SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 2000
Commission file number: 0-28082
KVH Industries, Inc.
(Exact name of Registrant as Specified in its Charter)
Delaware 05-0420589
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
50 Enterprise Center, Middletown, RI 02842
(Address of principal executive offices)
(401) - 847 - 3327
(Registrant' telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No __
Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date.
Date Class Outstanding shares
April 14, 2000 Common Stock, par value $0.01 per, share 7,598,094
<PAGE>
KVH INDUSTRIES, INC. AND SUBSIDIARY
INDEX
Page No.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Balance Sheets as of March 31, 2000 and
December 31, 1999 3
Consolidated Statements of Operations for the three
months ended March 31, 2000 and 1999 4
Consolidated Statements of Cash Flows for the three
months ended March 31, 2000 and 1999 5
Notes to Consolidated Financial Statements 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 7
PART II. OTHER INFORMATION 10
ITEM 1. LEGAL PROCEEDINGS 10
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 11
SIGNATURES 11
<PAGE>
Part I. Financial Information
Item 1. Financial Statements.
<TABLE>
<CAPTION>
<S> <C> <C>
KVH INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
March 31, 2000 December 31, 1999
(Unaudited) (Audited)
----------------- ---------------------
Assets:
Current assets:
Cash and cash equivalents $ 1,524,315 2,047,838
Accounts receivable, net 4,066,031 3,362,390
Costs and estimated earnings
in excess of billings on uncompleted contracts 472,665 444,492
Inventories 3,257,743 3,672,269
Prepaid expenses and other deposits 386,978 292,793
Deferred income taxes 376,628 376,628
------------- -------------
Total current assets 10,084,360 10,196,410
------------- -------------
Property and equipment, net 7,063,955 7,227,778
Other assets, less accumulated amortization 805,945 839,113
Deferred income taxes 2,055,101 1,571,409
------------- -------------
Total assets $ 20,009,361 19,834,710
============= =============
Liabilities and stockholders' equity:
Current liabilities:
Current portion long term debt $ 77,378 75,643
Accounts payable 1,800,423 1,599,770
Accrued expenses 1,152,963 792,086
------------- -------------
Total current liabilities 3,030,764 2,467,499
------------- -------------
Long term debt 2,851,769 2,865,232
------------- -------------
Total liabilities 5,882,533 5,332,731
------------- -------------
Stockholders' equity:
Common stock 75,981 72,969
Additional paid-in capital 16,055,964 15,567,880
Accumulated deficit (2,005,117 ) (1,138,870 )
------------- -------------
Total stockholders' equity 14,126,828 14,501,979
------------- -------------
Total liabilities and stockholders' equity $ 20,009,361 19,834,710
============= =============
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
<PAGE>
Item 1. Financial Statements.
<TABLE>
<CAPTION>
<S> <C> <C>
KVH INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
March 31,
2000 1999
------------------- -----------------
Net sales $ 5,696,515 5,973,170
Cost of sales 3,818,276
3,769,758
----------------- -----------------
Gross profit 1,878,239 2,203,412
Operating expenses:
Research and development 1,074,442
869,541
Sales and marketing 1,418,388 1,152,731
General and administrative 527,734
569,183
----------------- -----------------
(1,142,325
Loss from operations ) (388,043)
Other expense (income):
Other expense (income) 127,787 (4,546)
Interest expense, net 2,763 100
Foreign currency loss (gain) 76,991 )
(11,170
----------------- -----------------
(1,349,866
Loss before income tax benefit ) (372,427)
Income tax benefit 483,619 226,810
----------------- -----------------
(866,247
Net loss $ ) (145,617)
================= =================
Per share information:
Loss per share:
Basic $ (0.12) (0.02)
Diluted $ (0.12) (0.02)
Number of shares used in per share calculation:
Basic 7,435,915 7,205,928
Diluted 7,435,915 7,205,928
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
<PAGE>
Item 1. Financial Statements.
