Kopin announces restructuring with partial spinout of OLED Development Unit and Reduction in Force
Kopin Corporation (NASDAQ: KOPN) has entered a Technology License Agreement with Lightning Silicon, a new company focused on OLED microdisplay technologies for consumer AR and VR applications. Kopin retains a 20% ownership and will receive royalties from Lightning Silicon's products. To enhance profitability, Kopin has initiated a Reduction in Force, reducing its annual payroll expenses by approximately 25%. This strategic move allows Kopin to focus on core markets while leveraging its OLED intellectual property without facing direct operational costs.
- Kopin retains 20% ownership in Lightning Silicon and will receive royalties.
- Kopin's annual payroll expense is expected to decrease by approximately 25%.
- Reduction in Force indicates potential challenges in workforce stability and morale.
- Dependence on Lightning Silicon for OLED technology could affect Kopin's operational control.
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Kopin retains ownership of OLED Intellectual Property with exclusive bilateral license to newly formed
Lightning Silicon, Inc. which will focus on advancing OLED microdisplay technologies and manufacturing strategies for the consumer AR and VR applications -
Kopin will retain
20% ownership inLightning Silicon Technology, Inc. and receive royalties - Lightning Silicon operates independently of Kopin
- Kopin further announces Reduction in Force due to increased efficiencies and profitability plan
“This Agreement is part of our plan to restore profitability to Kopin by focusing our resources on new and existing defense, industrial and consumer applications which are in line with our strategic plan,” said Mr.
Under the terms of the Agreement Lightning Silicon will receive a license to certain Kopin intellectual property to develop, manufacture and sell OLED technologies for use in the consumer market. Kopin will receive an equity interest in Lightning Silicon and royalties from the sale of products related to the licenses. Kopin retains the ability and rights to develop, manufacture and sell OLED displays and complete optical solutions that include microdisplays to its core base in the defense and enterprise markets, as well as value added Consumer applications. We believe Kopin is the only provider that can offer fully integrated optical solutions with OLED, LCD, LCOS and micro-LED microdisplay technology, enabling it to provide the right technology for the application.
“Consumer AR and VR products are projected to be a multi-billion-dollar markets,” said Dr.
About Kopin
About
is an OLED technology developer and OLED microdisplay manufacturer having a factory in
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. These forward-looking statements may include statements with respect to our expectation that the consumer AR and VR products are projected to be a multi-billion-dollar markets; that Lakeside’s new 12” facility, together with Lakeside’s existing 8” wafer fab, is expected to provide large-volume, low-cost manufacturing capability to support AR and VR market demands; our belief that Kopin is the only provider that can offer fully integrated optical solutions with OLED, LCD, LCOS and micro-LED microdisplay technology, enabling it to provide the right technology for the application; and our expectation that our payroll expenses will be reduced by approximately
View source version on businesswire.com: https://www.businesswire.com/news/home/20230105005451/en/
Treasurer and Chief Financial Officer
Richard_Sneider@kopin.com
Source:
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