- Revenues Increase 56% Year over Year, Including Initial
Component Shipments to Tier 1 Headset Customers - Company Generates $5.5 Million From Sale of Investment
- Posts $.01 per Diluted Share Earnings
Second column header of Condensed Consolidated Balance Sheets table
should read: December 27, 2014 (instead of December 27, 2017).
The corrected release reads:
KOPIN PROVIDES BUSINESS UPDATE AND SECOND QUARTER 2015 OPERATING
RESULTS
- Revenues Increase 56% Year over Year, Including Initial
Component Shipments to Tier 1 Headset Customers - Company Generates $5.5 Million From Sale of Investment
- Posts $.01 per Diluted Share Earnings
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 second quarter of 2015, ended June 27.
“We are very pleased with our progress in becoming the leading
technology provider to the growing wearables market,” said Dr. John C.C.
Fan, Kopin’s President and CEO. “In addition to our displays and compact
optics technologies, we are very excited with our unique Voice
Extraction™ technology that significantly improves the speech
recognition in noisy environments.”
“In the second quarter, we announced that Fujitsu had launched their
enterprise headset based on our wearable technologies and components.
When you add Fujitsu to our existing customers, combined with the
expected launch of a wearable product by another Tier 1 company in 2015,
Kopin is providing system designs and components to the companies
creating the most innovative products in the global headset market,”
said Dr. John C.C. Fan, CEO and President of Kopin. “In September 2015
we plan to debut our latest consumer headset system targeted at the
health and fitness market at the interbike trade show in Las Vegas.”
“Our progress in headsets would not be possible without the expertise
and knowledge we have gained from our military programs. In Q2, Kopin
began fulfilling initial production orders for our SXGA (1280 x 1024
resolution) displays, which are a key component in the helmets worn by
fighter pilots in the new F-35. We also made progress in marketing our
precision acquisition target system (PATS), with the goal of reaching
license agreements in 2015 and revenue generation in 2016.”
“While we continue to make significant investments in display, optics,
Voice Extraction and other technologies, we have remained fiscally
conservative. With over $88 million in cash and marketable securities at
the end of the second quarter, we have the resources to expand the Kopin
ecosystem of wearables suppliers utilizing our components,” concluded
Dr. Fan.
Second Quarter Financial Results
Total revenues for the second quarter ended June 27, 2015, were $10.9
million, compared with $6.9 million for the second quarter of 2014.
Included in 2015 revenues was $3.8 million related to renegotiated
contract terms due to the customer’s lowered forecasted program volumes.
Research and development expenses for the second quarter of 2015 were
$4.9 million compared with $5.1 million for the second quarter of 2014.
Selling, general and administrative expenses were $5.1 million in the
second quarter of 2015, compared with approximately $4.9 million in the
same period of 2014, reflecting an increase in compensation for new
hires, patent, information technology and travel expenses which were
partially offset by lower stock compensation expenses.
Other income and expense was $6.2 million of income for the second
quarter of 2015 as compared to an expense of $1.6 million for the second
quarter of 2014. Included in the $6.2 million is a gain on the sale of
our investment in Recon Instruments, which was acquired by Intel.
Included in the 2014 expense of $1.6 million was an impairment charge on
an investment of $1.3 million.
Net income for the second quarter of 2015 was $781,000, or $0.01 per
diluted share, compared with net loss of $8.8 million, or $0.14 per
share, for the same period of 2014.
Net cash used in operating activities for the three and six months ended
June 27, 2015, was $3.4 million and $8.9 million, respectively. Kopin’s
cash, equivalents and marketable securities was $88.3 million at June
27, 2015. 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 June 27, 2015, for final disposition.