<TABLE>
<CAPTION>
<S> <C> <C>
KVH INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
2000 1999
------------- -------------
Cash flow from operations:
Net loss $ (866,247 ) (145,617 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 262,203 203,080
Provision for deferred taxes (483,692 ) (148,748 )
Increase in accounts and contract receivables, net (703,641 ) (1,619,702 )
(Increase) decrease in costs and
estimated earnings in excess of billings on uncompleted contracts (28,173 ) 546,515
Decrease (increase) in inventories 414,526 (168,128 )
Increase in prepaid expenses and other deposits (94,185 ) (19,991 )
Increase in accounts payable 200,653 456,514
Increase in accrued expenses 360,877 81,899
------------- -------------
Net cash used in operating activities (937,679 ) (814,178 )
------------- -------------
Cash flow from investing activities:
Capital expenditures (65,212 ) (427,797 )
------------- -------------
Net cash used in investing activities (65,212 ) (427,797 )
------------- -------------
Cash flow from financing activities:
Proceeds from long term debt -- 3,000,000
Repayments of long term debt (11,728 ) (5,913 )
Proceeds from exercise of stock options 491,096 --
------------- -------------
Net cash provided by financing activities 479,368 2,994,087
------------- -------------
Net (decrease) increase in cash and cash equivalents (523,523 ) 1,752,112
------------- -------------
Cash and cash equivalents at beginning of period 2,047,838 1,239,227
------------- -------------
Cash and cash equivalents at end of period $ 1,524,315 2,991,339
============= =============
Supplement disclosure of cash flow information:
Cash paid during the period for interest $ 52,039 30,108
Cash paid during the period for income tax $ -- 1,130
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
<PAGE>
Item 1. Financial Statements.
KVH INDUSTRIES, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
March 31, 2000 and 19998
(Unaudited)
(1) The accompanying consolidated financial statements of KVH Industries,
Inc. and subsidiary (the "Company") for the three-month periods ended March 31,
2000 and 1999, have been prepared in accordance with generally accepted
accounting principles and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. The consolidated financial statements presented have not been
audited by independent public accountants, but include all adjustments
(consisting of only normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of the financial condition,
results of operations and cash flows for such periods. These consolidated
financial statements do not include all disclosures associated with annual
financial statements and accordingly should be read in conjunction with our
consolidated financial statements and notes included in the Company's Annual
Report on Form 10-K dated March 27, 2000, as filed with the Securities and
Exchange Commission. Copies of our Form 10-K are available upon request. Our
results for the three months ended March 31, 2000 are not necessarily indicative
of operating results for the remainder of the year.
(2) Inventories at March 31, 2000 and December 31, 1999 include the costs
of material, labor and factory overhead. Inventories are stated at the lower of
cost (first-in, first-out) or market and consist of the following:
March 31, December 31,
2000 1999
Raw materials $ 2,800,000 2,735,601
Work in process 93,853 350,128
Finished goods 363,890 586,540
-------------- ------------
$ 3,257,743 3,672,269
============== ============
Defense project inventories are included in the balance sheet caption
"Costs and estimated earnings in excess of billings on uncompleted contracts."
Defense project inventories amounted to $163,111 and $163,044 at March 31, 2000
and December 31, 1999, respectively. Defense contracts provide for project costs
reimbursement as costs are incurred, through monthly invoicing of vouchers or
progress billings.
(3) On January 11, 1999, we entered into a mortgage loan in the amount of
$3,000,000 with a life insurance company. The note term is 10 years, with a
principal amortization of 20 years at a fixed rate of interest of 7%. The
mortgage loan is secured by land, building and improvements. Monthly mortgage
expense is $23,259, including interest and principal, and due to the difference
in the term of the note and amortization of the principal, a balloon payment of
$2,014,716 is due on February 1, 2009. As of March 31, 2000, $2,929,147 was
outstanding.
On March 27, 2000, we entered into a $5.0 million asset-based, three-year,
revolving loan facility with interest at the prime bank lending rate plus 1%.
Unused portions of the revolving credit facility accrue interest at an annual
rate of 50 basis points. The loan facility advances funds based upon an asset
availability formula that includes our eligible accounts receivable and
inventory. The availability formula sets aside a fixed amount of qualified
assets that may not be borrowed against. We may terminate the loan prior to the
full term, however, we would become liable for certain termination fees. At
March 31, 2000, we had $5,000,000 of unused borrowings with our bank to be drawn
upon as needed.
