Kvh Industries, Inc. (NASDAQ:KVHI)

"Looking ahead to the third quarter, we expect that the continuing tough economic conditions as well as historical seasonality factors will put pressure on sales to the consumer and leisure marine and land markets. Although there is always uncertainty in this environment, we do expect sequential increases for our mini-VSAT Broadband offering, for our aeronautical satellite TV antenna, and to a modest extent for our fiber optic gyroscopes. We expect that total sales in the third quarter should be about equal to the second quarter, followed by a sequential increase in the fourth quarter. For the second half of the year, we expect net margin to be about breakeven, reflecting a modest loss in the third quarter and turning to a modest profit in the fourth quarter. Ongoing strong investments in the mini-VSAT Broadband service infrastructure are contributing to the near-term margin pressure, and visibility in most markets remains very limited."

Source: PR Newswire (July 28, 2009)

The Company commented:

'Our original guidance for the year was contingent on general economic conditions not getting materially worse than at that point in time. However, economic conditions did get materially worse. Consumer demand and new vessel and vehicle production by OEMs were very weak and are expected to remain so. We expect sequential increases in sales for our mini-VSAT Broadband offering and for our fiber optic gyroscopes. Given these assumptions, we believe that the second quarter top and bottom line results should show improvement compared to the first quarter but in this environment, any prediction is uncertain. Although we remain very optimistic with respect to our strategic progress, we do not feel it would be prudent to provide additional guidance for the full year until we see clear evidence of economic stabilization.'

Guidance Report: (Non-China)

Full Year  2009 Guidance Ending December

'While the economic situation is a serious challenge for all companies, our innovative strategic plan and diversified business model are generating revenue from satellite communications on land, sea, and air, as well as growth from our defense and commercial businesses. I am confident in our ability to continue to grow the company in spite of the current recession while strengthening our strategic position for the long term,' said Martin Kits van Heyningen, KVH's chief executive officer.

Source: PR Newswire (February 5, 2009)