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
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you ...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
SYS-CON Events announced today that Hitrons 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. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
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., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
VeriStor Systems has announced that CRN has named VeriStor to its 2017 Managed Service Provider (MSP) 500 list in the Elite 150 category. This annual list recognizes North American solution providers with cutting-edge approaches to delivering managed services. Their offerings help companies navigate the complex and ever-changing landscape of IT, improve operational efficiencies, and maximize their return on IT investments. In today’s fast-paced business environments, MSPs play an important role...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 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 ...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...