<<I'm just not certain that they will cut R&D enough to do the 10% after tax bit any time soon. >>
BP,
You forget about all the wild cards out there that can kick up revenue significantly. Those do not figure in 2003 revenue or earnings projections - yet.
The low profile antenna opens major new markets, but it is an unknown as far as sales ramp is concerned.
The Current Sensor is alive and apparently well. We should be hearing more about it soon. The market is sizable and their partner, ABB is one of the biggest electrical generation equipment players in the world.
The joint development with L-3 of a miniaturized FOG IMU should be getting close to completion as well. The IMU is the most expensive part of a smart munitions guidance package, probably $6,000 - $9,000 each. There are more projects than just JDAM (the IMU portion of the last JDAM contract exceeded $150M over 18 months), including MLRS, ERGM and others.
The FBCB2 program reaches a volume award point around mid 2003 and the KVH TACNAV is designed and tested into that military program. This is a multi-Billion dollar market.
FOGs are also just now opening the Turret Stabilization market, which I believe is also a multi-Billion market. FOGs replace mechanical gyros there and increase the life from 5,000 - 7,000 hours or so, to 65,000 hours. There are LOTS of turreted vehicles out there, and the US and NATO militaries must all be getting ready to upgrade those vehicles. |
