Welcome!

News Feed Item

Kopin Corporation Provides Business Update and Fourth-Quarter and Fiscal Year 2013 Operating Results

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 fourth quarter and fiscal year ended December 28, 2013.

Woman wearing Kopin's natural looking concept smart eyewear. (Photo: Business Wire)

Woman wearing Kopin's natural looking concept smart eyewear. (Photo: Business Wire)

“Since announcing our strategy to provide innovative solutions for wearable devices last year, we have made substantial progress in establishing Kopin as a preeminent developer of critical components, reference systems and total system solutions for wearable computing,” said Dr. Fan, Kopin’s President and Chief Executive Officer. “In February we hosted our first wearable technology event to give our current and potential customers, analysts and shareholders an opportunity to see the results of our transformation efforts over the last year. Based on the large turn-out, favorable press reports and positive comments we received, the event was a huge success.”

“At the event we demonstrated new components and a number of different concept headset designs operated by voice commands and natural speech for both consumer and enterprise markets,” Dr. Fan continued. “The highlight of the event was our Pupil™ display module, a microdisplay module that combines our signature transmissive LCD microdisplay and miniaturized optics from Olympus. The Pupil display module provides see-through, bright images in a package small enough to invisibly merge with eyeglasses. We believe technology break-throughs such as this will drive the adoption of wearable headset technologies much sooner than originally thought. And with a strong cash position and a debt-free balance sheet, we have the means to execute our strategy and maintain our level of investment in the growing wearable systems market.”

Kopin will discuss the following highlights on today’s conference call:

  • Kopin’s recent event which discussed major trends in the wearable market and demonstrated Kopin’s new industrial and consumer reference designs.
  • Kopin’s Pupil™ display module, the latest innovation in display technology for the smart eyewear market, to rave reviews from customers, media, and analysts.
  • Kopin’s Wearable Tech Center and acoustics lab now operating in Silicon Valley.

Outlook

“The past year has seen a significant uptick in interest in wearable computing from companies interested in offering enterprise, industrial, and consumer products. With major companies increasingly approaching this market, Kopin is uniquely positioned to partner with them to get to market faster and more effectively,” Dr. Fan said.

“2013 was in line with financial guidance. For 2014 we will continue our investments in technology development, we expect to expand our customer base and see our existing customers begin to offer products,” Dr. Fan continued. “There are strong signs that wearable headsets will begin to be introduced starting in late 2014 and grow rapidly into 2015. For Kopin, we expect to have our first generation components as well as concept and reference systems ready by the end of this summer, and then prepare for component manufacturing in the second half of 2014, with substantial wearable revenue growth expected in 2015.”

Kopin expects full-year 2014 revenue in the range of $18 million to $22 million and a net loss in the range of $32 million to $40 million for the 12 months ending December 27, 2014. 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 2014.

Fourth Quarter Results

Total revenues for the fourth quarter ended December 28, 2013, were $5.5 million, compared with $8.6 million for the fourth quarter of 2012, primarily reflecting a decline in sales of display products for military applications.

In the fourth quarter we took a noncash charge to write-down certain intangible assets of approximately $1.5 million. We also recorded an impairment change in an equity investment of approximately $2.5 million.

Net loss for the fourth quarter of 2013 was $9.7 million, or $0.16 per share, compared with net loss of $3.9 million, or $0.06 per share, for the same period of 2012.

Full Year Results

Total revenues for the 12 months ended December 28, 2013, were $22.9 million, compared with $34.6 million in the same period of 2012, primarily reflecting a decline in sales of display products for military applications.

Research and development expenses for the year were $17.5 million compared with $14.3 million in the same period of 2012, reflecting an increase in costs to develop our wearable and military technologies.

Selling, general and administrative expenses were $19.1 million in 2013, compared with approximately $17.2 million in the same period of 2012.

Included in the 2013 results of operations are a noncash charge to write-down certain intangible assets of approximately $1.5 million and impairment charges in investments of approximately $5.0 million

On January 16, 2013 we sold our III-V product line and investment in Kopin Taiwan Corporation (KTC). The gain on the sale and the results of operations of our III-V product line and KTC through the date of sale are shown as discontinued operations. Our net loss from continuing operations for the 12 months ended December 28, 2013 was $24.9 million, or $0.40 per share, compared with net loss from continuing operations of $21.2 million, or $0.33 per share, for the same period of 2012. Net loss for the 12 months ended December 28, 2013 was $4.7 million, or $0.08 per share, compared with net loss of $18.4 million, or $0.29 per share, for the same period of 2012.

