Kopin Corporation Reports Financial Results for the Fourth Quarter and Full Year 2022
Kopin Corporation (KOPN) reported a 3.8% increase in full-year revenues to $47.4 million for 2022, compared to $45.7 million in 2021. The fourth-quarter revenues declined by 8% to $12.2 million. Defense product revenues rose by 19.6%, while industrial product revenues fell by approximately 46%. The company recorded a net loss of $19.3 million, or $0.21 per share, worsening from a loss of $13.4 million in 2021. R&D expenses increased by 15% year-over-year. A capital raise post-year-end generated approximately $21.5 million to strengthen the balance sheet for restructuring efforts.
- Full-year revenues increased by 3.8% to $47.4 million.
- Defense product revenues grew by 19.6% year over year.
- Post-year-end capital raise generated approximately $21.5 million.
- Fourth-quarter revenues decreased by 8% to $12.2 million.
- Net loss of $19.3 million, an increase from $13.4 million in 2021.
- Industrial product revenues fell by approximately 46% year over year.
- Cost of product revenues increased to 100% of net revenues due to quality issues.
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Full year 2022 revenues increased
3.8% compared to 2021 -
January 2023 capital raise solidified balance sheet for announced restructuring efforts
“2022 was an instrumental year in Kopin’s evolution to becoming a leading provider of specialized solutions combining advanced microdisplay and optics technologies,” said
Murray continued, “As we move into 2023, I see numerous long-term opportunities to drive revenue growth in our defense and industrial markets but we must establish operational excellence for this to be profitable growth. In addition to our operational improvements, we are focusing our business development efforts on offering our higher value added integrated optical display assemblies, which are critical to increasing the applications for AR/VR/MR, among other opportunities.”
“Technology has always been at the heart of Kopin’s success and we will continue executing on our vision to provide our global customers with brilliance in innovation, design and performance paired with a renewed focus on operational excellence,” concluded Murray.
Fourth Quarter Financial Results
Total revenues for the fourth quarter ended
Cost of Product Revenues for the fourth quarter of 2022 was
Research and Development (R&D) expenses for the fourth quarter of 2022 were
Selling, General and Administration (SG&A) expenses were
Net Loss Attributable to
Full Year Financial Results
Total revenues for the year ended
Cost of Product Revenues for 2022 were
R&D expenses for 2022 were
Selling, General and Administration (SG&A) expenses were
Other income for fiscal years 2022 and 2021 were income of
Net Loss Attributable to
During 2022, the Company sold 2,330,436 shares of common stock through our existing At-The-Market program (ATM), which was entered into in
Subsequent to year end the Company completed a capital raise wherein 17 million shares of Kopin common stock were sold and prefunded warrants for another 6 million shares were issued. The net proceeds were approximately
All amounts above are estimates and readers should refer to the Form 10-K for the year ended
About Kopin
Kopin is a trademark of
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 include statements with respect to our opportunities to drive long term revenue growth; our ability to continue executing on our vision; and our expectation that internal research and development expenses will decline in 2023. 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. 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 our Annual Report on Form 10-K, or as updated from time to time in our
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Supplemental Information |
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(Unaudited) |
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Three Months Ended |
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Twelve Months Ended |
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Display Revenues by Category (in millions) | ||||||||||||||||
Defense | $ |
7.1 |
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$ |
5.9 |
$ |
24.8 |
$ |
18.2 |
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Industrial/Enterprise |
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1.2 |
|
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2.3 |
|
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6.1 |
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9.7 |
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Consumer |
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0.3 |
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0.6 |
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1.5 |
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1.9 |
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Other |
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- |
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- |
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- |
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0.1 |
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R&D |
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3.3 |
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4.3 |
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14.4 |
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14.7 |
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License and Royalties |
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0.3 |
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0.1 |
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0.6 |
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1.1 |
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Total | $ |
12.2 |
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$ |
13.2 |
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$ |
47.4 |
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$ |
45.7 |
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Stock-Based Compensation Expense | ||||||||||||||||
Cost of product revenues | $ |
(25,000 |
) |
$ |
5,000 |
|
$ |
95,000 |
|
$ |
211,000 |
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Research and development |
|
68,000 |
|
|
181,000 |
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|
436,000 |
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|
576,000 |
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Selling, general and administrative |
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(146,000 |
) |
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465,000 |
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|
737,000 |
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|
3,630,000 |
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$ |
(103,000 |
) |
$ |
651,000 |
|
$ |
1,268,000 |
|
$ |
4,417,000 |
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Other Financial Information | ||||||||||||||||
Depreciation and amortization | $ |
57,000 |
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$ |
103,000 |
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$ |
722,000 |
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$ |
669,000 |
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Condensed Consolidated Statements of Operations |
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(Unaudited) |
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Three Months Ended |
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Twelve Months Ended |
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Revenues: | ||||||||||||||||
Net product revenues | $ |
8,654,525 |
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$ |
8,792,756 |
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$ |
32,420,397 |
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$ |
29,882,271 |
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Research and development revenues |
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3,268,207 |
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4,304,563 |
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14,357,222 |
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14,668,471 |
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Other revenues |
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261,625 |
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100,000 |
