- Designed Into 5th Tier-One Wearable
Customer - Introduces Solos Performance Eyewear for Cycling
- Celebrates 30 Years of Innovation
Kopin Corporation (KOPN),
a leading developer of innovative wearable computing technologies and
solutions, today provided an update on its business initiatives and
reported financial results for the third quarter of 2015,
ended September 26.
“In the third quarter we further expanded our leadership position as a
provider of components to the wearables market, adding another Tier-One
customer for our displays and optics technologies,” said John C.C. Fan,
President and CEO of Kopin. “With the addition of this customer we now
have five Tier-One customers offering wearable technology products based
on our technologies, with three focused on the enterprise segment and
two targeted at the consumer market. Our revenues from sales of products
for the wearable market through the nine months ended September 26, 2015
was $10.6 million, a twofold increase over the same period in 2014. Our
optical, display, audio and software technologies are being evaluated by
companies around the globe, as the interest in wearables gains momentum
across industries and applications.”
“This interest extends to our own Solos cycling eyewear, which was
introduced to a very enthusiastic cycling community at North America’s
largest cycling trade show, Interbike, in October. These
ultra-lightweight glasses feature our Vista optics and display
technologies to create a 5-inch virtual color screen, which provide the
rider with biometric and situational data to improve their performance.
Importantly, Solos successfully matches fashion with function, which
Kopin has long believed is key to the adoption of wearable technologies.
We look for the functionality of Solos to be significantly expanded with
the addition of our speech enhancement and battery technologies, which
we expect to debut at CES in January.”
“We also celebrated Kopin’s 30th anniversary in October which
was a chance to review our many accomplishments, from the creation of
the heterojunction bipolar transistor, which was key to the expansion of
wireless communication, to the development of our display technologies,
which enabled new categories of consumer products. We also demonstrated
our most recent development efforts, our speech enhancement technology,
which combined with our proprietary display, optical and electronics has
created Kopin’s leadership position in wearables today. We are on track
to meet the goals that we established in 2013 when we announced our
focus on the wearable technology market. Tangible evidence of this will
be at CES this January as we expect between 5 to 10 companies to show
products based on our technologies. With over $87 million in cash and
marketable securities I am even more excited about the next 30 years,
with the resources in place to maximize the opportunities ahead,”
concluded Dr. Fan.
Third Quarter Financial Results
Total revenues for the third quarter ended September 26, 2015, were $8.0
million, compared with $9.5 million for the third quarter of 2014.
Research and development expenses for the third quarter of 2015 were
$4.0 million compared with $4.8 million for the third quarter of 2014.
Selling, general and administrative expenses were $4.6 million in the
third quarter of 2015, compared with approximately $5.0 million in the
same period of 2014.
Other income and expense was $1.4 million of income for the third
quarter of 2015 as compared to an income of $0.5 million for the third
quarter of 2014.
Net loss for the third quarter of 2015 was $4.6 million, or $0.07 per
diluted share, compared with net loss of $5.0 million, or $0.08 per
share, for the same period of 2014.
Kopin’s cash, equivalents and marketable securities was $87.3
million at September 26, 2015 as compared to $90.9 million at December
27, 2014. Kopin has no long-term debt. Our cash position is expected to
be further enhanced in January of 2016 when we expect to receive payment
of the $15 million note receivable from the sale of our III-V product
line and investment in Kopin Taiwan Corporation.
All amounts above are estimates and readers should refer to our Form
10-Q for the quarter ended September 26, 2015, for final disposition.
Financial Results Conference Call
In conjunction with its third quarter 2015 financial results, Kopin will
host a teleconference call for investors and analysts at 8:30 a.m.
ET today. To participate, please dial (877) 709-8150 (U.S. and Canada)
or (201) 689-8354 (International). The call will also be available as a
live and archived audio webcast on the “Investors” section of
the Kopin website, www.kopin.com.
About Kopin
Kopin Corporation is a leading developer and provider of innovative
wearable technologies and solutions for integration into head-worn
computing and display systems to military, industrial and consumer
customers. Kopin’s technology portfolio includes ultra-small displays,
optics, speech enhancement technology, system and hands-free control
software, low-power ASICs, and ergonomically designed smart headset
reference systems. Kopin’s proprietary components and technology are
protected by more than 300 global patents and patents pending. For more
information, please visit Kopin’s website at www.kopin.com.
Kopin and Voice Extraction are trademarks of Kopin Corporation.
