WESTBOROUGH, Mass.--(BUSINESS WIRE)--Second column header of Condensed Consolidated Balance Sheets table should read: December 27, 2014 (instead of December 27, 2017).
The corrected release reads:
KOPIN PROVIDES BUSINESS UPDATE AND SECOND QUARTER 2015 OPERATING RESULTS
- Revenues Increase 56% Year over Year, Including Initial Component Shipments to Tier 1 Headset Customers
- Company Generates $5.5 Million From Sale of Investment
- Posts $.01 per Diluted Share Earnings
Kopin Corporation (KOPN), a leading developer of innovative wearable computing technologies and solutions, today provided an update on its business initiatives and reported financial results for the second quarter of 2015, ended June 27.
“We are very pleased with our progress in becoming the leading technology provider to the growing wearables market,” said Dr. John C.C. Fan, Kopin’s President and CEO. “In addition to our displays and compact optics technologies, we are very excited with our unique Voice Extraction™ technology that significantly improves the speech recognition in noisy environments.”
“In the second quarter, we announced that Fujitsu had launched their enterprise headset based on our wearable technologies and components. When you add Fujitsu to our existing customers, combined with the expected launch of a wearable product by another Tier 1 company in 2015, Kopin is providing system designs and components to the companies creating the most innovative products in the global headset market,” said Dr. John C.C. Fan, CEO and President of Kopin. “In September 2015 we plan to debut our latest consumer headset system targeted at the health and fitness market at the interbike trade show in Las Vegas.”
“Our progress in headsets would not be possible without the expertise and knowledge we have gained from our military programs. In Q2, Kopin began fulfilling initial production orders for our SXGA (1280 x 1024 resolution) displays, which are a key component in the helmets worn by fighter pilots in the new F-35. We also made progress in marketing our precision acquisition target system (PATS), with the goal of reaching license agreements in 2015 and revenue generation in 2016.”
“While we continue to make significant investments in display, optics, Voice Extraction and other technologies, we have remained fiscally conservative. With over $88 million in cash and marketable securities at the end of the second quarter, we have the resources to expand the Kopin ecosystem of wearables suppliers utilizing our components,” concluded Dr. Fan.
Second Quarter Financial Results
Total revenues for the second quarter ended June 27, 2015, were $10.9 million, compared with $6.9 million for the second quarter of 2014. Included in 2015 revenues was $3.8 million related to renegotiated contract terms due to the customer’s lowered forecasted program volumes.
Research and development expenses for the second quarter of 2015 were $4.9 million compared with $5.1 million for the second quarter of 2014.
Selling, general and administrative expenses were $5.1 million in the second quarter of 2015, compared with approximately $4.9 million in the same period of 2014, reflecting an increase in compensation for new hires, patent, information technology and travel expenses which were partially offset by lower stock compensation expenses.
Other income and expense was $6.2 million of income for the second quarter of 2015 as compared to an expense of $1.6 million for the second quarter of 2014. Included in the $6.2 million is a gain on the sale of our investment in Recon Instruments, which was acquired by Intel. Included in the 2014 expense of $1.6 million was an impairment charge on an investment of $1.3 million.
Net income for the second quarter of 2015 was $781,000, or $0.01 per diluted share, compared with net loss of $8.8 million, or $0.14 per share, for the same period of 2014.
Net cash used in operating activities for the three and six months ended June 27, 2015, was $3.4 million and $8.9 million, respectively. Kopin’s cash, equivalents and marketable securities was $88.3 million at June 27, 2015. Kopin has no long-term debt. Our cash position is expected to be further enhanced in January of 2016 when we expect to receive payment of the $15 million note receivable from the sale of our III-V product line and investment in Kopin Taiwan Corporation.
All amounts above are estimates and readers should refer to our Form 10-Q for the quarter ended June 27, 2015, for final disposition.
Financial Results Conference Call
In conjunction with its second quarter 2015 financial results, Kopin will host a teleconference call for investors and analysts at 9:00 a.m. ET today. To participate, please dial (877) 709-8150 (U.S. and Canada) or (201) 689-8354 (International). The call will also be available as a live and archived audio webcast on the “Investors” section of the Kopin website, www.kopin.com.