(4) Net loss per common share. The computation of the loss per share for
the three-month periods ended March 31, 2000 and 1999, excludes the effect of
potential common stock, as the effect would be anti-dilutive. See Exhibit 11 for
a reconciliation of the weighted-average number of shares outstanding used in
the computation of the basic loss per common share.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Safe Harbor statement under the 1995 Private Securities Litigation Reform Act.
With the exception of historical information, the matters discussed in this
Quarterly Report on Form 10-Q include certain forward-looking statements that
are subject to certain risks and uncertainties that could cause actual results
to differ materially from those stated. These forward-looking statements reflect
management's opinions only as of the date hereof, and KVH Industries, Inc.
assumes no obligation to update this information. Risks and uncertainties
include, but are not limited to, those discussed in the section entitled
"Management's Discussion and Analysis of Financial Condition and Results of
Operations - Forward Looking Statements - `Risk Factors.'" Shareholders of the
Company are cautioned not to place undue reliance on forward-looking statements
made in the Quarterly Report on Form 10-Q. This report should be read in
conjunction with the consolidated financial statements and notes included in the
Company's Annual Report on Form 10-K dated March 27, 2000. These reports are
filed with the Securities and Exchange Commission and copies are available from
the Company upon request or through the Company's web site at www.kvh.com.
Results of Operations
Overview - The sensor systems we produce for multiple market applications
are based on the proprietary fiber optic, autocalibration and fluxgate
technologies that are our core resource. We integrate our sensors into our
satellite communications and navigation systems for mobile marine and land
applications in the commercial and military markets. Sensors also are sold as
components to original equipment manufacturers (OEM) markets. We sell our sensor
products and systems through a variety of channels, including a direct sales
force and a network of dealers, value-added resellers, distributors and sales
representatives. Our research and development activities are funded internally
and by customers. We are financing virtually all of the cost of developing our
marine navigation and satellite communications products. Manufacturing
operations consist primarily of final assembly and test of products, materials
procurement management and quality assurance.
Sensor-based Products for Communications
A key component of our communications products is our proprietary
three-axis, fully stabilized antenna, which maintains satellite contact with
geostationary satellites when a vessel or vehicle platform is in motion. The
antennas use a KVH digital gyro compass and inclinometer to measure precisely
the pitch, roll and yaw of an antenna platform in relation to the earth. That
data is used by our proprietary stabilization and control software and on-board
microprocessors to compute the antenna movement necessary to maintain satellite
contact and then transmit precise motor control instructions to aim the antenna.
We have designed our antennas to permit rapid initial acquisition of the
satellite signal without operator intervention. The primary focus of current
development efforts is on creating a system that can provide mobile users with
two-way, broadband Internet capabilities.
Our TracVision DBS antenna system product line provides mobile television
and data reception on boats and land vehicles. TracVision systems for marine use
are compatible with both Digital Video Broadcasting (DVB) and Digital Satellite
System (DSS) services. Land TracVision systems deliver DSS services to
on-the-move or stationary recreational and sports utility vehicles, motor
coaches, vans, and long-haul trucks. Our Tracphone(R) systems deliver voice, fax
and data to pleasure and commercial marine vessels via the mini-M satellite
constellation operated by Inmarsat (the International Maritime Satellite
Organization).
Sensor-based Products for Navigation
We also sell sensor-based products for navigation applications in the
military and marine markets. Compass systems utilize our digital fluxgate
heading sensor to sample the surrounding magnetic field and output precise
heading data. These signals are relayed to an on-board microprocessor, where
filtering and averaging algorithms that we developed translate the output to
stable heading information. Our proprietary autocalibration software
continuously and automatically compensates for the effects of magnetic
interference. In highly dynamic applications where greater accuracy and fully
stabilized heading output is required, we integrate the sensor with one or more
angular rate gyros and inclinometers. This integration provides
three-dimensional error correction and stabilization capabilities previously
available only from more costly systems. For the military market, our TACNAV(TM)
sensor product line ranges from a simple GPS-compatible compass system with a
single commander's display to a complete, integrated system that provides full
tactical navigation and targeting capabilities and includes up to three separate
commander's, gunner's and driver's displays. TACNAV FOG combines the proven
performance of TACNAV TLS systems with the high accuracy of a KVH fiber optic
sensor. Fiber Optic Sensor Systems
In addition to integrating our FOG technology into the KVH high-end TACNAV
system, we sell FOGs to commercial OEMs for a variety of applications. Key
applications include measuring electrical power flow, robotics, positive train
control and precision agriculture. The basic component of FOG sensors is E.Core,
a proprietary optical fiber that we manufacture.
