Kopin Awarded First Order for High Resolution Microdisplay Assembly for Use in Sophisticated Electronics Manufacturing Systems

Rhea-AI Summary

Kopin (NASDAQ: KOPN) has received its first production purchase order for the high-resolution 4 Megapixel 2K-R11 FLCoS Spatial Light Modulator (SLM) system. This system will be used in 3D Automated Optical Inspection (AOI) machines, offering four times the resolution of typical 1 Megapixel systems. The 2K-R11 is designed for advanced 3D AOI applications in sophisticated electronics manufacturing, including electric vehicle components.

The global market for 3D AOI systems is projected to grow from $700 million to $3 billion by 2030. Kopin's 2K-R11 sub-assembly includes a reflective ferroelectric liquid crystal on silicon (FLCoS) microdisplay, drive board, and software, providing a 'drop-in' solution for 3D AOI system manufacturers. This enhanced resolution enables precise measurement of smaller components, potentially expanding 3D AOI applications in semiconductor and PCB manufacturing.

Positive

• Received first production purchase order for high-resolution 2K-R11 FLCoS SLM system
• 2K-R11 offers 4 times the resolution (4 Megapixel) of typical 1 Megapixel 3D AOI systems
• Potential expansion into new markets with smaller feature size components and connectors
• 3D AOI market expected to grow from $700 million to $3 billion by 2030

Negative

• None.

Market Research Analyst

This news signals a positive development for Kopin , marking their entry into a high-growth market segment. The 3D AOI market's projected growth from $700 million to $3 billion by 2030 represents a Compound Annual Growth Rate (CAGR) of approximately 20%, indicating substantial market expansion. Kopin's 2K-R11 FLCoS system, with its superior resolution, positions the company to capture a significant share of this growing market.

The product's ability to inspect smaller components aligns with the trend towards miniaturization in electronics, particularly in electric vehicle components. This could open up new revenue streams for Kopin in the burgeoning EV market. However, investors should note that while this first order is promising, the company's success will depend on sustained demand and its ability to scale production to meet market needs.

Tech Expert

Kopin's 2K-R11 FLCoS system represents a significant technological leap in the 3D AOI field. The quadrupled resolution (4 Megapixels vs. the standard 1 Megapixel) is a game-changer for inspecting advanced electronics. This enhanced capability is important for detecting defects in increasingly complex and miniaturized components, such as those found in Land Grid Arrays (LGA) and Wafer Level Packaging (WLP).

The "drop-in" nature of the solution makes it attractive for 3D AOI system manufacturers, potentially accelerating adoption. However, the true test will be the system's performance in real-world applications, particularly in terms of speed and accuracy. If successful, this technology could become the new industry standard, giving Kopin a competitive edge in the rapidly evolving electronics manufacturing landscape.

Financial Analyst

While the financial terms of this initial order weren't disclosed, it's a positive indicator for Kopin's future revenue growth. The company's expansion into high-resolution 3D AOI systems diversifies its product portfolio and taps into a rapidly growing market. This move aligns with the increasing demand for quality control in complex electronics manufacturing, particularly in emerging sectors like electric vehicles.

Investors should monitor Kopin's ability to convert this initial order into a steady revenue stream. Key metrics to watch in upcoming financial reports include revenue growth in the Industrial segment, gross margins on these new high-tech products and any guidance on the expected contribution of 3D AOI systems to overall sales. While promising, it's important to note that the impact on Kopin's financials may take time to materialize as the market develops.

2K-R11 FLCoS Assembly Provides Four Times the Resolution of a Typical Microdisplay System for 3-Dimensional Automated Optical Inspection (3D AOI) Machines

WESTBOROUGH, Mass.--(BUSINESS WIRE)-- Kopin Corporation (NASDAQ: KOPN), a leading provider of application-specific optical systems and high performance microdisplays for defense, enterprise, industrial, consumer and medical products, today announced that it received the first production purchase order for its high resolution, 4 Megapixel 2K-R11 FLCoS Spatial Light Modulator (“SLM”) system for use within 3D AOI (“3-Dimensional Automated Optical Inspection”) machines.

