MIDDLETOWN, R.I.--(BUSINESS WIRE)--June 30, 2003--Updating the status of its new TracVision A5 automotive satellite TV antenna, KVH Industries (Nasdaq: KVHI) announced today that it remains on schedule for volume production of the new antenna in the third quarter.
"We are currently in the final stages of transitioning the TracVision A5 to manufacturing, and the initial units will be shipping in July," said Martin Kits van Heyningen, KVH's president and chief executive officer. "We are confident that we will meet our original goal of ramping volume production during the third quarter. At this time, the overall market response, initial order levels, and our comprehensive TracVision A5 rollout efforts are progressing as planned."
On June 26, 2003, KVH announced that Tweeter Home Entertainment Group had signed on as the first national retailer for TracVision A5 antennas through its 147 stores equipped to support automotive accessory sales and installation. Thus far, KVH has established a distribution channel that will include approximately 560 retail points of presence throughout the United States when shipments begin. The company's goal is to have approximately 800 retail outlets in place by the end of the year.
Kits van Heyningen continued, "We are pleased with the progress we've made on the TracVision A5 program to date. The solid backlog we've built is a clear indication of the initial demand for the product. We have yet to launch our planned marketing campaign to consumers, which we believe will substantially increase market awareness and broaden the demand."
TracVision A5 is a revolutionary low-profile satellite TV antenna designed specifically for passenger vehicles. Using KVH's revolutionary phased-array technology, it provides in-motion access to more than 300 channels of satellite TV and commercial-free music via virtually all in-vehicle passenger entertainment systems in sport utility vehicles, mini-vans, and cars.
"We expect that TracVision A5 will be a high-volume product and are planning a phased approach to the antenna introduction by gradually increasing our production volume," explained Chief Operating Officer Joe Bookataub. "By carrying out a controlled release of the TracVision A5 and ramping to fill the retail channels during the initial weeks of production, we will be able to ensure the highest level of quality for both the product and the manufacturing process. We had intended to ship the initial units at the end of June but this will now happen in July. However, this should have no effect on our production plans for the third quarter and beyond."
KVH Industries, Inc., designs and manufactures products that enable mobile communication, navigation, and precision pointing through the use of its proprietary mobile satellite antenna and fiber optic technologies. The company is developing next-generation systems with greater precision, durability, and versatility for communications, navigation, and industrial applications. An ISO 9001-registered company, KVH has headquarters in Middletown, Rhode Island, with a fiber optic manufacturing facility in Tinley Park, Illinois, and a European sales, marketing, and support office in Hoersholm, Denmark.
This press release contains certain forward-looking statements that involve risks and uncertainties. For example, the statements regarding the company's financial and product development goals for 2003 are forward-looking statements. The actual results realized by the company could differ materially from the statements made herein. Factors that might cause such differences include, but are not limited to: lack of reliable vendors, service providers, and outside products; unforeseen changes in competing technologies and products; worldwide economic variances; and poor or delayed research and development results. Additional factors are discussed in the company's 2002 Form 10-K filed with the Securities and Exchange Commission on March 26, 2003. Copies are available through the company's Investor Relations department and web site, www.kvh.com. KVH assumes no obligation to update its forward-looking statements to reflect new information and developments.