- Full year total revenue growth of 39%,
including wearable growth of 44%
- Strategic transition on track
Kopin Corporation (NASDAQ: 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 fourth quarter and fiscal year
ended December 27, 2014.
“2014 was an important year for Kopin and we have made
substantial progress since announcing our strategy to reinvent the
Company as the leading provider of technologies and solutions for
the coming wearable world,” said Dr. John Fan, Kopin’s President
and Chief Executive Officer. “And with a strong cash position and a
debt-free balance sheet, we have the means to execute our strategy
and maintain our level of investment in the growing wearable
systems market as we head into 2015.”
Dr. Fan continued. “The wearable industry seems to have shifted
more towards enterprise applications. At Kopin we have always
believed that enterprise applications are the logical initial entry
point for smart headsets and we have focused our Golden-i headsets
for enterprise applications over the past five years. We have been
the pioneer in this enterprise segment and we are extremely well
positioned for this enterprise category. We expect the market will
see products from two tier-one customers this year which include
Kopin products. Additionally, two years ago, we added our focus to
consumer applications. We believe that for consumer applications,
the device must be different from that of enterprise applications.
Along with developing smaller, more efficient optical engines, we
have placed significant emphasis on voice, which we believe will
become the new touch. We have made great progress in these key
enabling technologies and we are confident that consumer smart
headsets are very viable and are close to reality.”
Fourth Quarter Results
Total revenues for the fourth quarter ended December 27,
2014, were $10.6 million, compared with $5.5
million for the fourth quarter of 2013.
Net loss for the fourth quarter of 2014 was $5.3 million,
or $0.08 per share, compared with net loss of $9.7
million, or $0.16 per share, for the same period of 2013.
The fourth quarter of 2013 included noncash charges to write-down
certain intangible assets of approximately $1.5 million and an
equity investment of approximately $2.5 million.
Full Year Results
Total revenues for the 12 months ended December 27, 2014,
were $31.8 million, compared with $22.9 million in
the same period of 2013.
Research and development expenses for the year 2014
were $20.7 million compared with $17.5
million in the same period of 2013, reflecting an increase in
costs to develop our wearable and military technologies.
Selling, general and administrative expenses were $19.9
million in 2014, compared with $19.1 million in the same
period of 2013.
Included in the 2013 results of operations are noncash charges
to write-down certain intangible assets of approximately $1.5
million and impairment charges in investments of
approximately $5.0 million.
On January 16, 2013 we sold our III-V product line and
investment in Kopin Taiwan Corporation (KTC). The gain on
the sale and the results of operations of our III-V product line
and KTC through the date of sale are shown as discontinued
operations in our financial statements. Our net loss for the 12
months ended December 27, 2014 was $28.2 million,
or $0.45 per share. For the year ended December 28, 2013
our net loss from continuing operations was $24.9 million,
or $0.40 per share, our net income from discontinued
operations was $20.1 million, or $0.32 per share,
and our net loss for the year ended December 28,
2013 was $4.7 million, or $0.08 per share.
Cash used in operating activities for the fiscal year 2014
was $19.6 million and we used $0.3 million for
the repurchase of our common stock. Kopin’s cash, equivalents and
marketable securities was $90.9 million at December
27, 2014. Kopin has no long-term debt.
Financial Results Conference Call
In conjunction with its fourth quarter and fiscal year end 2014
financial results, Kopin will host a teleconference call
for investors and analysts at 5:00 p.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 285 global
patents and patents pending. For more information, please visit
Kopin’s website at www.kopin.com.
Kopin, CyberDisplay, Pupil and Golden-i 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 belief that
we have the means to execute our strategy and maintain our level of
investment in the growing wearable systems market as we head into
2015; our belief that the wearable systems market is growing; our
belief that the wearable industry seems to have shifted more
towards enterprise applications; our belief that enterprise
applications are the logical initial entry point for smart
headsets; our belief that we are extremely well positioned for
enterprise category; our expectation that the market will see
products from two tier-one customers this year; our belief that
voice technology will become the new touch; our belief that the
device for consumer applications must be different from that of
enterprise applications; and our belief that consumer smart
headsets are very viable and are close to reality. 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: we may not have sufficient
