203,412
Operating expenses:
Research and development 1,074,442 869,541
Sales and marketing 1,418,388 1,152,731
Administration 527,734 569,183
Total operating expense 3,020,564 2,591,455
Loss from operations (1,142,325) (388,043)
Other expense (income) 207,541 (15,616)
Loss before income taxes (1,349,866) (372,427)
Income tax benefit 483,619 226,810
Net loss $(866,247) (145,617)
Per share information:
Loss per share - basic $(0.12) (0.02)
Weighted average number of shares
outstanding, basic 7,435,915 7,205,928
KVH Industries, Inc. and Subsidiary
Consolidated Balance Sheets
March 31, 2000 Dec. 31, 1999
Unaudited) (Audited)
Assets:
Current assets:
Cash and cash equivalents $1,524,315 2,047,838
Accounts receivable, net 4,066,031 3,362,390
Costs and estimated earnings
in excess of billings on
uncompleted contracts 472,665 444,492
Inventories 3,257,743 3,672,269
Prepaid expenses and other deposits 386,978 292,793
Deferred income taxes 376,628 376,628
Total current assets 10,084,360 10,196,410
Property and equipment, net 7,063,955 7,227,778
Other assets, less
accumulated amortization 805,945 839,113
Deferred income taxes 2,055,101 1,571,409
Total assets $20,009,361 19,834,710
Liabilities and stockholders' equity:
Current liabilities:
Current portion long term debt $77,378 75,643
Accounts payable 1,800,423 1,599,770
Accrued expenses 1,152,963 792,086
Total current liabilities 3,030,764 2,467,499
Long term debt 2,851,769 2,865,232
Total liabilities 5,882,533 5,332,731
Stockholders' equity:
Common stock 75,981 72,969
Additional paid-in capital 16,055,964 15,567,880
Accumulated deficit (2,005,117 (1,138,870
Total stockholders' equity 14,126,828 14,501,979
Total liabilities and
stockholders' equity $20,009,361 19,834,710
Contact:
KVH Industries, Inc.
Richard Forsyth, Chief Financial Officer
or Alice Andrews, Director, Corporate Communications
401/847-3327 |
