Welcome!

News Feed Item

Kopin Corporation Reports Second-Quarter 2013 Operating Results

Kopin Corporation (NASDAQ: KOPN), a leading developer of innovative wearable computing technologies and solutions, today reported financial results for the second quarter ended June 29, 2013, and provided an update on its business initiatives.

Comments on the Second Quarter

“Interest in our wearable computing technology solutions among current and prospective customers continues to grow,” said Dr. John C.C. Fan, Kopin’s President and Chief Executive Officer. “During the second quarter we advanced our ongoing discussions with customers and prospects in areas such as product definition and design, while on the technology front we continued development of our display, optical and noise cancellation technologies.

“A stream of consumer electronics and mobile communications companies are exploring the wearable computing technology market, further strengthening our belief in the significance of the market opportunity. Based on conversations with current and prospective customers, our expertise in critical disciplines, including display, optics, noise cancellation and ergonomics, is what distinguishes us as a leading partner to help these companies build the coming wave of wearable products,” Dr. Fan said.

“We also made significant strides during the quarter in developing an Android version of our software, which we anticipate will be available by year end to complement our Windows version,” Dr. Fan said.

Second Quarter Results

Total revenues for the second quarter ended June 29, 2013, were $6.1 million, compared with $7.0 million for the second quarter of 2012, primarily reflecting a decline in sales of display products for military applications. Cost of goods sold was 110.6% of revenues for the second quarter of 2013 compared with 81.5% of revenues in the same period of 2012, reflecting a lower percentage of display sales from our higher margin military products, an accrual of approximately $0.8 million for the repayment of a state jobs grant, the write-down of approximately $0.6 million for excess inventory associated with military products and manufacturing inefficiencies resulting from reduced volumes.

Research and development expenses for the second quarter were $3.7 million, or approximately 60% of revenues, compared with $2.9 million, or about 42% of revenues for 2012, reflecting an increase in costs to develop our wearable and military technologies.

Selling, general and administrative expenses were $4.7 million, or approximately 78% of revenues, in the second quarter of 2013, compared with approximately $4.1 million, or about 59% of revenues in the same period of 2012.

Net loss for the second quarter of 2013 was $7.8 million, or $0.12 per share, compared with net loss of $5.2 million, or $0.08, for the same period of 2012.

Including the proceeds from the sale of its III-V assets, Kopin’s cash, equivalents and marketable securities at June 29, 2013, increased to $130.4 million at June 29, 2013 from $92.5 million at year-end 2012.

Cash flow used in operating activities for the six month ended June 29, 2013, was $6.7 million.

Outlook

“Kopin is in the process of transforming its business model from one that has been primarily commodity-based to one powered by providing innovative solutions for wearable devices with the opportunity to generate substantially higher gross margins,” Dr. Fan said. “We continue to make the strategic investments necessary to establish Kopin as the preeminent developer of components and solutions in the wearable technology market.”

Based on its performance through the first six months of 2013 and its anticipated investments for the remainder of the year, Kopin now expects a net loss in the range of $28 million to $33 million for the 12 months ending December 28, 2013. This guidance excludes the impact of the Company’s sale of its III-V assets and its investment in Kopin Taiwan Corporation, and includes its acquisition of a majority interest in e-MDT America.

Financial Results Conference Call

In conjunction with its second-quarter 2013 financial results, Kopin will host a teleconference call for investors and analysts at 9:00 a.m. ET today. To participate, please dial (877) 709-8155 (U.S. and Canada) or (201) 689-8881 (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 is a leading developer and provider of innovative wearable technologies and solutions. Kopin’s technology portfolio includes ultra-small displays, optics, speech enhancement technology, software, low-power ASICs, and ergonomically designed headset computing systems. Kopin's proprietary components and technology are protected by more than 200 global patents and patents pending. For more information, please visit Kopin's website at www.kopin.com.

Kopin, CyberDisplay and Golden-i are trademarks of Kopin Corporation.

Forward-Looking Statements

Statements in this news 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 the Company’s efforts to derive revenue from royalty and licensing fees and increase gross margins; the Company’s plans to make strategic investments in its establish itself as the preeminent developer of components and solutions in the wearable technology market; and the Company’s expectation that its net loss for full-year 2013 will be in the range of $28 million to $33 million. 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: the Company’s 2013 financial expectations may turn out to be wrong; 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 rapid 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 its 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 financial guidance; 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 29, 2012, and the Company’s subsequent filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no responsibility 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 29, 2013

June 30, 2012

June 29, 2013

June 30, 2012

Display Revenues by Category (in millions)
Military Applications $ 3.1 $ 3.1 $ 5.7 $ 10.7
Consumer Electronics Applications 2.5 3.0 5.5 5.8
Research and Development   0.5   0.9   1.2   1.4
Total $ 6.1 $ 7.0 $ 12.4 $ 17.9
 
 
Stock-Based Compensation Expense
Continuing Operations
Cost of product revenues $ 65,000 $ 91,000 $ 118,000 $ 178,000
Research and development 73,000 68,000 127,000 133,000
Selling, general and administrative   776,000   915,000   2,175,000   1,783,000
$ 914,000 $ 1,074,000 $ 2,420,000 $ 2,094,000
 
