$0.01 on $8.844 revenue (highest ever)
GM 40.1%
R&D up but not as high as Q2
S&M highest ever at $1.88M
Admin lowest this year
More later
siliconinvestor.com
KVH's Fourth Quarter Revenue Grows 60 Percent
Company Expects Strong 2001 Revenue Growth
MIDDLETOWN, R.I., Feb 8, 2001 (BUSINESS WIRE) -- KVH Industries, Inc. (Nasdaq: KVHI chart, msgs)
today reported that revenue for the fourth quarter ended December 31, 2000, grew 60% to $8.8
million from $5.5 million in the fourth quarter of 1999.
The Company also reported fully diluted earnings per share for the fourth quarter of $0.01 compared to a
loss of $0.17 per share for the same quarter of 1999. Operating income for the period was $0.2 million
and net income was approximately $0.1 million compared to a loss of $1.5 million and $1.2 million,
respectively, for the same period in 1999.
"In 2000 we set out to return KVH to profitability," said Martin Kits van Heyningen, President and CEO.
"We clearly accomplished this goal by achieving earnings on an EBITDA basis during the second quarter
of 2000, followed by increasing net earnings in the third and fourth quarters of the year. Robust revenue
growth in each of our three target markets: Fiber Optics, Mobile Satellite Communications, and Tactical
Navigation are driving our business. KVH's reputation for high-quality products, superior technology,
and reliability are gaining increased recognition and acceptance in these rapidly growing markets.
Our strong revenue growth allowed us to achieve profitability while aggressively investing in new
technology development."
For the year ended December 31, 2000, KVH stated that revenue increased 32% to approximately
$30.0 million for 2000, compared to $22.8 million for 1999. The company reported net loss per share
of $0.12, compared to a loss of $0.37 per share in the comparable year-ago period. Operating loss was
$1.1 million and net loss was $0.9 million compared to an operating loss of $4.0 million and a net loss
of $2.7 million, for fiscal 2000 and 1999, respectively.
Richard Forsyth, Chief Financial Officer, commented, "Throughout fiscal 2000, we have been highly
successful in decreasing quarterly operating expenses as a percentage of revenue in every cost category,
leading to significant improvements in operating profitability. This quarter we drove our operating
efficiencies to the bottom line. Looking ahead to 2001 we anticipate that the positive trends we
experienced during 2000 in our core business will continue. However, the pace of investment in our
photonic fiber and mobile broadband/TV research initiatives will determine the company's overall
profitability."
Mr. Kits van Heyningen commented, "During the past year, we made an initial investment in two technologies
that, if successfully developed, could accelerate the growth of KVH Industries. Our goal is to bring the initial
products using these technologies to market within 18 months. We believe these products will address
customer requirements in very large markets."
"To fully capitalize on the potential both of these projects have demonstrated during the initial phases of
development, we have decided to invest heavily in these programs. As part of that decision, the company
recently completed a private placement of Common Stock for $5 million. As 2001 progresses and we gain
a better understanding of the commercial potential for both technologies, we may accelerate the
development efforts. Such acceleration would require our seeking additional outside capital. In addition, acceleration in the programs' schedules would involve increased R&D spending, which, as a result, may
cause us to operate at a net loss during the year. By pursuing these development programs, we believe we are setting KVH on a long-term course to compete in two multi-billion dollar markets that we currently don't address."
Fourth-quarter highlights:
--On December 12, 2000, KVH Industries announced a two-year, $4.7 million contract to equip the new armored
vehicles of an undisclosed southeast Asian country with KVH's TACNAV(TM) tactical navigation systems.
--On December 6, 2000, KVH Industries introduced the TracVision(R) L3 mobile satellite television antenna in North
America. The TracVision L3 has a gyro-stabilized antenna and receives programming from DIRECTV(R), the DISH
Network(TM), and other high-powered, DVB-compatible satellite systems worldwide.
--On November 6, 2000, KVH Industries announced a $1.5 million contract award for the production of E-Core(TM)
Fiber Optic Gyros, which will be deployed in the Javelin Basic Skills Trainer produced by Orlando-based ECC
International Corporation.
--On October 18, 2000, KVH Industries introduced the latest in its line of marine satellite television antennas - the
TracVision G6 and TracVision 6. These systems have a 24-inch antenna enabling them to receive satellite
television signals throughout a wider coverage area than smaller 18-inch antennas.
