- Revenues Increase 56% Year over
Year, Including Initial Component Shipments to Tier 1 Headset
Customers
- Company Generates $5.5 Million From
Sale of Investment
- Posts $.01 per Diluted Share
Earnings
Second column header of Condensed Consolidated Balance Sheets
table should read: December 27, 2014 (instead of December 27,
2017).
The corrected release reads:
KOPIN PROVIDES BUSINESS UPDATE AND SECOND
QUARTER 2015 OPERATING RESULTS
- Revenues Increase 56% Year over
Year, Including Initial Component Shipments to Tier 1 Headset
Customers
- Company Generates $5.5 Million From
Sale of Investment
- Posts $.01 per Diluted Share
Earnings
Kopin Corporation (KOPN), a leading developer of innovative
wearable computing technologies and solutions, today provided an
update on its business initiatives and reported financial results
for the second quarter of 2015, ended June 27.
“We are very pleased with our progress in becoming the
leading technology provider to the growing wearables market,” said
Dr. John C.C. Fan, Kopin’s President and CEO. “In addition to our
displays and compact optics technologies, we are very excited with
our unique Voice Extraction™ technology that significantly improves
the speech recognition in noisy environments.”
“In the second quarter, we announced that Fujitsu had launched
their enterprise headset based on our wearable technologies and
components. When you add Fujitsu to our existing customers,
combined with the expected launch of a wearable product by another
Tier 1 company in 2015, Kopin is providing system designs and
components to the companies creating the most innovative products
in the global headset market,” said Dr. John C.C. Fan, CEO and
President of Kopin. “In September 2015 we plan to debut our latest
consumer headset system targeted at the health and fitness market
at the interbike trade show in Las Vegas.”
“Our progress in headsets would not be possible without the
expertise and knowledge we have gained from our military programs.
In Q2, Kopin began fulfilling initial production orders for our
SXGA (1280 x 1024 resolution) displays, which are a key component
in the helmets worn by fighter pilots in the new F-35. We also made
progress in marketing our precision acquisition target system
(PATS), with the goal of reaching license agreements in 2015 and
revenue generation in 2016.”
“While we continue to make significant investments in display,
optics, Voice Extraction and other technologies, we have remained
fiscally conservative. With over $88 million in cash and marketable
securities at the end of the second quarter, we have the resources
to expand the Kopin ecosystem of wearables suppliers utilizing our
components,” concluded Dr. Fan.
Second Quarter Financial Results
Total revenues for the second quarter ended June 27, 2015, were
$10.9 million, compared with $6.9 million for the second quarter of
2014. Included in 2015 revenues was $3.8 million related to
renegotiated contract terms due to the customer’s lowered
forecasted program volumes.
Research and development expenses for the second quarter of 2015
were $4.9 million compared with $5.1 million for the second quarter
of 2014.
Selling, general and administrative expenses were $5.1 million
in the second quarter of 2015, compared with approximately $4.9
million in the same period of 2014, reflecting an increase in
compensation for new hires, patent, information technology and
travel expenses which were partially offset by lower stock
compensation expenses.
Other income and expense was $6.2 million of income for the
second quarter of 2015 as compared to an expense of $1.6 million
for the second quarter of 2014. Included in the $6.2 million is a
gain on the sale of our investment in Recon Instruments, which was
acquired by Intel. Included in the 2014 expense of $1.6 million was
an impairment charge on an investment of $1.3 million.
Net income for the second quarter of 2015 was $781,000, or $0.01
per diluted share, compared with net loss of $8.8 million, or $0.14
per share, for the same period of 2014.
Net cash used in operating activities for the three and six
months ended June 27, 2015, was $3.4 million and $8.9 million,
respectively. Kopin’s cash, equivalents and marketable securities
was $88.3 million at June 27, 2015. Kopin has
no long-term debt. Our cash position is expected to be further
enhanced in January of 2016 when we expect to receive payment of
the $15 million note receivable from the sale of our III-V product
line and investment in Kopin Taiwan Corporation.
All amounts above are estimates and readers should refer to our
Form 10-Q for the quarter ended June 27, 2015, for final
disposition.
Financial Results Conference Call
In conjunction with its second quarter 2015 financial
results, Kopin will host a teleconference call for
investors and analysts at 9:00 a.m. ET today. To
participate, please dial (877) 709-8150 (U.S. and Canada) or
(201) 689-8354 (International). The call will also be available as
a live and archived audio webcast on the “Investors” section of
the Kopin website, www.kopin.com.
