KVH Provides Fourth Quarter Update
January 08 2007 - 4:47PM
Business Wire
KVH Industries, Inc., (Nasdaq: KVHI) announced today that
preliminary, unaudited results indicate the company will report
revenue of approximately $17.2-$17.4 million and roughly breakeven
earnings for the fourth quarter of 2006 as a result of slower than
expected growth in the company�s marine satellite systems in the
quarter as well as unexpected scheduling changes of confirmed
military orders, which are now expected to ship in 2007. The
projected earnings include approximately $0.02 per share impact
from stock option expenses. Martin Kits van Heyningen, KVH�s
president and chief executive officer commented, �These results are
below our original expectations for the quarter. However, we do not
believe the factors involved are representative of any long-term
trends. While we were affected by an unexpected softness in the
marine market, marine sales in the fourth quarter were still up
compared to last year, and we believe that we are continuing to
gain market share with our new products. In fact, our overall
mobile communications sales were up more than 15% for the quarter
compared to last year, reflecting some growth in marine sales as
well as a strong increase in sales to the land market compared to
the same period last year. Within our defense business, the
schedule changes added to an already large, anticipated
year-over-year decline for defense sales, which resulted in a
larger than expected decline in spite of positive growth in fiber
optic gyro product sales. �Looking ahead to 2007, we anticipate
that revenue will be approximately $87 to $92 million, or
approximately 10% to 17% above our expected 2006 full year revenue.
We expect that GAAP earnings will be between $0.40 to $0.48 per
diluted share, up approximately 67%-100% over fiscal year 2006,
which we project to be approximately $0.24 per diluted share. These
expectations include a more cautious outlook for the next few
quarters in the marine business. We also expect to see
strengthening military sales and year-over-year growth compared to
2006, especially in the second half of the year. � KVH�s fourth
quarter closed on December 31, 2006, and all statements in this
release reflect a preliminary analysis of the company�s quarterly
financial results. The company�s 2006 results are subject to the
completion of the year end audit. The company expects to release
its fourth quarter and full year results for 2006 by mid-February
2007. About KVH Industries, Inc. KVH Industries, Inc., is a premier
manufacturer of systems to provide access to live mobile media
ranging from satellite TV to telephone and high-speed Internet for
vehicles and vessels as well as a leading source of navigation,
pointing, and guidance solutions for maritime, defense, and
commercial applications. The company�s products are based on its
proprietary mobile satellite antenna and fiber optic technologies.
An ISO 9001-certified company, KVH is based in Middletown, Rhode
Island. This press release contains certain forward-looking
statements that involve risks and uncertainties. For example, the
statements regarding the company�s financial results and
expectations for 2007 are forward-looking statements. The actual
results realized by the company could differ materially from the
statements made herein. Factors that might cause such differences
include, but are not limited to: uneven military sales cycles;
unforeseen changes in competing technologies and products; reliance
upon third-party service providers in the mobile satellite
marketplace; delays in international military shipments due to
licensing and approval regulations; and worldwide economic
variances. Additional factors are discussed in the company�s most
recent annual report on Form 10-K and quarterly report on Form 10-Q
filed with the SEC. Copies are available through the company�s
Investor Relations department and website, www.kvh.com. KVH does
not assume any obligation to update its forward-looking statements
to reflect new information or developments. KVH is a registered
trademark of KVH Industries, Inc.
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