Net loss per share - Net losses for the three-month periods ended March 31
were $866,247 or $.12 per share in 2000 and $145,617 or $.02 per share in 1999.
Operating losses in 2000 were attributable primarily to ongoing research and
development expenses and slow military sales. We are continuing to direct
substantial funds to engineering efforts that are developing advanced products
for such uses as two-way Internet, evolving military requirements and new fiber
optic applications. Military orders that were delayed have begun to come in, and
we expect order flow to accelerate during the year.
Net sales - Net sales for the 2000 first quarter were $5,696,515, a slight
decrease from $5,973,170 in 1999. Communications sales increased 71% in 2000 to
$4,149,312 from $2,433,209 in 1999. A decline in navigation sales to $1,547,203
from $3,539,961 was due to military orders that we are receiving later than
expected. A positive impact on profit of nearly $.9 million from communications
sales was offset by the adverse impact on profit of $1.2 million from lower
navigation sales, of which $1.1 million was attributable to the delay in
military orders. While fiber optic gyro (FOG) sales to OEM customers declined in
2000 to $243,558 from $379,708 in 1999, we received our first order from the
military for our fiber optic gyro-enhanced tactical navigation system. During
the coming quarters, we expect communications sales to continue growing and the
recovery of military and FOG orders to accelerate.
Gross profit - Gross profit is comprised of revenues less the cost of
materials, direct labor, manufacturing overheads and warranty costs.
First-quarter gross profit decreased about 15% in 2000 to $1,878,239 from
$2,203,412 in 1999. Gross profit as a percentage of net sales decreased to 33%
in 2000 from 37% in the prior year. The decrease in gross profit is related to
the shift in our product revenue mix, with lower-margin communications sales
dominating sales of our higher-margin military orders during the quarter, and to
increased manufacturing overheads. We improved direct costs as a percentage of
net sales during the 2000 quarter by 4% for communications products and by 2%
for navigation products. Product cost improvements resulted primarily from
engineering redesigns. The Company anticipates that gross profit will remain
flat or increase slightly when higher-margin navigation products rebound and the
product revenue mix shifts once again. Negative pressure placed on gross profit
by low fiber optic sales also is expected to abate as volumes increase and begin
to offset fixed manufacturing overhead.
Operating expenses - Research and development expense increased 24% in the
2000 quarter to $1,074,442 from $869,541 in 1999. The increase is due to our
ongoing investment in creating technologically advanced products that will
compete strongly and garner substantial presence in our communications and
navigation markets. Our fiber optic development emphasis is on defense
applications, a market with substantial long-term potential where we already are
selling FOG-integrated navigation systems. A 23% increase in sales and marketing
expense to $1,418,388 from $1,152,731 in 1999 resulted from the costs of
promoting our new communication products and increased focus on marketing FOGs
to OEMs. General and administrative expenses decreased 7% to $527,734 in 2000
from $569,183 in 1999, primarily due to reduced headcount. We believe that
expenses for research and development and sales and marketing will remain flat
or increase slightly as the year progresses to support continuing engineering
and marketing efforts for new products. Administrative costs are anticipated to
remain at current levels throughout the remainder of the year.
Other income (expense) - Other income (expense) is made up of interest
income and expense, other income and expense and foreign currency translation
gains and losses.
Income tax benefit - The first-quarter income tax benefit reflects the
realization of the tax benefit associated with our current quarter's loss. Our
effective income tax rate has been established at 38% of the operating loss
after adjustment for certain items. Our effective income tax rate may change
during the remainder of 2000 if operating results differ significantly from the
current operating projections.
<PAGE>
Liquidity and capital resources
Working Capital - Working capital decreased by $675,315 in the first three
months of 2000 from December 31, 1999. Cash and cash equivalents were $1,524,315
and $2,047,838 at March 31, 2000, and December 31, 1999, respectively. The
decrease in capital resources reflects the impact of fixed manufacturing costs
that are not yet offset by sales volumes, and our increase in funding research
and development internally.
