Kopin Corporation Reports Financial Results for the Fourth Quarter and Full Year 2023
Fourth quarter revenues of
Fifth consecutive quarter of positive book-to-bill
Expects double digit revenue growth in 2024
Company Highlights
-
Fifth consecutive quarter of positive book-to-bill with greater than
$55 million -
Paused production in
Westborough manufacturing facility in the fourth quarter of 2023 for additional automation and retooling in anticipation of greater 2024 demand, impacting fourth quarter 2023 revenue - New branding and website unveiled in January 2024
-
Expect 2024 revenue growth of at least
20% compared to 2023 -
Continued OLED fabrication transition to
U.S. DoD approved facilities - Announced Software Defined, AI enabled NeuralDisplay™ Architecture
“2023 was a transitional year for Kopin, successfully evolving from a leading provider of microdisplay solutions to becoming an application-specific optical solutions provider,” said Michael Murray, Kopin's Chief Executive Officer. “This shift was underscored in the fourth quarter and into 2024 with additional partnerships and multiple new and follow-on orders, supported by strong new and existing customer engagement and satisfaction. Performance and outlook were supported by our fifth consecutive quarter of positive book to bill, marking a new record for orders.
“We saw continued positive momentum with follow-on orders in the fourth quarter, including a
“As a result of our strong order book, we plan for a significant production increase in 2024. As we discussed in our third quarter of 2023 financial results call, to ensure we execute on this anticipated production ramp in 2024, we took additional steps and extended our planned 2023 holiday shut down period to improve production flow for long-term profitability. These preparations included a temporary pause in production to retool, adding new automation, and clean our manufacturing facilities at the end of the fourth quarter, which had an impact on the quarter’s revenues.
Mr. Murray concluded: "We start 2024 with a strong order book, new customer engagements and positive internal morale, strengthening Kopin for significant and sustainable revenue growth needed to achieve profitability. We have increased our 2024 order cover with higher prices on several key programs and believe there are opportunities for additional follow-on orders and several new customer development orders which we expect to receive soon. Our sales funnel is strong and our increased emphasis and resources focused on business development are paying off. As we look forward, our foundation of innovation paired with our core capabilities serve as the bedrock for our progression into application-specific optical solutions and advanced software-defined AI-enabled microdisplays. We believe Kopin is well positioned to deliver these exciting new technologies and deliver long-term growth for our shareholders.”
Fourth Quarter Financial Results
Total revenues for the fourth quarter ended December 30, 2023, were
Cost of Product Revenues for the fourth quarter of 2023 was
R&D expenses for the fourth quarter of 2023 were
SG&A expenses were
Net Loss Attributable to Kopin for the fourth quarter of 2023 was
Full Year 2023 Financial Results
Total revenues for the year ended December 30, 2023, were
Cost of Product Revenues for 2023 was
R&D expenses for 2023 were
Selling, General and Administration (SG&A) expenses were
Net Loss Attributable to Kopin Corporation for the year 2023 was
Net Cash Used in Operating Activities for 2023 was approximately
All amounts above are estimates and readers should refer to the Form 10-K for the fiscal year ended December 30, 2023, for final disposition as well as important risk factors.
Earnings Call and Webcast
Kopin management will host the conference call, followed by a question and answer session.
Date: Thursday, March 14, 2024
Time: 4:30 PM Eastern Time (1:30 PM Pacific Time)
International number: 203-518-9843
Webcast: 4Q23 Webcast Link
The Company will also provide a link at https://www.kopin.com/investors/ for those who wish to stream the call via webcast. Please call the conference telephone number 5-10 minutes prior to the start time.
A telephonic replay of the conference call will also be available through March 21, 2024.
Toll-free replay number: 844-512-2921
International replay number: 412-317-6671
Replay passcode: 1155187
About Kopin
Kopin Corporation is a leading developer and provider of innovative display and optical technologies sold as critical components and subassemblies for defense, industrial and consumer products. Kopin’s technology portfolio includes ultra-small Active-Matrix Liquid Crystal displays (AMLCD), Liquid Crystal on Silicon (LCOS) displays and Organic Light Emitting Diode (OLED) displays, a variety of optics, and low-power ASICs. For more information, please visit Kopin’s website at www.kopin.com. Kopin is a trademark of Kopin Corporation.
