Kopin Corporation (NASDAQ: KOPN) today announced financial results for the second quarter ended June 26, 2010.
“This shared technological fabric has enabled us to strategically design and cost-effectively build a number of high performance differentiable mobile media products for numerous applications targeting the smartphone, wireless connectivity, microdisplay and consumer eyewear markets.”
"The positive momentum we experienced during the first quarter continued as we reached the mid-point of 2010," said Kopin President and Chief Executive Officer Dr. John C.C. Fan. "Within our CyberDisplay product line, revenue from military applications increased sequentially in the second quarter as anticipated, while in our III-V product line global demand for smartphones powered a more than 50% year-over-year increase. These results highlight the strategic importance of Kopin's proprietary high-performance technology and industry leading quality."
Total sales increased 7.0% to $30.2 million in the second quarter of 2010 from $28.2 million for the comparable period in 2009. Display revenue was $14.3 million in the second quarter of 2010 compared with $17.9 million in the same period of 2009 while revenues for the III-V product family increased 53.6% to $15.9 million from $10.4 million in the same period of 2009.
Gross margins as a percentage of product sales were 25.0% for the second quarter of 2010, down slightly from 25.7% for the second quarter of 2009 due to lower military sales, which have a higher gross margin than other display products.
Net income for the second quarter of 2010 was $1.9 million, or $0.03 per diluted share, compared with net income of $3.7 million, or $0.05 per diluted share, for the comparable period in 2009. Financial results for the second quarter of 2010 included a $1.9 million investment gain from the sale of securities and a $0.7 million gain related to foreign currency fluctuations. Financial results for the three months ended June 27, 2009 included a $1.5 million gain from the sale of certain patents that the Company no longer uses and a $0.7 million loss related to foreign currency fluctuations.
As of June 26, 2010, Kopin had cash and marketable securities of $115.3 million, an increase of approximately $0.8 million from December 26, 2009. The increase in cash and marketable securities is primarily attributable to $1.1 million of cash generated by operating activities and $4.2 million of cash received from the sale of investments, partially offset by $4.3 million allocated for capital equipment purchases. The Company has no long-term debt.
Business Highlights
"At the heart of our III-V, Golden-i and CyberDisplay product portfolio is wafer engineering architecture based on our core nanotechnology," Dr. Fan said. "This shared technological fabric has enabled us to strategically design and cost-effectively build a number of high performance differentiable mobile media products for numerous applications targeting the smartphone, wireless connectivity, microdisplay and consumer eyewear markets."
CyberDisplay Products
"Within our CyberDisplay product line, revenue from advanced military applications improved sequentially in the second quarter as anticipated," Dr. Fan said. "The first half of 2010 was affected by the Department of Defense's (DoD) review of its primary military programs. Although this review affected first half revenues, the strategic importance of the Thermal Weapons Sight (TWS) program was reaffirmed, and we received follow-on production orders during the second quarter for the TWS program."
Golden-i
"Golden-i continues to successfully undergo field testing and is well-positioned to define the market for hands-free mobile content access," Dr. Fan said. "The potential end markets that can benefit from this innovative, hands-free, near-eye mobile connectivity application extend beyond industrial, medical and military to include construction, telecommunications and education. We continue to work with our partners in responding to overwhelmingly positive feedback from potential customers and developers who are working with the Golden-i Software Developer's Kits. We expect to launch this revolutionary mobile connectivity product in 2011."
III-V Products
"Industry projections indicate that the sale of smartphones and other 3G and 4G mobile devices should be strong for several years," Dr. Fan said. "This trend is significant to Kopin, as these next generation wireless devices contain up to three times greater heterojunction bipolar transistor (HBT) content than is contained in a traditional wireless handset, resulting in the strong III-V revenue growth we are experiencing. Our III-V technologies, including our industry leading HBT, are fundamental to the proliferation of smartphones and other 3G and 4G mobile devices as demonstrated by our strong III-V revenue growth. Reflecting our premier industry position, we are pleased to announce a two-year extension of our HBT purchase and supply agreement with Skyworks Solutions to supply the vast majority of Skyworks' HBT wafer requirements through July 2012. To meet Skyworks Solutions' and our other valued customers increasing demands, we are continually investing in additional people, advanced technologies and the industry's most advanced growth reactors."
Business Outlook
"Our business continues to gain momentum," Dr. Fan said. "Kopin's future looks strong with smartphone proliferation just commencing and expected to remain robust for a number of years, while TWS, our key display product category, was recently reaffirmed as a critical weapons platform by the DoD. With the positive feedback we are receiving on Golden-i, smartphone and TWS trends in our favor, the renewed agreement with Skyworks and our excellent financial position, we believe that we remain on pace to achieve our revenue guidance of $120 million to $130 million for full-year 2010 and expect 2011 will be an even better year for Kopin."
AI-powered MRI predicts outcomes in prostate cancer