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

To: Sector Investor who wrote (1161)	5/17/2002 12:20:28 PM
From: Sector Investor	Read Replies (1) \| Respond to of 7249

Today's P/R included this line: <<FOGs provide extremely precise rotational rate information by measuring the phase difference between two paths of light traveling in opposite directions through an optical fiber.>> I think it is important for a KVHI investor to understand more about this, as it is the CRUX of their technology, and also the key to understanding their future prospects. Today's precision gyros are mechanical in nature. They cost more, can be subject to vibration, and have life spans that are measured in hours. KVH gyros are optical in nature, and have no moving parts and much longer life spans. They are not only cheaper to make, but last longer and are not significantly affected by vibration and acceleration. Understanding this difference provides an investor with the basic knowledge needed to understand the truly significant post 9/11 opportunity in front of them. This paper by KVH scientists explains the technology of a Fiber Optic Gyro (FOG). robotics.org KVH uses "open-loop" processing techniques, which minimize gyro complexity and cost. The other approach, "Closed-loop" gyro processing is much more complex and expensive. As I understand it, in the past the digital signal processing components that would be needed for the open-loop approach had previously consumed too much power, and did not have the required processing capacity. However the DSP requirements in the wireless communications and consumer electronics markets have recently changed this, so that KVH can now apply the technology to their FOGs. The cost of DSP components is continuing to drop too, allowing the possibility of further reductions in cost The result is a dramatic improvement in performance and accuracy of their existing FOGs, elevating their technology so that suddenly it competes with the older more expensive precision gyros for some large key military needs. The new DSP FOGs appear to have both cost AND precision/performance advantages over the older gyros. This happens to come just as our military is starting to ramp up, is actively seeking new high tech weapons, and in particular, is looking for a way to speed up production of smart munitions. It is only when we delve into this that we begin to truly understand the opportunity here.