Kopin Corporation Reports Financial Results for the Third Quarter 2024
Kopin (KOPN) reported strong Q3 2024 results with total revenue increasing 26% to $13.3 million compared to Q3 2023. Product revenues surged 98%, driven by a 109% increase in defense product revenues and 58% growth in industrial product revenues. The company secured a $2 million follow-on production order from Collins Aerospace for F-35 Lightning II HMDS displays. Despite revenue growth, Kopin reported a net loss of ($3.5) million or ($0.03) per share, compared to ($2.5) million in Q3 2023. Cost of Product Revenues improved to 76% of net product revenues, down from 99% in Q3 2023, reflecting improved product mix and quality.
Kopin (KOPN) ha riportato risultati forti per il terzo trimestre del 2024, con un aumento del fatturato totale del 26% a $13,3 milioni rispetto al terzo trimestre del 2023. I ricavi da prodotti sono aumentati del 98%, grazie a un incremento del 109% nei ricavi dei prodotti per la difesa e una crescita del 58% nei ricavi dei prodotti industriali. L'azienda ha ottenuto un ordine di produzione di follow-on di $2 milioni da Collins Aerospace per i display HMDS F-35 Lightning II. Nonostante la crescita dei ricavi, Kopin ha riportato una perdita netta di ($3,5) milioni o ($0,03) per azione, rispetto a ($2,5) milioni nel terzo trimestre del 2023. Il costo dei ricavi da prodotti è migliorato al 76% dei ricavi netti da prodotti, in calo rispetto al 99% nel terzo trimestre del 2023, riflettendo un miglioramento nel mix e nella qualità dei prodotti.
Kopin (KOPN) reportó resultados sólidos para el tercer trimestre de 2024, con un aumento del 26% en ingresos totales a $13.3 millones en comparación con el tercer trimestre de 2023. Los ingresos por productos aumentaron un 98%, impulsados por un aumento del 109% en los ingresos de productos de defensa y un crecimiento del 58% en los ingresos de productos industriales. La compañía aseguró un pedido de producción adicional de $2 millones de Collins Aerospace para los displays HMDS del F-35 Lightning II. A pesar del crecimiento en los ingresos, Kopin reportó una pérdida neta de ($3.5) millones o ($0.03) por acción, en comparación con ($2.5) millones en el tercer trimestre de 2023. El costo de los ingresos por productos mejoró al 76% de los ingresos netos por productos, bajando del 99% en el tercer trimestre de 2023, reflejando una mejora en la mezcla y calidad del producto.
Kopin (KOPN)은 2024년 3분기에 2023년 3분기 대비 총 수익이 26% 증가한 $13.3 백만으로 강력한 실적을 보고했습니다. 제품 수익은 98% 급증했으며, 이는 방산 제품 수익이 109% 증가하고, 산업 제품 수익이 58% 성장한 데 힘입은 것입니다. 이 회사는 F-35 Lightning II HMDS 디스플레이를 위해 Collins Aerospace에서 $2 백만의 후속 생산 주문을 확보했습니다. 수익 증가에도 불구하고 Kopin은 2023년 3분기의 ($2.5) 백만과 비교해 ($3.5) 백만 또는 주당 ($0.03)의 순손실을 보고했습니다. 제품 수익의 비용은 순 제품 수익의 76%로 개선되었으며, 이는 2023년 3분기의 99%에서 하락한 수치로, 제품 믹스와 품질 개선을 반영합니다.
Kopin (KOPN) a publié de solides résultats pour le troisième trimestre 2024, avec une augmentation de 26% des revenus totaux à $13,3 millions par rapport au troisième trimestre 2023. Les revenus des produits ont grimpé de 98%, soutenus par une augmentation de 109% des revenus des produits de défense et une croissance de 58% des revenus des produits industriels. L'entreprise a obtenu une commande de production supplémentaire de 2 millions de dollars de Collins Aerospace pour les affichages HMDS F-35 Lightning II. Malgré la croissance des revenus, Kopin a enregistré une perte nette de ($3,5) millions ou ($0,03) par action, contre ($2,5) millions au troisième trimestre 2023. Les coûts des revenus des produits se sont améliorés à 76% des revenus nets, en baisse par rapport à 99% au troisième trimestre 2023, reflétant une amélioration du mix et de la qualité des produits.
