Kopin Corporation Reports Very Solid Results for Fourth Quarter and Full Year 2020
Kopin Corporation (Nasdaq: KOPN) reported robust financial results for Q4 and the full fiscal year ending December 26, 2020. Revenue grew 60% year-over-year in Q4, reaching $13.9 million, while total revenue for 2020 was $40.1 million, a 36% increase from 2019. Net income for Q4 was $1.3 million, a significant turnaround from a $7.3 million loss in the same quarter of 2019. Key growth sectors included defense products, which saw a 112% increase in Q4. However, public safety revenues declined due to Covid-19 impacts.
- Fourth quarter revenue increased by 60% year-over-year to $13.9 million.
- Full year revenue grew 36% to $40.1 million.
- Net income for Q4 was $1.3 million, rebounding from a $7.3 million loss in Q4 2019.
- Defense product revenues surged 112% in Q4 compared to the prior year.
- Revenues from public safety applications decreased due to the negative impact of Covid-19 on municipal budgets.
- Despite growth, the net loss for the year was $4.4 million, although improved from $29.5 million in 2019.
Kopin® Corporation (Nasdaq: KOPN), a leading developer and manufacturer of high-resolution micro-displays and sub-systems for defense, enterprise and consumer augmented reality (AR), virtual reality (VR)and mixed reality (MR) systems, today provided an update on its business initiatives and financial results for the fourth quarter and full fiscal year ended December 26, 2020.
“We are delighted to have finished 2020 with very strong results in both our top and bottom lines, with revenue growth of
“Our business was strong across multiple segments and was again led by our defense product revenues which increased
“In the fourth quarter we saw solid growth in our industrial wearables led by sales to RealWear Inc. www.realwear.com, a market leader in enterprise AR and computing headsets, along with sales to 3D metrology applications. We expect both industrial wearables and 3D metrology revenues will continue solid growth in 2021. However, revenues from the sale of our products for public safety applications were down in the fourth quarter of 2020 which we believe is attributable to the negative impact of Covid-19 on municipal budgets. We expect this segment will recover later in 2021. In the fourth quarter of 2020, we announced that HMDmd and Kopin have entered an agreement to develop a specialized headset for surgeries, our initial entry into the expanding field medical applications utilizing AR headsets.”
Dr. Fan continued, “In the fourth quarter of 2020 our funded Research and Development (R&D) revenue and our R&D expenses both increased very significantly this year. As AR and VR applications are increasingly adopted, we have accelerated our R&D activities in advanced OLED and LED microdisplays and optics. We are excited about our R&D progress, which we believe will provide a stream of new, differentiated products as well as further enhance our already strong IP positions.
“This quarter we received our first production order and began shipments of our 720p duo-stack, ColorMax OLED microdisplays. We also announced an agreement to develop superbright monochrome MicroLED displays. We believe that both our advanced ColorMax™ OLED and our MicroLED displays will be key enablers of what we see as the coming wave of AR and VR products in defense, enterprise and consumer applications. We believe Kopin offers the widest range of leading microdisplay technologies in the world, which is particularly valuable as we anticipate the long-awaited adoption of AR and VR systems is beginning to take hold. As expected, these systems are being adopted first in defense, followed by industrial/enterprise/medical and consumer applications. Currently, almost all of our development programs are related to AR and VR applications. As the AR and VR market segments continue to gain traction, Kopin is ideally positioned to meet this demand. With industry leading displays and modules for AR and VR devices, Kopin clearly sees growing opportunities in many wearable sectors and we are making great progress in executing our strategy to improve the performance in all aspects of the Company. We are confident that we are well positioned for the coming era of AR/VR, and our future is bright,” concluded Dr. Fan.
Fourth Quarter Financial Results
Total revenues for the fourth quarter ended December 26, 2020 were
Research and development (R&D) expenses for the fourth quarter of 2020 were
Selling, general and administrative (SG&A) expenses were
Other income (expense) for the fourth quarter of 2020 and 2019 were income of
The net income attributable to controlling interest for the fourth quarter of 2020 was
Full Year Results
Total revenue for the fiscal year ended December 26, 2020 was
Research and development expenses for 2020 were
Selling, general and administrative expenses were
Other income (expense) for fiscal year 2020 and 2019 were income of
The net loss from controlling interest for the fiscal year ended December 26, 2020 was
Kopin's cash and equivalents and marketable securities were approximately
During 2020 Kopin had 12 new patents granted and filed for four new applications. Kopin has over 200 patents and patents pending, almost all of which are related to wearable applications.
