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Kopin Provides Business Update and Third Quarter 2017 Operating ResultsKopin 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 30, 2017. "We continued making rapid progress in the third quarter on many fronts," said Dr. John C. C. Fan, CEO of Kopin Corporation. "With regard to our Lightning™ OLED displays and related optics, we have drawn strong interest from many tier-one global companies and the military, and we have already received development orders. Even as we continue to further enhance our Lightning OLED performance, we have made significant progress in establishing production readiness for our OLED microdisplays and we expect to have production in the first quarter of 2018. At the same time, our joint venture with BOE and Olightek is on schedule, and we expect to break ground shortly on the world's largest OLED on Si factory, located in Kunming, China. "We took another step to expand our microdisplay leadership with the recent introduction of the Brillian LCD microdisplay product line. This new generation of liquid crystal display (LCDs) incorporates advanced designs and processing techniques which dramatically increase performance over current LCDs. The Brillian offers brightness levels only possible with our LCD which is critical for many AR applications, especially in military and enterprise. "Our military business was strong in the third quarter of 2017, more than doubling over the period year. The increase was primarily driven by revenues for our VR optical system for simulation and training headsets along with shipments for the F-35 Strike fighter program. "In our consumer business, Solos is in final preparation phase with our manufacturing partner Goertek, and we expect to launch it at CES (News - Alert) in January and begin shipping in the first quarter of 2018. This second generation of Solos will showcase much of Kopin's most exciting new technology, including WhisperTM audio technology and our PupilTM optics, along with many other new features. We have made great progress with our Whisper technology and will be demonstrating its mid-field and far-field capabilities at CES 2018. "In summary, our military business is ramping with enterprise and consumer headsets scheduled for release shortly. Our product plans are in place and we have $77 million to fund our strategy," concluded Dr. Fan. Third Quarter Financial Results Total revenues for the third quarter ended September 30, 2017 were $6.1 million, compared with $5.8 million for the third quarter ended September 24, 2016. Research and development (R&D) expenses for the third quarter of 2017 were $5.3 million compared to $4.1 million for the third quarter of 2016. Selling, general and administrative (SG&A) expenses were $5.3 million for the third quarter of 2017 compared to $4.0 million for the third quarter of 2016, reflecting incremental SG&A expense of $0.5 million from the Company's acquisition of NVIS, which was completed in the first quarter of 2017 and an increase in stock compensation. The incremental SG&A from NVIS for the three months ended September 30, 2017 primarily relates to the amortization of intangibles resulting from the acquisition. Net loss attributable to controlling interest for the third quarter of 2017 was $8.2 million, or $0.11 per share, compared with net loss of $8.1 million, or $0.13 per share, for the third quarter of 2016. During the third quarter of 2017 we had 7 patents granted and filed for 2 new applications. Overall we have over 300 patents and patents pending, almost all of which are related to wearable applications. As of September 30, 2017 Kopin had approximately $77.3 million in cash equivalents and marketable securities, and no long term debt. All amounts above are estimates and readers should refer to our Form 10-Q for the quarter ended September 30, 2017, for final disposition. 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 belief that we expected military revenue strength in the fourth quarter; that revenue in the second half of 2017 is on track to increase 70% as compared to the first half of 2017; we plan to have OLED production in the first quarter of 2018; our expectation to launch Solos 2 at CES in January and begin shipping in the first quarter of 2018; our expectation that we will be demonstrating our Whisper technology's mid-field and far-field capabilities at CES 2018; and our belief that our military business is ramping with enterprise and consumer headsets scheduled for release shortly. 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 military revenues may not be strong in the fourth quarter; our revenues may not grow in the second half of 2017;we may not be able to demonstrate any products at CES for a variety of reasons; our Solos 2 may not be introduced; the Solos 2 may not gain market acceptance; our Brillian LCD technology may not be introduced; the Brillian LCD may not gain market acceptance; our military programs may not continue to ramp and they may be delayed, cancelled or not funded; our revenue momentum may stop; our revenues may decline for a variety of reasons including, but not limited to, lack of market acceptance, production issues, material supply issues and pricing issues; our Whisper Chip may not work for far field applications; our Whisper Chip may not achieve market acceptance; we may have insufficient funds to monetize and/or commercialize our investment; we may not be well positioned as the VR and AR markets begin to accelerate; our progress may not lead to the growth of the AR and VR markets; the AR and VR markets may take longer to develop than we anticipate; there may be no demand for our AR and VR products; and other risk factors and cautionary statements listed in Kopin'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 31, 2016, and Kopin'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 Kopin and only as of the date on which they are made. We undertake no obligation to update any of these forward-looking statements to reflect events or circumstances occurring after the date of this release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171107005498/en/ |
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