Kopin Corporation Reports Financial Results for the Fourth Quarter and Full Year 2024

Rhea-AI Summary

Kopin (KOPN) reported strong financial results for Q4 and full year 2024, with annual revenue increasing 24.6% to $50.3 million compared to 2023. Q4 revenue grew 71% year-over-year to $14.6 million.

The company's product revenues for 2024 reached $43.6 million, driven primarily by increased shipments of thermal weapon sight applications. Product gross margin improved due to higher unit volumes and better fixed cost absorption. The company recorded record bookings of $46 million in 2024.

Despite a net loss of $43.9 million for 2024, Kopin maintains a strong cash position of $36.6 million. Looking ahead, the company expects 2025 revenue between $52-55 million, supported by a strong order book. Kopin is implementing an automation plan at its Westborough facility to increase capacity and efficiency while reducing quality defects.

Positive

• Revenue increased 24.6% to $50.3 million in 2024
• Q4 revenue grew 71% year-over-year
• Record bookings of $46 million in 2024
• Product gross margin improved due to higher volumes
• Strong cash position of $36.6 million
• Positive revenue guidance of $52-55 million for 2025

Negative

• Net loss widened to $43.9 million in 2024 from $19.7 million in 2023
• R&D revenues decreased year-over-year
• Decline in sales of products for pilot helmets
• Operating cash burn of $14.2 million in 2024
• SG&A expenses increased to $22.8 million from $21.8 million

Insights

Financial Analyst

Despite 24.6% revenue growth and improved gross margins, Kopin's widening losses and cash burn raise concerns about path to profitability.

Kopin's financial results present a mixed picture with strong top-line growth but concerning bottom-line performance. The $50.3 million in 2024 revenue represents a 24.6% year-over-year increase, with Q4 showing particularly robust 71% growth. This acceleration suggests the company's strategic pivot toward defense applications is gaining traction.

What's particularly encouraging is the improvement in product gross margins, with cost of product revenues declining from 96% to 83% of sales. This 13% improvement demonstrates increasing operational leverage as volumes rise, especially in thermal weapon sight production.

However, the widening net loss is troubling. Despite the revenue growth, losses expanded to $43.9 million ($0.33 per share) from $19.7 million ($0.18 per share) in 2023. The company burned through $14.2 million in operating activities during 2024, raising questions about sustainable growth without additional financing.

The cash position paradoxically improved to $36.6 million from $17.9 million despite the operational cash burn, suggesting capital raising activities occurred during the year. This provides reasonable runway but doesn't solve the fundamental profitability challenge.

The 2025 revenue guidance of $52-55 million represents a modest 3.4-9.3% growth rate - significantly slower than 2024's growth. This conservative outlook likely reflects both manufacturing capacity constraints and management's focus on implementing automation to improve margins rather than maximizing top-line growth.

Defense Industry Specialist

Kopin's record defense bookings and strategic focus on geopolitical hotspots position it well, despite challenges in transitioning manufacturing processes.

Kopin's record $46 million in bookings for 2024 signals strengthening demand for specialized optical solutions in defense applications. The company's strategic positioning in thermal weapon sights has proven particularly successful, driving substantial revenue growth while pilot helmet sales declined.

The "ONE Kopin" initiative appears strategically sound, targeting European and Southeast Asian defense markets - regions where military spending is accelerating due to heightened geopolitical tensions. The company's explicit mention of positioning for "a variety of defense needs" in regions with "elevated geo-political risks" indicates management's awareness of favorable spending trends in these markets.

The planned manufacturing automation investments represent a critical strategic move. Defense contractors face increasing pressure to improve manufacturing precision while reducing costs. Kopin's focus on reducing "molecular debris in assemblies" through automation addresses a specific technical challenge in high-precision optical manufacturing that directly impacts product performance and reliability in mission-critical applications.

