Exhibit 99.1
Kopin
Corporation Reports Second Quarter 2026 Financial Results
Three
Major Milestones Achieved in U.S. Army Color MicroLED Program, Including Record-Setting 150,000+ Nit Full-Color Brightness and Installation
of U.S. Bonding Capability, Keeping Kopin on Track for Domestic MicroLED Production in Mid-2027
Multiple
Sentinel FPV™ Prototype Orders Received as U.S. Government’s Drone Dominance Program Accelerates; New Dallas Optics &
Photonics Design Center to Accelerate Neural I/o™ Delivery for AI Infrastructure
WESTBOROUGH,
MA — August 10, 2026 — Kopin Corporation (Nasdaq: KOPN) (“Kopin” or the “Company”), a leading
provider of application-specific optical systems and high-performance microdisplays for defense, AI-infrastructure, enterprise, industrial,
consumer and medical products, today announced preliminary unaudited financial results for its second quarter ended June 27, 2026.
Second
Quarter Financial Summary:
| $ in millions | |
Q2 2026 | | |
Q2 2025 | | |
% Change | |
| Total Revenues | |
$ | 12.7 | | |
$ | 8.5 | | |
| 51 | % |
| Product Revenues | |
$ | 7.6 | | |
$ | 7.5 | | |
| 2 | % |
| Non-Product Revenues * | |
$ | 5.1 | | |
$ | 1.0 | | |
| 433 | % |
| Cost of Product Revenues | |
$ | 6.6 | | |
$ | 7.1 | | |
| (7 | )% |
| R&D Expenses | |
$ | 4.5 | | |
$ | 1.9 | | |
| 133 | % |
| SG&A Expenses | |
$ | 5.1 | | |
$ | 4.9 | | |
| 5 | % |
*
Non-Product revenue consists of Funded R&D, Collaborative agreement, Grant, and license and royalty revenue streams
Second
Quarter 2026 & Subsequent Operational Highlights
| ● | Announced
three major milestones in the Company’s color MicroLED development program under the
U.S. Government’s Industrial Base Analysis and Sustainment (IBAS) initiative: surpassing
150,000 nits of single-panel, full-color brightness, exceeding the program’s threshold
target; successful early integration progress toward U.S. Army ground soldier vision systems,
supporting future programs such as Soldier Borne Mission Command (SBMC); and delivery of
new U.S. MicroLED bonding equipment at the Company’s Westborough headquarters. |
| ● | Secured
multiple new prototype orders for Sentinel FPV™ from customers evaluating the product
as a core part of their offerings for the U.S. Government’s one-way attack (OWA) drone
initiative, including several active contenders in the U.S. Government’s Drone Dominance
Program (DDP). Each engagement represents the potential for significant volume production,
with DDP volume orders expected to begin in late August 2026 immediately following Phase
2 evaluations and awards. |
| ● | Advanced
the Company’s Neural I/o™ AI infrastructure initiative with Fabric.AI —
signing several new non-disclosure agreements, including several with current NVIDIA NVLink
partners; released the first in a planned series of AI Interconnect white papers. |
| ● | Opened
a new Optics and Photonics Design Center in Dallas, Texas — expanding Kopin’s
U.S.-based engineering footprint with new optics and photonics lab space, a dedicated design
and engineering center, advanced R&D capabilities focused on Neural I/o™ and application-specific
optical solutions serving the rapidly growing AI infrastructure market. |
Management
Commentary
Michael
Murray, Chief Executive Officer of Kopin, said: “The second quarter and the weeks that followed demonstrated the significant momentum
building across every one of Kopin’s growth platforms. Subsequent to quarter end, our team delivered three major milestones in
our color MicroLED program under the IBAS initiative keeping us firmly on track to transition to domestic MicroLED product manufacturing
in mid-2027, and advancing a capability that we believe could enable meaningful revenue for Kopin over the life of programs like SBMC.
The U.S. Army is pleased with our progress, and beyond the Army program we are seeing strong international demand for color MicroLED
across additional applications such as head-up displays, weapon sights, and helmet systems.
“Sentinel
FPV™ is converting into exactly the kind of traction we anticipated when we entered the FPV drone market. Subsequent to quarter
end, we announced multiple new prototype orders from customers — including several active contenders in the U.S. Government’s
Drone Dominance Program — each of which represents the potential for significant volume production, with volume orders expected
to begin in late August immediately following the program’s Phase 2 evaluations and awards. Demand for trusted, U.S.-built FPV
technology is accelerating, and our Dual Situational Awareness design continues to be a clear differentiator in the field. Demand signals
are strengthening from drone customers both inside and outside the Drone Dominance Program, and we are now negotiating several large
production orders for 2027 — a clear signal of the significant growth we expect in this market.
