Exhibit
99.1
Kopin
Corporation Reports Third Quarter 2026 Financial Results
Third
Quarter Revenue Grows 52% Year-over-Year to $18.2 Million; Loss from Operations Narrows Sequentially to $0.5 Million
Additional
$18.6 Million U.S. Army IBAS Award Brings Total IBAS Funding to $34 Million; Neural I/o™ on Track for First Public Demonstration
at CES 2027
WESTBOROUGH,
MA — November 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 third quarter ended September 26, 2026.
Third
Quarter Financial Summary:
| $ in millions | |
Q3 2026 | | |
Q2 2026 | | |
Q3 2025 | |
| Total Revenues | |
$ | 18.2 | | |
$ | 12.7 | | |
$ | 12.0 | |
| Cost of Product Revenues | |
$ | 6.4 | | |
$ | 6.6 | | |
$ | 8.4 | |
| Operating Expenses * | |
$ | 12.3 | | |
$ | 9.7 | | |
$ | 4.1 | |
| (Loss) Income from Operations * | |
$ | (0.5 | ) | |
$ | (3.5 | ) | |
$ | 4.5 | |
| Net (Loss) Income | |
$ | (3.4 | ) | |
$ | 0.8 | | |
$ | 4.1 | |
*
Third quarter 2025 operating expenses reflect an approximately $3.3 million reduction in accrued legal fees, and income from operations
includes a $5.1 million gain on legal contingency related to prior litigation matters.
Third
Quarter 2026 & Subsequent Operational Highlights
| ● | Secured
an additional $18.6 million sole-source award from the Office of the Secretary of War through
the U.S. Army Contracting Command under the Industrial Base Analysis and Sustainment (IBAS)
program — bringing cumulative IBAS funding for Kopin’s color MicroLED technology
to $34 million. |
| | | |
| ● | Advanced
Neural I/o™, the MicroLED-based optical interconnect co-developed with Fabric.AI, toward
its first public demonstration at CES in January 2027, to be followed by a demonstration
at SPIE Photonics West. The companies began initial transmission-link testing and published
“The Data Center in a SerDes-Free World,” a white paper modeling as much as 1.6
times greater useful data throughput from the same number of GPUs. |
| | | |
| ● | Awarded
an $800,000 grant through the Massachusetts Manufacturing Innovation Initiative (M2I2) to
install advanced capital equipment for domestic manufacturing of MicroLED displays and Neural
I/o™ optical interconnects at the Company’s Westborough facility, and named Manufacturer
of the Year by the Massachusetts Legislative Manufacturing Caucus. |
| | | |
| ● | Received
a $2.4 million order for OLED microdisplays from a new customer through Kopin Europe. The
customer is a leading international thermal weapon sight manufacturer whose program has since
entered low-rate initial production, with deliveries scheduled to begin in the fourth quarter
of 2026. |
| | | |
| ● | Introduced
an expanded first-person viewer (FPV) evaluation kit lineup at AUSA 2026 to accelerate adoption
of Kopin’s FPV optical modules among new and existing drone partners, and received
prototype headset orders from more than a dozen new Sentinel FPV™ customers for use
in the Drone Dominance Program and within other Department of War and U.S. government law
enforcement agencies. |
Management
Commentary
Michael
Murray, Chief Executive Officer of Kopin, said: “Third quarter revenue grew 52%, driven by funded development programs that are
setting the stage for future product revenue as they move from R&D into production. The additional $18.6 million IBAS award brings
total funding for our color MicroLED technology to $34 million, keeping us on track for MicroLED product manufacturing in mid-2027, and
Neural I/o™ remains on schedule for its first public demonstration at CES in January.”
Erich
Manz, Chief Financial Officer of Kopin, added: “Our third quarter results reflect the scaling of our funded development programs
and growing operating leverage. We continue to expect a strong second half and meaningful progress toward sustainable GAAP profitability.”
Third
Quarter 2026 Financial Results
Total
revenues for the third quarter ended September 26, 2026 increased 52% to $18.2 million, compared to $12.0 million for the third quarter
ended September 27, 2025, and rose 43% sequentially from $12.7 million in the second quarter of 2026. The year-over-year increase primarily
reflects research and development revenue from the Company’s joint development program with Fabric.AI and grant revenue recognized
under its U.S. Government color MicroLED award.
Cost
of product revenues for the third quarter of 2026 was $6.4 million, or 73% of net product revenues, compared to $8.4 million, or 79%
of net product revenues, for the third quarter of 2025, and 86% of net product revenues in the second quarter of 2026.
Operating
expenses, consisting of research and development (R&D) and selling, general and administrative (SG&A) expenses, were $12.3 million
for the third quarter of 2026. Sequentially, operating expenses increased 28% while total revenues grew 43%, reducing operating expenses
by 800 basis points to 68% of total revenues. Year-over-year, operating expenses increased from $4.1 million in the third quarter of
2025, a period that benefited from an approximately $3.3 million reduction in accrued legal fees related to the prior litigation matters
and a $3.9 million increase in funded R&D costs, which support the Company’s development and grant revenue.
