MIDDLETOWN, R.I., Oct. 23 /PRNewswire/ -- KVH Industries, Inc.
(Nasdaq: KVHI) today announced earnings per share of $.14 on net income of
$1.0 million in the third quarter of 1997 ended September 30, a 17 percent
increase over 1996 third quarter per share earnings of $.12 on net income of
$920,000. For the 1997 nine-month period, KVH achieved earnings per share of
$.27, a 29 percent increase over $.21 per share earnings in the comparable
1996 period. Net income for the first nine months of 1997 was $2.0 million, a
41 percent increase from $1.4 million in the 1996 nine-month period.
Revenues for the 1997 third quarter were $7.0 million, down 2 percent from
$7.1 million in the comparable 1996 quarter. Revenues for the nine-month 1997
period were $18.7 million, a 10 percent increase over $17.0 million in the
comparable 1996 period. The decline in quarterly revenues was due primarily
to an anticipated decrease in communications sales as new products began to
replace Tracphone sales to American Mobile Satellite Corporation that
comprised a large portion of the 1996 third quarter revenues. Quarterly
revenues also were affected by product development delays related to two new
products, Tracphone(R) 50 and TracVision(R) II, which resulted in the company
rescheduling their release for later in the quarter than anticipated.
"We achieved our objective of releasing Tracphone 50 and TracVision II
during the third quarter, which represents a critical step in executing the
company's communications marketing strategy," said Martin Kits van Heyningen,
KVH president and CEO. "Preliminary feedback from TracVision II users has
been very positive. Shipments of Tracphone 50 also are well underway, and
customer uptake rates to date indicate strong initial product acceptance."
"Our drive to enhance product lines and expand internationally is
accelerating development and marketing spending," said Chief Financial Officer
Richard Forsyth. "During this period, we expect our growth rate to fluctuate,
with some moderation in revenues and earnings over the short term. Long-term,
we anticipate that these financial and resource investments will yield added
value for KVH shareholders."
KVH Industries produces digital navigation systems and mobile satellite
communications products for commercial, military and marine applications. The
company was founded in 1982 and has headquarters in Middletown, RI, (USA) and
a European office in Hoersholm, 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: implementation of
mobile satellite communications technology; market potential and penetration;
reliability of outside vendors, service providers and products; regulatory
issues; maintaining appropriate inventory levels; disparities between forecast
and realized sales; and design delays and defects. Additional factors are
discussed in the company's Annual Report on Form 10K filed with the Securities
and Exchange Commission on March 27, 1997. Copies are available from the
company's Corporate Communications Department.
KVH INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
1997 1996
(Unaudited) (Audited)
Assets:
Current assets:
Cash and cash equivalents $7,905,205 7,005,682
Accounts receivable, net 3,566,750 6,130,567
Contract receivables 51,282 29,226
Costs and estimated earnings in
excess of billings on
uncompleted contracts 682,801 835,720
Inventories 3,022,096 3,242,270
Prepaid expenses and
other deposits 217,915 179,705
Deferred income taxes 134,552 134,552
Total current assets 15,580,601 17,557,722
Property and equipment,
net 5,156,492 3,881,088
Other assets, less
accumulated amortization 0 25,978
Deferred income taxes 88,862 88,862
Total assets $ 20,825,955 21,553,650
Liabilities and stockholders' equity:
Current liabilities:
Current lease obligation $18,337 $57,676
Accounts payable 1,025,623 1,031,309
Accrued expenses 1,117,675 1,371,193
Customer deposits 0 2,527,500
Total current liabilities 2,161,635 4,987,678
Obligations under
capital leases, excluding
current installments 0 3,341
Total liabilities 2,161,635 4,991,019
Stockholders' equity:
Common stock 70,751 69,932
Additional paid-in capital 14,960,717 14,884,806
Accumulated earnings 3,632,852 1,607,893
Total stockholders' equity18,664,320 16,562,631
Total liabilities and
stockholders' equity $ 20,825,955 21,553,650
KVH INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1997 1996 1997 1996
Net sales $ 7,025,976 7,147,270 18,712,814 17,041,532
Cost of sales 3,479,079 4,228,801 9,908,852 9,750,437
Gross profit 3,546,897 2,918,469 8,803,962 7,291,095
Operating expenses:
Research and
development 826,906 433,890 2,068,127 1,717,908
Sales and marketing 866,709 628,249 2,596,449 2,272,171
Administration 492,537 414,456 1,338,760 1,124,875
Income from
operations 1,360,745 1,441,874 2,800,626 2,176,141
Other income (expense):
Other income (expense) 102,897 (14,331) 92,778 (4,106)
Interest income, net 84,156 93,201 270,431 195,861
Foreign currency
gain (loss) 47,664 (13,152) 54,125 (35,598)
Income before
income taxes 1,595,462 1,507,592 3,217,960 2,332,298
Income tax expense 576,663 587,079 1,193,001 904,117
Net income $1,018,799 920,513 2,024,959 1,428,181
Per share information:
Income per share $0.14 0.12 0.27 0.21
Number of shares
used in per share
calculation 7,523,790 7,574,037 7,457,987 6,892,793
SOURCE KVH Industries, Inc.
CO: KVH Industries, Inc.
ST: Rhode Island
IN: CPR ARO
SU: ERN |
