Kopin Reports Good Results for First Quarter 2022
Kopin Corporation (Nasdaq: KOPN) reported Q1 2022 revenues of $11.6 million, flat compared to Q1 2021, amid supply chain challenges. Customer-funded R&D revenues surged 38% year-over-year, providing a robust development pipeline, particularly in micro OLED and LED displays. The company achieved a $4.7 million gain from equity investments. However, costs increased significantly, with R&D expenses rising by 52% to $5.4 million. Despite a net loss of $1.4 million, down from $4.1 million in the previous year, Kopin maintains a positive outlook for growth in AR and VR markets.
- Customer-funded R&D revenues increased 38% year-over-year.
- Strong backlog for defense production and enterprise business.
- Achieved a $4.7 million gain on equity investment.
- Total revenues were flat at $11.6 million compared to Q1 2021.
- R&D expenses rose 52% to $5.4 million, driven by increased project activity.
- Cost of products increased to 120% of net product revenues, indicating lower production efficiency.
-
Q1 2022 Total Revenues of
– Flat vs Q1 last year, despite supply chain challenges$11.6 Million -
Customer-funded Research & Development Revenues Increase 38% Year over Year - Micro OLED and LED Display Development Programs on Track
-
Gain on$4.7 Million Equity Investment
“We are off to a good start for fiscal year 2022. While revenues in the first quarter of 2022 were essentially flat with the first quarter of last year as we experienced some production disruption in the last few weeks of the quarter owing to certain materials shortages caused by the global supply chain issues, demand for our products remains strong,” said Dr.
“Our customer-funded R&D business continues to be strong with
“Despite the supply chain issues we experienced in the first quarter, we expect 2022 to be a year of good growth. The backlog for both our defense production programs and our enterprise business is strong for the remainder of the year, we expect to announce new design wins for our 3D AOI (automated optical inspection) spatial light modulators, and our micro OLED and micro LED display activities remain on track. We expect to continue to make strong progress in executing our strategy and believe that both AR and VR markets provide great growth opportunities, which Kopin is well positioned to capitalize on,” concluded
First Quarter Financial Results
Total revenues for the first quarter ended
Cost of Products Revenues for the first quarter ended
Research and Development (R&D) expenses for the first quarter of 2022 were
Selling, General and Administrative (SG&A) expenses were
Included in Other Income is a gain of
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
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About Kopin
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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 intermittent supply chain disruptions for some of our materials; our expectation that we will meet our financial growth goals for the year; our expectation that most of our development programs will convert to production programs following their development phases; our expectation that 2022 is to be a year of good growth; our expectation of announcing new design wins for our 3D AOI (automated optical inspection) spatial light modulators; our expectation that we will continue to make strong progress in executing our strategy; and our belief that both AR and VR markets provide great growth opportunities, which Kopin is well positioned to capitalize on. 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
Supplemental Information | |||||
(Unaudited) | |||||
Three Months Ended | |||||