The transition to European organic light-emitting diode (OLED) foundry services merits attention. This shift likely addresses supply chain security concerns prevalent in defense procurement, where domestic or allied nation sourcing is increasingly prioritized. However, this transition contributed to higher R&D expenses, indicating short-term costs for long-term strategic positioning.

Kopin's expressed confidence in multi-year revenue opportunities suggests the company is securing positions in defense programs with extended production horizons - a valuable attribute in the defense sector where program stability can provide years of predictable revenue.

Full year 2024 revenue of $50.3 million was a 24.6% increase compared to full year 2023; 4Q24 revenue increased 71% compared to 4Q23

Expects revenue between $52 to $55 million in 2025

WESTBOROUGH, Mass.--(BUSINESS WIRE)-- Kopin Corporation (Nasdaq: KOPN), a leading provider of application-specific optical solutions for defense, enterprise, industrial, and consumer products, today reported financial results for the fourth quarter and full fiscal year ended December 28, 2024.

Company Highlights

• 2024 revenue increased 24.6% to $50.3 million compared to $40.4 million in 2023
• 2024 product gross margin increased due to unit volume and fixed cost absorption
• 2024 bookings were a record at $46 million
• Expect 2025 revenue between $52 to $55 million
• ONE Kopin initiative was launched to reduce redundancies and direct resources to European and Southeast Asian defense opportunities

“We experienced significant growth in 2024 which we believe affirms our strategic transformation and focus on defense industries and technologies,” said Michael Murray, Kopin's Chief Executive Officer. “Demand for microdisplays, optics and application-specific optical solutions continues to increase is the defense, medical and industrial markets.

"We start 2025 with a strong order book and a pipeline of revenue opportunities that should benefit the company over several years. Despite macroeconomic and geopolitical uncertainties, our recently announced orders provide us with confidence to deliver revenue between $52 to $55 million in 2025. To support this increased demand and our profitability goals, we have embarked on an aggressive and ambitious, companywide automation plan to increase capacity, throughput, and efficiencies in our Westborough facility to allow for higher throughput, greater accuracy and less human interaction which can cause molecular debris in our assemblies. We believe this increased automation will also increase our gross margins as we become more efficient while reducing quality defects throughout our process.”

Mr. Murray concluded: “Our ONE Kopin initiative has continued to improve manufacturing efficiencies, reduce redundancies and integrate markets to better serve European and Southeast Asian defense markets. As geo-political risks continue to remain elevated, we believe we are well positioned to offer application-specific solutions for a variety of defense needs.”

Fourth Quarter Financial Results

Total revenues for the fourth quarter ended December 28, 2024, were $14.6 million, compared to $8.6 million for the fourth quarter ended December 30, 2023. Product revenues for the fourth quarter ended December 28, 2024, were $12.6 million, compared to $6.8 million for the fourth quarter ended December 30, 2023. The increase in product revenues was a result of an increase in sales of product for thermal weapon sights partially offset by a decline in sales of products for pilot helmets. In the fourth quarter of 2023, we shut down manufacturing for a limited period of time which negatively impact sales in the year over year comparison.

Cost of Product Revenues for the fourth quarter of 2024 was $10.6 million, or 84% of net product revenues, compared with $7.2 million, or 106% of net product revenues, for the fourth quarter of 2023.

R&D expenses for the fourth quarter of 2024 were $3.1 million compared to $2.2 million for the fourth quarter of 2023. The increase in R&D expense is attributable to an increase in funded research and development expense and internal research and development expenses. Internal research and development expense increased due to transitioning to European organic light emitting diode foundry services.

SG&A expenses were $3.1 million for the fourth quarter of 2024, compared to $5.9 million for the fourth quarter of 2023. The decrease was primarily due to a decrease in legal expenses related to litigation.

Net Loss Attributable to Kopin for the fourth quarter of 2024 was ($1.9) million, or ($0.01) per share, compared with Net Loss Attributable to Kopin of ($6.5) million, or ($0.06) per share, for the fourth quarter of 2023.

