Cars seem to sport every available feature these days, from cupholders to satellite radio. Television has always been notably absent, though. While XM
A little company called KVH Industries
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
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
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.
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