KVH - New Orders for Fiber Optic Gyros (FOGs)

KVH Receives $7.6 Million FOG Order

MIDDLETOWN, RI – December 20, 2011 – KVH Industries, Inc., (Nasdaq: KVHI) announced that it has received a $7.6 million order for its single-axis fiber optic gyros (FOGs) from an international defense contractor to support weapon and optical stabilization in remote weapon stations for the U.S. military. Delivery of this order will begin immediately and continue into 2013.

“KVH’s compact, rugged, and affordable fiber optic gyros are extremely versatile,” says Jay Napoli, KVH’s vice president of FOG/OEM sales. “End users and system integrators choose KVH FOGs for their range of output options, patented Digital Signal Processing (DSP) electronics design, and outstanding performance with regard to bias stability, scale factor linearity, turn-on to turn-on repeatability, and high bandwidth. These exceptionally low noise FOGs are ideal for demanding applications, including those that require precise measurement of rate and turning angle as well as the ability to withstand the shock of repeated, high-speed gunfire.”

KVH Receives $2.5 Million Multi-year DSP-3000 FOG Order

MIDDLETOWN, RI – December 21, 2011 – KVH Industries, Inc., (Nasdaq: KVHI) announced that it has received new purchase orders exceeding $2.5 million for its precision DSP-3000 fiber optic gyros (FOGs) for use in stabilized remote weapon stations (RWS) from an international military customer. Shipment of these DSP-3000 FOGs will be completed over the next two years.

“Remote weapon stations play a critical role in improving crew safety and weapon accuracy in combat operations overseas. We are proud that KVH's fiber optic gyros remain the sensors of choice for the leading RWS manufacturers supporting U.S. and allied military forces,” said Jay Napoli, KVH's vice president of FOG and OEM sales. “Our affordable DSP-3000 FOG offers the high reliability, superior accuracy, and exceptional vibration, shock, and acceleration survivability necessary to ensure optimal RWS performance. Thanks to these benefits, KVH's FOGs are ideal for a variety of guidance and stabilization needs in both the military and commercial markets.”

Remote weapon stations allow gunners to operate, aim, and fire a vehicle-mounted weapon from inside the safety of their vehicles, instead of manning turret positions where they are exposed to hostile fire. KVH’s DSP-3000 FOGs provide precise optical stabilization and weapon recoil control for RWS units while ensuring that the weapon stays on target whether the vehicle is stationary or on the move.

KVH’s fiber optic guidance and sensor systems are used in an array of commercial and defense-related stabilization, navigation, autonomous vehicle, and precision guidance applications. These include platform stabilization, antenna/radar/optics stabilization, IMU, GPS/INS, and AHRS integration.

Financial News: EMCORE Corporation Announces Financial Results for Its Fourth Quarter and Fiscal Year Ended September 30, 2011

ALBUQUERQUE, N.M., December 27, 2011 (GLOBE NEWSWIRE) -- EMCORE Corporation, a leading provider of compound semiconductor-based components, subsystems, and systems for the fiber optics and solar power markets, today announced its financial results for its fourth quarter and fiscal year ended September 30, 2011.

Quarterly Financial Results

Revenue:

Consolidated revenue for the fourth quarter ended September 30, 2011 was $52.1 million, which represents a 4% decrease compared to the prior year and a 5% increase compared to the immediate preceding quarter. On a segment basis, revenue for the Fiber Optics segment was $30.9 million, which represents a 10% decrease compared to the prior year and a 7% decrease compared to the immediate preceding quarter. Revenue for the Photovoltaics segment was $21.2 million, which represents an 8% increase compared to the prior year and a 31% increase compared to the immediate preceding quarter.

Gross Profit:

Consolidated gross profit was $10.0 million, which represents a 22% decrease compared to the prior year and a 6% increase compared to the immediate preceding quarter. Consolidated gross margin was 19.2%, which represents a decrease from the 23.6% gross margin reported in the prior year and an increase from the 19.1% gross margin reported in the immediate preceding quarter. On a segment basis, Fiber Optics gross margin was 18.0%, which represents a decrease from the 20.4% gross margin reported in the prior year and a decrease from the 19.4% gross margin reported in the immediate preceding quarter. Photovoltaics gross margin was 21.0%, which represents a decrease from the 29.3% gross margin reported in the prior year and an increase from the 18.6% gross margin reported in the immediate preceding quarter.

