Kopin Selected to Develop Integrated Eyepiece Assembly for US Army’s Next Generation-Short Range Interceptor Missile Program

Rhea-AI Summary

Kopin (NASDAQ: KOPN) has been awarded a contract to create a high-resolution eyepiece assembly for the U.S. Army's Next Generation-Short Range Interceptor (NG-SRI) system. This eyepiece will be used in the Commanders Launch Assembly (CLA), part of the Army's efforts to replace outdated Stinger missiles with more advanced technology. The NG-SRI aims to enhance short-range air defense by achieving faster speeds, overcoming enemy jamming, and targeting drones more accurately. Kopin's Senior VP, Bill Maffucci, highlighted the potential financial impact, estimating revenue of $5 to $10 million annually once production starts.

Positive

• Kopin secured a contract to develop a high-resolution eyepiece assembly for the U.S. Army's NG-SRI system.
• Potential revenue from the contract: $5 to $10 million annually once production begins.
• The contract represents a significant market expansion for Kopin.

Negative

• The reliance on future production and successful implementation for revenue realization.

Insights

Defense Industry Analyst

Kopin Corporation's contract to develop a high-resolution eyepiece assembly for the US Army's Next Generation-Short Range Interceptor (NG-SRI) program is a noteworthy development in the defense sector. This contract signifies an important shift towards more advanced and capable missile systems. The existing Stinger missiles, which have served for decades, are now becoming obsolete due to the evolving nature of threats and advancements in enemy technologies. The NG-SRI program aims to address these challenges by providing a faster, more precise weapon with enhanced capabilities against modern threats like drones and electronic jamming. For Kopin, this contract not only marks a significant validation of their technology but also represents a considerable growth opportunity in the defense market. The estimated revenue potential of $5 million to $10 million annually underscores the project’s financial impact. Additionally, the use of Kopin’s OLED microdisplays and proprietary optics highlights the increasing demand for advanced optical solutions in military applications, potentially opening further opportunities in similar projects within the defense sector.

Financial Analyst

From a financial perspective, Kopin’s new contract offers promising revenue potential, estimated between $5 million to $10 million annually once production begins. This contract could provide a steady revenue stream over several years, contributing to overall financial stability and growth. Investors should consider the implications of this steady influx of revenue on Kopin’s financial health, especially in the context of the company’s broader portfolio and market performance. Furthermore, this contract could enhance Kopin's market position and reputation, possibly leading to more contracts within the defense sector or related markets. However, investors should remain mindful of potential risks, including production delays, cost overruns, or changes in defense spending priorities which could impact the financial outcomes.

Market Research Analyst

Kopin Corporation’s involvement in the NG-SRI program represents a strategic expansion into a high-demand market. The defense sector’s move towards more sophisticated and precise weapon systems aligns with global trends of modernizing military capabilities. Kopin’s technology, particularly their OLED microdisplays and wide field-of-view optics, positions them well within this growing market. The company’s ability to secure such a high-profile contract may enhance its competitive edge and brand reputation, potentially leading to additional opportunities. For retail investors, understanding these market dynamics is crucial, as Kopin’s advancements may signal long-term growth potential not just from this contract but from possible future engagements in similar high-tech military projects.

WESTBOROUGH, Mass.--(BUSINESS WIRE)-- Kopin Corporation (NASDAQ: KOPN), a leading provider of application-specific optical solutions and high-performance micro-displays for defense, enterprise, consumer and medical products, today announced it has received a contract to develop a high-resolution eyepiece assembly for use in the new Commanders Launch Assembly (CLA), used in the US Army’s Next Generation-Short Range Interceptor (NG-SRI) system.

The U.S. Army has long-planned to pursue a next-generation interceptor for short-range air defense; and the effort has become even more urgent with US stockpiles of Stinger missiles now being sent to support in Ukraine. The Army is pursuing a Stinger missile replacement for short-range air defense that can achieve faster speeds, overcome enemy radio-frequency jamming and hit more challenging targets, like drones, with greater precision and accuracy, according to the service’s Program Executive Officer for Missiles and Space.

More than 100,000 Stinger missiles were produced during the production run of the original version. The Army no longer builds the original version of the Stinger missiles and envisions replacing the old missiles and future demands, with the NG-SRI design.

“We are very pleased to be selected for this important program; and we believe a Kopin high performance Organic Light Emitting Diode (OLED) microdisplay, when coupled with our proprietary wide field-of-view optics, is an ideal solution for NG-SRI,” said Bill Maffucci, Kopin’s Senior Vice President of Business Development and Strategy. “We believe the opportunity to supply our eyepiece assemblies for missile launch targeting and control systems provides Kopin with a significant expansion of our market, product base, production quantities and significant revenue potential of approximately $5 million to $10 million per year, for several years, once production begins.”

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.

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 our belief that a Kopin’s high performance Organic Light Emitting Diode (OLED) microdisplay, when coupled with our proprietary wide field-of-view optics, is an ideal solution for NG-SRI; and our belief that the opportunity to supply our eyepiece assemblies for missile launch targeting and control systems provides Kopin with a significant expansion of our market, product base, production quantities and significant revenue potential of approximately $5 million to $10 million per year, for several years, once production begins. 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 our Securities and Exchange Commission filings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240626420192/en/

Kopin Corporation

Bill Maffucci, 508-870-5959

SVP of Business Development and Strategy,

bmaffucci@kopin.com

Richard Sneider, 508-870-5959

Treasurer and Chief Financial Officer

Richard_Sneider@kopin.com

or

MZ Contact:

Brian M. Prenoveau, CFA, 561 489 5315

MZ Group – MZ North America

KOPIN@mzgroup.us

LightSpeed PR Contact:

Michael Farino

Michael@lightspeedpr.com

Source: Kopin Corporation

FAQ

What is Kopin's new contract with the U.S. Army about?

Kopin has been awarded a contract to develop a high-resolution eyepiece assembly for the U.S. Army's Next Generation-Short Range Interceptor (NG-SRI) system.

How much revenue is expected from Kopin's new contract?

Kopin estimates the contract could generate $5 to $10 million in annual revenue once production begins.

What system will Kopin's eyepiece assembly be used in?

The eyepiece assembly will be used in the Commanders Launch Assembly (CLA) of the U.S. Army's NG-SRI system.

Why is the U.S. Army interested in the NG-SRI system?

The NG-SRI system aims to replace outdated Stinger missiles, offering faster speeds, better resistance to enemy jamming, and improved targeting of drones.

What technology will Kopin use in the eyepiece assembly?

Kopin will use a high-performance Organic Light Emitting Diode (OLED) microdisplay coupled with proprietary wide field-of-view optics.