Cash used in operating activities for the fiscal year 2013 was $19.7 million and we used $8.0 million for the repurchase of our common stock. Kopin’s cash, equivalents and marketable securities was $112.7 million at December 28, 2013. Kopin has no long-term debt.

Financial Results Conference Call

In conjunction with its fourth quarter and fiscal year end 2013 financial results, Kopin will host a teleconference call for investors and analysts at 5:00 p.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 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, Pupil 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 wearable eyewear market is ready to go mainstream; our belief that technology breaks through such as our Pupil display module will drive the adoption of wearable technologies much sooner than originally thought; our belief that we have a strong cash position and have the means to execute our strategy and maintain our level of investment in the growing wearable systems market for the foreseeable future; our expectation that for 2014 we will continue our investments in technology development, expand our customer base and see our existing customers begin to offer products; we expect to have our first generation components as well as concept and reference systems ready by the end of this summer, and then prepare for component manufacturing in the second half of 2014, with substantial wearable revenue growth expected in 2015; our expectation that our full-year 2014 revenue will be in the range of $18 million to $22 million our a net loss will be in the range of $32 million to $40 million for the 12 months ending December 27, 2014, and our expectation that we will use between $30 million and $35 million to fund operations for the fiscal year 2014. 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 2014 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.

 
 
Kopin Corporation
Supplemental Information
(Unaudited)
           
Three Months Ended Twelve Months Ended
 

December 28, 2013

December 29, 2012

December 28, 2013

December 29, 2012

Display Revenues by Category (in millions)
Military Application $ 1.1 $ 4.7 $ 8.6 $ 19.6
Consumer Electronics Applications 3.4 2.8 12.0 11.6
Research and Development   1.1   1.1   2.3   3.4
Total $

5.5

$ 8.6 $ 22.9 $ 34.6
 
 
Stock-Based Compensation Expense
Continuing Operations
Cost of product revenues $ 160,000 $ 77,000 $ 415,000 $ 334,000
Research and development 166,000 77,000 423,000 289,000
Selling, general and administrative   229,000   495,000   3,365,000   3,604,000
$ 555,000 $ 649,000 $ 4,203,000 $ 4,227,000
Discontinued Operations
Cost of product revenues $ - $ 46,000 $ - $ 180,000
Research and development - 18,000 - 78,000
Selling, general and administrative   -   1,000   -   2,000
$ - $ 65,000 $ - $ 260,000
 
Total $ 555,000 $ 714,000 $ 4,203,000 $ 4,487,000
 
Other Financial Information
Depreciation and amortization
Continuing Operations $ 568,000 $ 515,000 $ 3,626,000 $ 3,779,000
Discontinued Operations $ - $ 911,000 $ - $ 5,282,000
Total Depreciation and amortization $ 568,000 $ 1,426,000 $ 3,626,000 $ 9,060,000
 
Capital expenditures $ 217,000 $ 1,368,000 $ 737,000 $ 9,832,000
Treasury stock purchases $ 2,005,000 $ 1,355,000 $ 7,992,000 $ 3,456,000

           
 
Kopin Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
 
Three Months Ended Twelve Months Ended
December 28, 2013 December 29, 2012 December 28, 2013 December 29, 2012
Revenues:
Product revenues $ 4,509,219 $ 7,497,259 $ 20,574,812 $ 31,298,419
Research and development revenues   1,040,712     1,077,223     2,322,897     3,343,441  
5,549,931 8,574,482 22,897,709 34,641,860
Expenses:
Cost of product revenues 3,864,598 5,072,252 20,655,216 22,041,953
Research and development 4,041,767 3,629,886 17,534,020 14,300,161
Selling, general and administrative 3,473,445 4,146,576 19,124,750 17,165,870
Impairment of intangibles assets and goodwill   1,511,414     -     1,511,414     1,704,770  
  12,891,224     12,848,714     58,825,400     55,212,754  
Loss from operations (7,341,293 ) (4,274,232 ) (35,927,691 ) (20,570,894 )
 
Other income (expense), net   (2,340,162 )   (327,890 )   (2,133,968 )   566,161  
 

Loss before (provision) benefit for income taxes, equity losses in

unconsolidated affiliates and net loss from noncontrolling interest

(9,681,455 ) (4,602,122 ) (38,061,659 ) (20,004,733 )
 