Loss
from operations for the third quarter of 2026 was $0.5 million, compared to income from operations of $4.5 million for the third quarter
of 2025, which included a $5.1 million benefit from the reduction of a litigation accrual and the reduction in accrued legal fees noted
above. Sequentially, loss from operations saw a $3.0 million improvement.
Net
loss for the third quarter of 2026 was $3.4 million, or $(0.02) per share, compared to net income of $4.1 million, or $0.02 per share,
in the third quarter of 2025. The third quarter 2026 net loss includes approximately $2.7 million of net losses on investments, largely
reflecting non-cash changes in the fair value of the Company’s strategic equity investments.
As
of September 26, 2026, the Company had cash and cash equivalents of $25.8 million, up from $24.9 million as of June 27, 2026, and total
cash, restricted cash and marketable securities of $51.3 million, inclusive of $25.5 million of restricted cash, of which $24.2 million
collateralizes the supersedeas bond posted in connection with a litigation appeal. Cash provided by operating activities was approximately
$2.4 million in the third quarter, reducing net cash used in operating activities for the first nine months of 2026 to $2.7 million.
Capital expenditures were $1.4 million in the third quarter.
Earnings
Call and Webcast
Management
will host an investor conference call at 5:00 PM Eastern time on Tuesday, November 10, 2026 to discuss the Company’s third quarter
2026 unaudited financial results, provide a corporate update, and conclude with Q&A from telephone participants. To participate,
please use the following information:
Q3
2026 Earnings Conference Call
Date:
Tuesday, November 10, 2026
Time:
5:00 PM Eastern time
U.S.
Dial-in: 1-844-826-3033
International:
1-412-317-5185
Webcast:
KOPN Q3 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 November 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 10213159. 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.
Follow
us on LinkedIn, X and Facebook.
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.
Kopin
Corporation
Supplemental
Information
(Unaudited)
| | |
Three Months Ended | | |
Nine Months Ended | |
| | |
September 26, 2026 | | |
September 27, 2025 | | |
September 26, 2026 | | |
September 27, 2025 | |
| Display Revenues by Category | |
| | | |
| | | |
| | | |
| | |
| Defense | |
$ | 8,462,911 | | |
$ | 9,934,334 | | |
$ | 21,083,739 | | |
$ | 24,618,055 | |
| Industrial | |
| 52,155 | | |
| 749,400 | | |
| 119,873 | | |
| 2,172,000 | |
| Medical | |
| 279,664 | | |
| 1,000 | | |
| 605,846 | | |
| 574,000 | |
| Consumer and other product | |
| — | | |
| 9,000 | | |
| 50,160 | | |
| 58,000 | |
| R&D | |
| 5,684,592 | | |
| 1,199,937 | | |
| 9,143,252 | | |
| 3,344,511 | |
| License and royalties | |
| 605,900 | | |
| 68,754 | | |
| 726,826 | | |
| 189,234 | |
| Grant | |
| 3,104,650 | | |
| — | | |
| 9,144,891 | | |
| — | |
| Collaboration | |
| — | | |
| — | | |
| 601,089 | | |
| — | |
| Total | |
$ | 18,189,872 | | |
$ | 11,962,425 | | |
$ | 41,475,676 | | |
$ | 30,955,800 | |
Kopin
Corporation
Condensed
Consolidated Statements of Operations
(Unaudited)
| | |
Three Months Ended | | |
Nine Months Ended | |
| | |
September 26, 2026 | | |
September 27, 2025 | | |
September 26, 2026 | | |
September 27, 2025 | |
| Revenues: | |
| | |
| | |
| | |
| |
| Net product revenues | |
$ | 8,794,730 | | |
$ | 10,693,734 | | |
$ | 21,859,618 | | |
$ | 27,422,055 | |
| Research and development revenues | |
| 5,684,592 | | |
| 1,199,937 | | |
| 9,143,252 | | |
| 3,344,511 | |
| Grant income | |
| 3,104,650 | | |
| — | | |
| 9,144,891 | | |
| — | |
| Collaboration arrangement income | |
| — | | |
| — | | |
| 601,089 | | |
| — | |
| License and other revenues | |
| 605,900 | | |
| 68,754 | | |
| 726,826 | | |
| 189,234 | |
| Total revenues | |
| 18,189,872 | | |
| 11,962,425 | | |
| 41,475,676 | | |
| 30,955,800 | |
| Expenses: | |
| | | |
| | | |
| | | |
| | |
| Cost of product revenues | |
