@LaughinPaulRyan
4 years ago
Kopin Corporation (Nasdaq: KOPN), a leading developer and provider of high resolution micro displays, optical modules and display sub-assemblies, today provided an update on its business initiatives and financial results for the second quarter ended June 27, 2020.
"We are very pleased that strong demand for our products continued in the second quarter with our total product revenues growing by 50% year over year,β said Dr. John C.C. Fan, CEO of Kopin." Revenue growth was driven by shipments for current defense production programs along with funded development programs tied to longer term revenue opportunities. Our strong pipeline of defense development programs, which are in support of soldiers, fixed-wing and rotary aircraft and armored vehicles, continues to expand and is now the strongest in Kopinβs history. While some of these development programs may not contribute significantly to product revenue for the next year or two, or perhaps not all, we expect the strength in our defense revenues to continue.β
Dr. Fan continued, βFrom an operational standpoint, our ongoing initiatives to improve execution and manufacturing efficiencies are starting to show results, and we achieved further progress in reducing our cost structure. In the second quarter R&D and SG&A were lower by 41% versus the second quarter of 2019, with current internal R&D investments primarily focused on our Organic Light Emitting Diode (OLED) displays. We recently announced our latest achievement in the Lightning® 2.6K x 2.6K OLED display (2560 x 2560 resolution) based on our duo-stack, ColorMaxTM technology, which demonstrated breakthrough color fidelity (> 115% sRGB) combined with high efficiency (> 6 candela per ampere) and brightness (> 1000 nits). In addition to shipping our first production order of OLED backplane wafers in the quarter, we also received a follow-on order.
βOur continued success would not be possible without the dedication of our employees. Kopin has remained open and operating during the COVID 19 lockdown due to the essential nature of our defense-related business. I believe we have done a great job coordinating the activities of our employees, both working on-site and remotely. While we continue to take additional precautions, our AMLCD products are made in a Class 10 cleanroom where our employees have always been gowned and worn masks and gloves, providing important protection.β
Dr. Fan concluded, βWhile we continue to manage through these unusual times, we believe our strong defense business, our full suite of micro displays, OLED micro displays development activities and continued emphasis on efficiently managing our cost structure will enable us to continue our momentum into the second half of 2020 and beyond.β
@LaughinPaulRyan
4 years ago
Second Quarter Financial Results
Product revenues for the second quarter ended June 27, 2020 were $6.7 million, compared with $4.4 million for the second quarter ended June 29, 2019, a 50% increase year over year. Funded research, development and other revenues were $2.1 million for the second quarter ended June 27, 2020 compared with $4.7 million for the second quarter ended June 29, 2019. Included in the $4.7 million of revenues for the second quarter of 2019 was a one-time license fee payment of $3.5 million. Total revenues were $8.8 million for the second quarter ended June 27, 2020 compared with $9.1 million for the second quarter ended June 29, 2019.
Research and development (R&D) expenses for the second quarter of 2020 were $2.2 million compared to $3.3 million for the second quarter of 2019, a 33% decrease year over year. The decline in R&D expenses is due in part to the licensing and sale of our Golden-I Infinity and Solos technologies as part of our commercialization strategy which we commenced in 2019. In fiscal year 2020, we expect our R&D expenditures to primarily focus on our display products, overlay weapon sights and organic light emitting diode (βOLEDβ) display technologies.
Selling, general and administrative (SG&A) expenses were $2.9 million for the second quarter of 2020, compared to $5.4 million for the second quarter of 2019, a 46% decrease year over year. SG&A decreased for the three and six months ended June 27, 2020 as compared to the three and six months ended June 29, 2019 primarily due to a decrease in compensation expenses including stock-based compensation, bad debt expense, professional fees, information technology expenses, travel and accretion of the NVIS contingent consideration.
The net loss attributable to controlling interest for the second quarter of 2020 was $1.1 million, or 1 cent per share, compared with net loss of $4.3 million, or 5 cents per share, for the second quarter of 2019.
Net cash used in operating activities for the second quarter ended June 27, 2020 was approximately $2.9 million. Kopin's cash and equivalents and marketable securities were approximately $15.3 million at June 27, 2020 as compared to $21.8 million at December 28, 2019.
All amounts above are estimates and readers should refer to our Form 10-Q for the quarter ended June 27, 2020, for final disposition as well as important risk factors.