Forward-Looking Statements
Statements in this press release may be considered “forward-looking”
statements under the “Safe Harbor” provisions of the Private Securities
Litigation Reform Act of 1995. These include, without limitation,
statements relating to our expectation that the functionality of Solos
will be expanded with the addition of our speech enhancement and battery
technologies which we expect to debut at CES in January; our expectation
that between 5 and 10 companies to show products based on our
technologies at CES in January; our expectation that our cash position
will be further enhanced when we will receive payment of the $15 million
note receivable from the sale of our III-V product line and investment
in Kopin Taiwan Corporation, in January 2016. These statements involve a
number of risks and uncertainties that could cause actual results to
differ materially from those expressed in the forward-looking
statements. These risks and uncertainties include, but are not limited
to, the following: technical, environmental, scheduling and other issues
may prevent us or our customers from presenting at the CES in January;
we may be unable to debut our speech enhancement and battery
technologies at CES in January; we may be unable to incorporate our
speech enhancements and battery technologies in Solos by CES in January;
we may not receive the payment of the $15 million note receivable from
the sale of our III-V product line and investment in Kopin Taiwan
Corporation; the final amounts in the Company’s Form 10-Q for the period
ended September 26, 2015 may differ from the amounts included in the
release above;it may take longer than the Company estimates to
develop products; the Company’s products may not be accepted
by the market place; there may be issues that prevent the adoption or
further development of the Company’s wearable computing technologies; manufacturing,
marketing or other issues may prevent either the adoption or acceptance
of products; the Company might be adversely affected by competitive
products and pricing; new product initiatives and other research and
development efforts may be unsuccessful; the Company could experience
the loss of significant customers; costs to produce the Company’s
products might increase significantly, or yields could decline;
the Company’s customers might be unable to ramp production volumes of
their products, or the Company’s product forecasts could turn out to be
wrong; manufacturing delays, technical issues, economic conditions or
external factors may prevent the Company from achieving its goals; and
other risk factors and cautionary statements listed in the Company’s
periodic reports and registration statements filed with the Securities
and Exchange Commission, including the Annual Report on Form 10-K for
the 12 months ended December 27, 2014, and the Company’s subsequent
filings with the Securities and Exchange Commission. You should not
place undue reliance on any forward-looking statements, which are based
only on information currently available to the Company and only as of
the date on which they are made. The Company undertakes no obligation to
update any of these forward-looking statements to reflect events or
circumstances occurring after the date of this release.
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Kopin Corporation |
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Supplemental Information |
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|
(Unaudited) |
||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||
| September 26, 2015 | September 27, 2014 | September 26, 2015 | September 27, 2014 | |||||||||||
| Display Revenues by Category (in millions) | ||||||||||||||
| Military Applications | $ | 1.9 | $ | 5.7 | $ | 8.9 | $ | 8.3 | ||||||
| Wearable Applications | 3.5 | 1.7 | 10.6 | 4.8 | ||||||||||
| Industrial Applications | 1.2 | 1.0 | 2.9 | 2.8 | ||||||||||
| Consumer Electronics Applications | 0.5 | 0.6 | 1.3 | 2.3 | ||||||||||
| Research and Development | 0.9 | 0.5 | 3.7 | 3.0 | ||||||||||
| Total | $ | 8.0 | $ | 9.5 | $ | 27.4 | $ | 21.2 | ||||||
| Stock-Based Compensation Expense | ||||||||||||||
| Continuing Operations | ||||||||||||||
| Cost of component revenues | $ | 159,000 | $ | 118,000 | $ | 620,000 | $ | 590,000 | ||||||
| Research and development | 166,000 | 136,000 | 670,000 | 773,000 | ||||||||||
| Selling, general and administrative | 439,000 | 939,000 | 1,496,000 | 2,192,000 | ||||||||||
| $ | 764,000 | $ | 1,193,000 | $ | 2,786,000 | $ | 3,555,000 | |||||||