Display Revenues by Category (in millions) | |||||
Defense | $ |
4.8 |
$ |
5.0 |
|
Industrial/Enterprise |
|
1.5 |
|
2.0 |
|
Consumer |
|
0.2 |
|
0.5 |
|
R&D |
|
4.9 |
|
3.6 |
|
License and Royalties |
|
0.2 |
|
0.6 |
|
Total | $ |
11.6 |
$ |
11.7 |
|
Stock-Based Compensation Expense | |||||
Cost of product revenues | $ |
67,000 |
$ |
134,000 |
|
Research and development |
|
147,000 |
|
94,000 |
|
Selling, general and administrative |
|
442,000 |
|
2,382,000 |
|
$ |
656,000 |
$ |
2,610,000 |
||
Other Financial Information | |||||
Depreciation and amortization | $ |
268,000 |
$ |
205,000 |
Condensed Consolidated Statements of Operations | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
Revenues: | |||||||
Net product revenues | $ |
6,507,528 |
|
$ |
7,568,845 |
|
|
Research and development |
|
4,908,033 |
|
|
3,560,743 |
|
|
Other revenues |
|
162,861 |
|
|
546,781 |
|
|
|
11,578,422 |
|
|
11,676,369 |
|
||
Expenses: | |||||||
Cost of product revenues |
|
7,782,879 |
|
|
6,396,671 |
|
|
Research and development |
|
5,408,613 |
|
|
3,563,300 |
|
|
Selling, general and administration |
|
4,464,548 |
|
|
5,905,706 |
|
|
|
17,656,040 |
|
|
15,865,677 |
|
||
Loss from operations |
|
(6,077,618 |
) |
|
(4,189,308 |
) |
|
Other income, net |
|
4,740,954 |
|
|
36,585 |
|
|
Loss before provision for income taxes and net loss from noncontrolling interest |
|
(1,336,664 |
) |
|
(4,152,723 |
) |
|
Tax provision |
|
(36,000 |
) |
|
(33,000 |
) |
|
Net loss |
|
(1,372,664 |
) |
|
(4,185,723 |
) |
|
Net loss attributable to noncontrolling interest |
|
23 |
|
|
39,485 |
|
|
Net loss attributable to |
$ |
(1,372,641 |
) |
$ |
(4,146,238 |
) |
|
Net loss per share: | |||||||
Basic and diluted | $ |
(0.02 |
) |
$ |
(0.05 |
) |
|
Weighted average number of common shares outstanding: | |||||||
Basic and diluted |
|
90,121,226 |
|
|
87,378,288 |
|
Condensed Consolidated Balance Sheets | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and marketable securities | $ |
26,318,580 |
|
$ |
29,295,466 |
|
|
Accounts receivable, net |
|
6,777,310 |
|
|
12,113,070 |
|
|
Inventory |
|
7,132,617 |
|
|
6,581,139 |
|
|
Contract assets and unbilled receivables |
|
2,552,201 |
|
|
2,299,392 |
|
|
Prepaid and other current assets |
|
2,214,197 |
|
|
1,918,678 |
|
|
Total current assets |
|
44,994,905 |
|
|
52,207,745 |
|
|
Plant and equipment, net |
|
1,939,506 |
|
|
1,888,963 |
|
|
Operating lease right-of-use assets |
|
3,630,555 |
|
|
3,828,066 |
|
|
Equity investments |
|
9,553,628 |
|
|
4,912,022 |
|
|
Other assets |
|
170,932 |
|
|
170,932 |
|
|
Total assets | $ |
60,289,526 |
|
$ |
63,007,728 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ |
5,865,030 |
|
$ |
5,483,970 |
|
|
Accrued expenses |
|
5,838,994 |
|
|
4,133,379 |
|
|
Customer deposits |
|
2,457,496 |
|
|
2,638,103 |
|
|
Deferred tax liabilities |
|
497,102 |
|
|
513,417 |
|
|
Contract liabilities and billings in excess of revenue earned |
|
1,756,202 |
|
|
4,063,031 |
|
|
Operating lease liabilities |
|
658,298 |
|
|
701,204 |
|
|
Total current liabilities |
|
17,073,122 |
|
|
17,533,104 |
|
|
Other long term liabilities |
|
1,568,663 |
|
|
2,739,531 |
|
|
Operating lease liabilities, net of current portion |
|
2,946,994 |
|
|
3,108,236 |
|
|
|
38,873,104 |
|
|
39,799,191 |
|
||
Noncontrolling interest |
|
(172,357 |
) |
|
(172,334 |
) |
|
Total stockholders' equity |
|
38,700,747 |
|
|
39,626,857 |
|
|
Total liabilities and stockholders' equity | $ |
60,289,526 |
|
$ |
63,007,728 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220503005381/en/
Treasurer and Chief Financial Officer
Richard_Sneider@kopin.com
Source:
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