Operating loss:

The consolidated operating loss was $14.4 million, which represents a $12.6 million increase in operating loss when compared to the prior year and a $3.2 million increase in operating loss when compared to the immediate preceding quarter. The quarter-over-quarter variance was primarily due to the $8.0 impairment charge recorded on the long-lived assets of our Fiber Optics segment offset slightly by the change in litigation settlements totaling $1.5 million and a decrease in non-cash stock-based compensation expense of $1.1 million.

After excluding certain non-cash and other adjustments as set forth in the attached non-GAAP table, adjusted operating loss for the fourth quarter ended September 30, 2011 was $1.4 million, which represents an additional operating loss of $4.1 million from the loss reported for the prior year and a decrease in operating loss of $2.3 million from the loss reported for the immediate preceding quarter.

Net loss:

The consolidated net loss was $14.3 million, which represents a $13.4 million increase in net loss when compared to the prior year and a $3.2 million increase in net loss when compared to the immediate preceding quarter. The consolidated net loss per share was $0.15, which represents a $0.14 increase in net loss per share when compared to the prior year and a $0.03 increase in net loss per share when compared to the immediate preceding quarter. During the fourth quarter ended September 30, 2011, EMCORE recorded $1.0 million of non-operating expense related to our Suncore joint venture.

Annual Financial Results

Revenue:

Consolidated revenue for fiscal 2011 was $200.9 million, which represents a 5% increase compared to the prior year. On a segment basis, revenue for the Fiber Optics segment was $125.6 million, which represents a 3% increase compared to the prior year. Revenue for the Photovoltaics segment was $75.3 million, which represents an 8% increase compared to the prior year.

Gross Profit:

Consolidated gross profit was $42.8 million, which represents a 16% decrease compared to the prior year. Consolidated gross margin was 21.3%, which represents a decrease from the 26.5% gross margin reported in the prior year. On a segment basis, Fiber Optics gross margin was 18.5%, which represents a decrease from the 23.1% gross margin reported in the prior year. Photovoltaics gross margin was 26.0%, which represents a decrease from the 32.3% gross margin reported in the prior year.

Operating loss:

The consolidated operating loss was $32.5 million, which represents an $11.1 million increase in operating loss when compared to the prior year. The year-over-year variance was primarily due to the decrease in gross profit and the $8.0 impairment charge recorded on the long-lived assets of our Fiber Optics segment, offset slightly by lower stock-based compensation expense of $2.4 million and the net gain related to litigation settlements totaling $1.1 million.

After excluding certain non-cash and other adjustments as set forth in the attached non-GAAP table, adjusted operating loss for the fiscal year ended September 30, 2011 was $5.7 million, which represents an additional operating loss of $14.6 million from the adjusted operating loss reported for the prior year.

Net loss:

The consolidated net loss was $34.2 million, which represents a $10.5 million increase in net loss when compared to the prior year. The consolidated net loss per share was $0.38, which represents a $0.10 increase in net loss per share when compared to the prior year. During fiscal 2011, we recorded $1.8 million of non-operating expense related to their Suncore joint venture.

Balance Sheet Update

As of September 30, 2011, cash, cash equivalents, and restricted cash totaled approximately $16.1 million. With respect to measures taken to improve liquidity, in December 2011, EMCORE amended the Wells Fargo credit facility, which included adding new classes of assets into the borrowing base calculation and reducing the excess availability covenant requirements. As a result of this amendment, they can increase their potential borrowings by up to $14 million. In addition, they entered into an equity line of credit arrangement with Commerce Court Small Cap Value Fund, Ltd. in August 2011, pursuant to which, they may sell up to $50 million in shares of their common stock over the 24-month term.

Business Outlook and Commentary

As previously disclosed on October 24, 2011, flood waters infiltrated the offices and manufacturing floorspace of their primary contract manufacturer in Thailand. The areas used to manufacture their fiber optic products and their process and test equipment were submerged in several feet deep flood water for more than a month. As a result, the manufacturing infrastructure that supports approximately 50% of their Fiber Optics segment revenue was damaged. This has had a significant impact on their operations and their ability to meet customer demand for fiber optics products.

