From the Providence Journal. Here is a copy of the image from the article:
projo.com
KVH to unveil satellite TV for people on the move
01/08/2003
BY ANDREA L. STAPE
Journal Staff Writer
PROVIDENCE -- After two years of anticipation, KVH Industries Inc. tomorrow will take TV lovers one step closer to heaven.
The Middletown technology company will unveil, at the International Consumer Electronics Show in Las Vegas, an antenna that can beam more than 300 channels of satellite television directly into SUVs, minivans and luxury cars.
KVH, which spent millions of dollars researching and developing the technology over the past two years, plans to use the electronics show to debut the finished product and whet consumers' appetites for the 4 1/2-inch-high satellite receiver. KVH says it expects to start shipping the $2,000-to-$2,500 products to automotive electronics retailers this spring, according to Chris Watson, a spokesman for the 240-person technology company.
Although KVH declined to release sales projection for the antenna, company executives have said repeatedly over the past few years that the consumer automotive market will be a new focus for KVH. Currently, a majority of the company's revenue comes from sales of tactical satellite navigation products to militaries around the world.
"It's something we've been working on for a while -- our goal was always to make some type of announcement in 2002," said Watson.
The new antenna can be mounted on top of a consumer's vehicle, where it can pick up DirecTV satellite TV signals. The antenna then sends DirecTV's more than 300 television and 50 music channels into the back-seat video systems, which can play DVDs, videos and video games.
The antenna will be able to pick up the signals throughout the continental United States, said Watson.
Eventually the antenna will also be able to give drivers the ability to tap into high-speed Internet access while on the road. It's a service KVH is able to provide to buses and RVs now, using a larger antenna.
Although it sounds like TV nirvana, KVH's antenna system doesn't come cheap. Consumers must either buy a car with a built-in back-seat video system or install one, plus buy the KVH antenna and then pay for a monthly subscription for DirecTV's service.
KVH, though, is optimistic that consumers will bite, despite the struggling economy. More than 1 million back-seat video systems were sold in the United States last year, according to Watson.
"We have received very positive feedback," said Watson. "As far as market demand, we expect this system will be of interest to anyone that is interested in back-seat video."
In addition to the product rollout, KVH had other good news to report.
Yesterday, the company said it signed a contract, worth $1.6 million, to upgrade the United Kingdom's army with satellite navigation systems. At the same time, KVH received $750,000 worth of new orders for satellite navigation systems from the U.S. Marine Corps and the Ministries of Defense of Saudi Arabia and Oman.
Plus, the company said yesterday it expects to report record earnings and revenue for the fourth quarter of 2002. The company projects that it will earn 2 cents to 3 cents per share on $13 million in sales. It will be the second consecutive profitable quarter for the company. The third quarter was the first profitable quarter for KVH in two years. KVH earned a penny per share on $12.4 million in sales.
KVH also said it expects that revenues for 2002 will increase 45 percent compared with 2001. The rise is due to explosive growth in its defense-related business and the continued introduction of new satellite-based consumer communication products, according to a statement released by the company yesterday. KVH is expected to report finalized fourth-quarter earnings in February.
Wall Street applauded KVH's performance, sending the stock up 24 percent on Monday after it announced its new product. More than 200,000 shares traded hands, compared with about 38,000 on an average day. Yesterday, after announcing the contracts and preliminary fourth-quarter results, KVH stock dropped 21 cents, to close at $11.03 per share. |
