- Designed Into 5th
Tier-One Wearable Customer
- Introduces Solos Performance Eyewear
for Cycling
- Celebrates 30 Years of
Innovation
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 third quarter of 2015, ended September 26.
“In the third quarter we further expanded our leadership
position as a provider of components to the wearables market,
adding another Tier-One customer for our displays and optics
technologies,” said John C.C. Fan, President and CEO of Kopin.
“With the addition of this customer we now have five Tier-One
customers offering wearable technology products based on our
technologies, with three focused on the enterprise segment and two
targeted at the consumer market. Our revenues from sales of
products for the wearable market through the nine months ended
September 26, 2015 was $10.6 million, a twofold increase over the
same period in 2014. Our optical, display, audio and software
technologies are being evaluated by companies around the globe, as
the interest in wearables gains momentum across industries and
applications.”
“This interest extends to our own Solos cycling eyewear, which
was introduced to a very enthusiastic cycling community at North
America’s largest cycling trade show, Interbike, in October. These
ultra-lightweight glasses feature our Vista optics and display
technologies to create a 5-inch virtual color screen, which provide
the rider with biometric and situational data to improve their
performance. Importantly, Solos successfully matches fashion with
function, which Kopin has long believed is key to the adoption of
wearable technologies. We look for the functionality of Solos to be
significantly expanded with the addition of our speech enhancement
and battery technologies, which we expect to debut at CES in
January.”
“We also celebrated Kopin’s 30th anniversary in October which
was a chance to review our many accomplishments, from the creation
of the heterojunction bipolar transistor, which was key to the
expansion of wireless communication, to the development of our
display technologies, which enabled new categories of consumer
products. We also demonstrated our most recent development efforts,
our speech enhancement technology, which combined with our
proprietary display, optical and electronics has created Kopin’s
leadership position in wearables today. We are on track to meet the
goals that we established in 2013 when we announced our focus on
the wearable technology market. Tangible evidence of this will be
at CES this January as we expect between 5 to 10 companies to show
products based on our technologies. With over $87 million in cash
and marketable securities I am even more excited about the next 30
years, with the resources in place to maximize the opportunities
ahead,” concluded Dr. Fan.
Third Quarter Financial Results
Total revenues for the third quarter ended September 26, 2015,
were $8.0 million, compared with $9.5 million for the third quarter
of 2014.
Research and development expenses for the third quarter of 2015
were $4.0 million compared with $4.8 million for the third quarter
of 2014.
Selling, general and administrative expenses were $4.6 million
in the third quarter of 2015, compared with approximately $5.0
million in the same period of 2014.
Other income and expense was $1.4 million of income for the
third quarter of 2015 as compared to an income of $0.5 million for
the third quarter of 2014.
Net loss for the third quarter of 2015 was $4.6 million, or
$0.07 per diluted share, compared with net loss of $5.0 million, or
$0.08 per share, for the same period of 2014.
Kopin’s cash, equivalents and marketable securities
was $87.3 million at September 26, 2015 as compared
to $90.9 million at December 27, 2014. 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 September 26, 2015, for final
disposition.