Production capabilities for three major product lines were impacted: these include Telecom products, such as tunable lasers and our high-volume tunable XFP line (their low-volume TXFP production line is in the Bay Area and producing products), Cable television (CATV) laser components and transmitters, and other legacy products. Over the past two months, they have been developing and implementing alternative manufacturing plans in their own facilities in China and the U.S. to meet short-term customer demand. Concurrently, they have been focusing on rebuilding the high-volume production infrastructure for impacted product lines in other locations owned by their primary contract manufacturer in Thailand, as well as the EMCORE facility in China. Their focus during the rebuild is on a quick recovery and strategies to better configure the equipment for efficiency, reduce our cost structure, and provide manufacturing diversification in order to turn this crisis into an opportunity.

Purchase orders have been issued to replace the damaged process and test equipment and new equipment is now being received. Between their own facilities and their contract manufacturer, they expect to rebuild their production capacity for their CATV business by the end of March 2012, and rebuild the production capacity of their Telecom production lines before the end of May 2012. They are working closely with customers on their recovery manufacturing plan to align with their needs.

As for the inventory materials, they were able to move a significant portion of their finished goods inventory to the second story of the facility right before the flood waters reached the manufacturing floor. This has allowed EMCORE to serve the near-term demands of some key customers. The major focus is to work with their customers to meet their near-term needs and to ascertain that the demand will still be there for their products when we are back to full capacity. EMCORE is pleased that many of their key customers for Telecom products have stepped up and committed their demand through non-cancelable purchase orders and pre-payments. As a result, their production capacity for tunable lasers in calendar 2012, when it is fully recovered, is almost fully booked with the existing commitments from customers. This illustrates the differentiation of their product and the strong relationships with their customers.

EMCORE entered into agreements with their key contract manufacturing partner and Wells Fargo Business Credit. These agreements significantly improved the Company's liquidity position while we process and receive proceeds from insurance claims. They believe that they have a solid plan in place to rebuild their impacted business.

The Company expects the revenues for its first quarter of fiscal year 2012 ending December 2011 to be in a range of $36 to $38 million with the sequential revenue decline primarily attributable to the flood impact to its Fiber Optics business.

About EMCORE

EMCORE Corporation is a leading provider of compound semiconductor-based components and subsystems for the fiber optics and solar power markets. EMCORE's Fiber Optics segment offers optical components, subsystems, and systems that enable the transmission of video, voice, and data over high-capacity fiber optic cables for high-speed data and telecommunications, cable television (CATV), and fiber-to-the-premises (FTTP) networks. EMCORE's Photovoltaics segment provides solar products for satellite and terrestrial applications. For satellite applications, EMCORE offers high-efficiency compound semiconductor-based gallium arsenide (GaAs) solar cells, covered interconnect cells, and fully integrated solar panels. For terrestrial applications, EMCORE offers concentrating photovoltaic (CPV) systems for utility scale solar applications as well as offering its high-efficiency GaAs solar cells and CPV components for use in solar power concentrator systems. http://www.emcore.com

Newport Acquires ILX Lightwave for $9.3 Million

29 December 2011 – Following its acquisitions of Ophir Optronics and High Q Technologies, Newport Corporation is set to continue its consolidator moves with the buy-out of ILX Lightwave, the photonics instrumentation and test and measurement firm based in Bozeman, Montana.

The $9.3 million cash deal is expected to close within a month, with the precise amount paid for the company subject to a final calculation of ILX Lightwave’s net assets at closing. Newport says that the company is set to make a profit on its expected 2011 sales of $8 million.

Newport CEO Robert Phillippy said in a statement announcing the deal: “The addition of ILX, together with our recent acquisition of Ophir Optronics, will further enhance Newport's position as the industry's leading provider of photonics instrumentation and measurement equipment. With our expanded portfolio of products and technology, we will offer our customers solutions to the most demanding applications in both the scientific and industrial markets.”

ILX sells a wide range of photonics-related instrumentation, from diode drivers and temperature controllers to fiber-optic sources and power meters, meaning that there is a certain amount of overlap with the Newport-owned Ophir Optronics product offering.

ILX was founded in 1986, with a business based initially around its groundbreaking precision laser diode current source, and has worked closely with Montana State University through a collaborative research program. The company has also worked with researchers at the NSF-funded Center for Mid-IR Technologies for Health and the Environment (MIRTHE) in Princeton University, which is developing optical gas sensors based on quantum cascade lasers.