For over 10 years Kopin has produced application specific optical solutions for the 3D AOI market, which remains an important part of Kopin’s Industrial business. 3D AOI solutions are essential tools in contemporary manufacturing facilities focused on semiconductors, printed circuit boards (“PCB”) and other high-tech manufacturing. While 2D AOI systems can only capture and analyze the top surface of an object, 3D AOI systems measure and evaluate the height and depth of components and quickly inspect and measure deformations, defects or misplaced components, which equates to maintaining essential quality at high speeds. Most existing 3D AOI structured light projection systems typically offer a resolution of 1K x 1K (1 Megapixel); but the 2K-R11 elevates this standard by providing four times the resolution, which means expanding the applications for 3D AOI into the measurement of new, smaller feature size components and connectors.

Speaking about the opportunity, Greg Truman, Vice President of Business Development in Europe and Asia, said, “3D AOI systems are expanding in use in sophisticated electronics manufacturing environments, such as for electric vehicle components, because they offer fast and precise identification of flaws that might be overlooked by human inspectors. This provides better quality and saves time and money. We believe that as the world continues to evolve to a digital environment the need for high quality manufacturing of complex circuit boards will continue to increase. It is estimated that the market for 3D AOI systems will increase from $700 million a few years ago to $3 billion by 2030.”

Kopin's 2K-R11 (2048 x 2048 pixels) is a sub-assembly composed of a reflective ferroelectric liquid crystal on silicon (FLCoS) microdisplay (spatial light modulator), drive board and software. Manufacturers of 3D AOI inspection systems can build this “drop-in” solution into the design of their systems. The 2K-R11 is engineered to deliver exceptional high-speed, high-resolution and high-fidelity performance. We believe this enhanced resolution paves the way for advanced 3D AOI applications, including the precise measurement of Land Grid Arrays (LGA), Wafer Level Packaging (WLP) and other integrated circuits.

About Kopin Corporation

Kopin Corporation is a leading developer and provider of innovative display, and optical technologies sold as critical components and subassemblies for defense, enterprise, professional and consumer products. Kopin’s portfolio includes microdisplays, display modules, eyepiece assemblies, image projection modules, and vehicle mounted and head-mounted display systems that incorporate ultra-small high-resolution Active Matrix Liquid Crystal displays (AMLCD), Ferroelectric Liquid Crystal on Silicon (FLCoS) displays, MicroLED displays (µLED) and Organic Light Emitting Diode (OLED) displays, a variety of optics, and low-power ASICs. For more information, please visit Kopin’s website at www.kopin.com. Kopin is a trademark of Kopin Corporation.

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. These forward-looking statements may include statements with respect to our belief that as the world continues to evolve to a digital environment the need for high quality manufacturing of complex circuit boards will continue to increase; and our belief that the 2K-R11’s enhanced resolution paves the way for advanced 3D AOI applications, including the precise measurement of Land Grid Arrays (LGA), Wafer Level Packaging (WLP) and other integrated circuits. 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 for the fiscal year ended December 30, 2023, or as updated from time to time our Securities and Exchange Commission filings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240819974124/en/

Investor Relations:

Richard Sneider

Treasurer and Chief Financial Officer

rsneider@kopin.com

(508) 870-5959

or

MZ Group Contact:

Brian M. Prenoveau, CFA

KOPN@mzgroup.us

(561) 489-5315

Source: Kopin Corporation

FAQ

What is the resolution of Kopin's new 2K-R11 FLCoS SLM system for 3D AOI?

Kopin's 2K-R11 FLCoS SLM system offers a resolution of 2048 x 2048 pixels (4 Megapixels), which is four times the resolution of typical 1 Megapixel (1K x 1K) 3D AOI systems.

What is the projected market size for 3D AOI systems by 2030, according to Kopin (KOPN)?

According to Kopin's press release, the market for 3D AOI systems is estimated to grow from $700 million a few years ago to $3 billion by 2030.

What are the potential applications for Kopin's (KOPN) 2K-R11 system in 3D AOI?

Kopin's 2K-R11 system is designed for advanced 3D AOI applications, including precise measurement of Land Grid Arrays (LGA), Wafer Level Packaging (WLP), and other integrated circuits in sophisticated electronics manufacturing, such as electric vehicle components.

What components are included in Kopin's (KOPN) 2K-R11 sub-assembly for 3D AOI systems?

Kopin's 2K-R11 sub-assembly includes a reflective ferroelectric liquid crystal on silicon (FLCoS) microdisplay (spatial light modulator), drive board, and software, providing a 'drop-in' solution for 3D AOI system manufacturers.