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

To: Roy F who wrote (1484)	10/18/2002 10:38:38 AM
From: robert b furman	Read Replies (2) \| Respond to of 7249

HI Roy, Well as usual the web cast was very informative. Some quick points: Patrick Spatt (New CFO) indicated they hoped Q4 sales would be 50 above Q4 01.Q4 01 sales were 8.8 million x 1.50= 13.2 million. Q3's sales of 12.4 resulted in a breakeven plus 150,000 bottom line all of which occurred on a still robust rate of R&D. Since no one really knows how L-3's million bucks on a research grant gets allocated - all I can relly say is R&D is noted to be on the decline - however the decline has been very slow at best.I suspect that R&D will be firmly entrenched in this young company for a long time - they have huge potential on many fronts. If KVHI can bottom line10 -15 % of the increased sales over Q3 they will add 80,000 to 120,000 on top of the 150,000 that the 12.4 revenue resulted in. This gives a profit of 230,000 to 270,000.That results in a .02 cent profit range basic/diluted using the high range or low range of extrapolated earnings. Now Pratt is a newbie and I'm sure he wants to start out a sandbagger.After all his first full webcast is a breakthrough event by returning to profitability.He's got to be smart enough to lowball the numbers and surprised to the top side. To the degree they shave R&D or grow their revenue above 150% growth we get numbers better than .02. This is a watershed event for KVHI.They are now positioned to grow nicely in a profitable category.This will now put them into investment screens and publicity will eventually erupt. I loved the part about new boats sales being slow hurting the marine satellite sales so new model intro picked up the slack.Trac Net 2.0 - sort of sounds like Microsoft no??? It reminds me of my original reason to buy this stock - I'm still short my 48 foot Hateras. Hey everybody needs a dream.gg Additionally I like the work on cost savings they are doing - a 10% margin bump is strong in anybody's world. A turn of inventory of 5.8 in a year is Benchmark performance. This company as usual is doing everything very well. Now we need the world to discover their neat and exciting products. Bob I guess my short term dream is a nickel in Q4. Not a bad dream if all those Humvees(in wave one-3.6 million) get Nav Tac in 02 and the rest of the vehicles gets upgraded to the 10.0 million contract extension in H2 03.