Balancing the portfolio

Newport’s recent spree is part of a corporate strategy to grow the business through both organic expansion and merger and acquisition activity. The company has enjoyed several quarters of strong growth recently, although that has been largely the result of a buoyant microelectronics industry, a sector that accounts for up to one-third of Newport’s revenues, through 2010 and early 2011.

In moves designed to make the company less susceptible to strong swings in demand from the microelectronics industry – which is now in a slump - Phillippy and colleagues have targeted acquisitions that provide Newport with a more balanced portfolio. Together with the incorporation of Ophir Optronics and High Q, ILX Lightwave adds to the firm’s activity in industrial, medical and defense markets. Newport’s goal is to increase its annual revenues to $750 million by 2013, and the ILX deal will provide additional momentum to that end.

Newport is partly financing its expansion with a new five-year, $185 million loan and the availability of a new $65 million revolving credit line that were agreed in November. The arrangement has been designed to enable repayment of subordinated convertible notes due February 2012. In early December, Newport said that it had retired $69.6 million of those notes early, with a $51 million principal amount still outstanding.

At the time of the early repayment, Newport's CFO Charles Cargile had hinted at subsequent acquisitions, saying: “We are pleased that we were able to retire a substantial portion of our convertible notes prior to their February 2012 maturity date. The net savings on interest expense is compelling and we reduced our total outstanding debt. We remain very confident in our ability to generate significant cash from operating activities and to capitalize on opportunities to effectively utilize our cash.”

Optellios to Demonstrate FiberPatrol Sensor at Intersec Dubai

NEWTOWN, PA (December 28, 2011) – Optellios, Inc., a developer and manufacturer of advanced fiber-optic sensing and security systems, announced that they will be demonstrating the FiberPatrol perimeter intrusion detection system in stand 2-709 at the upcoming Intersec exhibition in Dubai, January 15-17. Intersec, one of the largest security events of the year in the region, attracts security professionals from throughout the Middle East, Africa and Europe. Brian Freeman, Vice President of Sales and Marketing for Optellios comments, “We are very excited with regards to this opportunity to meet with the key officials responsible for physical and operational security for pipeline, border and critical infrastructure locations and discuss how the FiberPatrol products can be deployed as a part of the overall security solution.”  In its 14th year, Intersec is the Middle East’s leading security and safety exhibition.

In 2011 Intersec hosted more than 800 exhibitors from 50 countries and 21,626 visitors from 101countries.  The exhibition will focus on four critical areas which include Commercial & Information Security; Homeland Security & Policing; Safety & Health and Fire & Rescue. Freeman adds that “The Middle East represents one of the fastest growing markets for security products in the world. We are confident that FiberPatrol’s proven long range capability, cut immunity, location sensing and  ease of integration to video, access control and PSIM platforms makes it an ideal solution  for the demanding environment of the region.”

About Optellios Inc.

Optellios, Inc., a leading U.S.-based fiberoptic technology company, is a provider of advanced solutions for sensing, security, and communication. Its FiberPatrol® line of security products leverages company's pioneering patented fiberoptic sensor technologies to provide the most advanced and cost effective security solutions for military bases, airports, power plants, water treatment facilities, pipelines, secure data networks, and other critical infrastructures and high-value assets. For more information, visit www.optellios.com.

$2.5 Million Fiber Optic Gyro (FOG) Order for Remote Weapon Stations (RWS)

KVH Industries, Inc., announced (December 21, 2011) that it received new purchase orders exceeding $2.5 million for its precision DSP-3000 Fiber Optic Gyros (FOGs) for use in stabilized remote weapon stations (RWS) from an international military customer. Shipment of these DSP-3000 FOGs will be completed over the next two years.

"Remote weapon stations play a critical role in improving crew safety and weapon accuracy in combat operations overseas. We are proud that KVH's fiber optic gyros remain the sensors of choice for the leading RWS manufacturers supporting U.S. and allied military forces," said Jay Napoli, KVH's vice president of FOG and OEM sales. "Our affordable DSP-3000 FOG offers the high reliability, superior accuracy, and exceptional vibration, shock, and acceleration survivability necessary to ensure optimal RWS performance. Thanks to these benefits, KVH's FOGs are ideal for a variety of guidance and stabilization needs in both the military and commercial markets."