Financial Results Conference Call
In conjunction with its third quarter 2015 financial
results, Kopin will host a teleconference call for
investors and analysts at 8:30 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 the functionality of Solos will be expanded with the addition
of our speech enhancement and battery technologies which we expect
to debut at CES in January; our expectation that between 5 and 10
companies to show products based on our technologies at CES in
January; our expectation that our cash position will be further
enhanced when 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: technical, environmental,
scheduling and other issues may prevent us or our customers from
presenting at the CES in January; we may be unable to debut our
speech enhancement and battery technologies at CES in January; we
may be unable to incorporate our speech enhancements and battery
technologies in Solos by CES in January; 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
September 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 Nine
Months Ended September 26, 2015
September 27, 2014 September 26,
2015 September 27, 2014 Display
Revenues by Category (in millions) Military Applications $ 1.9
$ 5.7 $ 8.9 $ 8.3 Wearable Applications 3.5 1.7 10.6 4.8 Industrial
Applications 1.2 1.0 2.9 2.8 Consumer Electronics Applications 0.5
0.6 1.3 2.3 Research and Development 0.9 0.5
3.7 3.0 Total $ 8.0 $ 9.5 $ 27.4 $ 21.2
Stock-Based Compensation Expense Continuing
Operations Cost of component revenues $ 159,000 $ 118,000 $
620,000 $ 590,000 Research and development 166,000 136,000 670,000
773,000 Selling, general and administrative 439,000
939,000 1,496,000 2,192,000 $ 764,000 $ 1,193,000 $
2,786,000 $ 3,555,000
Other Financial
Information Depreciation and amortization $ 670,000 $ 808,000 $
1,860,000 $ 2,588,000 Capital expenditures $ 114,000 $ 566,000 $
765,000 $ 1,544,000 Treasury stock purchases $ - $ - $ - $ 299,000
Kopin
Corporation Condensed Consolidated Statements of
Operations (Unaudited) Three Months Ended
Nine Months Ended September 26, 2015
September 27, 2014 September 26,
2015 September 27, 2014 Revenues:
Component revenues $ 7,119,145 $ 9,066,028 $ 23,734,238 $
18,200,451 Research and development revenues
881,781 465,995
3,708,286 2,969,629
8,000,926 9,532,023 27,442,524 21,170,080 Expenses: Cost of
component revenues 5,357,217 5,204,125 17,000,729 13,583,313
Research and development 4,008,391 4,832,469 13,752,593 15,055,723
Selling, general and administrative
4,558,612
5,015,367
14,053,053 14,933,424
13,924,220 15,051,961 44,806,375 43,572,460 Loss from
operations (5,923,294 ) (5,519,938 ) (17,363,851 ) (22,402,380 )
Other income (expense), net
1,350,934
495,046
9,757,131 (624,889
)
Loss before (provision) benefit for income
taxes, equity loss in unconsolidated affiliate and net (income)
loss from noncontrolling interest
(4,572,360 ) (5,024,892 ) (7,606,720 ) (23,027,269 )
(Provision) benefit for income taxes
(12,500
) (44,000 )
(37,500 ) 62,000
Loss before equity loss in unconsolidated
affiliate and net (income) loss from noncontrolling interest
(4,584,860 ) (5,068,892 ) (7,644,220 ) (22,965,269 ) Equity
loss in unconsolidated affiliate
-
(35,016 )
(47,443 ) (259,874
) Net loss before (income) loss attributable to
noncontrolling interest (4,584,860 ) (5,103,908 ) (7,691,663 )
(23,225,143 ) Net (income) loss attributable to
noncontrolling interest
(13,690 )
134,468 36,094
315,344 Net loss
$ (4,598,550 )
$ (4,969,440 )
$ (7,655,569 )
$ (22,909,799 ) Net
loss per share: Basic $ (0.07 ) $ (0.08 ) $ (0.12 ) $ (0.37 )
Diluted $ (0.07 ) $ (0.08 ) $ (0.12 ) $ (0.37 ) Weighted
average number of common shares outstanding: Basic
63,068,321 62,646,757
63,072,668
62,606,822 Diluted
63,068,321 62,646,757
63,072,668
62,606,822 Kopin
Corporation Condensed Consolidated Balance Sheets
(Unaudited) September 26,
2015 December 27, 2014 ASSETS Current assets: Cash and
marketable securities $ 87,339,457 $ 90,858,936 Accounts
receivable, net 2,561,903 3,802,324 Inventory 2,577,750 4,081,886
Prepaid and other current assets 943,275 1,181,474 Note receivable
14,983,339 - Total current
assets 108,405,724 99,924,620 Land, equipment and
improvements, net 3,641,729 4,589,421 Goodwill and intangible
assets 1,115,377 1,593,210 Other assets 1,713,671 1,900,828 Note
receivable - 14,933,335 Total
assets $ 114,876,501 $ 122,941,414
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable $ 3,708,911 $ 5,503,734 Accrued expenses 5,617,936
5,870,719 Deferred income taxes 1,282,000 1,282,000 Billings in
excess of revenue earned 1,485,146 586,471
Total current liabilities 12,093,993 13,242,924
Lease commitments 304,183 311,187 Total Kopin
Corporation stockholders' equity 103,086,499 109,846,959
Noncontrolling interest (608,174 ) (459,656 )
Total stockholders' equity 102,478,325
109,387,303 Total liabilities and stockholders' equity $
114,876,501 $ 122,941,414
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151103005516/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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