Kopin Reports Strong Results for Second Quarter 2022
Kopin Corporation (Nasdaq: KOPN) reported Q2 2022 total revenues of $11.9 million, marking a 20% increase year-over-year, with product revenues rising 30%. The defense sector saw an impressive 87% growth in product revenues, driven by new orders for advanced display technologies. However, the industrial/enterprise sector experienced a 38% decline in revenues. Operating expenses rose due to increased R&D investments, and the net loss widened to $5.6 million. Despite these challenges, Kopin remains optimistic about future growth in defense and consumer markets.
- Total revenues increased by 20% year-over-year to $11.9 million.
- Product revenues grew by 30%, with defense product revenues up 87%.
- Successful orders for displays in F-35 helmets and other defense systems.
- Funded R&D revenues rose by 4%, indicating strong partner investments.
- Net loss increased to $5.6 million from $3.8 million year-over-year.
- Industrial/enterprise revenues fell 38%, impacting overall sales.
- Higher product cost percentages due to supply chain inefficiencies.
- Increased R&D expenses by 38% year-over-year.
-
Q2 2022 Total Revenues of
– a$11.9 Million 20% Increase over Q2 last year -
Product Revenues Increase
30% Year over Year Driven by87% Year Over Year increase in Defense Product Revenues - Good progress on Micro OLED and LED Display Development Programs
“We had a good second quarter with overall revenues up
“Our defense business was very strong in the second quarter of 2022 with
“Our funded Research and Development (R&D) revenues grew
Second Quarter Financial Results
Total revenues for the second quarter ended
Cost of Product Revenues for the second quarter of 2022 was
Research and Development (R&D) expenses for the second quarter of 2022 were
Selling, General and Administration (SG&A) expenses were
Net Loss Attributable to
“Lower production rates in the first quarter and into the second quarter of 2022 due to supply chain and other issues resulted in disruptions in our manufacturing processes which in turn affected working capital flows.,” said
All amounts above are estimates and readers should refer to our Form 10-Q for the quarter ended
Conference Call
Kopin will host a conference call this morning at
About Kopin
Kopin is a trademark of
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 belief that the supply issues are getting better; our belief of strong growth potential in defense markets due to the turbulence in
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Supplemental Information |
||||||||||||
(Unaudited) |
||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
Revenues by Category (in millions) | ||||||||||||
Defense Applications | $ |
7.1 |
$ |
3.8 |
$ |
11.8 |
$ |
8.8 |
||||
Industrial Applications |
|
1.6 |
|
2.6 |
|
3.2 |
|
4.7 |
||||
Consumer and Other Applications |
|
0.3 |
|
0.4 |
|
0.5 |
|
0.9 |
||||
Research and Development |
|
2.8 |
|
2.7 |
|
7.7 |
|
6.3 |
||||
License and Royalties |
|
0.1 |
|
0.4 |
|
0.3 |
|
0.9 |
||||
Total | $ |
11.9 |
$ |
9.9 |
$ |
23.5 |
$ |
21.6 |
||||
Stock-Based Compensation Expense | ||||||||||||
Cost of product revenues | $ |
12,000 |
$ |
35,000 |
$ |
78,000 |
$ |
169,000 |
||||
Research and development |
|
108,000 |
|
121,000 |
|
256,000 |
|
215,000 |
||||
Selling, general and administrative |
|
297,000 |
|
359,000 |
|
739,000 |
|
2,741,000 |
||||
$ |
417,000 |
$ |
515,000 |
$ |
1,073,000 |
$ |
3,125,000 |
|||||
Other Financial Information | ||||||||||||
Depreciation and amortization | $ |
267,000 |
$ |
207,000 |
$ |
535,000 |
$ |
412,000 |