Remote weapon stations allow gunners to operate, aim, and fire a vehicle-mounted weapon from inside the safety of their vehicles, instead of manning turret positions where they are exposed to hostile fire. KVH's DSP-3000 FOGs provide precise optical stabilization and weapon recoil control for RWS units while ensuring that the weapon stays on target whether the vehicle is stationary or on the move.

KVH's fiber optic guidance and sensor systems are used in an array of commercial and defense-related stabilization, navigation, autonomous vehicle, and precision guidance applications. These include platform stabilization, antenna/radar/optics stabilization, IMU, GPS/INS, and AHRS integration.

Visit www.fiberopticgyro.com for complete details about KVH's full line of fiber optic gyro solutions, or take a virtual tour of KVH's FOG factory.

 

Source: KVH Industries, Inc.

KVH Industries (Nasdaq:KVHI) is a leading manufacturer of solutions that provide global high-speed Internet, television and voice services via satellite to mobile users at sea, on land, and in the air. KVH is also a premier manufacturer of high performance sensors and integrated inertial systems for defense and commercial guidance and stabilization applications. The company is based in Middletown, RI, with facilities in Illinois, Denmark, Norway, and Singapore.   

Fiber Optic Sensors Monthly Journal (December - 2011) from ElectroniCast

ElectroniCast Consultants                            

Monthly Journal Published: The first-week of each month

Fee:                 No Charge (12-issues) for Existing FO Sensor Forecast Clients*

Fee:                 $1,200 per year (12-issues) for Monthly Journals - only

ElectroniCast publishes a summary-level report of the latest market and technology trends covering the area of fiber optic sensors

* Clients that have subscribed to the Fiber Optic Sensors Global Market Forecast and Analysis, within the last 12-months

This journal provides a review and analysis of current market and technology trends relative to the consumption of communication-based fiber optic sensors. The journal (PDF file: typically 30-40 pages), released at the beginning of each month, via e-mail, providing our clients with insights to the innovative applications of fiber optic sensors.

The journal typically presents information in three sections:

           

·        Fiber Optic Sensors – Market Overview

      ·       Selected Highlights of Technology Presentations and Company News

·       Calendar – Future Conferences                 

Summary-level consumption trends are provided for various measurand or technology.  The trends for each selected sensor, in turn, is segmented into various applications. The information is presented in easy-to-follow illustrations and text. 

The complete quantitative Microsoft Excel market forecast worksheets and competitive market share estimates are released every September for clients that subscribe to the Fiber Optic Sensors Market Forecast annual report; however, the monthly reports provide summary-level market forecast data updates and the latest industry news.

For professionals concerned with fiber optic sensor markets and technology. 

We believe you will find this journal useful for your planning of product and market development.  Please contact us with any questions or comments.

SAMPLE – the Table of Contents of the December (2011) journal is provided below:

Point Fiber Optics Sensors Market Overview: Strain

            Methods of Measuring Strain 

            Fiber Bragg gratings (FBG) 

            Hybrid Fiber Optic Sensing System 

            Polarimetric Strain Sensors

            PM Photonic Crystal Fibers

            FBG Strain-Gage  

            Distributed Strain and Temperature Sensor System

            Brillouin Sensors  

            Fiber Optic Sensors used for Monitoring – Bridge Construction 

            Regional Market Estimate (Value, 2011)

            Long-Gage Fiber Optic Sensors towards Structural Health Monitoring

           

           

Selected Highlights of Technology Presentations and Company News                               

            3S PHOTONICS Acquires Manlight

            Augusta Announces Q3 Results (Fiber Optic Sensors)

            Argonaut Ventures leads $10M TeraDiode Funding

            Hamamatsu Photonics Reports Sharp Profit Growth           

            Luna Innovations Reports Third Quarter 2011 Financial Results

            NBN to establish Network Operations and Test Facility in Victoria

            Photonic Sensors For U.S. Navy Gas Turbines

            Fiber Optic Position Sensor System

            Temperature Fiber Optic Sensor

            Continuous Glucose Monitoring System

            Automated Integrated Antifouling System For Ethylene Manufacture

            Contract Win:  Future Fibre Technologies of Australia

            Metrological Performances of Smart Structures Based on Bragg Grating Sensors

                       

                                               

Calendar – Future Conferences                    

Fiber optic sensors use optical fiber either as the sensing element ("intrinsic sensors"), or as a means of relaying signals from a remote sensor to the electronics that process the signals ("extrinsic sensors").