Kopin (KOPN) meldete starke Ergebnisse für das dritte Quartal 2024, mit einem Anstieg des Gesamtumsatzes um 26% auf $13,3 Millionen im Vergleich zum dritten Quartal 2023. Die Produktumsätze stiegen um 98%, was durch einen Anstieg der Umsätze mit Verteidigungsprodukten um 109% und ein Wachstum der Umsätze mit Industrieprodukten um 58% angetrieben wurde. Das Unternehmen sicherte sich einen Folgeauftrag über $2 Millionen von Collins Aerospace für F-35 Lightning II HMDS-Displays. Trotz des Umsatzwachstums meldete Kopin einen Nettoverlust von ($3,5) Millionen oder ($0,03) pro Aktie, verglichen mit ($2,5) Millionen im dritten Quartal 2023. Die Kosten der Produktumsätze verbesserten sich auf 76% der Nettoproduktumsätze, ein Rückgang von 99% im dritten Quartal 2023, was eine Verbesserung des Produktmixes und der Qualität widerspiegelt.
- Total revenue increased 26% YoY to $13.3 million
- Product revenues grew 98% YoY
- Defense product revenues surged 109% YoY
- Industrial revenues increased 58% YoY
- Cost of Product Revenues improved from 99% to 76% of net product revenues
- Secured $2 million follow-on production order from Collins Aerospace
- Net loss increased to ($3.5) million from ($2.5) million YoY
- Funded R&D revenues declined 54%
- SG&A expenses increased due to higher legal fees
- $1.1 million non-cash impairment of equity investments
Insights
The Q3 results show significant operational improvements with
However, concerns remain as net loss widened to
The successful qualification of OLEDoS displays for the F-35 Lightning II HMDS program represents a significant strategic win in the premium defense market. The follow-on
The partnership with Wilcox Industries for special operations solutions opens new revenue streams in the tactical equipment market. The defense sector's
-
Q3 2024 total revenue increased
26% to$13.3 million $10.6 million -
Q3 2024 product revenues increased
98% compared to the same period in 2023 -
Q3 2024 Defense product revenues increased
109% and Industrial product revenues increased58% compared to the same period in 2023 - Five new customers placed product development orders fueling opportunities for multi-million dollar per year production revenues
Commenting on the quarterly results, Michael Murray, Chairman and CEO, stated, “We delivered
“We continue to experience strong growth driven by new defense customers and projects. Recently, we reached a significant milestone by completing the production qualification of our high-performance Organic Light Emitting Diode on Silicon (OLEDoS) display for Collins Aerospace’s F-35 Lightning II Helmet Mounted Display System (HMDS). Additionally, we received a
“Additional new products during the quarter included expanding our medical technology portfolio by introducing proprietary, high-resolution, fast spatial light modulators (SLMs) into fluorescence super-resolution microscope systems for biomedical research. We partnered with Wilcox Industries, a leader in special operations warfighter solutions, on several new soldier products and demonstrated our progress on our innovative AI-enabled NeuralDisplay™ hardware and software architecture.
“Looking beyond 2024, we believe our order pipeline and additional opportunities not only represent multi-million-dollar annual production revenue potential but also improved gross margins, due to the additional value we have captured, a favorable end-market mix, continued production efficiencies realized through yield improvements and reduced material cost, as well as stabilizing our SG&A expenses. We believe all of these components reaffirm our focused path toward profitability and long-term revenue growth,” concluded Murray.
Third Quarter Financial Results
Total revenues for the third quarter ended September 28, 2024, were
Cost of Product Revenues for the third quarter of 2024 was
Research and Development (R&D) expenses for the third quarter of 2024 were
Selling, General and Administration (SG&A) expenses were
Other expense, net includes an approximate
Net loss for the third quarter of 2024 was
All amounts above are estimates and readers should refer to our Form 10-Q for the quarter ended September 28, 2024, for final disposition as well as important risk factors.
Earnings Call and Webcast
Kopin management will host the conference call, followed by a question and answer session.
