- Company Enjoys Very Successful CES
Event With 15 Companies Displaying Products With Kopin
Components
- Tier One Company Launches Health
& Fitness Product With Kopin Wearable Technology at 2016
CES
- Solos™ Smart Eyewear and Whisper
Chip™ on Track for Summer Release
- Wearables Revenue Doubled in
2015
- Company Maintains Very Strong
Financial Position
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 fourth quarter and full year ended December 26,
2015.
“We made solid progress in 2015 in executing our wearables
strategy, with technology development, customer acquisition and
product launches,” said Dr. John C.C. Fan, President and CEO of
Kopin. “We ended the year with the leading headset manufacturers
across enterprise, consumer and military all offering wearable
products based on our technology. Our customers range from Rockwell
Collins for military avionic helmets, to Fujitsu for enterprise
applications, and to Intel/Recon for consumer applications. The
headset products target second screen applications, as in the case
of Fujitsu’s repair and maintenance product, to augmented reality
(AR) applications, such as the F-35 fighter pilot helmet, and
virtual reality (VR) applications, such as First Person Viewers
(FPVs) used with drones. These FPVs are relatively new to the
market but give a hint of where virtual reality is going, as they
provide the drone user with a first person view.”
“We maintained our strong momentum into 2016 with a successful
Consumer Electronics Show (CES), highlighted by 15 customers
demonstrating products featuring Kopin wearable components. We also
displayed our own Solos product, an AR headset designed for
competitive cyclists to monitor their activities and enhance
performance. Solos smart eyewear provides the user with a
see-through image of data being transmitted from sensors, on or
near the athlete or from the cloud. Solos also demonstrates the
vast progress we have made over the last few years. When we
introduced the Golden-i® in 2011, our first wearable headset for
enterprise applications, it weighed over 600 grams. Today Solos,
with similar functionality but designed for consumers, weighs
approximately 60 grams and looks like a fashionable pair of
sunglasses.”
“CES was also the first time we gave public demonstrations of
the Whisper™ technology, our speech enhancement technology. Since
CES we have been very actively engaging with Tier One companies on
the Whisper technology and our new Whisper Chip. This will be a
very differentiable product and would be used with many wearable
devices as a well as other applications. We believe voice will be
the next touch and Whisper technology will play a key role.”
“In 2015, our revenues from sale of products for the wearable
market doubled over 2014 to approximately $12 million. As more
companies adopt Kopin’s view that the headset is the next
smartphone and voice will someday replace touch, we expect more new
customers and industries to develop. We have been very active in
new design-in activities, including a product for public safety
which our customer is expected to debut in the second quarter of
this year. Furthermore Solos and Whisper Chips are on track for a
summer release to provide additional revenue growth, which until
now has been based on our display and display modules. Now our
heavy lifting of technology and product development is finishing as
planned and we are entering the marketing and sales phases. With
our extensive patent portfolio, design wins with Tier One customers
and our strong balance sheet, we are very well positioned to take
advantage of the growing and potentially huge wearable market,”
concluded Dr. Fan.
Fourth Quarter Financial Results
Total revenues for the fourth quarter ended December 26, 2015,
were $4.6 million, compared with $10.6 million for the fourth
quarter of 2014.
Net loss for the fourth quarter of 2015 was $7.0 million, or
$0.11 per share, compared with net loss of $5.3 million, or $0.08
per share, for the same period of 2014.
Full Year Financial Results
Total revenues for the 12 months ended December 26, 2015, were
$32.1 million, compared with $31.8 million for the fiscal year
2014.
Research and development expenses for 2015 were $17.6 million
compared with $20.7 million for 2014.
Selling, general and administrative expenses were $18.1 million
for 2015 as compared with approximately $19.9 million for 2014.
Net loss for the 12 months ended 2015 was $14.7 million, or
$0.23 per share, compared with net loss of $28.2 million, or $0.45
per share, for 2014. Included in the 2015 results of operations was
a $9.2 million gain on the sale of investments. Included in the
2014 results of operations was a $1.3 million write-down of
investments.
We have maintained our strong financial position. Kopin’s cash
and equivalents and marketable securities was $80.7
million at December 26, 2015 as compared to $90.9 million
at December 27, 2014. In addition, on January 15, 2016 we received
$15 million as the final installment of the sale of our III-V
operation and investment in Kopin Taiwan Corporation.
Kopin has no long-term debt.
All amounts above are estimates and readers should refer to our
Form 10-K for the year ended December 26, 2015, for final
disposition.
Financial Results Conference Call
In conjunction with its year end 2015 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 300 global
patents and patents pending. For more information, please visit
Kopin’s website at www.kopin.com.
Kopin, Whisper, Solos 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 statement
that FPVs give a hint of where virtual reality is going; our
expectation that Solos smart eyewear and Whisper chip on track for
a summer release; our belief that the Whisper Chip will be a very
differentiable product and used by many wearable devices as a well
as other applications; our expectation that as more companies adopt
Kopin’s view that the headset is the next smartphone and voice will
someday replace touch, we expect new customers and industries to
develop including public safety applications which are expected to
debut in the second quarter of this year; our belief that Solos and
Whisper technology products will be in the market by this summer to
provide revenue growth which for now has been based on our display
and display modules; and our belief we are very well positioned to
take advantage of the growing wearable market . 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: Solos smart eyewear and
Whisper chip may not be ready for launch by the summer; the headset
wearable market may take longer to develop than we expect or it may
not develop at all; we may not obtain new customers; the public
safety application may not be available in the second quarter; and
the final amounts in the Company’s Form 10-K for the period ended
December 26, 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 release.