About Kopin
Kopin Corporation is a leading developer and provider of innovative wearable technologies and solutions for integration into head-worn computing and display systems to military, industrial and consumer customers. Kopin’s technology portfolio includes ultra-small displays, optics, speech enhancement technology, system and hands-free control software, low-power ASICs, and ergonomically designed smart headset reference systems. Kopin’s proprietary components and technology are protected by more than 300 global patents and patents pending. For more information, please visit Kopin’s website at www.kopin.com.
Kopin and Voice Extraction are trademarks of Kopin Corporation.
Forward-Looking Statements
Statements in this press release may be considered “forward-looking” statements under the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These include, without limitation, statements relating to our expectation that a tier 1 customer will launch a wearable product in 2015; that we expect to show our latest systems technologies targeted to the health and fitness consumer market at the interbike trade show in Las Vegas, in September; our goal of reaching license agreements for our precision acquisition targeting system (PATs) in 2015 and generating revenue in 2016; our belief that we have the resources to expand the Kopin ecosystem of wearables suppliers utilizing our components; our expectation that we will receive payment of the $15 million note receivable from the sale of our III-V product line and investment in Kopin Taiwan Corporation, in January 2016. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: our customer may not launch its product; technical, environmental, scheduling and other issues may prevent us from presenting at the interbike trade show in September; we may not be able to enter into any licensing agreements for our precision acquisition targeting system (PATs); we may have insufficient resources to expand the Kopin’s ecosystem of wearables suppliers utilizing our components; we may not receive the payment of the $15 million note receivable from the sale of our III-V product line and investment in Kopin Taiwan Corporation; the final amounts in the Company’s Form 10-Q for the period ended June 27, 2015, may differ from the amounts included in the release above; it may take longer than the Company estimates to develop products; the Company’s products may not be accepted by the market place; there may be issues that prevent the adoption or further development of the Company’s wearable computing technologies; manufacturing, marketing or other issues may prevent either the adoption or acceptance of products; the Company might be adversely affected by competitive products and pricing; new product initiatives and other research and development efforts may be unsuccessful; the Company could experience the loss of significant customers; costs to produce the Company’s products might increase significantly, or yields could decline; the Company’s customers might be unable to ramp production volumes of their products, or the Company’s product forecasts could turn out to be wrong; manufacturing delays, technical issues, economic conditions or external factors may prevent the Company from achieving its goals; and other risk factors and cautionary statements listed in the Company’s periodic reports and registration statements filed with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the 12 months ended December 27, 2014, and the Company’s subsequent filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company and only as of the date on which they are made. The Company undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances occurring after the date of this report.
| Kopin Corporation | ||||||||||||
| Supplemental Information | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
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June 27, 2015 |
June 28, 2014 |
June 27, 2015 |
June 28, 2014 |