Date: Tuesday, November 12, 2024
Time: 8:30 AM Eastern Time (5:30 AM Pacific Time)
International number: 203-518-9848
Conference ID: KOPIN
Webcast: Q3 2024 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 November 19, 2024.
Toll-free replay number: 844-512-2921
International replay number: 412-317-6671
Replay passcode: 11157535
About Kopin
Kopin Corporation is a leading developer and provider of innovative display, and application-specific optical solutions 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.
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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 of additional orders by year-end: our expectation of achieving double-digit revenue growth for 2024; our belief of improving demand in the 3D automated optical inspection (3Dd AOI) market segment; our belief that there is continued strong growth driven by new defense customers and projects; our belief that our order pipeline and additional opportunities not only represent multi-million-dollar annual production revenue potential but also promise improved gross margins; and our belief that all of these components reaffirm our focused path toward profitability and long-term, revenue growth. 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 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 by our Securities and Exchange Commission filings.
| Kopin Corporation | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (Unaudited) | |||||||
| September 28, 2024 | December 30, 2023 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash, restricted cash and marketable securities | $ |
37,292,836 |
$ |
17,902,685 |
|||
| Accounts receivable, net |
|
9,233,935 |
|
|
9,706,036 |
|
|
| Contract assets and unbilled receivables |
|
8,274,538 |
|
|
3,409,809 |
|
|
| Inventory |
|
6,555,359 |
|
|
7,601,806 |
|
|
| Prepaid and other current assets |
|
1,646,595 |
|
|
1,210,207 |
|
|
| Total current assets |
|
63,003,263 |
|
|
39,830,543 |
|
|
| Plant and equipment, net |
|
2,016,452 |
|
|
2,163,417 |
|
|
| Operating lease right-of-use assets |
|
2,305,433 |
|
|
2,504,909 |
|
|
| Other assets |
|
124,925 |
|
|
124,925 |
|
|
| Equity investments |
|
3,129,434 |
|
|
4,688,522 |
|
|
| Total assets | $ |
70,579,507 |
|
$ |
49,312,316 |
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ |
4,385,635 |
|
$ |
4,947,338 |
|
|
| Accrued expenses |
|
6,371,457 |
|
|
5,564,187 |
|
|
| Contract liabilities and billings in excess of revenue earned |
|
268,468 |
|
|
916,826 |
|
|
| Operating lease liabilities |
|
653,546 |
|
|
651,503 |
|
|
| Accrued post-retirement benefits |
|
227,500 |
|
|
790,000 |
|
|
| Customer deposits |
|
102,481 |
|
|
408,156 |
|
|
| Deferred tax liabilities |
|
470,884 |
|
|
470,884 |
|
|
| Accrued legal expenses |
|
6,666,717 |
|
|
2,129,421 |
|
|
| Accrued litigation damages |
|
24,800,000 |
|
|
- |
|
|
| Total current liabilities |
|
43,946,688 |
|
|
15,878,315 |
|
|
| Other long term liabilities |
|
2,271,915 |
|
|
2,092,124 |
|
|
| Operating lease liabilities, net of current portion |
|
1,634,390 |
|
|
1,832,982 |
|
|
| Total stockholders' equity |
|
22,726,514 |
|
|
29,508,895 |
|
|
| Total liabilities and stockholders' equity | $ |
70,579,507 |
|
$ |
49,312,316 |
|
|
| Kopin Corporation | |||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||