All amounts above are estimates and readers should refer to our Form 10-K for the fiscal year ended December 26, 2020, for final disposition as well as important risk factors.
Conference Call
Kopin will host a conference call this morning at 8:30am ET. To participate, please dial 800-437-2398 (U.S. and Canada) or 323-289-6576 (International). The call will also be available as a live and archived audio webcast on the Investor Relations section of 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. These forward-looking statements may include statements with respect to: our expectations regarding the FWS-I thermal weapon sight program and the F-35 Fighter jet program; our expectations regarding product development and revenue generation from such product; our belief that FWS-I and F-35 Fighter jet programs will provide accelerated growth momentum for 2022 and beyond; our belief that we are sole source in most of our armored vehicle targeting systems, rotary-wing aircraft helmets, automatic and semi-automatic rifle day scopes and targeting systems, and other programs; our expectation that both industrial wearables revenue and 3D metrology will continue solid growth in 2021; our belief that our public safety segment revenues were negatively impacted by Covid-19 impact on municipal budgets and will recover later on in 2021; our expectation that our R&D activities should provide a stream of new, differentiated products as well as further enhance our already strong IP positions. our belief that both our advanced ColorMax™ OLED and our MicroLED displays will be key enablers of what we see as the coming wave of AR and VR products in defense, enterprise and consumer applications; and our belief that Kopin offers the widest range of leading microdisplay technologies in the world. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. 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. 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, or as updated from time to time in the Company's Securities and Exchange Commission filings.
| Kopin Corporation | ||||||||||||
| Supplemental Information | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||
| December 26, 2020 | December 28, 2019 | December 26, 2020 | December 28, 2019 | |||||||||
| Display Revenues by Category (in millions) | ||||||||||||
| Defense | $ |
7.5 |
$ |
3.5 |
$ |
20.2 |
$ |
8.7 |
||||
| Industrial/Enterprise |
|
1.7 |
|
2.5 |
|
6.9 |
|
9.7 |
||||
| Consumer |
|
0.3 |
|
0.3 |
|
0.9 |
|
1.8 |
||||
| Other |
|
- |
|
- |
|
0.5 |
|
- |
||||
| R&D |
|
3.8 |
|
2.4 |
|
10.1 |
|
5.0 |
||||
| License and Royalties |
|
0.7 |
|
- |
|
1.5 |
|
4.3 |
||||
| Total | $ |
14.0 |
$ |
8.7 |
$ |
40.1 |
$ |
29.5 |
||||
| Stock-Based Compensation Expense | ||||||||||||
| Cost of product revenues | $ |
42,000 |
$ |
20,000 |
$ |
113,000 |
$ |
103,000 |
||||
| Research and development |
|
11,000 |
|
34,000 |
|
205,000 |
|
296,000 |
||||
| Selling, general and administrative |
|
129,000 |
|
198,000 |
|
503,000 |
|
1,659,000 |
||||
$ |
182,000 |
$ |
252,000 |
$ |
821,000 |
$ |
2,058,000 |
|||||
| Other Financial Information | ||||||||||||
| Depreciation and amortization | $ |
177,000 |
$ |
195,000 |
$ |
651,000 |
$ |
792,000 |
||||
| Kopin Corporation | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 26, 2020 | December 28, 2019 | December 26, 2020 | December 28, 2019 | |||||||||||||
| Revenues: | ||||||||||||||||
| Net product revenues | $ |
9,440,784 |
|
$ |
6,279,568 |
|
$ |
28,517,874 |
|
$ |
20,283,888 |
|
||||
| Research and development revenues |
|
3,828,034 |
|
|
2,446,850 |
|
|
10,122,677 |
|
|
4,982,868 |
|
||||
| Other revenues |
|
652,848 |
|
|
- |
|
|
1,487,118 |
|
|
4,252,053 |
|
||||
|
13,921,666 |
|
|