Financial Results Conference Call
In conjunction with its second quarter 2015 financial
results, Kopin will host a teleconference call for investors and
analysts at 9:00 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 a tier 1 customer will
launch a wearable product in 2015; that we expect to show our latest
systems technologies targeted to the health and fitness consumer market
at the interbike trade show in Las Vegas, in September; our goal of
reaching license agreements for our precision acquisition targeting
system (PATs) in 2015 and generating revenue in 2016; our belief that we
have the resources to expand the Kopin ecosystem of wearables suppliers
utilizing our components; our expectation that 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: our customer may not launch its
product; technical, environmental, scheduling and other issues may
prevent us from presenting at the interbike trade show in September; we
may not be able to enter into any licensing agreements for our precision
acquisition targeting system (PATs); we may have insufficient resources
to expand the Kopin’s ecosystem of wearables suppliers utilizing our
components; 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 June 27, 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 report.
| Kopin Corporation | ||||||||||||
| Supplemental Information | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
|
June 27, 2015 |
June 28, 2014 |
June 27, 2015 |
June 28, 2014 |
|||||||||
| Display Revenues by Category (in millions) | ||||||||||||
| Military Applications | $ | 2.4 | $ | 1.5 | $ | 7.0 | $ | 2.6 | ||||
| Industrial Applications | 0.7 | 1.0 | 1.7 | 1.7 | ||||||||
| Wearable Applications | 6.0 | 1.5 | 7.1 | 3.1 | ||||||||
| Consumer Electronics Applications | 0.4 | 0.9 | 0.8 | 1.7 | ||||||||
| Research and Development | 1.4 | 2.0 | 2.8 | 2.5 | ||||||||
| Total | $ | 10.9 | $ | 6.9 | $ | 19.4 | $ | 11.6 | ||||
| Stock-Based Compensation Expense | ||||||||||||
|
Continuing Operations |
||||||||||||
| Cost of component revenues | $ | 262,000 | $ | 242,000 | $ | 461,000 | $ | 472,000 | ||||
| Research and development | 269,000 | 305,000 | 504,000 | 637,000 | ||||||||
| Selling, general and administrative | 494,000 | 688,000 | 1,057,000 | 1,253,000 | ||||||||
| $ | 1,025,000 | $ | 1,235,000 | $ | 2,022,000 | $ | 2,362,000 | |||||
| Other Financial Information | ||||||||||||
| Depreciation and amortization | $ | 509,000 | $ | 847,000 | $ | 1,190,000 | $ | 1,780,000 | ||||
| Capital expenditures | $ | 337,000 | $ | 534,000 | $ | 652,000 | $ | 978,000 | ||||
| Treasury stock purchases | $ | – | $ | – | $ | – | $ | 299,000 | ||||
| Kopin Corporation | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
|
June 27, 2015 |
June 28, 2014 |
June 27, 2015 |
June 28, 2014 |
|||||||||||||
| Revenues: | ||||||||||||||||
| Component revenues | $ | 9,486,723 | $ | 4,906,663 | $ | 16,615,093 | $ | 9,134,422 | ||||||||
| Research and development revenues | 1,369,883 | 2,036,624 | 2,826,505 | 2,503,634 | ||||||||||||
| 10,856,606 | 6,943,287 | 19,441,598 | 11,638,056 | |||||||||||||
| Expenses: | ||||||||||||||||
| Cost of component revenues | 6,359,780 | 4,153,739 | 11,643,513 | 8,379,188 | ||||||||||||
| Research and development | 4,884,010 | 5,137,033 | 9,744,202 | 10,223,317 | ||||||||||||
| Selling, general and administrative | 5,108,229 | 4,921,194 | 9,494,444 | 9,917,993 | ||||||||||||
| 16,352,019 | 14,211,966 | 30,882,159 | 28,520,498 | |||||||||||||
| Loss from operations | (5,495,412 | ) | (7,268,679 | ) | (11,440,561 | ) | (16,882,442 | ) | ||||||||
| Other income (expense), net | 6,214,193 | (1,599,684 | ) | 8,406,198 | (1,119,935 | ) | ||||||||||
|