| Other Financial Information | ||||||||||||||
| Depreciation and amortization | $ | 670,000 | $ | 808,000 | $ | 1,860,000 | $ | 2,588,000 | ||||||
| Capital expenditures | $ | 114,000 | $ | 566,000 | $ | 765,000 | $ | 1,544,000 | ||||||
| Treasury stock purchases | $ | – | $ | – | $ | – | $ | 299,000 | ||||||
| Kopin Corporation | ||||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| September 26, 2015 | September 27, 2014 | September 26, 2015 | September 27, 2014 | |||||||||||||||
| Revenues: | ||||||||||||||||||
| Component revenues | $ | 7,119,145 | $ | 9,066,028 | $ | 23,734,238 | $ | 18,200,451 | ||||||||||
| Research and development revenues | 881,781 | 465,995 | 3,708,286 | 2,969,629 | ||||||||||||||
| 8,000,926 | 9,532,023 | 27,442,524 | 21,170,080 | |||||||||||||||
| Expenses: | ||||||||||||||||||
| Cost of component revenues | 5,357,217 | 5,204,125 | 17,000,729 | 13,583,313 | ||||||||||||||
| Research and development | 4,008,391 | 4,832,469 | 13,752,593 | 15,055,723 | ||||||||||||||
| Selling, general and administrative | 4,558,612 | 5,015,367 | 14,053,053 | 14,933,424 | ||||||||||||||
| 13,924,220 | 15,051,961 | 44,806,375 | 43,572,460 | |||||||||||||||
| Loss from operations | (5,923,294 | ) | (5,519,938 | ) | (17,363,851 | ) | (22,402,380 | ) | ||||||||||
| Other income (expense), net | 1,350,934 | 495,046 | 9,757,131 | (624,889 | ) | |||||||||||||
|
Loss before (provision) benefit for income taxes, equity loss in |
(4,572,360 | ) | (5,024,892 | ) | (7,606,720 | ) | (23,027,269 | ) | ||||||||||
| (Provision) benefit for income taxes | (12,500 | ) | (44,000 | ) | (37,500 | ) | 62,000 | |||||||||||
|
Loss before equity loss in unconsolidated affiliate and net |
(4,584,860 | ) | (5,068,892 | ) | (7,644,220 | ) | (22,965,269 | ) | ||||||||||
| Equity loss in unconsolidated affiliate | – | (35,016 | ) | (47,443 | ) | (259,874 | ) | |||||||||||
| Net loss before (income) loss attributable to noncontrolling interest | (4,584,860 | ) | (5,103,908 | ) | (7,691,663 | ) | (23,225,143 | ) | ||||||||||
| Net (income) loss attributable to noncontrolling interest | (13,690 | ) | 134,468 | 36,094 | 315,344 | |||||||||||||
| Net loss | $ | (4,598,550 | ) | $ | (4,969,440 | ) | $ | (7,655,569 | ) | $ | (22,909,799 | ) | ||||||
| Net loss per share: | ||||||||||||||||||
| Basic | $ | (0.07 | ) | $ | (0.08 | ) | $ | (0.12 | ) | $ | (0.37 | ) | ||||||
| Diluted | $ | (0.07 | ) | $ | (0.08 | ) | $ | (0.12 | ) | $ | (0.37 | ) | ||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||||
| Basic | 63,068,321 | 62,646,757 | 63,072,668 | 62,606,822 | ||||||||||||||
| Diluted | 63,068,321 | 62,646,757 | 63,072,668 | 62,606,822 | ||||||||||||||
| Kopin Corporation | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| (Unaudited) | ||||||||||
| September 26, 2015 | December 27, 2014 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and marketable securities | $ | 87,339,457 | $ | 90,858,936 | ||||||
| Accounts receivable, net | 2,561,903 | 3,802,324 | ||||||||
| Inventory | 2,577,750 | 4,081,886 | ||||||||
| Prepaid and other current assets | 943,275 | 1,181,474 | ||||||||
| Note receivable | 14,983,339 | – | ||||||||
| Total current assets | 108,405,724 | 99,924,620 | ||||||||
| Land, equipment and improvements, net | 3,641,729 | 4,589,421 | ||||||||
| Goodwill and intangible assets | 1,115,377 | 1,593,210 | ||||||||
| Other assets | 1,713,671 | 1,900,828 | ||||||||
| Note receivable | – | 14,933,335 | ||||||||
| Total assets | $ | 114,876,501 | $ | 122,941,414 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 3,708,911 | $ | 5,503,734 | ||||||
| Accrued expenses | 5,617,936 | 5,870,719 | ||||||||
| Deferred income taxes | 1,282,000 | 1,282,000 | ||||||||
| Billings in excess of revenue earned | 1,485,146 | 586,471 | ||||||||
| Total current liabilities | 12,093,993 | 13,242,924 | ||||||||
| Lease commitments | 304,183 | 311,187 | ||||||||
| Total Kopin Corporation stockholders’ equity | 103,086,499 | 109,846,959 | ||||||||
| Noncontrolling interest | (608,174 | ) | (459,656 | ) | ||||||
| Total stockholders’ equity | 102,478,325 | 109,387,303 | ||||||||
| Total liabilities and stockholders’ equity | $ | 114,876,501 | $ | 122,941,414 | ||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20151103005516/en/
Kopin Corporation
Richard Sneider, 508-870-5959
Treasurer
and Chief Financial Officer
Richard_Sneider@kopin.com
or
Market
Street Partners
Joann Horne, 415-445-3233
JHorne@marketstreetpartners.com