Kopin Corp. (MM) (NASDAQ:KOPN)
Historical Stock Chart
2 Years : From May 2011 to May 2013
Kopin Corporation (Nasdaq: KOPN), a leading supplier of advanced
semiconductor products and microdisplays for mobile applications
including smartphones, tablet PCs, military thermal weapons sights and
wearable computers, today announced financial results for the second
quarter ended June 25, 2011.
Financial Highlights
Total revenues increased 4 percent to $31.4 million from $30.2 million
for the same quarter of last year. III-V revenue increased to $16.0
million, compared with $15.9 million in the second quarter of 2010.
Display revenue increased to $15.4 million from $14.3 million for the
same quarter last year.
Gross margin increased to $10.5 million, or 35 percent of product
revenues, compared with $7.3 million, or 25 percent of product revenues,
for the comparable period of 2010.
Operating expenses were $31.0 million in the second quarter of 2011,
compared with $30.9 million in the second quarter of 2010. R&D expenses
were $7.1 million, or 23 percent of revenues, compared with $4.9
million, or 16 percent of revenues, in the second quarter of 2010,
reflecting Kopin’s investments in its Golden-i technology, III-V
smartphone products and capacity expansion, military display products,
and the inclusion of Forth Dimension Display’s (FDD) expenses. Selling,
general and administration (S,G&A) expenses were $4.7 million in the
second quarter of 2011, compared with $4.2 million for the same period
of last year. The increase in S,G&A expenses is attributable to the
inclusion of FDD’s expenses.
Net income was $0.8 million, or $0.01 per diluted share, for the second
quarter of 2011 compared with $1.9 million, or $0.03 per diluted share,
for the second quarter of 2010. Net income for the second quarter of
2010 included a $1.9 million gain from the sale of investments and a
$0.7 million gain related to foreign currency fluctuations. Kopin’s 2011
second quarter results included a net gain of $0.4 million from the sale
of investments and a net loss of $0.3 million from foreign currency
fluctuations.
Kopin’s cash and marketable securities balance at the end of the second
quarter was $99.3 million and no long-term debt.
“Our second-quarter operating results reflect a continuation of the
strategy we set forth at the beginning of the year – balancing
short-term financial performance with a focus on long-term growth,” said
Kopin President and Chief Executive Officer Dr. John C.C. Fan. “We
are in the enviable position of having strong growth projections for our
III-V products, the opportunity to add a new military display product
category, night vision systems, to our current portfolio of thermal
weapon sight products and the development of a potentially
game-changing, hands-free wireless industrial computing product in
Golden-i. Because of the current strong growth of smart phones, the
requirement for those competing for an award of the Enhanced Night
Vision program in 2012 to provide qualification units in 2011 and our
drive to be a leader in voice activated cloud computing, these
opportunities have required significant investments this year.”
“Yet with all of our development efforts, through the first half of
fiscal 2011 we have maintained strong operating results,” Dr. Fan said.
“Overall our revenues are up 19%, with our III-V revenues up 10 percent
over the same period last year as we head into what historically has
been our strongest part of the year. Although the current federal budget
situation has impacted the timing of display product sales, we expect
another year of strong military revenues as evidenced by our recently
announced $23.2 million in follow-on orders for the TWS Bridge (TWS-IIB)
program. Our income from operations is $2.6 million for the first half
of 2011 compared with a loss of $0.8 million through the same period
last year, we have generated $3.5 million in cash flow from operating
activities and repurchased $1.9 million of our common stock.”
Smartphones Continue to Drive III-V Business
“Our III-V technology is helping to drive the rapid adoption of advanced
3G and 4G technologies across the major smartphone and tablet
platforms,” Dr. Fan said. “These advanced new devices not only require
more III-V transistors, but structures that are more technologically
complex and challenging to produce. As these phones continue to become
more complex, Kopin is benefitting with higher and higher dollar content
per handset. Our ability to produce these advanced products in volume
and at a competitive price is simply unmatched in the industry.”
Display Business Excels through System Expertise
“Just as with our III-V business, our display customers also require
products that are technologically more complex to produce,” Dr. Fan
said. “The trend today is toward full system solutions, including
displays, backlights, optics, ASIC chips, hardware and software. Once
again this trend plays to our strength, as we believe that our decades
of technology expertise and display system manufacturing experience
differentiate us in the market.”
