|By Business Wire||
|October 31, 2013 07:00 AM EDT||
Kopin Corporation (NASDAQ: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 ended September 28, 2013.
Comments on the Third Quarter
“We continue to make the strategic investments necessary to establish Kopin as a preeminent developer of critical components, reference systems and total system solutions for wearable computing,” said Dr. John C.C. Fan, Kopin’s President and Chief Executive Officer. “As we continue on our transformational journey into the wearable computing space, I’m extremely pleased with the progress we’ve made thus far.”
“Kopin is transforming its business model from one that has been primarily commodity-based to one powered by providing innovative solutions for wearable devices. This new business model is expected to generate substantially higher gross margins,” Dr. Fan said. “During the third quarter we continued to advance discussions with partners and prospects in areas such as product definition and design, and we expect to have exciting and innovative products in the market by mid-2014.”
“Our balance sheet is strong and debt-free which allows us to maintain our level of investment in the growing wearable systems market,” Dr. Fan continued. “This investment is critical in achieving our goal of becoming the leading supplier in the wearable technology market.”
Third Quarter Results
Total revenues for the third quarter ended September 28, 2013, were $5.0 million, compared with $8.2 million for the third quarter of 2012, primarily reflecting a decline in sales of display products for military applications.
Research and development expenses for the third quarter were $5.6 million compared with $4.7 million for the third quarter of 2012, reflecting an increase in costs to develop our wearable and military technologies.
Selling, general and administrative expenses were $5.0 million in the third quarter of 2013, compared with approximately $4.7 million in the same period of 2012.
Net loss for the third quarter of 2013 was $8.8 million, or $0.14 per share, compared with net loss of $6.7 million, or $0.11 per share, for the same period of 2012.
Kopin’s cash, equivalents and marketable securities was $122.7 million at September 30, 2013. Kopin has no long term debt.
Kopin expects full-year 2013 revenue in the range of $18 million to $22 million and a net loss in the range of $28 million to $33 million for the 12 months ending December 28, 2013. This guidance excludes the income from discontinued operations, net of tax, and includes its acquisition of a majority interest in e-MDT America. Excluding the effects of working capital, its stock buyback program and other investing and financing activities, Kopin estimates it will use between $30 million and $35 million to fund operations for the fiscal year 2013.
Financial Results Conference Call
In conjunction with its third 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) 709-8150 (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.
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 chipsets, 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.
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 transforming its business model from one that has been primarily commodity-based to one powered by providing innovative solutions for wearable devices; the new business model can generate substantially higher gross margins; the Company’s plans to make strategic investments in its establish itself to be the preeminent developer of components and solutions in the wearable technology market; and the Company’s expectation that its full-year 2013 revenue will be in the range of $18 million to $22 million; its net loss for full-year 2013 will be in the range of $28 million to $33 million and that it will use between $30 million and $35 million to fund operations for the fiscal year 2013, excluding the effects of working capital, its stock buyback program and other investing and financing activities. 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: it may take longer than the Company estimates to develop products; the Company’s products may not be accepted by the market place; 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 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.