“Our
Neural I/o™ program remains on track, and we expect to demonstrate the platform at CES in January 2027, with a clear path to production
anchored by a 1.6-terabit-per-second transceiver solution. Commercial momentum is building quickly with meaningful industry players interested
in both our current chipset and our emerging device roadmap. We are engaging U.S. defense and government agencies on domestically manufactured
Neural I/o™ solutions, and we are beginning to see early interest from quantum computing and semiconductor customers as well.”
Erich
Manz, Chief Financial Officer of Kopin, added: “The second quarter reflected continued operational discipline, including our fourth
consecutive quarter of exemplary on-time-in-full delivery and quality performance. Reflecting the order momentum across the business
for 2026 we continue to expect a solid second half, exceeding our prior guidance. As we look ahead, we are increasingly optimistic about
our trajectory into 2027, as the growth trends we are seeing in 2026 appear positioned to continue into next year, and we expect to make
meaningful progress towards sustainable GAAP profitability in the fourth quarter.”
Second
Quarter 2026 Financial Results
Total
revenues for the second quarter ended June 27, 2026 increased to $12.7 million, as compared to $8.5 million for the second quarter ended
June 28, 2025. The 51% year-over-year increase primarily reflects grant revenue recognized under the Company’s U.S. Government
MicroLED award, collaboration revenue from the Company’s development program with Fabric.AI and its strategic AR/thermal clip-on
partnership, and higher research and development revenue on the Company’s Phase 2 Off-the-Visor Heads-Up Display program with the
U.S. Army.
Product
revenues for the second quarter increased to $7.6 million, as compared to $7.5 million in the year-ago period. Higher defense revenues
from thermal weapon sight applications and liquid crystal displays were largely offset by lower industrial applications revenues.
Non-Product
revenues were $5.1 million in the second quarter of 2026, as compared to $1.0 million in the second quarter of 2025. The increase was
primarily driven by grant revenue recognized in connection with the Company’s government award for the development of ultra-bright,
full-color MicroLED displays optimized for ground soldier augmented reality applications; collaboration revenue from the Company’s
development program with Fabric.AI to develop and commercialize GPU-to-GPU connectivity technologies, together with its strategic partnership
to develop a next-generation clip-on with augmented reality and thermal integration capabilities; and higher research and development
revenue on the Company’s Phase 2 Off-the-Visor Heads-Up Display program with the U.S. Army.
Cost
of product revenues for the second quarter of 2026 was $6.6 million, or 86% of net product revenues, as compared with $7.1 million, or
94% of net product revenues, for the second quarter of 2025. The decrease as a percentage of net product revenues was primarily attributable
to product mix.
Research
and Development expenses for the second quarter of 2026 were $4.5 million, as compared to $1.9 million for the second quarter of 2025.
The increase was primarily driven by higher funded research and development costs in connection with the Company’s government award
for the development of ultra-bright, full-color MicroLED displays optimized for ground soldier augmented reality applications.
Selling,
General and Administration expenses were $5.1 million in the second quarter of 2026, as compared to $4.9 million in the second quarter
of 2025. The increase was primarily due to higher professional fees and accrued performance-based compensation.
Loss
from operations for the second quarter of 2026 was $3.5 million, as compared to $5.5 million for the second quarter of 2025. Net income
attributable to common stockholders was $0.9 million, or $0.00 per share, as compared to a net loss of $5.2 million, or $(0.03) per share,
in the second quarter of 2025. The year-over-year improvement primarily reflects higher total revenues, a $1.9 million increase in other
income, net — driven largely by approximately $2.3 million of gains on investments — and a $2.1 million income tax benefit
recorded in connection with the expiration of the statute of limitations on an uncertain tax position.
As
of June 27, 2026, the Company had cash and cash equivalents of $24.3 million, with total cash, restricted cash and marketable securities
of $50.3 million, inclusive of $26.0 million of restricted cash, of which $24.2 million collateralizes the supersedeas bond posted in
connection with the BlueRadios litigation appeal.
Earnings
Call and Webcast
Management
will host an investor conference call at 5:00 PM Eastern time on Monday, August 10, 2026 to discuss the Company’s second quarter
2026 unaudited financial results, provide a corporate update, and conclude with Q&A from telephone participants. To participate,
please use the following information:
Q2
2026 Earnings Conference Call
Date: Monday, August 10, 2026
Time: 5:00 PM Eastern time
U.S. Dial-in: 1-877-407-3982
International: 1-201-493-6780
Webcast: KOPN Q2 FY2026 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 August 17, 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 13762199. 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 for defense,
AI infrastructure, enterprise, professional and consumer products. Kopin’s portfolio includes microdisplays, display modules, eyepiece
and projection assemblies, and vehicle- and head-mounted display systems built on the Company’s liquid crystal, MicroLED and OLED
display technologies, along with a range of optics and low-power custom silicon. Building on its patented bi-directional NeuralDisplay™
architecture, Kopin is also developing Neural I/o™ optical interconnects that use programmable MicroLED pixels as ultra-high-speed,
low-power optical transceivers for AI data centers. For more information, please visit Kopin’s website at www.kopin.com.
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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
