KVH Announces 2Q 2000 Financial Results
MIDDLETOWN, R.I.--(BUSINESS WIRE)--July 20,
2000--KVH Industries, Inc. (NASDAQ:KVHI) today
announced financial results for the second quarter ending
June 30, 2000. Revenues for the second quarter of 2000
increased 22 percent to $8.0 million from $6.5 million in the
comparable 1999 quarter. The increase was due to growth in
mobile satellite communications and fiber optic sales.
A net loss of $170,000 or $0.02 a share for the second
quarter compares to a loss of $310,000 or $0.04 a share in
the 1999 quarter. An increase in the six-month loss to $1.0
million or $0.14 a share in 2000 from $0.45 million or $0.06 a
share in 1999 was due to declines of military sales during the
2000 first quarter.
"Second-quarter increases of 47 percent in communications
sales and 300 percent in fiber optic sales more than offset a
decline in military revenues from the 1999 period," said
Martin Kits van Heyningen, president and chief executive
officer. "These growth trends are very encouraging and are
expected to continue."
KVH Industries utilizes its proprietary fiber optic and sensor
technologies to produce navigation and mobile satellite
communications systems for commercial, military, marine
and land mobile applications. The company has
headquarters in Middletown, RI, (USA) with offices in Illinois,
Florida and 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: volatility and
uncertainties in communications, defense and fiber optics,
the primary three industries targeted by the Company; failure
to develop and market fiber optic products; lack of reliable
vendors, service providers and outside products; continued
slow military sales cycles; unforeseen changes in competing
technologies and products; worldwide economic variances;
poor or delayed research and development results; and
disparities between forecast and realized sales. Additional
factors are discussed in the company's Annual Report on
Form 10K filed with the Securities and Exchange
Commission on March 27, 2000. Copies are available from
the company's Corporate Communications Department.
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KVH Industries, Inc. and Subsidiary
Consolidated Statements of Operations
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
Net sales $7,951,254 6,525,644 13,647,769 12,498,814
Cost of sales 5,051,034 4,283,824 8,869,310 8,053,582
Gross profit 2,900,220 2,241,820 4,778,459 4,445,232
Operating expenses:
Research & development 1,015,841 1,040,299 2,090,283 1,909,840
Sales & marketing 1,622,368 1,241,469 3,040,756 2,394,200
Administration 564,327 482,776 1,092,061 1,051,959
Total operating
expense 3,202,536 2,764,544 6,223,100 5,355,999
Loss from operations (302,316) (522,724) (1,444,641) (910,767)
Other (income) loss (12,982) (32,039) 194,559 (47,655)
Loss before
income taxes (289,334) (490,685) (1,639,200) (863,112)
Income tax benefit 119,692 183,565 603,311 410,375
Net loss $(169,642) (307,120) (1,035,889) (452,737)
Per share information:
Loss per share-basic $(0.02) (0.04) (0.14) (0.06)
Loss per share-diluted $(0.02) (0.04) (0.14) (0.06)
Shares - basic 7,621,919 7,207,007 7,528,917 7,206,474
Shares - diluted 7,621,919 7,207,007 7,528,917 7,206,474
KVH Industries, Inc. and Subsidiary
Consolidated Balance Sheets
June 30, December 31,
2000 1999
(Unaudited) (Audited)
Assets:
Current assets:
Cash and cash equivalents $ 765,403 2,047,838
Accounts receivable, net 4,799,288 3,362,390
Costs and estimated earnings in excess
of billings on uncompleted contracts 699,180 444,492
Inventories 3,766,870 3,672,269
Prepaid expenses and other deposits 382,165 292,793
Deferred income taxes 376,628 376,628
Total current assets 10,789,534 10,196,410
Property and equipment, net 6,886,101 7,227,778
Other assets, less accumulated amortization 772,785 839,113
Deferred income taxes 2,169,690 1,571,409
Total assets $ 20,618,110 19,834,710
Liabilities and stockholders' equity:
Current liabilities:
Current portion long term debt $ 75,961 75,643
Line of credit 508,547 --
Accounts payable 2,047,819 1,599,770
Accrued expenses 1,074,711 792,086
Total current liabilities 3,707,038 2,467,499
Long term debt 2,834,032 2,865,232
Total liabilities 6,541,070 5,332,731
Stockholders' equity:
Common stock 76,674 72,969
Additional paid-in capital 16,175,125 15,567,880
Accumulated deficit (2,174,759) (1,138,870)
Total stockholders' equity 14,077,040 14,501,979
Total liabilities and
stockholders' equity $ 20,618,110 19,834,710
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CONTACT: KVH Industries, Inc.
Richard Forsyth, Chief Financial Officer
Alice Andrews, Director, Corporate Communications
401-847-3327 |