The market trends discussed in the monthly journal address one or more of the following topics:

           

·        Fiber Optic Point Sensors: Component-Level

·        Continuous Distributed Fiber Optic Sensors

·        Optical Communication Signal Analysis Interface Components/Modules

Fiber Optic Point Sensors Applications:

·        Manufacturing Process/Factory

·        Civil Engineering/Construction (buildings, bridges, tunnels, etc)

·        Military/Aerospace/Security

·        Test & Measurement used in Telecommunication, CATV, Private/Enterprise

·        Biomedical/Science

·        Petrochemical/Energy/Utilities/Natural Resources

·        Automotive/Vehicle

Sensing/Measuring Quantity (Measurand) The monthly journal also looks at the industry trans and news pertaining to fiber optic point sensors, segmented further by the following sensing/measuring quantity (measurand) types:

·        Mechanical Strain

·        Temperature

·        Pressure

·        Chemical, Gas, Liquid

·        Vibration, Acoustic, Seismic

·        Displacement, Acceleration, Proximity

·        Electric and Magnetic Field - Fiber Optic Sensors

·        Rotation (such as Fiber Optic Gyroscopes: FOGs)

                       

Continuous Distributed Sensor Applications/Technologies covered in the journal:

·        Manufacturing Process/Factory

·        Civil Engineering/Construction (buildings, bridges, tunnels, etc)

·        Military/Aerospace/Security

·        Petrochemical/Energy/Utilities/Natural Resources

·        Biomedical/Science

Optical Communication Signal Analysis Interface Components/Modules         

These include components, sampling/interface modules and intra-enclosure (board-level) elements directly used for fiber optic sensing measurements, used in equipment such as –Oscilloscopes, OTDRs, Bit Error Rate Testers, Signal Generators, Spectrum Analyzers, and numerous other test/measurement/monitoring equipment used for communication/optical signal processing applications.  We discuss the trends, segmented by the following applications:             

·        Telecommunications

·        Private Enterprise Data Networks

·        Cable TV

·        Military/Aerospace/Security

·        Other

Through the course of the 12-month issue cycle, the journal will provide current news and analysis study of applicable technologies, including:

·        Interferometry

·        Intensity

·        Polarization

·        Fiber Bragg Grating (FBG)

·        Raman back-scattering

·        Fluoresence

·        Brillouin waves

·        Doppler Anemometry

·        Spectroscopy

·        Waveguides/ Specialty Optical Fiber

·        Optrode

Product and Financial news form various fiber optic sensor vendors are presented in the monthly journal along with a calendar of future conferences, which address the fiber optic sensor industry sector.

Fiber Optic Sensor Market Forecast - Continuous Distributed Fiber Optic Sensor Systems

ElectroniCast Consultants

A Continuous Distributed fiber optic sensor system involves the optic fiber with the sensors embedded with the fiber, plus electronics, connectors, data acquisition module, software, and miscellaneous components; however, ElectroniCast quantifies the optical fiber, cable (fiber jacket) and the sensor elements in this forecast data (only).

Monitoring and data transmission using fiber optic sensors and optical fiber in cabling is now commonplace with Continuous Distributed fiber optic sensors.  Some distributed fiber optic sensors use multiple Point sensors, which are networked together with optical fiber, creating a point-to-point (multi-point) distributed line; however, we do not consider it a continuous (non-stop) distributed intrinsic fiber optic sensor line.  The very nature of a Point sensor, by our definition, is a stopping point therefore the sensor line is not continuous.

According to ElectroniCast Consultants, the consumption value of fiber optic sensors used in continuous distributed systems is forecast to grow at an average annual rate of nearly 43 percent from $435 million in 2010 to $2.639 billion in 2015. 

 

Note: Market forecast data in this study report refers to consumption (use) for a particular calendar year; therefore, this data is not cumulative data.
For more information on the ElectroniCast Fiber Optic Sensors Market Forecast Consultant Service, contact Stephen Montgomery...  stephen_montgomery@electronicastconsultants.com