Golden-i Program on Schedule
“Together with our business partner Motorola Solutions, we continue to
make excellent progress in bringing our Golden-i® hands-free mobile
computing solution to market in 2012,” Dr. Fan said. “Initial response
to field tests of Golden-i by select customers has been extremely
positive. Golden-i was demonstrated this month at the Microsoft® -hosted
Imagine Cup 2011 in New York and the World Future 2011 in Vancouver.”
Business Outlook
“With revenues for the first six months of 2011 at $66 million and the
third and fourth quarters traditionally our strongest, we are on course
to achieve our full-year revenue guidance of $130 million to $140
million,” Dr. Fan said. “Robust smartphone demand should continue to
fuel our III-V business, just as the TWS-IIB and a number of military
R&D programs are expected to generate momentum for our display unit.”
Financial Results Conference Call
In conjunction with its second-quarter 2011 financial results, Kopin
will host a teleconference call for investors and analysts at 5:00 p.m.
ET today. To participate, please dial (877) 407-5790 (U.S. and Canada)
or (201) 689-8328 (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 Corporation
Kopin Corporation's voice-activated, wireless, hands-free Golden-i®
mobile computing headsets, power-efficient, ultra-small liquid crystal
displays, and heterojunction bipolar transistors (HBTs) are
revolutionizing the way people around the world see, hear and
communicate. Kopin has shipped more than 30 million displays for a range
of consumer and military applications including digital cameras,
personal video eyewear, camcorders, thermal weapon sights and night
vision systems. The innovative Golden-i computing headsets are
generating strong interest in industrial, medical, military, homeland
security and utility applications. The Company's unique HBTs help to
enhance battery life, talk time and signal clarity, and have been
integrated into billions of wireless handsets as well as into WiFi, VoIP
and high-speed Internet data transmission systems. Kopin's proprietary
display, Golden-i and III-V technologies are protected by more than 200
global patents and patents pending. For more information, please visit
Kopin's website at www.kopin.com.
Kopin, CyberDisplay, Golden-i and The NanoSemiconductor Company are
trademarks of Kopin Corporation.
Kopin – The NanoSemiconductor Company™
Forward-Looking Statements
Statements in this news 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: the strong growth projections for our III-V
products, the opportunity to add a new military display product
category, night vision systems, and the development of a game-changing,
hands-free wireless industrial computing product in Golden-I; the third
and fourth quarters being historically our strongest part of the year;
our expectation of another year of strong military revenues; our
expectation of bringing our Golden-i® hands-free mobile computing
solution to market in 2012; our belief that the development of Golden-i
is potentially game-changing; our belief that with revenues for the
first six months of 2011 at $66 million and the third and fourth
quarters traditionally our strongest, we are on course to achieve our
full-year revenue guidance of $130 million to $140 million; our
expectation that robust smartphone demand should continue to fuel our
III-V business; and our expectation that the TWS-IIB and a number of
military R&D programs should generate momentum for our display unit.
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 potential that: the smartphone market will not
grow as expected; we may not be awarded a contract to buy our night
vision system products, the U.S. government may reduce procurement of
thermal weapon sights; the Company’s efforts to roll out Golden-i may
be delayed or might be unsuccessful; the Company may be unable to
produce the night vision systems or Golden-i in the necessary
volumes; the relationship between Kopin and its Golden-i technology
partners may not be successful, or prospective customers may be
unwilling to purchase the product; the Company’s 2011 revenue
expectations will turn out to be wrong; manufacturing, marketing or
other issues may prevent either the adoption or rapid acceptance of
products; the Company will be adversely affected by competitive products
and pricing; new product initiatives and other research and development
efforts may not be successful; the Company could experience the loss of
significant customers; costs to produce the Company’s microdisplay and
HBT products will increase significantly, or that yields will decline;
military programs or funding for military programs involving Kopin’s
products will be delayed or cancelled; the Company’s military and
commercial customers might be unable to ramp production volumes of its
products, or that the Company’s product forecasts will turn out to be
wrong; manufacturing delays, technical issues, economic conditions or
external factors may prevent the Company from achieving its financial
guidance; potential claims or liability could arise as a result of the
Company’s restatement of its financial statements; the Company could
have additional write-downs of its equity investment or charges related
to its investments in other companies, including FDD, KTC and Kowon; 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 25, 2010, and the Company’s subsequent
filings with the Securities and Exchange Commission. You should not
place undue reliance on any forward-looking statements, which speak only
as of the date on which they are made. The Company undertakes no
responsibility to update any of these forward-looking statements to
reflect events or circumstances occurring after the date of this report.