Full Year 2024 Financial Results

Total revenues for the year ended December 28, 2024, were $50.3 million, compared to $40.4 million for the year ended December 30, 2023. Product revenues for the year ended December 28, 2024, were $43.6 million, compared to $25.9 million for the year ended December 30, 2023. The increase in Product Revenues was primarily due to an increase in shipments of our products for thermal weapon sight applications that was partially offset by a decrease in sales of our products for defense pilot helmets. R&D revenues decreased in 2024 as compared to 2023 primarily due to decreased funding for display technology, armored vehicle targeting systems and other weapon system development for U.S. defense programs, and medical headset development.

Cost of Product Revenues for 2024 was $36.2 million, or 83% of net product revenues, compared with $25.0 million, or 96% of net product revenues in the prior year. Cost of product revenues decreased as a percentage of revenues in 2024 as compared to 2023 primarily due to increased unit volume of thermal weapon sights from higher sales in 2024 as compared to 2023 which resulted in a lower fixed overhead cost per unit. The margin improvement from thermal weapon sights was partially offset by lower margin contribution from industrial and training and simulation revenues due to their decline in sales.

R&D expenses for 2024 were $9.6 million compared to $10.8 million for 2023, a 11% decrease year over year. The decrease in R&D expense as compared to the prior year was primarily due to the completion of contracts for defense programs awarded prior to 2024. Internal R&D expense for 2024 increased as compared to the prior year primarily due to increases in display development costs and costs incurred to establish European foundry services.

Selling, General and Administration (SG&A) expenses were $22.8 million for 2024, compared to $21.8 million for 2023. SG&A for 2024 increased as compared to 2023 primarily due to an increase of approximately $1.4 million in legal and professional fees and $0.2 million in excise taxes, partially offset by $0.4 million lower bad debt expense and $0.2 million decrease in non-cash stock-based compensation.

Net Loss Attributable to Kopin Corporation for the year 2024 was $43.9 million, or $0.33 per share, compared with Net Loss Attributable to Kopin Corporation of $19.7 million, or $0.18 per share, for the year 2023.

Net Cash Used in Operating Activities for 2024 was approximately $14.2 million. Kopin’s cash and equivalents and marketable securities were approximately $36.6 million at December 28, 2024 as compared to $17.9 million at December 30, 2023.

Readers should refer to the Form 10-K for the fiscal year ended December 28, 2024, for important risk factors.

Earnings Call and Webcast

Kopin management will host the conference call, followed by a question and answer session.

Date: Thursday, April 17, 2025
Time: 8:30 AM Eastern Time (5:30 AM Pacific Time)
U.S. dial-in number: 800-245-3047
International number: 203-518-9765
Conference ID: KOPIN
Webcast: 4Q24 Webcast Link

The Company will also provide a link at https://www.kopin.com/investors/ for those who wish to stream the call via webcast. Please call the conference telephone number 5-10 minutes prior to the start time.

A telephonic replay of the conference call will also be available through May 1, 2025.

Toll-free replay number: 844-512-2921
International replay number: 412-317-6671
Replay passcode: 11158949

About Kopin

Kopin Corporation is a leading developer and provider of innovative display and optical technologies sold as critical components and subassemblies for defense, industrial and consumer products. Kopin’s technology portfolio includes ultra-small Active-Matrix Liquid Crystal displays (AMLCD), Liquid Crystal on Silicon (LCOS) displays 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. These forward-looking statements may include statements with respect to our projected increase in demand for our thermal weapons displays; and our belief that there are opportunities for additional follow-on orders and several new customer development orders which we expect to receive soon. 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, including without limitation our ability to produce thermal weapons displays in adequate quantities to meet projected demand, the outcome of any litigation and other factors beyond our control. 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 28, 2024, or as updated from time to time our Securities and Exchange Commission filings.