| Revenues: | |||||||||||||||
| Net product revenues | $ |
10,922,470 |
|
$ |
5,506,193 |
|
$ |
31,001,866 |
|
$ |
19,172,302 |
|
|||
| Research and development revenues |
|
2,268,072 |
|
|
4,956,386 |
|
|
4,338,366 |
|
|
11,737,062 |
|
|||
| Other revenues |
|
129,066 |
|
|
135,918 |
|
|
348,440 |
|
|
907,180 |
|
|||
|
13,319,608 |
|
|
10,598,497 |
|
|
35,688,672 |
|
|
31,816,544 |
|
||||
| Expenses: | |||||||||||||||
| Cost of product revenues |
|
8,316,904 |
|
|
5,437,953 |
|
|
25,543,806 |
|
|
17,759,117 |
|
|||
| Research and development |
|
2,596,649 |
|
|
3,089,935 |
|
|
6,537,065 |
|
|
8,534,411 |
|
|||
| Selling, general and administration |
|
5,206,880 |
|
|
4,798,598 |
|
|
19,706,613 |
|
|
15,912,848 |
|
|||
| Litigation damages |
|
- |
|
|
- |
|
|
24,800,000 |
|
|
- |
|
|||
|
16,120,433 |
|
|
13,326,486 |
|
|
76,587,484 |
|
|
42,206,376 |
|
||||
| Loss from operations |
|
(2,800,825 |
) |
|
(2,727,989 |
) |
|
(40,898,812 |
) |
|
(10,389,832 |
) |
|||
| Other (expense) income, net |
|
(534,517 |
) |
|
316,676 |
|
|
(906,743 |
) |
|
(2,752,415 |
) |
|||
| Loss before provision for income taxes |
|
(3,335,342 |
) |
|
(2,411,313 |
) |
|
(41,805,555 |
) |
|
(13,142,247 |
) |
|||
| Tax provision |
|
(125,000 |
) |
|
(39,000 |
) |
|
(125,000 |
) |
|
(117,000 |
) |
|||
| Net loss |
|
(3,460,342 |
) |
|
(2,450,313 |
) |
|
(41,930,555 |
) |
|
(13,259,247 |
) |
|||
| Net loss per share: | |||||||||||||||
| Basic and diluted | $ |
(0.03 |
) |
$ |
(0.02 |
) |
$ |
(0.34 |
) |
$ |
(0.12 |
) |
|||
| Weighted average number of common shares outstanding: | |||||||||||||||
| Basic and diluted |
|
124,318,056 |
|
|
110,360,814 |
|
|
121,944,597 |
|
|
108,436,146 |
|
|||
| Kopin Corporation | |||||||||||||||
| Supplemental Information | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 28, 2024 | September 30, 2023 | September 28, 2024 | September 30, 2023 | ||||||||||||
| Display Revenues by Category (in millions) | |||||||||||||||
| Defense | $ |
10.4 |
$ |
5.0 |
$ |
29.1 |
$ |
16.5 |
|||||||
| Industrial/Enterprise |
|
0.5 |
|
|
0.3 |
|
|
1.9 |
|
|
2.1 |
|
|||
| Consumer |
|
- |
|
|
0.2 |
|
|
- |
|
|
0.6 |
|
|||
| R&D |
|
2.3 |
|
|
5.0 |
|
|
4.3 |
|
|
11.7 |
|
|||
| License and Royalties |
|
0.1 |
|
|
0.1 |
|
|
0.4 |
|
|
0.9 |
|
|||
| Total | $ |
13.3 |
|
$ |
10.6 |
|
$ |
35.7 |
|
$ |
31.8 |
|
|||
| Stock-Based Compensation Expense | |||||||||||||||
| Cost of product revenues | $ |
368,000 |
|
$ |
311,000 |
|
$ |
857,000 |
|
$ |
765,000 |
|
|||
| Research and development |
|
309,000 |
|
|
214,000 |
|
|
570,000 |
|
|
553,000 |
|
|||
| Selling, general and administrative |
|
536,000 |
|
|
433,000 |
|
|
1,197,000 |
|
|
1,026,000 |
|
|||
$ |
1,213,000 |
|
$ |
958,000 |
|
$ |
2,624,000 |
|
$ |
2,344,000 |
|
||||
| Other Financial Information | |||||||||||||||
| Depreciation and amortization | $ |
139,000 |
|
$ |
110,000 |
|
$ |
471,000 |
|
$ |
498,000 |
|
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112572018/en/
For Investor Relations
Kopin Corporation
Richard Sneider, 508-870-5959
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 Q3 2024?
How much did Kopin's (KOPN) defense product revenues increase in Q3 2024?
What was Kopin's (KOPN) earnings per share in Q3 2024?
What was the value of the Collins Aerospace order for Kopin (KOPN) in Q3 2024?