Kopin Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Six Months Ended
June 25, 2011
June 26, 2010
June 25, 2011
June 26, 2010
Revenues:
Product revenues
$
29,597,668
$
29,129,931
$
62,518,659
$
53,006,291
Research and development revenues
1,833,289
1,059,226
3,846,790
2,636,851
31,430,957
30,189,157
66,365,449
55,643,142
Expenses:
Cost of product revenues
19,115,190
21,854,777
41,061,802
39,392,724
Research and development
7,139,559
4,858,868
13,524,308
9,154,775
Selling, general and administrative
4,697,648
4,215,001
9,142,794
7,857,535
30,952,397
30,928,646
63,728,904
56,405,034
Income (loss) from operations
478,560
(739,489
)
2,636,545
(761,892
)
Other income and (expense), net
420,491
3,096,760
515,325
4,098,264
Income before provision for income taxes, equity loss in
899,051
2,357,271
3,151,870
3,336,372
unconsolidated affiliate and net loss (income) from noncontrolling
interest
Provision for income taxes
(97,500
)
(180,000
)
(195,500
)
(93,000
)
Income before equity loss in unconsolidated affiliate and net
801,551
2,177,271
2,956,370
3,243,372
loss (income) from noncontrolling interest
Equity loss in unconsolidated affiliate
(43,599
)
(89,858
)
(154,238
)
(182,586
)
Income before net loss (income) of noncontrolling interest
757,952
2,087,413
2,802,132
3,060,786
Net loss (income) attributable to noncontrolling interest
43,872
(226,636
)
65,399
(163,018
)
Net income
$
801,824
$
1,860,777
$
2,867,531
$
2,897,768
Net income per share:
Basic
$
0.01
$
0.03
$
0.04
$
0.04
Diluted
$
0.01
$
0.03
$
0.04
$
0.04
Weighted average number of common shares outstanding:
Basic
64,528,623
66,625,637
64,632,732
66,606,789
Diluted
65,774,967
67,357,297
65,715,021
67,333,967
Kopin Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
June 25, 2011
December 25, 2010
ASSETS
Current assets:
Cash and marketable securities
$
99,327,344
$
110,947,390
Accounts receivable, net
20,224,725
17,489,348
Inventory
19,114,320
21,462,871
Prepaid and other current assets
2,781,233
2,725,153
Total current assets
141,447,622
152,624,762
Equipment and improvements, net
35,810,203
32,613,961
Other assets
14,757,134
6,857,675
Total assets
$
192,014,959
$
192,096,398
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
8,092,099
$
11,317,865
Accrued expenses
6,813,412
5,997,646
Billings in excess of revenue earned
2,604,774
3,210,895
Total current liabilities
17,510,285
20,526,406
Lease commitments
1,284,354
944,617
Total Kopin Corporation stockholders' equity
168,352,945
165,835,919
Noncontrolling interest
4,867,375
4,789,456
Total stockholders' equity
173,220,320
170,625,375
Total liabilities and stockholders' equity
$
192,014,959
$
192,096,398
Kopin Corporation
Supplemental Information
(Unaudited)
Three Months Ended
Six Months Ended
June 25, 2011
June 26, 2010
June 25, 2011
June 26, 2010
Display Revenues by Category (in millions)
Military Application
$
9.2
$
10.1
$
20.2
$
16.4
Consumer Electronics Applications
4.5
3.3
9.0
6.5
Research and Development
1.7
0.9
3.6
2.3
Total
$
15.4
$
14.3
$
32.8
$
25.2
Stock-Based Compensation Expense
Cost of product revenues
$
173,000
$
174,000
$
297,000
$
292,000
Research and development
175,000
111,000
289,000
184,000
Selling, general and administrative
563,000
385,000
885,000
698,000
Total
$
911,000
$
670,000
$
1,471,000
$
1,174,000
Other Financial Information
Depreciation and amortization
$
1,886,000
1,847,000
$
3,813,000
$
3,697,000
Capital expenditures
$
3,865,000
$
4,317,000
Treasury stock purchases
$
1,907,000
$
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