Thanks Michael for your input.
We all know the gyros don't meet ALL military needs. From your perspective as a user of gyros, this is important. But from an INVESTOR's viewpoint this really doesn't matter at all. Let me explain.
First, to reinforce your point to people, you could look at slide #4 of this Crossbow presentation, which illustrates your point. With their DSP-5000 announcement, KVH has now fattened the FOG segment and extended it a bit further to the right. Not all the way, but far enough to open new military applications like turret stabilization and smart munitions and UAVs.
Unfortunately this link is a large Powerpoint presentation which will take some time to download. It does show people what you are saying though.
xbow.com
Now to my point.
If you go to the Needham conference presentation off the KVH website and Investor Relations, then look at slide #8, you will see that the market their gyros DOES meet is a $2.7 Billion market of military applications.
twst.com
KVH is NOT the size of Boeing or Lockheed-Martin, with six figure employment roles (in fact they had 224 people at the end of 2001). They posted $32.7 million in revenue last year, - $11 million of which was military. It only takes ONE middle size contract win to redouble or triple the already doubled military sales in 2002.
In fact they DO MEET the specs for the smart munitions application. I did a post on that. There is a typo in it, I mean't to say 1000 units per quarter, not 100.
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But that is conservative, as the military need for a second source vendor could be up to 4,000 units per quarter.
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So it doesn't take much to dramatically impact the stock. |
