Cars seem to sport every available feature these days, from cupholders to satellite radio. Television has always been notably absent, though. While XM (NASDAQ:XMSR) and Sirius (NASDAQ:SIRI) have perfected the art of collecting tunes from outer space and beaming them to your car, developing an in-motion TV satellite system has been a bit more challenging -- until now.

A little company called KVH Industries (NASDAQ:KVHI) seems to have solved that dilemma with TracVision, its recently developed low-profile, on-the-fly satellite TV system. Its hybrid phased-array system captures energy from satellites via hundreds of smaller individual antenna. The separate signals are then recombined to create a single data stream that delivers incredible, uninterrupted satellite TV reception to your vehicle.

So far, KVH's mobile satellite TV systems appear to be gaining popularity. They're found in boats, RVs, trucks, buses, and automobiles, and they're factory-installed by most major U.S. RV manufacturers, including Fleetwood (NYSE:FLE) and Marathon. Last year, the brand entered automobiles like GM's (NYSE:GM) Cadillac Escalade. In the trucking business, TracVision is tremendously popular; big rig drivers can now watch TV virtually anytime and anywhere.

KVH's innovative products have not gone unnoticed. RoadStar Magazine, a leading publisher in the North American trucking biz, recently named KVH's TracVision L2 "Most Valuable Product of 2005." The magazine cited TracVision's superior performance and reliable, rigorous construction. Recently announced partnerships with DirecTV (NYSE:DTV) for mobile satellite TV programming and Microsoft (NASDAQ:MSFT) for mobile broadband connectivity services could also increase KVH's exposure.

KVH's nifty defense gadgets are also doing quite well. A tactical vehicle navigation system, TACNAV, gives U.S. and ally military vehicles precise, uninterrupted navigation and heading information. KVH's fiber-optic gizmos have produced a 25% compound annual revenue growth rate since 1997; they can even be found in the U.S. Navy's next-generation lightweight torpedoes.

While I'm anxiously awaiting fourth-quarter and full-year results, KVH's performance during the first nine months of 2005 looks enticing. Revenues climbed 15%, and earnings came in at $0.13 per share, compared to a net loss of $0.46 during the comparable time frame in 2004. Gross profits grew from $13.8 to $22 million, and gross margins dramatically improved by more than 10%.

With a forward P/E somewhere around 30, KVH isn't cheap. But if it continues to deliver innovative problem-solving technologies, this company might be worth watching.

For other Foolishness:

XM is a Motley Fool Rule Breakers recommendation. Microsoft is an Inside Value recommendation.

Fool contributor M.D. Mitchell holds no financial position in any of the above companies. The Motley Fool is investors writing for investors.