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Technology Stocks : KVH Industries, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Roy F who wrote (718)	2/10/2001 11:03:59 AM
From: Labrador	Respond to of 7249

Providence Journal-Bulletin February 9, 2001, Friday Copyright 2001 Knight Ridder/Tribune Business News Copyright 2001 Providence Journal Providence Journal-Bulletin February 9, 2001, Friday KR-ACC-NO: PJ-SATELLITE LENGTH: 574 words HEADLINE: Military Contracts Help Boost Rhode Island-Based Satellite Maker's Profits BYLINE: By Andrea L. Stape BODY: Mobile satellite manufacturer KVH Industries Inc. yesterday reported its first profitable quarter in more than a year and highlighted plans to enter two new markets. The Middletown-based mobile communications manufacturer earned $ 100,000 in net income during the fourth quarter of last year, compared with a loss of $ 1.2 million during the fourth quarter of 1999. Fourth-quarter revenues were $ 8.8 million, up 60 percent from the $ 5.5 million the company reported for the last quarter of 1999. Revenues for last year were $ 30 million, a 32-percent increase over the $ 22.8 million the company reported for 1999. About 23 percent to 25 percent of the company's annual revenues were driven by military contracts. The 19-year-old, high-tech manufacturer produces satellite-based navigational and communications equipment for ships, including aircraft carriers, armored military vehicles and consumer automobiles. KVH, which employs 185 worldwide, reported no net income for the third quarter of the year and lost $ 200,000 in the second quarter. But revived sales of fiber-optic, mobile satellite and navigation equipment,coupled with a renewed focus on reducing operating expenses, started to fill company coffers by the end of last year. Year-end revenues were driven by a $ 4.7-million contract KVH signed in November to provide an undisclosed Southeast Asian country with armored vehicles and a $ 1.7-million deal to sell fiber-optic systems to a Florida-based firm. "I'm extremely pleased with the fourth quarter and year 2000 results," said Martin Kits van Heyningen , company president and chief executive officer, during a conference call yesterday. Although KVH planned on returning to profitability in 2000, the company fell short, reporting a $ 900,000 loss for the year. KVH lost $ 2.7 million in 1999. Van Heyningen admitted yesterday that earnings may suffer again this year as the company pours money into research and development of two new products. Looking to break into the optical-networking market, KVH is working on developing an optical light sensor that can be built into fiber-optic cable. RHK Inc., a market research firm based in California, expects the optical-networking market will reach $ 45 billion by 2004. KVH is also developing a satellite-based broadband cable system that could transmit up to 500 channels of digital-quality cable and high-speed Internet access to moving vehicles. The company plans to release the new products within the next 18 months. "We are not going to put the company at risk with these projects," said Richard Forsyth, chief technology officer for KVH. Earnings per share for the fourth quarter were a penny, compared with a loss of 17 cents per share that the company reported for the same quarter in 1999. KVH lost 12 cents a share for the year. KVH's stock lost 37 cents per share in 1999. Since the company's public offering at $ 6.50 a share in April 1996, the company's stock (KVHI: NASDAQ) has only increased 20 percent. KVH's stock traded at $ 3.25 a share last April -- its 52-week low. The stock has risen in the last month and closed yesterday at 4 p.m. at $ 8.50 a share, down 62.5 cents a share.