Exhibit 99.1
Kopin
Corporation Reports Fourth Quarter 2025 Financial Results
Balance
Sheet Strengthened with $56 Million Capital Raise; Strategic Partnerships Advancing Key Defense Projects; Government Shutdown Delayed
Revenue Recognition on Select Orders Industrywide
WESTBOROUGH,
MA -- March 27, 2026 -- Kopin Corporation (Nasdaq: KOPN) (“Kopin” or the “Company”), a leading provider
of application-specific optical systems and high-performance microdisplays for defense, training, enterprise, industrial, consumer and
medical products, today announced preliminary unaudited financial results for its fourth quarter ended December 27, 2025.
Fourth
Quarter Financial Summary:
| $ in millions | |
Q4 2025 | | |
Q4 2024 | | |
% Change | |
| Total Revenues | |
$ | 8.4 | | |
$ | 14.6 | | |
| (42 | %) |
| Product Revenues | |
$ | 5.6 | | |
$ | 12.6 | | |
| (56 | %) |
| Non-Product Revenues * | |
$ | 2.5 | | |
$ | 1.7 | | |
| 47 | % |
| Cost of Product Revenues | |
$ | 4.7 | | |
$ | 10.6 | | |
| (56 | %) |
| R&D Expenses | |
$ | 3.5 | | |
$ | 3.1 | | |
| 13 | % |
| SG&A Expenses | |
$ | 4.5 | | |
$ | 3.1 | | |
| 45 | % |
*Non-Product
revenue consists of Funded R&D, Collaborative agreement, and Grant revenue streams
Fourth
Quarter 2025 & Subsequent Operational Highlights
| |
● |
Completed
$56 million private placement from strategic and institutional investors, fortifying the Company’s balance sheet to support
near-term growth. |
| |
|
|
| |
● |
Continued
to advance strategic partnership with Theon International, with sales commencing and aggressive 3-year strategic plan for revenue
and technology sharing underway across Europe, Southeast Asia, and NATO markets. |
| |
|
|
| |
● |
Continued
progress on Color MicroLED development for Soldier Borne Mission Systems with several prime contractor selections and critical technology
acquisition wins expected. |
| |
|
|
| |
● |
Maintained
strong pipeline with congressional budget demands through 2030 and indefinite demand, indefinite quantity (IDIQ) contracts providing
upside revenue flexibility. |
| |
|
|
| |
● |
Investments
in internal research and development delivered new technologies released to production driving new customer demand and adoption.
Several new products, in new markets, are expected to be announced, in 2026. |
Management
Commentary
Michael
Murray, Chief Executive Officer of Kopin, said: “2025 was a transformative year for Kopin as we established critical strategic
partnerships, secured landmark defense program wins, and strengthened our balance sheet through a $56 million capital raise from strategic
and institutional investors. While fourth quarter revenues were impacted by the government shutdown and associated procurement delays,
our pipeline remains strong and I believe our strategic positioning has never been better. Our partnership with Theon International is
gaining traction across European, Southeast Asian, and NATO markets, and our defense programs continue to advance with congressional
budget support through 2030.
“Operationally,
our investments in automation are delivering healthy improvements in throughput, quality, and cost efficiency. The government shutdown
temporarily slowed procurement activity in Q4, and we anticipate some continued impact into Q1 2026. However, with our strengthened balance
sheet, expanded strategic partnerships, and growing defense program portfolio, we are well positioned to capitalize on the significant
opportunities ahead. As the sole source provider of microdisplays for several Department of War programs of record, and the only company
in the world producing four types of microdisplays, we enter 2026 with confidence in our ability to deliver meaningful revenue growth
as government operations and order flow normalize which we are experiencing now,” concluded Murray.
Fourth
Quarter 2025 Financial Results
Total
revenues for the fourth quarter ended December 27, 2025, were $8.4 million, as compared to $14.6 million for the fourth quarter ended
December 28, 2024. The year-over-year decrease in revenues was primarily attributable to the government shutdown and associated procurement
delays which impacted timing of expected program orders, product shipments and contract activity during the quarter.