Kopin Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
		December 28, 2024			December 30, 2023
ASSETS
Current assets:
Cash, restricted cash and marketable securities		$	36,629,778		$	17,902,685
Accounts receivable, net			11,850,654			9,706,036
Contract assets and unbilled receivables			7,074,021			3,409,809
Inventory			6,134,096			7,601,806
Prepaid and other current assets			1,057,341			1,210,207
Total current assets			62,745,890			39,830,543
Plant and equipment, net			2,099,708			2,163,417
Operating lease right-of-use assets			2,134,898			2,504,909
Other assets			123,822			124,925
Equity investments			3,564,938			4,688,522
Total assets		$	70,669,256		$	49,312,316
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	5,953,672		$	4,947,338
Accrued expenses			5,758,128			5,564,187
Contract liabilities and billings in excess of revenue earned			71,099			916,826
Operating lease liabilities			639,642			651,503
Accrued post-retirement benefits			40,000			790,000
Customer deposits			-			408,156
Deferred tax liabilities			414,118			470,884
Accrued legal expenses			6,367,900			2,129,421
Accrued litigation damages			24,800,000			-
Total current liabilities			44,044,559			15,878,315
Other long term liabilities			2,110,281			2,092,124
Operating lease liabilities, net of current portion			1,479,976			1,832,982
Total stockholders' equity			23,034,437			29,508,895
Total liabilities and stockholders' equity		$	70,669,253		$	49,312,316

Kopin Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
		Three Months Ended								Twelve Months Ended
		December 28, 2024				December 30, 2023				December 28, 2024				December 30, 2023
Revenues:
Net product revenues		$	12,574,857			$	6,764,868			$	43,576,724			$	25,937,170
Research and development revenues			1,657,996				1,717,804				5,996,362				13,454,866
Other revenues			413,642				94,961				762,082				1,002,141
			14,646,495				8,577,633				50,335,168				40,394,177
Expenses:
Cost of product revenues			10,696,659				7,193,314				36,240,464				24,952,431
Research and development			3,170,400				2,242,682				9,707,466				10,777,093
Selling, general and administration			3,138,803				5,929,309				22,845,415				21,842,157
Litigation damages			-				-				24,800,000				-
			17,005,862				15,365,305				93,593,346				57,571,681
Loss from operations			(2,359,366	)			(6,787,672	)			(43,258,178	)			(17,177,504	)
Other (expense) income, net			307,673				337,700				(599,070	)			(2,414,715	)
Loss before provision for income taxes			(2,051,693	)			(6,449,972	)			(43,857,248	)			(19,592,219	)
Tax provision			(45,000	)			(39,000	)			(170,000	)			(156,000	)
Net loss			(2,096,693	)			(6,488,972	)			(44,027,248	)			(19,748,219	)
Net loss per share:
Basic and diluted		$	(0.01	)		$	(0.06	)		$	(0.33	)		$	(0.18	)
Weighted average number of common shares outstanding:
Basic and diluted			165,669,859				110,360,814				132,875,913				108,436,146

 

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Contact Information

Kopin Corporation

Richard Sneider

Treasurer and Chief Financial Officer

rsneider@kopin.com

MZ Contact

Brian M. Prenoveau, CFA

MZ Group – MZ North America

KOPN@mzgroup.us

+561 489 5315

Source: Kopin Corporation

FAQ

What was Kopin's (KOPN) revenue growth in Q4 2024?

Kopin's Q4 2024 revenue grew 71% to $14.6 million compared to $8.6 million in Q4 2023.

What is Kopin's (KOPN) revenue guidance for 2025?

Kopin expects revenue between $52 to $55 million in 2025.

How much cash does Kopin (KOPN) have on hand as of December 2024?

Kopin had approximately $36.6 million in cash, equivalents, and marketable securities as of December 28, 2024.

What drove Kopin's (KOPN) product revenue growth in 2024?

The increase in product revenues was primarily due to higher shipments of thermal weapon sight applications, partially offset by decreased sales of defense pilot helmet products.

How much did Kopin (KOPN) lose in fiscal year 2024?

Kopin reported a net loss of $43.9 million, or $0.33 per share, for the full year 2024.