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623,571 |
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1,115,375 |
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12,184,357 |
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13,197,319 |
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47,401,190 |
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45,666,117 |
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Expenses: | ||||||||||||||||
Cost of product revenues |
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8,882,465 |
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7,465,684 |
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32,558,748 |
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25,052,383 |
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Research and development |
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4,672,165 |
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5,232,968 |
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18,667,558 |
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16,288,251 |
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Selling, general and administration |
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4,852,964 |
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4,117,838 |
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17,965,097 |
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18,100,519 |
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18,407,594 |
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16,816,490 |
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69,191,403 |
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59,441,153 |
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Loss from operations |
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(6,223,237 |
) |
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(3,619,171 |
) |
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(21,790,213 |
) |
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(13,775,036 |
) |
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Other income, net |
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101,999 |
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346,399 |
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2,607,948 |
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435,665 |
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Loss before provision for income taxes and net loss (income) attributable to noncontrolling interest |
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(6,121,238 |
) |
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(3,272,772 |
) |
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(19,182,265 |
) |
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(13,339,371 |
) |
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Tax provision |
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(36,000 |
) |
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(32,000 |
) |
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(144,000 |
) |
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(129,000 |
) |
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Net loss |
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(6,157,238 |
) |
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(3,304,772 |
) |
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(19,326,265 |
) |
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(13,468,371 |
) |
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Net loss (income) attributable to noncontrolling interest |
|
68 |
|
|
(3,897 |
) |
|
348 |
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|
35,498 |
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Net loss attributable to |
$ |
(6,157,170 |
) |
$ |
(3,308,669 |
) |
$ |
(19,325,917 |
) |
$ |
(13,432,873 |
) |
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Net loss per share: | ||||||||||||||||
Basic | $ |
(0.07 |
) |
$ |
(0.04 |
) |
$ |
(0.21 |
) |
$ |
(0.15 |
) |
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Diluted | $ |
(0.07 |
) |
$ |
(0.04 |
) |
$ |
(0.21 |
) |
$ |
(0.15 |
) |
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Weighted average number of common shares outstanding: | ||||||||||||||||
Basic |
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91,739,459 |
|
|
88,615,156 |
|
|
91,429,106 |
|
|
88,831,532 |
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Diluted |
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91,739,459 |
|
|
88,615,156 |
|
|
91,429,106 |
|
|
88,831,532 |
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Condensed Consolidated Balance Sheets |
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(Unaudited) |
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ASSETS | ||||||||
Current assets: | ||||||||
Cash and marketable securities | $ |
12,647,656 |
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$ |
29,295,466 |
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Accounts receivable, net |
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6,537,891 |
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12,113,070 |
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Inventory |
|
6,426,400 |
|
|
6,581,139 |
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Contract assets and unbilled receivables |
|
4,068,364 |
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2,299,392 |
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Prepaid and other current assets |
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1,180,362 |
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1,918,678 |
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Total current assets |
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30,860,673 |
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52,207,745 |
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Plant and equipment, net |
|
1,831,641 |
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|
1,888,963 |
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Operating lease right-of-use assets |
|
3,168,520 |
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|
3,828,066 |
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Equity investments |
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7,721,206 |
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4,912,022 |
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Other assets |
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170,132 |
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|
170,932 |
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Total assets | $ |
43,752,172 |
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$ |
63,007,728 |
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LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ |
5,438,980 |
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$ |
5,483,970 |
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Accrued expenses |
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6,817,485 |
|
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4,133,379 |
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Customer deposits |
|
- |
|
|
2,638,103 |
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Deferred tax liabilities |
|
482,739 |
|
|
513,417 |
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Contract liabilities and billings in excess of revenue earned |
|
930,500 |
|
|
4,063,031 |
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Operating lease liabilities |
|
786,928 |
|
|
701,204 |
|
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Total current liabilities |
|
14,456,632 |
|
|
17,533,104 |
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Other long term liabilities |
|
2,728,042 |
|
|
2,739,531 |
|
||
Operating lease liabilities, net of current portion |
|
2,576,883 |
|
|
3,108,236 |
|
||
|
24,163,297 |
|
|
39,799,191 |
|
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Noncontrolling interest |
|
(172,682 |
) |
|
(172,334 |
) |
||
Total stockholders' equity |
|
23,990,615 |
|
|
39,626,857 |
|
||
Total liabilities and stockholders' equity | $ |
43,752,172 |
|
$ |
63,007,728 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20230314005524/en/
For Investor Relations
Treasurer and Chief Financial Officer
rsneider@kopin.com
MZ Contact
KOPN@mzgroup.us
+561 489 5315
Source:
FAQ
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