| 6,389,859 | | |
| 8,397,135 | | |
| 18,586,479 | | |
| 23,098,119 | |
| Research and development | |
| 5,642,254 | | |
| 2,502,988 | | |
| 15,077,901 | | |
| 6,564,345 | |
| Selling, general and administrative | |
| 6,666,963 | | |
| 1,629,175 | | |
| 17,811,031 | | |
| 11,229,549 | |
| Gain on legal contingency | |
| — | | |
| (5,100,000 | ) | |
| — | | |
| (5,100,000 | ) |
| Total expenses | |
| 18,699,076 | | |
| 7,429,298 | | |
| 51,475,411 | | |
| 35,792,013 | |
| (Loss) income from operations | |
| (509,204 | ) | |
| 4,533,127 | | |
| (9,999,735 | ) | |
| (4,836,213 | ) |
| Other (expense) income, net | |
| (2,911,199 | ) | |
| (400,523 | ) | |
| 1,625,186 | | |
| 792,651 | |
| (Loss) income before provision for income taxes | |
| (3,420,403 | ) | |
| 4,132,604 | | |
| (8,374,549 | ) | |
| (4,043,562 | ) |
| Tax benefit (provision) | |
| — | | |
| (52,000 | ) | |
| 2,032,980 | | |
| (156,000 | ) |
| Net (loss) income | |
$ | (3,420,403 | ) | |
$ | 4,080,604 | | |
$ | (6,341,569 | ) | |
$ | (4,199,562 | ) |
| Net (loss) income per share: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
$ | (0.02 | ) | |
$ | 0.02 | | |
$ | (0.03 | ) | |
$ | (0.03 | ) |
| Diluted | |
$ | (0.02 | ) | |
$ | 0.02 | | |
$ | (0.03 | ) | |
$ | (0.03 | ) |
| Weighted average number of common shares outstanding: | |
| | | |
| | | |
| | | |
| | |
| Basic | |
| 190,234,566 | | |
| 166,618,201 | | |
| 188,457,063 | | |
| 166,362,609 | |
| Diluted | |
| 190,234,566 | | |
| 169,448,696 | | |
| 188,457,063 | | |
| 166,362,609 | |
Kopin
Corporation
Condensed
Consolidated Balance Sheets
(Unaudited)
| | |
September 26, 2026 | | |
December 27, 2025 | |
| ASSETS | |
| | | |
| | |
| Current assets: | |
| | | |
| | |
| Cash, restricted cash and marketable securities | |
$ | 51,311,843 | | |
$ | 61,627,146 | |
| Accounts receivable, net | |
| 4,524,536 | | |
| 10,726,776 | |
| Contract assets | |
| 6,944,936 | | |
| 6,032,913 | |
| Grant income receivable | |
| 3,506,264 | | |
| — | |
| Inventory | |
| 4,951,503 | | |
| 5,505,775 | |
| Other receivable, at fair value | |
| 4,401,602 | | |
| 5,057,974 | |
| Prepaid expenses and other current assets | |
| 4,482,806 | | |
| 2,855,383 | |
| Total current assets | |
| 80,123,490 | | |
| 91,805,967 | |
| Plant and equipment, net | |
| 8,514,290 | | |
| 2,616,803 | |
| Operating lease right-of-use assets | |
| 1,003,882 | | |
| 1,488,231 | |
| Other assets | |
| 123,822 | | |
| 123,822 | |
| Equity method investment, at fair value | |
| 6,250,000 | | |
| 8,900,000 | |
| Equity investments | |
| 9,465,717 | | |
| 3,459,434 | |
| Total assets | |
$ | 105,481,201 | | |
$ | 108,394,257 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Accounts payable | |
$ | 7,409,551 | | |
$ | 5,315,998 | |
| Accrued payroll and expenses | |
| 3,070,473 | | |
| 2,231,848 | |
| Accrued warranty | |
| 36,000 | | |
| 1,165,000 | |
| Contract liabilities | |
| 6,039,010 | | |
| 1,168,009 | |
| Deferred grant income | |
| — | | |
| 2,688,627 | |
| Operating lease liabilities | |
| 654,024 | | |
| 648,469 | |
| Accrued post-retirement benefits | |
| 40,000 | | |
| 40,000 | |
| Other accrued liabilities | |
| 1,018,705 | | |
| 607,915 | |
| Deferred tax liabilities | |
| — | | |
| 422,458 | |
| Accrued litigation damages | |
| 19,700,000 | | |
| 19,700,000 | |
| Total current liabilities | |
| 37,967,763 | | |
| 33,988,324 | |
| Noncurrent contract liabilities | |
| 833 | | |
| 3,675 | |
| Operating lease liabilities, net of current portion | |
| 344,538 | | |
| 831,507 | |
| Accrued post-retirement benefits, net of current portion | |
| 170,504 | | |
| 190,696 | |
| Other long-term liabilities, net of current portion | |
| — | | |
| 1,706,411 | |
| Series A redeemable convertible preferred stock | |
| — | | |
| 7,556,481 | |
| Total stockholders’ equity | |
| 66,997,563 | | |
| 64,117,163 | |
| Total liabilities, convertible preferred stock and stockholders’ equity | |
$ | 105,481,201 | | |
$ | 108,394,257 | |
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
