Kopin Reports Continued Strong Performance for Third Quarter 2021
Kopin Corporation (Nasdaq: KOPN) reported third-quarter revenues of $10.9 million, a 14% increase year-over-year, marking its ninth consecutive quarter of growth. The company attributes this to rising demand in defense and customer-funded development programs, with R&D revenue up 60%. Notable developments include a $1.1 million order for eyepieces and a $3.2 million order for Spatial Light Modulators. Challenges included supply chain issues, but no material negative effects were observed. Net loss was $2.1 million, with cash reserves at $31.8 million.
- 14% year-over-year revenue growth to $10.9 million.
- Ninth consecutive quarter of revenue growth.
- R&D revenue surged approximately 60% year-over-year.
- Secured $1.1 million order for Joint Effects Targeting System eyepieces.
- $3.2 million order for Spatial Light Modulators.
- Expectations for high shipping rates in FWS-I program.
- Net loss of $2.1 million, worsening from a $1.0 million loss year-over-year.
- R&D expenses increased 38% to $3.8 million, raising concerns over cost management.
- SG&A expenses rose 25% to $3.6 million, driven by increased compensation and bad debt.
-
$10.9 million 14% increase year over year -
9th
Straight Quarter of Year over Year Growth - FWS-I Shipments Ramping
- Strength in 3D AOI Markets
- Continued Strong Growth in Customer-Funded R&D for AR/VR Microdisplays
-
Progress in
Technology Development and Commercialization of OLED
“We had strong third quarter results, with revenues increasing
“On our second quarter results of operations call on
“We are also on track with our defense customer-funded development programs. We previously announced two development programs entered low-rate initial production during the second quarter of 2021 and we expect another defense development program to enter low-rate initial production during the fourth quarter of 2021. In addition, we have a robust pipeline of defense programs in development which we expect will fuel our defense revenues in the coming years,” said
“In the third quarter of 2021, like most companies, we faced many supply chain related challenges. To this point we have not experienced any material negative effects from gaps in material availability, however we continue to closely monitor and manage new challenges.”
“In short, our business is strong as we actively innovate and advance our technology roadmap, paving the path for future growth in AR/VR/MR applications. We believe we are the world's only provider of LCD, LCOS, OLED and micro-LED microdisplays on silicon. The current market trends indicate exciting and growing opportunities especially in the Metaverse VR platform. Kopin was a pioneer and has been focusing on this radical transformation for many years as it progresses from defense, to enterprise, and now into consumer applications. We believe we are well positioned to capitalize on these opportunities. We are looking forward to the coming CES in
Third Quarter Financial Results
Total revenues for the third quarter ended
Cost of Product Revenues for the third quarter ended
Research and development expenses for the third quarter of 2021 were
Selling, general and administrative (SG&A) expenses were
Net Loss Attributable to
We have no long-term debt.
All amounts above are estimates and readers should refer to our Form 10-Q for the quarter ended
DISCUSSION REGARDING THE USE OF NON-GAAP FINANCIAL MEASURES
Our earnings release contains some or all of the following financial measures that have not been calculated in accordance with United States Generally Accepted Accounting Principles (“GAAP”): (i) non-GAAP SG&A expenses, (ii) non-GAAP Net Loss Attributable to
We provide investors with a Non-GAAP Net Loss Attributable to
We calculate Non-GAAP SG&A expenses, Non-GAAP Net Loss Attributable to
The non-GAAP financial measures presented in the table below should not be considered in isolation and are not an alternative for the respective GAAP financial measure that is most directly comparable to each such non-GAAP financial measure. Readers are cautioned against placing undue reliance on these non-GAAP financial measures and are urged to review and consider carefully the adjustments made by management to the most directly comparable GAAP financial measures to arrive at these non-GAAP financial measures. Non-GAAP financial measures may have limited value as analytical tools because they may exclude certain expenses that some investors consider important in evaluating our operating performance or ongoing business performance. Further, non-GAAP financial measures are likely to have limited value for purposes of drawing comparisons between companies as a result of different companies potentially calculating similarly titled non-GAAP financial measures in different ways because non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
