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

To: Sector Investor who wrote (1491)	10/18/2002 4:38:06 PM
From: akmike	Respond to of 7249

Hello Sector, I understand what you are saying but I heard Pat Spratt say that operating expenses in Q4 would be about the same percentage of revenue. As all operating expenses are covered in R & D, Sales and Marketing, and Administration, the implication is that if R & D goes down as a % of revenues, then the other categories will increase by a like dollar amount. I think he said that there are more shows in Q4 and other marketing expense increases contemplated. Just for the record, my eps estimate for Q4 is .03 with revenues at 13.34 mil. I am in the camp of believing that there is significant upside to that revenue number and if it is exceeded then I think your premise of operating efficiency applies to the excess above 13.2 mil. as that is where the guidance was given. It was a great week for KVH longs. Have a great weekend everyone! Mike

To: Sector Investor who wrote (1491)	10/18/2002 4:40:58 PM
From: Sector Investor	Read Replies (1) \| Respond to of 7249

So, this is just to finish the thought process of my previous post. Knowing that the bottom line they report can be controlled by expenses - likely the R&D that they can fund lower or higher as they choose, and knowing that what they report in Q4 is unimportant (2003 is the year to shine), other than that the number has to be black and higher than a penny, I think they have three main objectives. 1) Beat the $0.01, but not necessarily by too much. 2) Manage their cash. In Q3 they said they had $1.2 million of Cap-ex before the end of the year. I don't remember what number (if any) was mentioned in the CC. 3) Keep the bar low enough so that they will be able to meet/exceed in 2003. If I had to guess right now, I would guess they cut R&D, fund the Cap-ex, and report $0.02 or $0.03. It is a VERY NICE position to be in to have your quarter already mostly made. With their $8M backlog and now some OEM visibility, this is exactly the position they are in. Very nice indeed! P.S. This was posted before I read akmike's crossing post. <g>

To: Sector Investor who wrote (1491)	10/18/2002 5:51:22 PM
From: robert b furman	Respond to of 7249

Hi Sector agreed. I'm thinking variable selling expense is 15-25 percent ( commisssion based.This will go up linerarly with sales increases. Granted 15 % is low - I guess I'm like Spratt - sandbagging and hoping for a positive surprise. I'm just so proud of KVHI's performance.Getting to black is huge.The potential of current sensor and low profile satellite antennae are the only large markets KVHI is close to tapping into. The RV and Marine applications are niche segments - if the acceptance of their product accelerates in a similar fashion as the Trac vision - things will explode almost exponentially for this little company. At about that time,the modulator and or JDAMs come accross - we will be owning another CSCO. Every time I think that way - I keep buying more stock.I already have my broker babbling about undue concentration -it has them nervous.gg Now that they are making money - maybe they'll allow me more margin.gggg This stock is going to crank in the next 12-24 months. TO DA MOON !!!!! Bob