KVH INDUSTRIES, INC. AND SUBSIDIARY
Consolidated Balance Sheets
December 31, 2000 and 1999
2000 1999
(Unaudited) (Audited)
Assets:
Current assets:
Cash and cash equivalents $ 5,411,460 2,047,838
Accounts receivable, net 6,553,976 3,362,390
Costs and estimated earnings
in excess of billings
on uncompleted contracts 419,145 444,492
Inventories 3,600,660 3,672,269
Prepaid expenses and
other deposits 346,518 292,793
Deferred income taxes 637,799 376,628
Total current assets 16,969,558 10,196,410
Property and equipment, net 6,580,375 7,227,778
Other assets, less
accumulated amortization 706,473 839,113
Deferred income taxes 2,238,430 1,571,409
Total assets $ 26,494,836 19,834,710
Liabilities and stockholders' equity:
Current liabilities:
Current portion long-term debt $ 81,111 75,643
Borrowings against bank line
of credit 598,865 --
Accounts payable 1,478,198 1,599,770
Accrued expenses 1,164,790 792,086
Customer deposits 1,195,091 --
Total current liabilities 4,518,055 2,467,499
Long-Term Debt 2,784,121 2,865,232
Total liabilities 7,302,176 5,332,731
Stockholders' equity:
Common stock 86,191 72,969
Additional paid-in capital 21,186,459 15,567,880
Accumulated deficit (2,079,990) (1,138,870)
Total stockholders' equity 19,192,660 14,501,979
Total liabilities and
stockholders' equity $ 26,494,836 19,834,710
KVH INDUSTRIES, INC. AND SUBSIDIARY
Consolidated Statements of Operations
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
2000 1999 2000 1999
Net sales $ 8,844,466 5,542,226 29,953,727 22,822,429
Cost of
goods
sold 5,296,992 3,685,062 18,620,438 15,034,250
Gross
profit 3,547,474 1,857,164 11,333,289 7,788,179
Operating
expenses:
Research
& development 929,521 1,131,267 3,902,154 4,199,370
Sales &
marketing 1,848,133 1,687,741 6,322,181 5,471,231
Administration 523,057 535,569 2,220,471 2,111,868
Operating
profit (loss) 246,763 (1,497,413) (1,111,517) (3,994,290)
Other income
(expense):
Interest
expense, net (72,387) (9,155) (192,437) (40,236)
Other
(expense)
income (21,805) 10,499 (133,723) 19,805
(Loss) gain
on foreign
currency
translation (45,463) 9,116 (63,080) 63,644
Income (loss)
before income
tax expense
(benefit) 107,108 (1,507,873) (1,500,757) (3,951,077)
Income tax
expense
(benefit) 30,577 (304,939) (559,637) (1,253,822)
Net income
(loss) $ 76,531 $(1,202,934) (941,120) (2,697,255)
Per share
information:
Net income
(loss) per
common share
- basic $ 0.01 (0.17) (0.12) (0.37)
Net income
(loss) per
common share
- diluted $ 0.01 (0.17) (0.12) (0.37)
Weight average
number of
shares
outstanding:
Basic 7,778,364 7,264,460 7,628,166 7,234,961
Diluted 8,197,506 7,264,460 7,628,166 7,234,961
KVH is webcasting its fourth quarter 2000 conference call live at 11:30 a.m. Eastern Time today through the company's web site at
kvh.com. The audio also will be archived at the company web site within three hours after the call is completed.
KVH Industries, Inc., is a leading provider of innovative high-bandwidth communications products, navigation systems, and fiber optic
products. Using proprietary fiber optic and satellite antenna technology, the company is developing next-generation systems with greater
precision, durability, and versatility for communications, navigation, and industrial applications. An ISO 9001-registered company, KVH
has headquarters in Middletown, Rhode Island, with a fiber optic manufacturing facility in Illinois, and a European sales, marketing, and
support 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:
failure to develop and market fiber optic products; lack of reliable vendors, service providers and outside products; continued poor
military sales cycles; unforeseen changes in competing technologies and products; worldwide economic variances; and poor or delayed
research and development results. Additional factors are discussed in the company's Annual Report on Form 10K filed with the Securities
and Exchange Commission on March 27, 2000, and in the company's Form 10Q filed with the Securities and Exchange Commission on
October 19, 2000. Copies are available through the company's Investor Relations Department or web site.
Contact:
Morgen-Walke Associates
Greg Tiberend or Robert Russell
212-850-5600 |
