NASDAQ: KOPN $ 1.42 -0.01( -0.7%) Volume: 108,457 December 14, 2018 20 min delay

Kopin Updates Guidance for the Third Quarter of 2006


TAUNTON, Mass.--(BUSINESS WIRE)--Oct. 5, 2006--Kopin Corporation (NASDAQ: KOPN) today announced that it is revising its third-quarter revenue guidance. Kopin expects that revenue for the three months ended September 30, 2006 will be approximately $14 million to $15 million, compared with the Company's previous guidance of $19 million to $20.5 million. The revision is primarily a result of a recent design improvement made to the Thermal Weapon Sight (TWS) display module incorporating Kopin's microdisplay technology. The improvement, made to a cable assembly, required the TWS system to go through additional testing, which has delayed product shipments.

"The third quarter was impacted by the requirement for further testing of the display module and slightly lower III-V revenues than we had anticipated," said John C.C. Fan, Kopin's president and chief executive officer. "Although the design modification is not related to our microdisplay, the requirement for further testing has affected the timing of the revenue we receive from this long-term U.S. military program. As a result, we anticipate that TWS revenue we expected to report in the third quarter will shift into the fourth quarter of 2006. The shift of this revenue should partially offset some of the normal sequential revenue decrease we experience in the fourth quarter. The latest testing results for the improved module have been very positive, so we expect full approval by mid-October."

Kopin plans to provide fourth-quarter 2006 revenue guidance on its third-quarter financial results conference call in November.

About Kopin

Kopin Corporation produces lightweight, power-efficient, ultra-small liquid crystal displays and heterojunction bipolar transistors (HBTs) that are revolutionizing the way people around the world see, hear and communicate. Kopin already has shipped more than 20 million displays for a range of consumer and military applications including digital cameras, personal video eyewear, camcorders, thermal weapon sights and night vision systems. The Company's unique HBTs, which help to enhance battery life, talk time and signal clarity, have been integrated into billions of wireless handsets as well as into WiFi, VoIP and high-speed Internet data transmission systems. Kopin's proprietary display and HBT technologies are protected by more than 200 global patents and patents pending. For more information, please visit Kopin's website at

Safe Harbor Statement

Statements in this news release may be considered "forward-looking" statements under the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These include statements relating to: the expectation that revenue for the third quarter of 2006 will be approximately $14 million to $15 million; the expectation that TWS revenue expected in the third quarter of 2006 will be recognized in the fourth quarter of 2006; the expectation that the shift of TWS revenue should partially offset some of the normal sequential revenue decrease the Company experiences in the fourth quarter; the expectation that Kopin expects full approval for the new module by mid-October; and the Company's plan to provide fourth-quarter 2006 revenue guidance on its third-quarter financial results conference call in November . These statements involve a number of risks and uncertainties that could materially affect future results. These risk factors include, but are not limited to: technical, manufacturing, marketing or other issues that may prevent either the adoption or rapid acceptance of products; competitive products and pricing; the risk that new product initiatives and other research and development efforts may not be successful; the loss of significant customers; the potential that costs to produce the Company's microdisplay and HBT products will increase significantly, or that yields will decline; the potential that military programs involving Kopin's products will be delayed or cancelled; the potential that the Company's military and commercial customers might be unable to ramp production volumes of their products; market acceptance of video eyewear products; manufacturing delays, technical issues, economic conditions or external factors that may prevent the Company from achieving its financial guidance; and other risk factors and cautionary statements listed in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. These include, but are not limited to, the Company's Form 10-Q for the six-month period ended July 1, 2006 and its Annual Report on Form 10-K for the year ended December 31, 2005.

CyberDisplay and The NanoSemiconductor Company are trademarks of Kopin Corporation.

Kopin - The NanoSemiconductor Company(TM)

CONTACT: Kopin Corporation Richard Sneider, 508-824-6696 Chief Financial Officer or Sharon Merrill Associates, Inc. Scott Solomon, 617-542-5300 Vice President SOURCE: Kopin Corporation