On March 27, 2000, we entered into a $5,000,000 asset-based, three-year,
revolving loan facility at an interest rate of the prime bank lending rate plus
1%. Any unused portion of the revolving credit facility accrues interest at an
annual rate of 50 basis points. The loan facility provides for advancing funds
based upon an asset availability formula that includes our eligible accounts
receivable and inventory. The availability formula sets aside a fixed amount of
qualified assets that may not be borrowed against. The company may terminate the
loan prior to the full term, however, we would become liable for certain
termination fees. At March 31, 2000, we had $5,000,000 of unused borrowings with
our bank to be drawn upon as needed.
Capital expenditures - Fixed assets purchases amounted to $65,212 in the
first three months of 2000. Fixed asset acquisitions are primarily
computer-related equipment.
We anticipate that our operating costs will decrease in proportion to our
sales volumes, generating positive cash from operations going forward. Fixed
manufacturing overhead spending is expected to decline as a percent of revenues,
and we plan to reduce research and development costs by offsetting these costs
with customer funding. We believe that existing cash balances and funds
available under our new revolving credit facility will be sufficient to meet our
anticipated working capital requirements for 2000. If we decide to expand more
rapidly, to broaden or enhance products more rapidly, to acquire businesses or
technologies or to make other significant expenditures to remain competitive,
then we may need to raise additional funds.
Other Matters
Recent Accounting Pronouncements - In June 1999, the Financial Accounting
Standards Board issued Statement of Financial Accounting Standards ("SFAS") No.
137, "Accounting for Derivative Instruments and Hedging Activities -- Deferral
of the Effective Date of FASB Statement No. 133 -- an Amendment of FASB
Statement No. 133". The Statement amends SFAS No. 133 to defer its effective
date to all fiscal quarters of all fiscal years beginning after June 15, 2000.
We have not yet completed our analysis of the impact of adopting SFAS No. 133 on
the financial statements; however, it is not expected to have a material impact
on the Company's financial condition, results of operations or cash flows.
Year 2000 - After evaluating the impact of the year 2000 issue as it
relates to our navigation and communications products, we have concluded that
they are not affected by year 2000 operating issues. We also assessed our
software and computer systems to be sure they are year 2000 compliant. Based on
usage to date, our systems are year 2000 compliant.
Inflation. The Company believes that inflation has not had a material
effect on its results of operations.
Forward Looking Statements - Risk Factors
This Management's Discussion and Analysis of Financial Condition and
Results of Operations contains forward-looking statements that are subject to a
number of risks and uncertainties that could affect our financial results. In a
broad perspective, our products target industries that are subject to
volatility, risks and uncertainties. The communications industry is experiencing
rapid growth fueled by strong worldwide demand and buffeted by competing formats
and rapid, unpredictable technology changes. The defense industry historically
experiences variability in supply and demand related to international
conditions, national politics, budget decisions and technology changes, all of
which are difficult or impossible to predict. Competition in the OEM sensor
market is both dense and intense.
<PAGE>
Specific internal risk factors that could affect our financial stability
include:
Recent revenues have been derived in large part from new products, and we
may not be able to sustain that pace and rate of success for products under
development.
For some time now, we have been experiencing long delays in finalizing
military contracts. The resulting lack of revenues has been a large factor in
reducing our gross margins and increasing our quarterly net losses. While a
number of project bids are in process, we cannot guarantee that we will receive
orders or that significant delays will not continue. Since our military systems
are designed for very specific applications, we do not have sufficient military
product breadth to provide us with consistent high-margin revenues when periodic
purchasing fluctuations occur.
Our product dependency upon the Global Positioning System (GPS) and the
satellites, antennas, technologies and services of companies such as GM Hughes
Electronics, PanAmSat Corp., Gilat Satellite Networks, Inmarsat Holdings Ltd,
Motorola Inc., DIRECTV, and EchoStar Communications Corp. makes their risks our
risks. We have no means of providing communications and navigation services
should these capabilities external to KVH fail. In addition, our new product
designs anticipate advances by these companies that may not occur. Greater
broadband access, for instance, may not be available if new satellites from
Hughes and other companies malfunction, or have launches fail or be delayed past
currently scheduled dates beginning in 2001.