(Provision) benefit for income taxes   54,484     (1,073,000 )   12,933,209     (1,099,000 )
 
Loss before equity loss in unconsolidated affiliate and net loss from
noncontrolling interest (9,626,971 ) (5,675,122 ) (25,128,450 ) (21,103,733 )
 
Equity loss in unconsolidated affiliate   (216,907 )   (87,107 )   (625,098 )   (679,587 )
 
Loss from continuing operations (9,843,878 ) (5,762,229 ) (25,753,548 ) (21,783,320 )
Income from discontinued operations, net of tax   -     1,428,734     20,147,532     2,789,048  
Net loss (9,843,878 ) (4,333,495 ) (5,606,016 ) (18,994,272 )
 
Net loss attributable to noncontrolling interest   184,041     472,042     896,400     632,342  
 
Net loss $ (9,659,837 ) $ (3,861,453 ) $ (4,709,616 ) $ (18,361,930 )
 
Net (loss) income per share:
Basic
Continuing operations $ (0.16 ) $ (0.08 ) $ (0.40 ) $ (0.33 )
Discontinued operations   -     0.02     0.32     0.04  
Net (loss) income per share $ (0.16 ) $ (0.06 ) $ (0.08 ) $ (0.29 )
Diluted
Continuing operations $ (0.16 ) $ (0.08 ) $ (0.40 ) $ (0.33 )
Discontinued operations   -     0.02     0.32     0.04  
Net (loss) income per share $ (0.16 ) $ (0.06 ) $ (0.08 ) $ (0.29 )
 
 
Weighted average number of common shares outstanding:
Basic   61,528,968     63,415,345     62,347,852     63,617,680  
Diluted   61,528,968     63,415,345     62,347,852     63,617,680  

       
 
Kopin Corporation
Condensed Consolidated Balance Sheets
 
 
December 28, 2013 December 29, 2012
ASSETS
Current assets:
Cash and marketable securities $ 112,729,201 $ 92,485,349
Accounts receivable, net 2,388,461 5,517,365
Inventory 3,078,055 5,789,753
Prepaid and other current assets 1,412,285 1,600,873
Current assets held for sale   -   21,573,729
 
Total current assets 119,608,002 126,967,069
 
Equipment and improvements, net 6,034,963 8,486,406
Other assets 20,488,758 11,609,595
Noncurrent assets held for sale - 29,145,732
 
Total assets $ 146,131,723 $ 176,208,802
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,868,865 $ 5,121,324
Accrued expenses 6,822,556 6,731,823
Billings in excess of revenue earned 547,681 1,220,395

Current liabilities held for sale

  -   7,102,895
 
Total current liabilities 11,239,102 20,176,436
 
Lease commitments 329,435 322,477

Noncurrent liabilities held for sale

- 623,979
 
Total Kopin Corporation stockholders' equity 134,553,247 148,733,680
Noncontrolling interest   9,939   6,352,230
Total stockholders' equity   134,563,186   155,085,910
Total liabilities and stockholders' equity $ 146,131,723 $ 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
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
There is only one world-class Cloud event on earth, and that is Cloud Expo – which returns to Silicon Valley for the 21st Cloud Expo at the Santa Clara Convention Center, October 31 - November 2, 2017. Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers. Companies are each developing their unique mix of cloud technologies and service...
For financial firms, the cloud is going to increasingly become a crucial part of dealing with customers over the next five years and beyond, particularly with the growing use and acceptance of virtual currencies. There are new data storage paradigms on the horizon that will deliver secure solutions for storing and moving sensitive financial data around the world without touching terrestrial networks. In his session at 20th Cloud Expo, Cliff Beek, President of Cloud Constellation Corporation, d...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, will discuss th...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
SYS-CON Events announced today that Akvelon will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Akvelon is a business and technology consulting firm that specializes in applying cutting-edge technology to problems in fields as diverse as mobile technology, sports technology, finance, and healthcare.
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
SYS-CON Events announced today that Datera will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera offers a radically new approach to data management, where innovative software makes data infrastructure invisible, elastic and able to perform at the highest level. It eliminates hardware lock-in and gives IT organizations the choice to source x86 server nodes, with business model option...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, Cloud Expo and @ThingsExpo are two of the most important technology events of the year. Since its launch over eight years ago, Cloud Expo and @ThingsExpo have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, I provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading the...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...