Kopin Corporation
Supplemental Information (Unaudited) Three
Months Ended Twelve Months Ended
December 26,
2015
December 27,
2014
December 26,
2015
December 27,
2014
Display Revenues by Category (in millions) Military
Applications $ 1.2 $ 6.0 $ 10.2 $ 14.3 Wearable Applications 1.7
1.4 12.3 6.2 Industrial Applications 1.1 0.9 4.0 3.7 Consumer
Electronics Applications 0.4 0.4 1.7 2.8 Research and Development
0.2 1.9 3.9 4.8 Total $ 4.6 $ 10.6 $
32.1 $ 31.8
Stock-Based Compensation Expense
Continuing Operations Cost of component revenues $ 109,000 $
186,000 $ 730,000 $ 777,000 Research and development 107,000
194,000 777,000 967,000 Selling, general and administrative
142,000 892,000 1,639,000 3,084,000 $ 358,000
$ 1,272,000 $ 3,146,000 $ 4,828,000
Other
Financial Information Depreciation and amortization $ 279,000 $
414,000 $ 2,139,000 $ 3,002,000
Kopin Corporation Condensed Consolidated Statements of
Operations (Unaudited) Three Months Ended
Twelve Months Ended
December 26,
2015
December 27,
2014
December 26,
2015
December 27,
2014
Revenues: Component revenues $ 4,428,880 $ 8,756,290 $ 28,163,118 $
26,956,741 Research and development revenues
183,015 1,881,095
3,891,301 4,850,724
4,611,895 10,637,385 32,054,419 31,807,465 Expenses: Cost of
component revenues 4,609,096 6,054,836 21,609,826 19,638,149
Research and development 3,878,820 5,680,298 17,631,413 20,736,021
Selling, general and administrative
4,081,531
4,974,597
18,134,580 19,908,020
12,569,447 16,709,731 57,375,819 60,282,190 Loss from
operations (7,957,552 ) (6,072,346 ) (25,321,400 ) (28,474,725 )
Other income (expense), net
895,439
635,267
10,500,776 10,378
Loss before (provision) benefit for income
taxes, equity loss in unconsolidated affiliate and net loss from
noncontrolling interest
(7,062,113 ) (5,437,079 ) (14,820,624 ) (28,464,347 )
(Provision) benefit for income taxes
(12,500
) 118,000
25,000 180,000
Loss before equity loss in unconsolidated
affiliate and net loss from noncontrolling interest
(7,074,613 ) (5,319,079 ) (14,795,624 ) (28,284,347 ) Equity
loss in unconsolidated affiliate
-
(126,568 )
(47,443 ) (386,442
) Net loss before (income) loss attributable to
noncontrolling interest (7,074,613 ) (5,445,647 ) (14,843,067 )
(28,670,789 ) Net loss attributable to noncontrolling
interest
113,557
143,401 149,651
458,745 Net loss
$
(6,961,056 ) $
(5,302,246 ) $
(14,693,416 ) $
(28,212,044 ) Net loss per share:
Basic $ (0.11 ) $ (0.08 ) $ (0.23 ) $ (0.45 ) Diluted $ (0.11 ) $
(0.08 ) $ (0.23 ) $ (0.45 ) Weighted average number of
common shares outstanding: Basic
63,607,538
62,734,237
63,465,797 62,638,675
Diluted
63,607,538
62,734,237 63,465,797
62,638,675
Kopin Corporation Condensed Consolidated Balance
Sheets (Unaudited)
December 26,
2015
December 27,
2014
ASSETS Current assets: Cash and marketable securities $ 80,710,780
$ 90,858,936 Accounts receivable, net 1,574,973 3,802,324 Inventory
2,512,473 4,081,886 Prepaid and other current assets 1,357,996
1,181,474 Note receivable 15,000,000 -
Total current assets 101,156,222 99,924,620 Land,
equipment and improvements, net 2,677,103 4,589,421 Goodwill and
intangible assets 946,082 1,593,210 Property and plant, held for
sale 819,263 - Other assets 461,416 1,900,828 Note receivable
- 14,933,335 Total assets $
106,060,086 $ 122,941,414 LIABILITIES
AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $
3,959,704 $ 5,503,734 Accrued expenses 4,702,574 5,870,719 Deferred
income taxes 1,207,000 1,282,000 Billings in excess of revenue
earned 1,407,566 586,471 Total
current liabilities 11,276,844 13,242,924 Lease commitments
298,463 311,187 Total Kopin Corporation stockholders' equity
94,740,875 109,846,959 Noncontrolling interest (256,096 )
(459,656 ) Total stockholders' equity
94,484,779 109,387,303 Total
liabilities and stockholders' equity $ 106,060,086 $
122,941,414
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160303006625/en/
Kopin CorporationRichard
Sneider, 508-870-5959Treasurer and Chief Financial
OfficerRichard_Sneider@kopin.comorMarket Street PartnersJoann
Horne, 415-445-3233JHorne@marketstreetpartners.com
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