The learning curve for the new fiber optic technology we acquired in 1997
has been much longer than we anticipated, and we are still working to integrate
FOGs into some product lines and to establish KVH as a player in the OEM
markets. While we have begun selling FOG-integrated TACNAV systems and FOGs to
OEMs, we cannot predict if or when revenues will offset fixed fiber optic
manufacturing costs. The OEM market is particularly competitive, and we cannot
guarantee that penetration will be sufficiently successful.
Variations in our operating results and product failures could affect the
trading price of our Common Stock, which has been subject to wide fluctuations.
A decrease in our market capitalization could affect our ability to secure loans
that are necessary for us to continue developing and marketing new products.
Part II. Other Information
Item 1. Legal Proceedings.
In the ordinary course of business, the Company is a party to legal
proceedings and claims. In addition, from time to time the Company has
contractual disagreements with certain customers concerning the Company's
products and services. In a complaint filed on February 14, 2000, (KVH
Industries, Inc. v. Datron/Transco, Inc., C.A. No. 00-067T [D.R.I.]), KVH has
alleged that Datron/Transco, Inc., breached a 1999 agreement between the parties
and infringed upon KVH's United States Letters Patent No. 5,835,057. For relief,
KVH is seeking contractual damages and treble compensatory damages for willful
infringement as well as preliminary and permanent injunctive relief. Datron
responded to the complaint on March 14, 2000. Datron has denied KVH's
allegations and is seeking a declaratory judgment that KVH's patent is invalid
and that Datron has not infringed the patent. Datron has also brought an
antitrust counterclaim, pursuant to which it seeks injunctive relief and treble
damages. The Company believes that it will prevail in this action and that the
lawsuit will not have a material effect on operations or capital resources.
<PAGE>
Item 6. Exhibits and reports on Form 8-K.
1. Exhibit 11 - Computation of Loss Per Common Share: Three Months Ended
March 31, 2000 and 1999.
2. Exhibit 27 - Financial Data Schedule: Three Months Ended March 31, 2000.
3. No reports on Form 8-K were filed during the quarter for which this report
was filed.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
KVH Industries, Inc.
By: /s/ Richard C. Forsyth
Richard C. Forsyth
(Chief Financial and Accounting Officer)
Date: April 14, 2000
Exhibit 11.
Computation of net loss per share, all data in thousands, except per share
data. This data is unaudited.
For the three months
ended March 31,
-------------------------
2000 1999
---------- -----------
Calculation of loss per share - basic
Net loss $ (866 ) (146 )
========== ===========
Shares:
Common shares outstanding 7,436 7,206
========== ===========
Net loss per common share - basic $ (0.12 ) (0.02 )
========== ===========
Calculation of loss per share - diluted
Net loss $ (866 ) (146 )
========== ===========
Shares:
Common shares outstanding 7,436 7,206
Additional shares assuming conversion of: stock
options and warrants - -
---------- -----------
Average common and equivalent shares outstanding 7,436 7,206
========== ===========
Net loss per common share - diluted $ (0.12 ) (0.02 )
========== ===========
See the accompanying notes to consolidated financial statements.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
KVH Industries, Inc. March 31, 2000
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> Mar-31-2000
<CASH> 1,524,315
<SECURITIES> 0
<RECEIVABLES> 4,196,724
<ALLOWANCES> (130,693)
<INVENTORY> 3,257,743
<CURRENT-ASSETS> 10,084,360
<PP&E> 11,315,272
<DEPRECIATION> (4,251,317)
<TOTAL-ASSETS> 20,009,361
<CURRENT-LIABILITIES> 3,030,764
<BONDS> 0
0
0
<COMMON> 75,981
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 20,009,361
<SALES> 5,696,515
<TOTAL-REVENUES> 5,696,515
<CGS> 3,818,276
<TOTAL-COSTS> 3,020,564
<OTHER-EXPENSES> 127,787
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,763
<INCOME-PRETAX> (1,349,866)
<INCOME-TAX> 483,619
<INCOME-CONTINUING> (866,247)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (866,247)
<EPS-BASIC> (0.12)
<EPS-DILUTED> (0.12)
</TABLE>