8,726,418 |
|
|
40,127,669 |
|
|
29,518,809 |
|
|||||
| Expenses: | ||||||||||||||||
| Cost of product revenues |
|
6,145,925 |
|
|
5,092,003 |
|
|
21,398,381 |
|
|
20,901,538 |
|
||||
| Research and development |
|
4,393,233 |
|
|
2,662,637 |
|
|
11,670,003 |
|
|
13,349,130 |
|
||||
| Selling, general and administration |
|
2,401,679 |
|
|
4,527,967 |
|
|
11,822,703 |
|
|
21,316,459 |
|
||||
| Impairment of goodwill |
|
- |
|
|
- |
|
|
- |
|
|
331,344 |
|
||||
|
12,940,837 |
|
|
12,282,607 |
|
|
44,891,087 |
|
|
55,898,471 |
|
|||||
| Loss from operations |
|
980,829 |
|
|
(3,556,189 |
) |
|
(4,763,418 |
) |
|
(26,379,662 |
) |
||||
| Other income (expense), net |
|
286,189 |
|
|
(3,725,732 |
) |
|
361,493 |
|
|
(2,886,560 |
) |
||||
| Loss before provision for income taxes and net loss (income) |
|
1,267,018 |
|
|
(7,281,921 |
) |
|
(4,401,925 |
) |
|
(29,266,222 |
) |
||||
| from noncontrolling interest | ||||||||||||||||
| Tax provision |
|
(29,000 |
) |
|
(30,000 |
) |
|
(129,000 |
) |
|
(108,000 |
) |
||||
| Net loss |
|
1,238,018 |
|
|
(7,311,921 |
) |
|
(4,530,925 |
) |
|
(29,374,222 |
) |
||||
| Net loss (income) attributable to noncontrolling interest |
|
25,370 |
|
|
22,448 |
|
|
119,813 |
|
|
(132,030 |
) |
||||
| Net loss attributable to Kopin Corporation | $ |
1,263,388 |
|
$ |
(7,289,473 |
) |
$ |
(4,411,112 |
) |
$ |
(29,506,252 |
) |
||||
| Net loss per share: | ||||||||||||||||
| Basic | $ |
0.02 |
|
$ |
(0.09 |
) |
$ |
(0.05 |
) |
$ |
(0.37 |
) |
||||
| Diluted | $ |
0.02 |
|
$ |
(0.09 |
) |
$ |
(0.05 |
) |
$ |
(0.37 |
) |
||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic |
|
81,688,760 |
|
|
82,155,473 |
|
|
82,347,741 |
|
|
80,282,126 |
|
||||
| Diluted |
|
82,819,513 |
|
|
82,155,473 |
|
|
82,347,741 |
|
|
80,282,126 |
|
||||
| Kopin Corporation | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Unaudited) | ||||||||
| December 26, 2020 | December 28, 2019 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and marketable securities | $ |
20,748,550 |
|
$ |
21,782,244 |
|
||
| Accounts receivable, net |
|
9,260,865 |
|
|
6,023,250 |
|
||
| Inventory |
|
4,455,756 |
|
|
3,768,696 |
|
||
| Contract assets and unbilled receivables |
|
3,521,753 |
|
|
921,082 |
|
||
| Prepaid and other current assets |
|
1,469,256 |
|
|
1,269,369 |
|
||
| Total current assets |
|
39,456,180 |
|
|
33,764,641 |
|
||
| Plant and equipment, net |
|
1,626,930 |
|
|
1,473,341 |
|
||
| Operating lease right-of-use assets |
|
1,780,039 |
|
|
2,753,963 |
|
||
| Equity investments |
|
4,523,525 |
|
|
4,537,159 |
|
||
| Other assets |
|
162,473 |
|
|
517,411 |
|
||
| Total assets | $ |
47,549,147 |
|
$ |
43,046,515 |
|
||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
5,606,910 |
|
$ |
3,998,234 |
|
||
| Accrued expenses |
|
4,295,315 |
|
|
4,914,990 |
|
||
| Customer deposits |
|
3,950,031 |
|
|
33,000 |
|
||
| Deferred tax liabilities |
|
554,031 |
|
|
525,000 |
|
||
| Contract liabilities and billings in excess of revenue earned |
|
1,493,847 |
|
|
796,794 |
|
||
| Operating lease liabilities |
|
982,375 |
|
|
1,041,695 |
|
||
| Total current liabilities |
|
16,882,509 |
|
|
11,309,713 |
|
||
| Other long term liabilities |
|
1,546,737 |
|
|
1,353,600 |
|
||
| Operating lease liabilities, net of current portion |
|
821,306 |
|
|
1,791,590 |
|
||
| Total Kopin Corporation stockholders' equity |
|
28,435,431 |
|
|
28,608,635 |
|
||
| Noncontrolling interest |
|
(136,836 |
) |
|
(17,023 |
) |
||
| Total stockholders' equity |
|
28,298,595 |
|
|
28,591,612 |
|
||
| Total liabilities and stockholders' equity | $ |
47,549,147 |
|
$ |
43,046,515 |
|
||
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FAQ
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