KVH Industries expects the TracNet 100 to produce its first reven...
KVH Industries expects the TracNet 100 to produce its first revenue during the 3rd quarter, but it won’t be “material” to overall earnings, CFO Patrick Spratt told analysts in an earnings conference call on Thurs. The TracNet 100 was…
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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. Among the suppliers of the antenna at the heart of TracNet in Digital Antenna, CEO Martin Kits van Heyningen said. The TracNet’s price increased from the original $1,000 target as KVH determined it needed to bundle in additional amplifiers and external antennas, van Heyningen said. KVH expects “substantial orders” for TracNet by year- end and has a design win, said van Heyningen who declined to disclose additional details. “It’s an order that has a very high probability,” he said. “It’s just the timing we're not sure of.” Meanwhile, KVH reported 2nd-quarter net income improved to $1.6 million from $952,000 a year earlier as revenue jumped to $21.9 million from $18.8 million. The earnings benefitted from strong sales of KVH’s TracVision M3 that’s sold into the marine market with a 14.5” diameter receiver for the DirecTV service. The M3 has gained KVH new distribution including sales through the West Marine retail chain, company officials said. Revenue from the marine business rose 28% during the quarter and accounted for 50% of KVH’s total sales. KVH recently struck agreement with Sea Ray to include the M3 as option on new 29-44’ boats. Sea Ray will continue to offer the TracVision A4-HP on 45’ and up boats, company officials said. Land and mobile revenue, which includes sales of the TracVision A5 DirecTV system, increased 12% during the quarter. Defense-related revenue, which includes the Tacnav military radar systems, totaled $5.2 million during the quarter. KVH expects 2 additional substantial orders for Tacnav, larger than the less than $2 million orders typically included in the company’s backlog.