KVH Industries’ TracVision A5 mobile satellite system suffered fr...
KVH Industries’ TracVision A5 mobile satellite system suffered from declining SUV sales, but Q1 revenue remained steady, CEO Martin Kits van Heyningen told analysts. The A5 attaches to a vehicle, rising about 5” above the roof to receive DirecTV…
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programming. Pricing for the A5 is stable, in stark contrast to its introduction in 2004, when sluggish sales forced KVH to cut its retail to $2,295 from $3,495 (CED July 6/04 p5). “We're not seeing a lot of growth there because of the decline in sales of SUVs,” said van Heyningen. The A5 is packaged with DirecTV’s Total Choice programming, which carries a $4.99 monthly fee for existing subscribers, $41.99 for mobile-only. Overall, KVH’s land-based mobile sales declined 31% as it also suffered slow sales in the recreational vehicle (RV) market. KVH launched shipments of the TracVision R6 ($2,199) -- featuring a 14.5” diameter dish -- in March targeting the RV segment along with the TracVision R5 ($1,995). KVH’s marine sales increased 42% during the quarter as it benefitted from initial revenue from the TracVision M3, which also features a 14.5” diameter design. KVH’s defense-related sales rose 57% to $6 million, benefitting from sales of the TG-6000 fiber optic gyro-based motion sensor that’s used in torpedoes. KVH’s TacNav military navigation system accounted for about 67% of the company’s defense revenue, fiber products the rest, CFO Pat Spratt said. KVH also remains on target to ship its TracNet 100, which is being developed with an in-vehicle version of Microsoft’s MSN TV 2 Internet. The system has a built-in wireless output and connects to the Internet using high-speed EVDO cellular technology. KVH reported first-quarter net income improved to $1.2 million from $301,000 on the strength of strong marine and defense sales. Revenue rose to $20.2 million from $17.8 million.