Income (loss) before (provision) benefit for income taxes, equity loss in |
718,780 | (8,868,363 | ) | (3,034,363 | ) | (18,002,377 | ) | |||||||||
| unconsolidated affiliate and net loss from noncontrolling interest | ||||||||||||||||
| (Provision) benefit for income taxes | (12,500 | ) | (37,000 | ) | (25,000 | ) | 106,000 | |||||||||
| Income (loss) before equity loss in unconsolidated affiliate and net | 706,280 | (8,905,363 | ) | (3,059,363 | ) | (17,896,377 | ) | |||||||||
| loss from noncontrolling interest | ||||||||||||||||
| Equity loss in unconsolidated affiliate | – | (122,553 | ) | (47,443 | ) | (224,858 | ) | |||||||||
| Income (loss) from continuing operations | 706,280 | (9,027,916 | ) | (3,106,806 | ) | (18,121,235 | ) | |||||||||
| (Loss) income from discontinued operations, net of tax | – | – | – | – | ||||||||||||
| Net (loss) income | 706,280 | (9,027,916 | ) | (3,106,806 | ) | (18,121,235 | ) | |||||||||
| Net loss attributable to noncontrolling interest | 74,690 | 221,973 | 49,784 | 180,876 | ||||||||||||
| Net income (loss) | $ | 780,970 | $ | (8,805,943 | ) | $ | (3,057,022 | ) | $ | (17,940,359 | ) | |||||
| Net (loss) income per share: | ||||||||||||||||
| Basic | ||||||||||||||||
| Continuing operations | $ | 0.01 | $ | (0.14 | ) | $ | (0.05 | ) | $ | (0.29 | ) | |||||
| Discontinued operations | – | – | – | – | ||||||||||||
| Net (loss) income per share | $ | 0.01 | $ | (0.14 | ) | $ | (0.05 | ) | $ | (0.29 | ) | |||||
|
Diluted |
||||||||||||||||
| Continuing operations | $ | 0.01 | $ | (0.14 | ) | $ | (0.05 | ) | $ | (0.29 | ) | |||||
| Discontinued operations | – | – | – | – | ||||||||||||
| Net (loss) income per share | $ | 0.01 | $ | (0.14 | ) | $ | (0.05 | ) | $ | (0.29 | ) | |||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 63,066,031 | 62,643,506 | 63,074,842 | 62,586,854 | ||||||||||||
| Diluted | 65,030,089 | 62,643,506 | 63,074,842 | 62,586,854 | ||||||||||||
| Kopin Corporation | ||||||||
|
Condensed Consolidated Balance Sheets |
||||||||
| (Unaudited) | ||||||||
|
June 27, 2015 |
December 27, 2014 |
|||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and marketable securities | $ | 88,320,562 | $ | 90,858,936 | ||||
| Accounts receivable, net | 8,457,514 | 3,802,324 | ||||||
| Inventory | 3,065,712 | 4,081,886 | ||||||
| Prepaid and other current assets | 853,329 | 1,181,474 | ||||||
| Note receivable | 14,966,671 | – | ||||||
| Total current assets | 115,663,788 | 99,924,620 | ||||||
| Equipment and improvements, net | 4,107,309 | 4,589,421 | ||||||
| Goodwill and intangible assets | 1,292,538 | 1,593,210 | ||||||
| Other assets | 2,943,350 | 1,900,828 | ||||||
| Note receivable | – | 14,933,335 | ||||||
| Total assets | $ | 124,006,985 | $ | 122,941,414 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,778,554 | $ | 5,503,734 | ||||
| Accrued expenses | 5,656,102 | 5,870,719 | ||||||
| Deferred income taxes | 1,282,000 | 1,282,000 | ||||||
| Billings in excess of revenue earned | 3,522,416 | 586,471 | ||||||
| Total current liabilities | 15,239,072 | 13,242,924 | ||||||
| Lease commitments | 314,812 | 311,187 | ||||||
| Total Kopin Corporation stockholders’ equity | 108,993,599 | 109,846,959 | ||||||
| Noncontrolling interest | (540,498 | ) | (459,656 | ) | ||||
| Total stockholders’ equity | 108,453,101 | 109,387,303 | ||||||
| Total liabilities and stockholders’ equity | $ | 124,006,985 | $ | 122,941,414 | ||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20150804005692/en/
Kopin Corporation
Richard Sneider, 508-870-5959
Treasurer
and Chief Financial Officer
Richard_Sneider@kopin.com
or
Market
Street Partners
Joann Horne, 415-445-3233
JHorne@marketstreetpartners.com