Other Financial Information
 
Depreciation and amortization $ 906,000 $ 2,527,000 $ 2,002,000 $ 5,133,000
Continuing operations $ 906,000 $ 1,025,000 $ 2,002,000 $ 2,225,000
Non-continuing operations $ - $ 1,502,000 $ - $ 2,908,000
 
 
Capital expenditures $ 206,000 $ 3,972,000 $ 514,000 $ 5,748,000
Treasury stock purchases $ 2,231,000 $ - $ 2,231,000 $ 3,456,000
 

   
Kopin Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
                       
Three Months Ended       Six Months Ended

June 29, 2013

June 30, 2012

June 29, 2013

June 30, 2012

Revenues:
Product revenues $ 5,608,778 $ 6,087,547 $ 11,176,802 $ 16,490,773
Research and development revenues   469,867     924,031     1,220,928     1,386,835  
6,078,645 7,011,578 12,397,730 17,877,608
Expenses:
Cost of product revenues 6,203,960 4,960,588 12,168,366 12,109,096
Research and development 3,657,952 2,927,695 7,905,508 5,929,910
Selling, general and administrative 4,719,566 4,118,056 10,468,679 8,327,685
Impairment of investments   -     1,704,770     -     1,704,770  
  14,581,478     13,711,109     30,542,553     28,071,461  
Loss from operations (8,502,833 ) (6,699,531 ) (18,144,823 ) (10,193,853 )
 
Other income (expense), net   851,515     394,183     (1,279,905 )   1,429,314  
 
Loss before (provision) benefit for income taxes, equity losses in (7,651,318 ) (6,305,348 ) (19,424,728 ) (8,764,539 )
unconsolidated affiliates and net loss (income) from noncontrolling interest
 
(Provision) benefit for income taxes   (194,000 )   85,500     12,846,000     (12,800 )
 
Loss before equity loss in unconsolidated affiliate and net (7,845,318 ) (6,219,848 ) (6,578,728 ) (8,777,339 )
loss (income) from noncontrolling interest
 
Equity losses in unconsolidated affiliates   (83,697 )   (233,907 )   (182,785 )   (390,202 )
 
Loss from continuing operations (7,929,015 ) (6,453,755 ) (6,761,513 ) (9,167,541 )
(Loss) income from discontinued operations, net of tax   (49,356 )   1,328,961     20,147,532     1,574,661  
Net (loss) income (7,978,371 ) (5,124,794 ) 13,386,019 (7,592,880 )
 
Net loss (income) attributable to noncontrolling interest   165,183     (72,738 )   436,900     (183,975 )
 
Net (loss) income $ (7,813,188 ) $ (5,197,532 ) $ 13,822,919   $ (7,776,855 )
 
Net (loss) income per share:
Basic
Continuing operations $ (0.12 ) $ (0.10 ) $ (0.10 ) $ (0.15 )
Discontinued operations   (0.00 )   0.02     0.32     0.02  
Net (loss) income per share   (0.12 ) $ (0.08 ) $ 0.22   $ (0.12 )
Diluted
Continuing operations $ (0.12 ) $ (0.10 ) $ (0.10 ) $ (0.15 )
Discontinued operations   (0.00 )   0.02     0.32     0.02  
Net (loss) income per share $ (0.12 ) $ (0.08 ) $ 0.22   $ (0.12 )
 
 
Weighted average number of common shares outstanding:
Basic   62,492,352     63,078,510     62,160,046     63,651,983  
Diluted   62,492,352     63,078,510     62,903,909     63,651,983  
 

               
Kopin Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
 
June 29, 2013       December 29, 2012
ASSETS
Current assets:
Cash and marketable securities $     130,383,712 $     92,485,349
Accounts receivable, net 2,809,834 5,517,365
Inventory 3,668,934 5,789,753
Prepaid and other current assets 1,414,985 1,600,873
Current assets held for sale       -             21,573,729
 
Total current assets 138,277,465 126,967,069
 
Equipment and improvements, net 6,429,706 8,486,406
Other assets 25,844,282 11,609,595
Noncurrent assets held for sale - 29,145,732
 
Total assets $     170,551,453       $     176,208,802
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,144,729 $ 5,121,323
Accrued expenses 7,281,814 6,731,823
Billings in excess of revenue earned 1,930,850 1,220,395
Current liabilities held for sale       -             7,102,895
 
Total current liabilities 12,357,393 20,176,436
 
Lease commitments 304,785 322,477

Noncurrent liabilities held for sale

- 623,979
 
Total Kopin Corporation stockholders' equity 157,532,747 148,733,680
Noncontrolling interest       356,528             6,352,230
Total stockholders' equity       157,889,275             155,085,910

Total liabilities and stockholders' equity

$     170,551,453       $     176,208,802
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera M...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of (at least) three separate application components: the software embedded in the device, the back-end service, and the mobile application for the end user’s controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target –...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Whether they’re located in a public, private, or hybrid cloud environment, cloud technologies are constantly evolving. While the innovation is exciting, the end mission of delivering business value and rapidly producing incremental product features is paramount. In his session at @DevOpsSummit at 19th Cloud Expo, Kiran Chitturi, CTO Architect at Sungard AS, will discuss DevOps culture, its evolution of frameworks and technologies, and how it is achieving maturity. He will also cover various st...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...