funds to continue our investment level; the wearable systems market
may not grow; the enterprise market for wearable headsets may not
develop; our competitors may have superior products to ours and
therefore we may not be well positioned in the enterprise or
commercial wearable headset market; our tier-one or any customers
may not introduce products this year; voice technology may not be
the new touch because the technology does not work or if it works
it may not be accepted by the market, it may not be manufacturable
or competitors products may be superior; 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 28, 2013, 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 Twelve Months Ended
December 27,
2014
December 28,
2013
December 27,
2014
December 28,
2013
Display Revenues
by Category (in millions)
Military Applications $ 6.0 $ 1.1 $ 14.3 $ 8.6 Consumer Electronics
Applications 0.4 1.3 2.8 5.3 Industrial Applications 0.9 0.6 3.7
2.4 Wearable Applications 1.4 1.5 6.2 4.3 Research and Development
1.9 1.0 4.8 2.3 Total $ 10.6 $ 5.5 $
31.8 $ 22.9
Stock-Based
Compensation Expense
Continuing Operations Cost of component revenues $ 186,000 $
160,000 $ 777,000 $ 415,000 Research and development 194,000
166,000 967,000 423,000 Selling, general and administrative
892,000 229,000 3,084,000 3,365,000 $
1,272,000 $ 555,000 $ 4,828,000 $ 4,203,000
Other Financial
Information
Depreciation and amortization $ 414,000 $ 568,000 $ 3,002,000 $
3,646,000
Capital expenditures $ - $ 217,000 $ 1,490,000 $
742,000
Treasury stock purchases $ - $ 2,005,000 $ 299,000 $ 7,992,000
Kopin Corporation
Condensed Consolidated Statements of Operations
(Unaudited) Three Months Ended Twelve
Months Ended
December 27,
2014
December 28,
2013
December 27,
2014
December 28,
2013
Revenues: Revenues $ 8,756,290 $ 4,509,219 $ 26,956,741 $
20,574,812 Research and development revenues
1,881,095 1,040,712
4,850,724 2,322,897
10,637,385 5,549,931 31,807,465 22,897,709 Expenses: Cost of
component revenues 6,054,836 3,864,598 19,638,149 20,655,216
Research and development 5,680,298 4,041,767 20,736,021 17,534,020
Selling, general and administrative 4,974,597 3,472,961 19,908,020
19,124,750 Impairment of intangibles assets and goodwill
- 1,511,414
- 1,511,414
16,709,731 12,890,740 60,282,190 58,825,400 Loss from
operations (6,072,346 ) (7,340,809 ) (28,474,725 ) (35,927,691 )
Other income (expense), net
635,267
(2,340,162 )
10,378 (2,133,968
)
Loss before benefit for income taxes,
equity loss in unconsolidated affiliate and net loss from
noncontrolling interest
(5,437,079 ) (9,680,971 ) (28,464,347 ) (38,061,659 )
Benefit for income taxes
118,000
54,000 180,000
12,933,209
Loss before equity loss in unconsolidated
affiliate and net loss from noncontrolling interest
(5,319,079 ) (9,626,971 ) (28,284,347 ) (25,128,450 ) Equity
loss in unconsolidated affiliate
(126,568
) (216,907 )
(386,442 ) (625,098
) Loss from continuing operations (5,445,647 )
(9,843,878 ) (28,670,789 ) (25,753,548 ) Income from discontinued
operations, net of tax
-
- -
20,147,532 Net loss (5,445,647 ) (9,843,878 )
(28,670,789 ) (5,606,016 ) Net loss attributable to
noncontrolling interest
143,401
184,041 458,745
896,400 Net loss
$
(5,302,246 ) $
(9,659,837 ) $
(28,212,044 ) $
(4,709,616 ) Net (loss) income per
share: Basic Continuing operations $ (0.08 ) $ (0.16 ) $ (0.45 ) $
(0.40 ) Discontinued operations
-
- -
0.32 Net (loss) income per share
$
(0.08 ) (0.16
) $ (0.45 )
$ (0.08 ) Diluted Continuing
operations $ (0.08 ) $ (0.16 ) $ (0.45 ) $ (0.40 ) Discontinued
operations
- -
- 0.32
Net (loss) income per share
$ (0.08
) $ (0.16 )
$ (0.45 ) $
(0.08 ) Weighted average
number of common shares outstanding: Basic
62,734,237 61,528,968
62,638,675
62,347,852 Diluted
62,734,237 61,528,968
62,638,675
62,347,852 Kopin
Corporation Condensed Consolidated Balance Sheets
(Unaudited) December 27, 2014
December 28, 2013 ASSETS Current assets: Cash and marketable
securities $ 90,858,936 $ 112,729,201 Accounts receivable, net
3,802,324 2,388,461 Inventory 4,081,886 3,078,055 Prepaid and other
current assets
1,181,474
1,412,285 Total current assets 99,924,620
119,608,002 Equipment and improvements, net 4,589,421
6,034,963 Goodwill and intangible assets 1,593,210 2,597,634 Other
assets 1,900,828 3,024,458 Note receivable
14,933,335 14,866,666
Total assets $ 122,941,414 $ 146,131,723
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable $ 5,503,734 $ 3,868,865 Accrued expenses 5,870,719
5,309,785 Deferred income taxes 1,282,000 1,512,771 Billings in
excess of revenue earned
586,471
547,681 Total current liabilities 13,242,924
11,239,102 Lease commitments 311,187 329,435 Total
Kopin Corporation stockholders' equity 109,846,959 134,553,247
Noncontrolling interest (459,656 ) 9,939 Total
stockholders' equity 109,387,303 134,563,186
Total liabilities and stockholders' equity $ 122,941,414 $
146,131,723
Kopin CorporationRichard Sneider, 508-870-5959Treasurer
and Chief Financial OfficerRSneider@kopin.comorMarket Street
PartnersJoAnn Horne,
415-445-3233PartnerJHorne@marketstreetpartners.com
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