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

To: Pink Minion who wrote (805)	4/23/2001 9:26:53 AM
From: Sector Investor	Respond to of 7249

<<Anybody hear when they think they might be profitable? >> The rapid rise in R&D is temporary, as they have elected to use consultants. Martin said the bulk of that will be in the first half of 2001, after which they concentrate on getting ready for production of the new products.. Martin reaffirmed at least $39 million in revenue in 2001. They did $8 million in Q1, leaving $31 million. Since Q2 and Q4 are the strongest quarters, this will probably breakdown as something like $10+M, $9M, $11+M, the rest of this year. The problem is a quick calculation shows that during this temporary high R&D and S&M period they need about $12 million to break even, whereas they were profitable in Q4 2000 at $8+ million. That higher breakeven number should drop back next year, and revenue should rise significantly next year, as Martin said that the new modulator, the new ultra low profile antenna, and the current sensor ALL will be in production for revenue in January 2002. So, probably two-three more quarters of small losses. They will have entered two MULTI-BILLION DOLLAR markets, using only a total of $15 million funding, and not all of that is likely to be spent. Some people might be thinking of waiting to buy here, but I don't think the price will be this low later in the year.