Forward-Looking Statements
Statements in this press release may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the safe harbor created by such sections. Words such as “expects,” “believes,” “can,” “will,” “estimates,” and variations of such words and similar expressions, and the negatives thereof, are intended to identify such forward-looking statements. We caution readers not to place undue reliance on any such “forward-looking statements,” which speak only as of the date made, and advise readers that these forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, estimates, and assumptions by us that are difficult to predict. These forward-looking statements may include statements with respect to our projected increase in demand for our thermal weapons displays; and our belief that there are opportunities for additional follow-on orders and several new customer development orders which we expect to receive soon. Various factors, some of which are beyond our control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements, including without limitation our ability to produce thermal weapons displays in adequate quantities to meet projected demand, the outcome of any litigation and other factors beyond our control. All such forward-looking statements, whether written or oral, and whether made by us or on our behalf, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany the forward-looking statements. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release, except as may otherwise be required by the federal securities laws. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. Important factors that could affect performance and cause results to differ materially from management’s expectations are described in Part I, Item 1A. Risk Factors; Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations; and other parts of our Annual Report on Form 10-K for the fiscal year ended December 30, 2023, or as updated from time to time our Securities and Exchange Commission filings.
| Kopin Corporation | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (Unaudited) | |||||||
| December 30, 2023 | December 31, 2022 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash, restricted cash and marketable securities | $ |
17,902,685 |
|
$ |
12,647,656 |
|
|
| Accounts receivable, net |
|
9,706,036 |
|
|
6,537,891 |
|
|
| Inventory |
|
7,601,806 |
|
|
6,426,400 |
|
|
| Contract assets and unbilled receivables |
|
3,409,809 |
|
|
4,068,364 |
|
|
| Prepaid and other current assets |
|
1,210,207 |
|
|
1,180,362 |
|
|
| Total current assets |
|
39,830,543 |
|
|
30,860,673 |
|
|
| Plant and equipment, net |
|
2,163,417 |
|
|
1,831,641 |
|
|
| Operating lease right-of-use assets |
|
2,504,909 |
|
|
3,168,520 |
|
|
| Equity investments |
|
4,688,522 |
|
|
7,721,206 |
|
|
| Other assets |
|
124,925 |
|
|
170,132 |
|
|
| Total assets | $ |
49,312,316 |
|
$ |
43,752,172 |
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ |
7,076,759 |
|
$ |
5,438,980 |
|
|
| Accrued expenses |
|
5,564,187 |
|
|
6,027,485 |
|
|
| Accrued Compensation |
|
790,000 |
|
|
790,000 |
|
|
| Customer deposits |
|
408,156 |
|
|
- |
|
|
| Deferred tax liabilities |
|
470,884 |
|
|
482,739 |
|
|
| Contract liabilities and billings in excess of revenue earned |
|
916,826 |
|
|
930,500 |
|
|
| Operating lease liabilities |
|
651,503 |
|
|
786,928 |
|
|
| Total current liabilities |
|
15,878,315 |
|
|
14,456,632 |
|
|
| Other long term liabilities |
|
2,092,124 |
|
|
2,728,042 |
|
|
| Operating lease liabilities, net of current portion |
|
1,832,982 |
|
|
2,576,883 |
|
|
| Total Kopin Corporation stockholders' equity |
|
29,508,895 |
|
|
24,163,297 |
|
|
| Noncontrolling interest |
|
- |
