Profile: KVH Industries Inc (KVHI.O)

KVH Industries, Inc. (KVH) is a manufacturer of solutions that provide Internet, television (TV), and voice services through satellite to mobile users at sea, on land, and in the air. The Company is also a manufacturer of navigational sensors and integrated inertial systems for defense and commercial guidance and stabilization applications. The Company sells its mobile communications products and airtime services, including the TracVision and TracPhone systems, and mini-VSAT Broadband airtime, through an international network of distributors and retailers worldwide. As of December 31, 2008, it was in the process of deploying its mini-VSAT Broadband service on a global basis to support maritime, aeronautical, and land-based mobile applications. KVH’s guidance and stabilization products include precision fiber optic gyro (FOG)-based systems that help stabilize platforms, such as gun turrets, remote weapon stations, and radar units, and provide guidance for munitions, as well as tactical navigation systems for a range of military vehicles. Its fiber optic products are also used in commercial applications, such as train track geometry measurement systems, industrial robotics, optical stabilization, autonomous vehicles and undersea remotely operated submersibles.

Mobile Satellite Communications

KVH has developed a family of products and services marketed under the TracVision and TracPhone brand names, as well as the mini-VSAT Broadband airtime network to address the needs of its communications markets. Its Certified Support Network (CSN) offers the Company’s TracVision and TracPhone customers an international network of skilled technical dealers and support centers in many locations where its customers are likely to travel. The Company offers an array of products to address the needs of a variety of customers seeking mobile communications in maritime, land mobile and aeronautical applications.

In the marine market, the Company offers a range of mobile satellite TV and communications products. Its marine TracVision M-series satellite TV antennas are designed with the full spectrum of vessel sizes in mind, ranging from recreational vessels as small as 20 to 25 feet to large commercial vessels. In October 2008, KVH introduced the TracVision M1, which is 12.5 inches in diameter and 7.5 pounds. It includes a 12-volt mobile DIRECTV receiver/controller for support of DIRECTV’s Ku-band programming.

KVH’s Inmarsat-compatible TracPhone products provide in-motion access to global satellite communications. These products are compatible with services offered by Inmarsat, a satellite service provider that supports links for phone, fax and data communications as fast as 432 Kbps, or kilobits per second. The TracPhone F77 uses the Inmarsat Fleet service while the TracPhone FB250 and FB500 antennas use the Inmarsat Fleet Broadband service to offer voice, as well as high-speed Internet service, while its TracPhone 252 antenna offers lower-cost voice and low-speed data services through the Inmarsat mini-M service. The TracPhone F77, FB250 and FB500 are manufactured by Thrane & Thrane A/S of Denmark and distributed by KVH in North America under the KVH TracPhone brand and distributed in other markets on a non-exclusive basis.

The Company develops and manufactures the TracPhone V7 stabilized satellite communications antenna along with the supporting airtime service, mini-VSAT Broadband, which have applications on marine vessels, land vehicles, and airplanes. The system and service utilize spread spectrum technology and ArcLight modem technology, both of which were developed by ViaSat. The Company designs, manufactures and sells a range of TracVision satellite TV antenna systems for use on an array of vehicles, including recreational vehicles, trucks, conversion vans, and automobiles. In the recreational vehicle (RV)/truck market, KVH offers a line-up of its TracVision satellite TV products, including products intended for both stationary and in-motion use. Its RV product line, known as the TracVision SlimLine series, offers automatic satellite switching and integrated compatibility with the international Digital Video Broadcast (DVB) standard.

Guidance and Stabilization Products

KVH offers a portfolio of digital compass and fiber optic gyro-based systems that address the requirements of military and commercial customers. Its guidance and stabilization products include the Company’s inertial measurement unit for precision guidance of torpedoes and unmanned aerial vehicles, fiber optic gyros for tactical navigation and stabilization, and digital compasses for tactical navigation. Its TG-6000 Inertial Measurement Unit is a guidance system that provides precise measurement of motion and acceleration in three dimensions. It uses a three-axis configuration of its digital signal processing (DSP)-based fiber optic gyros integrated with three accelerometers. In May 2008, the Company introduced the CNS-5000 continuous navigation system, a self-contained navigation system that combines its fiber optic gyro-based inertial measurement technology from KVH with GPS technology from NovAtel.

The DSP-3000 is used in an array of pointing and stabilization applications, including the United States Army’s Common Remotely Operated Weapon Station (CROWS) to provide the image and gun stabilization necessary to ensure that the weapon remains aimed at its target. Its fiber optic products are also used in numerous commercial applications, such as train location control and track geometry measurement systems, industrial robotics, optical stabilization, autonomous vehicles, and undersea remotely operated submersibles. The Company’s TACNAV tactical navigation product line employ digital compass sensors and KVH fiber optic gyros to offer vehicle-based navigation and pointing systems with a range of capabilities, including GPS backup and enhancement, vehicle position, hull azimuth and navigation displays.

The Company competes with NaviSystem Marine Electronics Systems Srl, King Controls, Cobham Sea Tel, Inc., Intellian, Raymarine, Thrane & Thrane A/S, Furuno Electric Co., Ltd., Globalstar LP, Iridium Satellite LLC, Japan Radio Company, SeaMobile, CapRock, Schlumberger, Ship Equip, Vizada, Stratos, Cobham Sea Tel, TracStar Systems, Inc., MotoSAT, Winegard Company, RaySat, Sirius Satellite Radio, Honeywell International Inc., Kearfott Guidance & Navigation Corporation, Leica Microsystems AG, Northrop Grumman Corporation, Smiths Group plc, Tamam and Fizoptica.