Conference Call
Kopin will host a conference call this morning at
About Kopin:
Kopin, CyberDisplay and Pancake are registered trademarks 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 , and Section 21E of the Securities Exchange Act of 1934, as amended, 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 to have our highest shipping rate of products for the FWS-I program in the fourth quarter of 2021; our expectation that we will deliver eyepieces for the Joint Effects Targeting System (JETS) through 2022; our expectation that another defense development program will enter low-rate production during the fourth quarter of 2021; our expectation that our defense development programs will fuel our defense revenues in the coming years; our expectation that many of our funded development programs will progress to product production as they mature; our belief that we are the world's only provider of LCD, LCOS, OLED and micro-LED microdisplays on silicon; our belief that the current market trends indicate growing opportunities and as we are positioned well to capitalize on these opportunities; and our expectation that at the coming CES in
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Unaudited Reconciliations of Non-GAAP Financial Measures |
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(Unaudited) |
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|
|
|
|
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Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
| GAAP Selling, general and administration | $ |
4,035,998 |
|
$ |
3,079,567 |
|
$ |
13,982,682 |
|
$ |
9,421,024 |
|
||||
| Stock-based compensation expense |
|
424,000 |
|
|
197,000 |
|
|
3,165,000 |
|
|
374,000 |
|
||||
| Non-GAAP Selling, general and administration | $ |
3,611,998 |
|
$ |
2,882,567 |
|
$ |
10,817,682 |
|
$ |
9,047,024 |
|
||||
| GAAP Net loss attributable to the controlling interest | $ |
(2,128,790 |
) |
$ |
(957,440 |
) |
$ |
(10,123,895 |
) |
$ |
(5,674,500 |
) |
||||
| Stock-based compensation expense |
|
424,000 |
|
|
197,000 |
|
|
3,165,000 |
|
|
374,000 |
|
||||
| Non- GAAP Net loss attributable to the controlling interest | $ |
(1,704,790 |
) |
$ |
(760,440 |
) |
$ |
(6,958,895 |
) |
$ |
(5,300,500 |
) |
||||
| Net loss per share: | ||||||||||||||||
| Basic and diluted | $ |
(0.02 |
) |
$ |
(0.01 |
) |
$ |
(0.11 |
) |
$ |
(0.07 |
) |
||||
| Stock-based compensation expense per share |
|
(0.00 |
) |
|
(0.00 |
) |
|
(0.03 |
) |
|
(0.01 |
) |
||||
| Basic and diluted Non-GAAP | $ |
(0.02 |
) |
$ |
(0.01 |
) |
$ |
(0.08 |
) |
$ |
(0.06 |
) |
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|
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|
|
|
|
|
|
|
|
|
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Supplemental Information |
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(Unaudited) |
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|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
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| Display Revenues by Category (in millions) | ||||||||||||
| Defense | $ |
3.5 |
$ |
4.8 |
$ |
12.3 |
$ |
12.8 |
||||
| Industrial/Enterprise |
|
2.7 |
|
1.7 |
|
7.4 |
|
5.2 |
||||
| Consumer |
|
0.4 |
|
- |
|
1.3 |
|
0.5 |
||||
| Other |
|
- |
|
- |
|
0.1 |
|
0.6 |
||||
| R&D |
|
4.1 |
|
2.6 |
|
10.4 |
|
6.3 |
||||
| License and Royalties |
|
0.2 |
|
0.5 |
|
1.0 |
|
0.8 |
||||
| Total | $ |
10.9 |
$ |
9.5 |
$ |
32.5 |
$ |
26.2 |
||||
| Stock-Based Compensation Expense | ||||||||||||
| Cost of product revenues | $ |
38,000 |
$ |
41,000 |
$ |
207,000 |
$ |
71,000 |
||||
| Research and development |
|
180,000 |
|
81,000 |
|
395,000 |
|
194,000 |
||||
| Selling, general and administrative |
|
424,000 |
|
197,000 |
|
3,165,000 |
|
374,000 |
||||
$ |
642,000 |
$ |
319,000 |
$ |
3,767,000 |
$ |
639,000 |
|||||
| Other Financial Information | ||||||||||||