|Three Months Ended||Nine Months Ended|
September 28, 2013
September 29, 2012
September 28, 2013
September 29, 2012
|Display Revenues by Category (in millions)|
|Consumer Electronics Applications||3.4||3.0||8.9||8.8|
|Research and Development||0.1||0.9||1.3||2.3|
|Stock-Based Compensation Expense|
|Cost of product revenues||$||136,000||$||77,000||$||255,000||$||255,000|
|Research and development||132,000||77,000||258,000||210,000|
|Selling, general and administrative||
|Other Financial Information|
|Depreciation and amortization||$||1,056,000||$||2,501,000||$||3,058,000||$||7,634,000|
|Treasury stock purchases||$||3,756,000||$||-||$||5,987,000||$||3,456,000|
|Condensed Consolidated Statements of Operations|
|Three Months Ended||Nine Months Ended|
September 28, 2013
September 29, 2012
September 28, 2013
September 29, 2012
|Research and development revenues||61,257||879,383||1,282,185||2,266,218|
|Cost of product revenues||4,622,252||4,859,383||16,790,618||16,969,699|
|Research and development||5,586,745||4,739,956||13,492,253||10,669,867|
|Selling, general and administrative||5,049,936||4,694,829||15,651,581||13,022,903|
|Impairment of intangibles assets and goodwill||-||-||-||1,704,770|
|Loss from operations||(10,308,885||)||(6,104,398||)||(28,586,674||)||(16,299,862||)|
|Other income (expense), net||1,486,095||(535,263||)||206,195||894,052|
|Loss before benefit (provision) for income taxes, equity losses in||(8,822,790||)||(6,639,661||)||(28,380,479||)||(15,405,810||)|
|unconsolidated affiliates and net loss (income) from noncontrolling interest|
|Benefit (provision) for income taxes||33,000||(10,000||)||12,879,000||(22,799||)|
|Loss before equity loss in unconsolidated affiliate and net||(8,789,790||)||(6,649,661||)||(15,501,479||)||(15,428,609||)|
|loss (income) from noncontrolling interest|
|Equity losses in unconsolidated affiliates||(225,408||)||(202,278||)||(408,194||)||(592,480||)|
|Loss from continuing operations||(9,015,198||)||(6,851,939||)||(15,909,673||)||(16,021,089||)|
|(Loss) income from discontinued operations, net of tax||-||(214,347||)||20,147,532||1,360,313|
|Net (loss) income||(9,015,198||)||(7,066,286||)||4,237,859||(14,660,776||)|
|Net loss attributable to noncontrolling interest||243,747||344,274||712,360||160,300|
|Net (loss) income||$||(8,771,451||)||$||(6,722,012||)||$||4,950,219||$||(14,500,476||)|
|Net (loss) income per share:|
|Net (loss) income per share||(0.14||)||$||(0.11||)||$||0.08||$||(0.23||)|
|Net (loss) income per share||$||(0.14||)||$||(0.11||)||$||0.08||$||(0.23||)|
|Weighted average number of common shares outstanding:|
|Condensed Consolidated Balance Sheets|
|September 28, 2013||December 29, 2012|
|Cash and marketable securities||$||122,747,803||$||92,485,349|
|Accounts receivable, net||2,824,609||5,517,365|
|Prepaid and other current assets||1,232,654||1,600,873|
|Current assets held for sale||-||21,573,729|
|Total current assets||129,647,801||126,967,069|
|Property, plant and equipment, net||6,191,163||8,486,406|
|Noncurrent assets held for sale||-||29,145,732|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Billings in excess of revenue earned||1,782,168||1,220,395|
|Current liabilities held for sale||-||7,102,895|
|Total current liabilities||13,274,203||20,176,436|
Noncurrent liabilities held for sale
|Total Kopin Corporation stockholders' equity||145,546,295||148,733,680|
|Total stockholders' equity||145,729,577||155,085,910|
|Total liabilities and stockholders' equity||$||159,325,530||$||176,208,802|
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Oct. 26, 2016 07:30 AM EDT Reads: 2,777
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Oct. 26, 2016 07:30 AM EDT Reads: 11,482
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
Oct. 26, 2016 06:45 AM EDT Reads: 3,383
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Oct. 26, 2016 06:15 AM EDT Reads: 2,071
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Oct. 26, 2016 06:00 AM EDT Reads: 1,873
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Oct. 26, 2016 06:00 AM EDT Reads: 2,039
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and microservices. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your conta...
Oct. 26, 2016 06:00 AM EDT Reads: 1,548
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Oct. 26, 2016 06:00 AM EDT Reads: 1,411
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Oct. 26, 2016 05:45 AM EDT Reads: 2,556
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
Oct. 26, 2016 05:30 AM EDT Reads: 1,041
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Oct. 26, 2016 05:30 AM EDT Reads: 1,020
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Oct. 26, 2016 05:00 AM EDT Reads: 2,581
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
Oct. 26, 2016 05:00 AM EDT Reads: 998
Today every business relies on software to drive the innovation necessary for a competitive edge in the Application Economy. This is why collaboration between development and operations, or DevOps, has become IT’s number one priority. Whether you are in Dev or Ops, understanding how to implement a DevOps strategy can deliver faster development cycles, improved software quality, reduced deployment times and overall better experiences for your customers.
Oct. 26, 2016 04:45 AM EDT Reads: 948
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
Oct. 26, 2016 04:30 AM EDT Reads: 1,194