Roy, rather than be lazy and just ask for your analysis, I thought I'd give some of my own. Alice Andrews said $1.3 MM of 2Q 97 communications revenue was due to AMSC, leaving $.8 MM for direct sales. Last Q's communications revenue -- $2.2 MM -- was all direct, representing a 175% gain in direct communications sales.
Before I get too excited, I should note that (I imagine) many of these direct sales would have been OEM sales, but that option wasn't available. Still, this represents nice demand, and shows KVH's ability to sell directly to the customer -- which presumably gives the company fatter gross margins -- and demonstrates KVH's strong sales channels.
As the press release states, navigation revenue was up 19% from 2Q 97, a healthy gain.
At this point, I don't really care about EPS. I'm concerned about revenue. If this growth is sustainable, and if the military is serious about FOG technology, we'll end up just fine.
I'll be interested to hear what, if anything, the CC said about recurring air-time revenue for TracPhone. As I recall, in last year's 2d or 3d Q CC (I used to listen to them all, but lately have been too busy), management said that we should start seeing air-usage revenues in 2Q 98. KVH receives a cut of the usage revenues for the phones it sells. Talk about fat margins! Yahoo!
Sorry. Got a little carried away there. I think I'm going schizo. I saw my CHKPF and TDFX blow away earnings, only to see the stock prices fall through the floor. Makes you want to skip all the time analyzing stocks and just buy some overpriced KO, DELL or MSFT.
OK, I'm done whining. Let me know about the CC, including management's tone. Thanks, Roy.
RK |