About Kopin
Kopin Corporation is a leading developer and provider of
innovative wearable technologies and solutions for integration into
head-worn computing and display systems to military, industrial and
consumer customers. Kopin’s technology portfolio includes
ultra-small displays, optics, speech enhancement technology, system
and hands-free control software, low-power ASICs, and ergonomically
designed smart headset reference systems. Kopin’s proprietary
components and technology are protected by more than 300 global
patents and patents pending. For more information, please visit
Kopin’s website at www.kopin.com.
Kopin and Voice Extraction are trademarks of Kopin
Corporation.
Forward-Looking Statements
Statements in this press release may be considered
“forward-looking” statements under the “Safe Harbor” provisions of
the Private Securities Litigation Reform Act of 1995. These
include, without limitation, statements relating to our expectation
that a tier 1 customer will launch a wearable product in 2015; that
we expect to show our latest systems technologies targeted to the
health and fitness consumer market at the interbike trade show in
Las Vegas, in September; our goal of reaching license agreements
for our precision acquisition targeting system (PATs) in 2015 and
generating revenue in 2016; our belief that we have the resources
to expand the Kopin ecosystem of wearables suppliers utilizing our
components; our expectation that we will receive payment of the $15
million note receivable from the sale of our III-V product line and
investment in Kopin Taiwan Corporation, in January 2016. These
statements involve a number of risks and uncertainties that could
cause actual results to differ materially from those expressed in
the forward-looking statements. These risks and uncertainties
include, but are not limited to, the following: our customer may
not launch its product; technical, environmental, scheduling and
other issues may prevent us from presenting at the interbike trade
show in September; we may not be able to enter into any licensing
agreements for our precision acquisition targeting system (PATs);
we may have insufficient resources to expand the Kopin’s ecosystem
of wearables suppliers utilizing our components; we may not receive
the payment of the $15 million note receivable from the sale of our
III-V product line and investment in Kopin Taiwan Corporation; the
final amounts in the Company’s Form 10-Q for the period ended June
27, 2015, may differ from the amounts included in the release
above; it may take longer than the Company estimates to develop
products; the Company’s products may not be accepted by the
market place; there may be issues that prevent the adoption or
further development of the Company’s wearable computing
technologies; manufacturing, marketing or other issues may
prevent either the adoption or acceptance of products; the Company
might be adversely affected by competitive products and pricing;
new product initiatives and other research and development efforts
may be unsuccessful; the Company could experience the loss of
significant customers; costs to produce the Company’s products
might increase significantly, or yields could decline; the
Company’s customers might be unable to ramp production volumes of
their products, or the Company’s product forecasts could turn out
to be wrong; manufacturing delays, technical issues, economic
conditions or external factors may prevent the Company from
achieving its goals; and other risk factors and cautionary
statements listed in the Company’s periodic reports and
registration statements filed with the Securities and Exchange
Commission, including the Annual Report on Form 10-K for the 12
months ended December 27, 2014, and the Company’s subsequent
filings with the Securities and Exchange Commission. You
should not place undue reliance on any forward-looking statements,
which are based only on information currently available to the
Company and only as of the date on which they are made. The Company
undertakes no obligation to update any of these forward-looking
statements to reflect events or circumstances occurring after the
date of this report.