|
|
(172,682 |
) |
|
| Total stockholders' equity |
|
29,508,895 |
|
|
23,990,615 |
|
|
| Total liabilities and stockholders' equity | $ |
49,312,316 |
|
$ |
43,752,172 |
|
|
| Kopin Corporation | ||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||
| December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | |||||||||
| Revenues: | ||||||||||||
| Net product revenues | $ |
6,764,868 |
|
$ |
8,654,525 |
|
$ |
25,937,170 |
|
$ |
32,420,397 |
|
| Research and development revenues |
|
1,717,804 |
|
|
3,268,207 |
|
|
13,454,866 |
|
|
14,357,222 |
|
| Other revenues |
|
94,961 |
|
|
261,625 |
|
|
1,002,141 |
|
|
623,571 |
|
|
8,577,633 |
|
|
12,184,357 |
|
|
40,394,177 |
|
|
47,401,190 |
|
|
| Expenses: | ||||||||||||
| Cost of product revenues |
|
7,193,314 |
|
|
8,882,465 |
|
|
24,952,431 |
|
|
32,558,748 |
|
| Research and development |
|
2,242,682 |
|
|
4,672,165 |
|
|
10,777,093 |
|
|
18,667,558 |
|
| Selling, general and administration |
|
5,929,309 |
|
|
4,852,964 |
|
|
21,842,157 |
|
|
17,965,097 |
|
|
15,365,305 |
|
|
18,407,594 |
|
|
57,571,681 |
|
|
69,191,403 |
|
|
| Loss from operations |
|
(6,787,672 |
) |
|
(6,223,237 |
) |
|
(17,177,504 |
) |
|
(21,790,213 |
) |
| Other income, net |
|
337,700 |
|
|
101,999 |
|
|
(2,414,715 |
) |
|
2,607,948 |
|
| Loss before provision for income taxes and net loss (income) |
|
(6,449,972 |
) |
|
(6,121,238 |
) |
|
(19,592,219 |
) |
|
(19,182,265 |
) |
| attributable to noncontrolling interest | ||||||||||||
| Tax provision |
|
(39,000 |
) |
|
(36,000 |
) |
|
(156,000 |
) |
|
(144,000 |
) |
| Net loss |
|
(6,488,972 |
) |
|
(6,157,238 |
) |
|
(19,748,219 |
) |
|
(19,326,265 |
) |
| Net loss attributable to noncontrolling interest |
|
- |
|
|
68 |
|
|
- |
|
|
348 |
|
| Net loss attributable to Kopin Corporation | $ |
(6,488,972 |
) |
$ |
(6,157,170 |
) |
$ |
(19,748,219 |
) |
$ |
(19,325,917 |
) |
| Net loss per share: | ||||||||||||
| Basic | $ |
(0.06 |
) |
$ |
(0.07 |
) |
$ |
(0.18 |
) |
$ |
(0.21 |
) |
| Diluted | $ |
(0.06 |
) |
$ |
(0.07 |
) |
$ |
(0.18 |
) |
$ |
(0.21 |
) |
| Weighted average number of common shares outstanding: | ||||||||||||
| Basic |
|
110,596,543 |
|
|
91,739,459 |
|
|
108,976,245 |
|
|
91,429,106 |
|
| Diluted |
|
110,596,543 |
|
|
91,739,459 |
|
|
108,976,245 |
|
|
91,429,106 |
|
| Kopin Corporation | ||||||||||||
| Supplemental Information | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||
| December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | |||||||||
| Display Revenues by Category (in millions) | ||||||||||||
| Defense | $ |
6.1 |
$ |
7.1 |
|
$ |
22.6 |
$ |
24.8 |
|||
| Industrial/Enterprise |
|
0.6 |
|
1.2 |
|
|
2.7 |
|
6.1 |
|||
| Consumer |
|
0.1 |
|
0.3 |
|
|
0.6 |
|
1.5 |
|||
| R&D |
|
1.7 |
|
3.3 |
|
|
13.5 |
|
14.4 |
|||
| License and Royalties |
|
0.1 |
|
0.3 |
|
|
1.0 |
|
0.6 |
|||
| Total | $ |
8.6 |
$ |
12.2 |
|
$ |
40.4 |
$ |
47.4 |
|||
| Stock-Based Compensation Expense | ||||||||||||
| Cost of product revenues | $ |
445,000 |
$ |
(25,000 |
) |
$ |
1,210,000 |
$ |
95,000 |
|||
| Research and development |
|
308,000 |
|
68,000 |
|
|
861,000 |
|
436,000 |
|||
| Selling, general and administrative |
|
778,000 |
|
(146,000 |
) |
|
1,804,000 |
|
737,000 |
|||
$ |
1,531,000 |
$ |
(103,000 |
) |
$ |
3,875,000 |
$ |
1,268,000 |
||||
| Other Financial Information | ||||||||||||
| Depreciation and amortization | $ |
110,000 |
$ |
57,000 |
|
$ |
608,000 |
$ |
722,000 |
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240314463490/en/
Kopin Corporation
Richard Sneider
Treasurer and Chief Financial Officer
rsneider@kopin.com
MZ Contact
Brian M. Prenoveau, CFA
MZ Group – MZ North America
KOPN@mzgroup.us
+561 489 5315
Source: Kopin Corporation