| Depreciation and amortization | $ |
154,000 |
$ |
133,000 |
$ |
566,000 |
$ |
474,000 |
||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
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|
|
|
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||||||||
| Revenues: | ||||||||||||||||
| Net product revenues | $ |
6,591,852 |
|
$ |
6,487,581 |
|
$ |
21,089,515 |
|
$ |
19,077,090 |
|
||||
| Research and development and other revenues |
|
4,295,321 |
|
|
3,025,171 |
|
|
11,379,282 |
|
|
7,128,913 |
|
||||
|
10,887,173 |
|
|
9,512,752 |
|
|
32,468,797 |
|
|
26,206,003 |
|
|||||
| Expenses: | ||||||||||||||||
| Cost of product revenues |
|
5,145,175 |
|
|
4,825,032 |
|
|
17,586,389 |
|
|
15,252,456 |
|
||||
| Research and development |
|
3,751,729 |
|
|
2,715,868 |
|
|
11,055,282 |
|
|
7,276,770 |
|
||||
| Selling, general and administration |
|
4,035,998 |
|
|
3,079,567 |
|
|
13,982,682 |
|
|
9,421,024 |
|
||||
|
12,932,902 |
|
|
10,620,467 |
|
|
42,624,353 |
|
|
31,950,250 |
|
|||||
| Loss from operations |
|
(2,045,729 |
) |
|
(1,107,715 |
) |
|
(10,155,556 |
) |
|
(5,744,247 |
) |
||||
| Other (expense) income, net |
|
(50,954 |
) |
|
167,946 |
|
|
89,267 |
|
|
75,304 |
|
||||
| Loss before provision for income taxes and net (income) loss from noncontrolling interest |
|
(2,096,683 |
) |
|
(939,769 |
) |
|
(10,066,289 |
) |
|
(5,668,943 |
) |
||||
| Tax provision |
|
(32,000 |
) |
|
(29,000 |
) |
|
(97,000 |
) |
|
(100,000 |
) |
||||
| Net loss |
|
(2,128,683 |
) |
|
(968,769 |
) |
|
(10,163,289 |
) |
|
(5,768,943 |
) |
||||
| Net (income) loss attributable to noncontrolling interest |
|
(107 |
) |
|
11,329 |
|
|
39,394 |
|
|
94,443 |
|
||||
| Net loss attributable to |
$ |
(2,128,790 |
) |
$ |
(957,440 |
) |
$ |
(10,123,895 |
) |
$ |
(5,674,500 |
) |
||||
| Net loss per share: | ||||||||||||||||
| Basic and diluted | $ |
(0.02 |
) |
$ |
(0.01 |
) |
$ |
(0.11 |
) |
$ |
(0.07 |
) |
||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic and diluted |
|
90,517,330 |
|
|
82,596,416 |
|
|
88,903,658 |
|
|
82,567,401 |
|
||||
Condensed Consolidated Balance Sheets |
||||||||
(Unaudited) |
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|
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| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and marketable securities | $ |
31,763,687 |
|
$ |
20,748,550 |
|
||
| Accounts receivable, net |
|
7,348,721 |
|
|
9,260,865 |
|
||
| Inventory |
|
6,739,017 |
|
|
4,455,756 |
|
||
| Contract assets and unbilled receivables |
|
2,792,901 |
|
|
3,521,753 |
|
||
| Prepaid and other current assets |
|
1,999,848 |
|
|
1,469,256 |
|
||
| Total current assets |
|
50,644,174 |
|
|
39,456,180 |
|
||
| Plant and equipment, net |
|
1,855,451 |
|
|
1,626,930 |
|
||
| Operating lease right-of-use assets |
|
1,719,089 |
|
|
1,780,039 |
|
||
| Other assets |
|
170,932 |
|
|
162,473 |
|
||
| Equity investments |
|
4,559,756 |
|
|
4,523,525 |
|
||
| Total assets | $ |
58,949,403 |
|
$ |
47,549,147 |
|
||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
3,635,708 |
|
$ |
5,606,910 |
|
||
| Accrued expenses |
|
5,224,026 |
|
|
4,295,346 |
|
||
| Contract liabilities and billings in excess of revenue earned |
|
1,269,523 |
|
|
1,493,847 |
|
||
| Operating lease liabilities |
|
889,076 |
|
|
982,375 |
|
||
| Customer deposits |
|
2,167,228 |
|
|
3,950,031 |
|
||
| Deferred tax liabilities |
|
514,000 |
|
|
554,000 |
|
||
| Total current liabilities |
|
13,699,561 |
|
|
16,882,509 |
|
||
| Other long term liabilities |
|
1,573,004 |
|
|
1,546,737 |
|
||
| Operating lease liabilities, net of current portion |
|
812,351 |
|
|
821,306 |
|
||
|
43,040,716 |
|
|
28,435,431 |
|
|||
| Noncontrolling interest |
|
(176,230 |
) |
|
(136,836 |
) |
||
| Total stockholders' equity |
|
42,864,486 |
|
|
28,298,595 |
|
||
| Total liabilities and stockholders' equity | $ |
58,949,402 |
|
$ |
47,549,147 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20211102005447/en/
For Further Information Please Contact:
Treasurer and Chief Financial Officer
Richard_Sneider@kopin.com
or
JHorne@marketstreetpartners.com
Source:
FAQ
What are Kopin Corporation's Q3 2021 revenues and growth rate?
What was the net loss reported by KOPN in Q3 2021?
What major orders did KOPN announce in Q3 2021?
How much cash did KOPN have at the end of Q3 2021?
What impact did supply chain challenges have on KOPN's Q3 2021 results?