Product
revenues for the fourth quarter were $5.6 million, as compared to $12.6 million in the year-ago period. The decrease was primarily due
to government shutdown-related delays in product orders that several of our end customers experienced, resulting in lower orders and
shipments of products for US defense applications. Standard Training and Simulation order flow which can ship within the same quarter
was seasonally lower than expected as well. Product order flow has since returned to anticipated levels while new European product orders
have exceeded forecast.
Non-Product
revenues were $2.5 million in the fourth quarter of 2025, as compared to $1.7 million in the fourth quarter of 2024. The increase was
primarily driven by the IBAS color MicroLED development program; however, revenue and research awards were lower due to delays. Several
of these new contracts have been awarded, with several others still expected.
Cost
of product revenues for the fourth quarter of 2025 was $4.7 million, or 83% of net product revenues, as compared with $10.6 million,
or 84% of net product revenues, for the fourth quarter of 2024. The decrease in cost of product revenue as a percentage of net product
revenues was primarily attributable to changes in product mix. Actions taken throughout the year with regards to quality, cost containment,
and automation allowed for similar results to the comparative period even with the reduced volume.
Research
and Development expenses for the fourth quarter of 2025 were $3.5 million, as compared to $3.1 million for the fourth quarter of 2024.
The increase was not material, and the company considers it to be within the range of normal quarterly fluctuations. The spending level
ensures continued investments in internally funded technology development, including new technology, process improvements, MicroLED advancements.
Selling,
General and Administration expenses were $4.5 million in the fourth quarter of 2025, as compared to $3.1 million in the fourth quarter
of 2024. The increase was primarily due to higher professional fees and outside service costs associated with the capital raise and strategic
partnership transactions completed during the quarter, partially offset by lower incentive compensation cost.
As
of December 27, 2025, the Company had cash and cash equivalents of $37.8 million. The bonded cash of $23.0 million is presented as a
long-term asset. As a result of the de-consolidation of Kopin Europe there was approximately $8M of cash that will not be shown within
the consolidated results. Our overall cash position has improved primarily driven by the completion of $56 million in private placements
from strategic and institutional investors.
All
amounts above are preliminary unaudited figures and readers should refer to the Company’s forthcoming Form 10-K for the year ending
December 27, 2025, for final disposition as well as important risk factors.
Earnings
Call and Webcast
Management
will host an investor conference call at 8:30 AM Eastern time today, Friday, March 27, 2026 to discuss the Company’s fourth quarter
2025 unaudited financial results, provide a corporate update, and conclude with Q&A from telephone participants.
The
Company’s 10-K filing with audited financial results is expected to be filed in the days following. To participate, please use
the following information:
Q4
2025 & Full Year Earnings Conference Call
Date:
Friday, March 27, 2026
Time:
8:30 AM Eastern time
U.S.
Dial-in: 1-800-225-9448
International:
1-203-518-9708
Conference ID: KOPIN
Webcast:
KOPN Q4 FY2025 Earnings Conference Call
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 April 3, 2026. To listen, please call 1-844-512-2921 within the
United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 11161278. A webcast replay will also
be available using the webcast link above.
About
Kopin Corporation
Kopin
Corporation (Nasdaq: KOPN) is a leading developer and provider of innovative display and application-specific optical solutions sold
as critical components and subassemblies for defense, enterprise, professional and consumer products. Kopin’s portfolio includes
microdisplays, display modules, eyepiece assemblies, image projection modules and vehicle mounted and head-mounted display systems that
incorporate ultra-small high-resolution Active-Matrix Liquid Crystal displays (AMLCD), Ferroelectric Liquid Crystal on Silicon (FLCoS)
displays, MicroLED displays (µLED) 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.
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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. 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. 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, as amended, for the fiscal year ended December 27, 2025, or as updated from time to time in our Securities
and Exchange Commission filings.
Corporate
Contact
Kopin
Corporation
Erich Manz, Chief Financial Officer
EManz@kopin.com
508-870-5959
Investor
Relations Contact
Lucas
A. Zimmerman
MZ
Group – MZ North America
KOPN@mzgroup.us
949-259-4987
Public
Relations Contact
Grace
Halvorsen
Lightspeed PR/M
Kopin@lightspeedpr.com