Kopin Corporation Supplemental Information
(Unaudited) Three Months
Ended Six Months Ended
June 27,
2015
June 28,
2014
June 27,
2015
June 28,
2014
Display Revenues by Category (in millions) Military
Applications $ 2.4 $ 1.5 $ 7.0 $ 2.6 Industrial Applications 0.7
1.0 1.7 1.7 Wearable Applications 6.0 1.5 7.1 3.1 Consumer
Electronics Applications 0.4 0.9 0.8 1.7 Research and Development
1.4 2.0 2.8 2.5 Total $ 10.9 $ 6.9 $
19.4 $ 11.6
Stock-Based Compensation Expense
Continuing Operations
Cost of component revenues $ 262,000 $ 242,000 $ 461,000 $ 472,000
Research and development 269,000 305,000 504,000 637,000 Selling,
general and administrative 494,000 688,000
1,057,000 1,253,000 $ 1,025,000 $ 1,235,000 $ 2,022,000 $
2,362,000
Other Financial Information
Depreciation and amortization $ 509,000 $ 847,000 $ 1,190,000 $
1,780,000 Capital expenditures $ 337,000 $ 534,000 $ 652,000 $
978,000 Treasury stock purchases $ - $ - $ - $ 299,000
Kopin Corporation Condensed
Consolidated Statements of Operations (Unaudited)
Three Months Ended Six Months Ended
June 27,
2015
June 28,
2014
June 27,
2015
June 28,
2014
Revenues: Component revenues $ 9,486,723 $ 4,906,663 $ 16,615,093 $
9,134,422 Research and development revenues
1,369,883 2,036,624
2,826,505 2,503,634
10,856,606 6,943,287 19,441,598 11,638,056 Expenses: Cost of
component revenues 6,359,780 4,153,739 11,643,513 8,379,188
Research and development 4,884,010 5,137,033 9,744,202 10,223,317
Selling, general and administrative
5,108,229
4,921,194
9,494,444 9,917,993
16,352,019 14,211,966 30,882,159 28,520,498 Loss from
operations (5,495,412 ) (7,268,679 ) (11,440,561 ) (16,882,442 )
Other income (expense), net
6,214,193
(1,599,684 )
8,406,198 (1,119,935
) Income (loss) before (provision) benefit for
income taxes, equity loss in 718,780 (8,868,363 ) (3,034,363 )
(18,002,377 ) unconsolidated affiliate and net loss from
noncontrolling interest (Provision) benefit for income taxes
(12,500 )
(37,000 ) (25,000
) 106,000 Income
(loss) before equity loss in unconsolidated affiliate and net
706,280 (8,905,363 ) (3,059,363 ) (17,896,377 ) loss from
noncontrolling interest Equity loss in unconsolidated
affiliate
- (122,553
) (47,443 )
(224,858 ) Income (loss) from
continuing operations 706,280 (9,027,916 ) (3,106,806 ) (18,121,235
) (Loss) income from discontinued operations, net of tax
- -
- - Net (loss)
income 706,280 (9,027,916 ) (3,106,806 ) (18,121,235 ) Net
loss attributable to noncontrolling interest
74,690 221,973
49,784 180,876
Net income (loss)
$ 780,970
$ (8,805,943 )
$ (3,057,022 )
$ (17,940,359 ) Net
(loss) income per share: Basic Continuing operations $ 0.01 $ (0.14
) $ (0.05 ) $ (0.29 ) Discontinued operations
-
- -
- Net (loss) income per share
$ 0.01 $
(0.14 ) $ (0.05
) $ (0.29 )
Diluted
Continuing operations $ 0.01 $ (0.14 ) $ (0.05 ) $ (0.29 )
Discontinued operations
-
- -
- Net (loss) income per share
$
0.01 $ (0.14
) $ (0.05 )
$ (0.29 )
Weighted average number of common shares outstanding: Basic
63,066,031 62,643,506
63,074,842
62,586,854 Diluted
65,030,089 62,643,506
63,074,842
62,586,854 Kopin
Corporation
Condensed Consolidated Balance
Sheets
(Unaudited)
June 27, 2015
December 27, 2014
ASSETS Current assets: Cash and marketable securities $ 88,320,562
$ 90,858,936 Accounts receivable, net 8,457,514 3,802,324 Inventory
3,065,712 4,081,886 Prepaid and other current assets 853,329
1,181,474 Note receivable 14,966,671 -
Total current assets 115,663,788 99,924,620 Equipment
and improvements, net 4,107,309 4,589,421 Goodwill and intangible
assets 1,292,538 1,593,210 Other assets 2,943,350 1,900,828 Note
receivable - 14,933,335 Total
assets $ 124,006,985 $ 122,941,414 LIABILITIES
AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $
4,778,554 $ 5,503,734 Accrued expenses 5,656,102 5,870,719 Deferred
income taxes 1,282,000 1,282,000 Billings in excess of revenue
earned 3,522,416 586,471 Total
current liabilities 15,239,072 13,242,924 Lease commitments
314,812 311,187 Total Kopin Corporation stockholders' equity
108,993,599 109,846,959 Noncontrolling interest (540,498 )
(459,656 ) Total stockholders' equity 108,453,101
109,387,303 Total liabilities and
stockholders' equity $ 124,006,985 $ 122,941,414
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150804005692/en/
Kopin CorporationRichard
Sneider, 508-870-5959Treasurer and Chief Financial
OfficerRichard_Sneider@kopin.comorMarket Street PartnersJoann
Horne, 415-445-3233JHorne@marketstreetpartners.com
Kopin (NASDAQ:KOPN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Kopin (NASDAQ:KOPN)
Historical Stock Chart
From Sep 2023 to Sep 2024