Kopin Corporation Provides Restructuring Update

Rhea-AI Summary

Kopin Corporation (Nasdaq:KOPN) has announced a restructuring aimed at enhancing efficiency and focus. As part of this initiative, the company has partially spun out its OLED development unit and implemented a workforce reduction. CEO Michael Murray emphasized the restructuring is designed to improve operational capabilities and align with strategic goals. This realignment is anticipated to impact revenue, estimating fourth-quarter earnings between $11.0 million and $11.5 million, with further revenue declines expected in the first quarter of fiscal 2023 and for the remainder of the year. The company will prioritize quality and timely product delivery to ensure profitability.

Positive

• Restructuring aimed at improving efficiency and focus.
• Separation of business capture from program management to enhance pipeline opportunities.
• Increased focus on quality and on-time delivery for better customer satisfaction.

Negative

• Estimated fourth-quarter revenue impact of $11.0 to $11.5 million.
• Expected revenue decline in the first quarter of fiscal 2023 and for the remainder of the year.

WESTBOROUGH, Mass.--(BUSINESS WIRE)-- Kopin^® Corporation (Nasdaq:KOPN), a leading provider of application-specific optical solutions for defense, enterprise, industrial, and consumer products, today provided an update on its restructuring activities.

“On January 5, 2023, we announced a restructuring, which included the partial spinout of our OLED development unit and a reduction in force,” said Michael Murray, Kopin’s Chief Executive Officer. “This week, we informed our employees that to accelerate application understanding, drive efficiencies and increase focus, we have reorganized the Company. We are confident these changes, along with the steps taken in the prior quarter, will lead to improved functional expertise, focus, and leadership.”

“One of the key changes is separating business and program capture from program management. This will ensure focus on filling our pipeline with opportunities that align with our strategic plan, whilst we deliver to our customers ‘on time and in full,’ which is critical for profitability. To this end, we have been performing program reviews with our customers, and in some cases slowing deliveries to ensure we are delivering the highest quality products. In addition, in select situations, we are negotiating potential exits from non-profitable endeavors, if they cannot be rectified. These actions had some impact on revenue in the fourth quarter of fiscal 2022 and we expect revenue for the fourth quarter will be approximately $11.0 to 11.5 million. In addition, we anticipate these actions will lead to less revenue in the first quarter of fiscal 2023 and for the remainder of fiscal year 2023.

“Although these decisions are difficult and impactful, they are critical to align with our renewed focus on quality, on time delivery and operational excellence while driving towards our goals of long term, sustainable and profitable growth,” concluded Mr. Murray.

About Kopin

Kopin Corporation is a leading developer and provider of innovative application-specific optical solutions for integration into defense, enterprise, industrial, and consumer products. Kopin's technology portfolio includes ultra-small microdisplays (AMLCD, OLED, FLCOS and MicroLED displays) and optics. For more information, please visit Kopin's website at www.kopin.com.

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. 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 25, 2021, as updated from time to time our Securities and Exchange Commission filings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230119005241/en/

Kopin Investor Relations

Richard Sneider, (508) 870-5959

CFO

rsneider@kopin.com

or

Investor Relations

JoAnn Horne, (415) 445-3233

Market Street Partners

JHorne@marketstreetpartners.com

Source: Kopin Corporation

FAQ

What is the recent restructuring update from Kopin Corporation?

Kopin Corporation has announced a restructuring to improve efficiency, which includes a workforce reduction and a partial spinout of its OLED unit.

How will the restructuring affect Kopin's revenue?

The company expects fourth-quarter revenue between $11.0 million and $11.5 million, with further declines anticipated in the first quarter and remainder of fiscal 2023.

What changes are being made to Kopin's management structure?

Kopin is separating business capture from program management to enhance focus on strategic opportunities and operational excellence.

What are the goals of Kopin's recent changes?

The primary goals are to enhance quality, ensure timely delivery, and drive towards sustainable and profitable growth.

Who is leading the restructuring efforts at Kopin Corporation?

The restructuring efforts are being led by CEO Michael Murray, who is focused on enhancing operational capabilities.