Condensed Consolidated Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Revenues: | ||||||||||||||||
Net product revenues | $ |
9,003,658 |
|
$ |
6,928,819 |
|
$ |
15,511,186 |
|
$ |
14,497,663 |
|
||||
Research and development and other revenues |
|
2,905,374 |
|
|
2,976,437 |
|
|
7,976,268 |
|
|
7,083,961 |
|
||||
|
11,909,032 |
|
|
9,905,256 |
|
|
23,487,454 |
|
|
21,581,624 |
|
|||||
Expenses: | ||||||||||||||||
Cost of product revenues |
|
7,906,250 |
|
|
6,044,543 |
|
|
15,689,129 |
|
|
12,441,213 |
|
||||
Research and development |
|
5,145,375 |
|
|
3,740,253 |
|
|
10,553,988 |
|
|
7,303,553 |
|
||||
Selling, general and administration |
|
4,327,468 |
|
|
4,040,979 |
|
|
8,792,016 |
|
|
9,946,685 |
|
||||
|
17,379,093 |
|
|
13,825,775 |
|
|
35,035,133 |
|
|
29,691,451 |
|
|||||
Loss from operations |
|
(5,470,061 |
) |
|
(3,920,519 |
) |
|
(11,547,679 |
) |
|
(8,109,827 |
) |
||||
Other income (expense), net |
|
(141,128 |
) |
|
103,636 |
|
|
4,599,826 |
|
|
140,221 |
|
||||
Loss before provision for income taxes and net loss from noncontrolling interest |
|
(5,611,189 |
) |
|
(3,816,883 |
) |
|
(6,947,853 |
) |
|
(7,969,606 |
) |
||||
Tax provision |
|
(36,000 |
) |
|
(32,000 |
) |
|
(72,000 |
) |
|
(65,000 |
) |
||||
Net loss |
|
(5,647,189 |
) |
|
(3,848,883 |
) |
|
(7,019,853 |
) |
|
(8,034,606 |
) |
||||
Net loss attributable to noncontrolling interest |
|
257 |
|
|
16 |
|
|
280 |
|
|
39,501 |
|
||||
Net loss attributable to the controlling interest | $ |
(5,646,932 |
) |
$ |
(3,848,867 |
) |
$ |
(7,019,573 |
) |
$ |
(7,995,105 |
) |
||||
Net loss per share: | ||||||||||||||||
Basic and diluted | $ |
(0.06 |
) |
$ |
(0.04 |
) |
$ |
(0.08 |
) |
$ |
(0.09 |
) |
||||
Weighted average number of common shares outstanding: | ||||||||||||||||
Basic and diluted |
|
90,300,999 |
|
|
88,815,356 |
|
|
90,211,742 |
|
|
88,096,822 |
|
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and marketable securities | $ |
18,558,012 |
|
$ |
29,295,466 |
|
||
Accounts receivable, net |
|
7,048,635 |
|
|
12,113,070 |
|
||
Contract assets and unbilled receivables |
|
5,268,754 |
|
|
2,299,392 |
|
||
Inventory |
|
6,926,489 |
|
|
6,581,139 |
|
||
Prepaid and other current assets |
|
2,261,633 |
|
|
1,918,678 |
|
||
Total current assets |
|
40,063,523 |
|
|
52,207,745 |
|
||
Plant and equipment, net |
|
1,738,962 |
|
|
1,888,963 |
|
||
Operating lease right of use assets |
|
3,766,602 |
|
|
3,828,066 |
|
||
Equity investments |
|
9,831,592 |
|
|
4,912,022 |
|
||
Other assets |
|
170,932 |
|
|
170,932 |
|
||
Total assets | $ |
55,571,611 |
|
$ |
63,007,728 |
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ |
4,860,573 |
|
$ |
5,483,970 |
|
||
Accrued expenses |
|
5,736,842 |
|
|
4,133,379 |
|
||
Customer deposits |
|
806,040 |
|
|
2,638,103 |
|
||
Deferred tax liabilities |
|
472,569 |
|
|
513,417 |
|
||
Contract liabilities and billings in excess of revenues earned |
|
3,047,208 |
|
|
4,063,031 |
|
||
Operating lease liabilities |
|
767,440 |
|
|
701,204 |
|
||
Total current liabilities |
|
15,690,672 |
|
|
17,533,104 |
|
||
Other long term liabilities |
|
1,516,734 |
|
|
2,739,531 |
|
||
Operating lease liabilities, net of current portion |
|
2,973,259 |
|
|
3,108,236 |
|
||
|
35,563,560 |
|
|
39,799,191 |
|
|||
Noncontrolling interest |
|
(172,614 |
) |
|
(172,334 |
) |
||
Total stockholders' equity |
|
35,390,946 |
|
|
39,626,857 |
|
||
Total liabilities and stockholders' equity | $ |
55,571,611 |
|
$ |
63,007,728 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220802005426/en/
Treasurer and Chief Financial Officer
Richard_Sneider@kopin.com
Source:
FAQ
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