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| Display Revenues by Category (in millions) | ||||||||||||
| Military Applications | $ | 2.4 | $ | 1.5 | $ | 7.0 | $ | 2.6 | ||||
| Industrial Applications | 0.7 | 1.0 | 1.7 | 1.7 | ||||||||
| Wearable Applications | 6.0 | 1.5 | 7.1 | 3.1 | ||||||||
| Consumer Electronics Applications | 0.4 | 0.9 | 0.8 | 1.7 | ||||||||
| Research and Development | 1.4 | 2.0 | 2.8 | 2.5 | ||||||||
| Total | $ | 10.9 | $ | 6.9 | $ | 19.4 | $ | 11.6 | ||||
| Stock-Based Compensation Expense | ||||||||||||
|
Continuing Operations |
||||||||||||
| Cost of component revenues | $ | 262,000 | $ | 242,000 | $ | 461,000 | $ | 472,000 | ||||
| Research and development | 269,000 | 305,000 | 504,000 | 637,000 | ||||||||
| Selling, general and administrative | 494,000 | 688,000 | 1,057,000 | 1,253,000 | ||||||||
| $ | 1,025,000 | $ | 1,235,000 | $ | 2,022,000 | $ | 2,362,000 | |||||
| Other Financial Information | ||||||||||||
| Depreciation and amortization | $ | 509,000 | $ | 847,000 | $ | 1,190,000 | $ | 1,780,000 | ||||
| Capital expenditures | $ | 337,000 | $ | 534,000 | $ | 652,000 | $ | 978,000 | ||||
| Treasury stock purchases | $ | - | $ | - | $ | - | $ | 299,000 | ||||
| Kopin Corporation | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
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June 27, 2015 |
June 28, 2014 |
June 27, 2015 |
June 28, 2014 |
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| Revenues: | ||||||||||||||||
| Component revenues | $ | 9,486,723 | $ | 4,906,663 | $ | 16,615,093 | $ | 9,134,422 | ||||||||
| Research and development revenues | 1,369,883 | 2,036,624 | 2,826,505 | 2,503,634 | ||||||||||||
| 10,856,606 | 6,943,287 | 19,441,598 | 11,638,056 | |||||||||||||
| Expenses: | ||||||||||||||||
| Cost of component revenues | 6,359,780 | 4,153,739 | 11,643,513 | 8,379,188 | ||||||||||||
| Research and development | 4,884,010 | 5,137,033 | 9,744,202 | 10,223,317 | ||||||||||||
| Selling, general and administrative | 5,108,229 | 4,921,194 | 9,494,444 | 9,917,993 | ||||||||||||
| 16,352,019 | 14,211,966 | 30,882,159 | 28,520,498 | |||||||||||||
| Loss from operations | (5,495,412 | ) | (7,268,679 | ) | (11,440,561 | ) | (16,882,442 | ) | ||||||||
| Other income (expense), net | 6,214,193 | (1,599,684 | ) | 8,406,198 | (1,119,935 | ) | ||||||||||
| Income (loss) before (provision) benefit for income taxes, equity loss in | 718,780 | (8,868,363 | ) | (3,034,363 | ) | (18,002,377 | ) | |||||||||
| unconsolidated affiliate and net loss from noncontrolling interest | ||||||||||||||||
| (Provision) benefit for income taxes | (12,500 | ) | (37,000 | ) | (25,000 | ) | 106,000 | |||||||||
| Income (loss) before equity loss in unconsolidated affiliate and net | 706,280 | (8,905,363 | ) | (3,059,363 | ) | (17,896,377 | ) | |||||||||
| loss from noncontrolling interest | ||||||||||||||||
| Equity loss in unconsolidated affiliate | - | (122,553 | ) | (47,443 | ) | (224,858 | ) | |||||||||
| Income (loss) from continuing operations | 706,280 | (9,027,916 | ) | (3,106,806 | ) | (18,121,235 | ) | |||||||||
| (Loss) income from discontinued operations, net of tax | - | - | - | - | ||||||||||||
| Net (loss) income | 706,280 | (9,027,916 | ) | (3,106,806 | ) | (18,121,235 | ) | |||||||||
| Net loss attributable to noncontrolling interest | 74,690 | 221,973 | 49,784 | 180,876 | ||||||||||||
| Net income (loss) | $ | 780,970 | $ | (8,805,943 | ) | $ | (3,057,022 | ) | $ | (17,940,359 | ) | |||||
| Net (loss) income per share: | ||||||||||||||||
| Basic | ||||||||||||||||
| Continuing operations | $ | 0.01 | $ | (0.14 | ) | $ | (0.05 | ) | $ | (0.29 | ) | |||||
| Discontinued operations | - | - | - | - | ||||||||||||
| Net (loss) income per share | $ | 0.01 | $ | (0.14 | ) | $ | (0.05 | ) | $ | (0.29 | ) | |||||
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Diluted |
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| Continuing operations | $ | 0.01 | $ | (0.14 | ) | $ | (0.05 | ) | $ | (0.29 | ) | |||||
| Discontinued operations | - | - | - | - | ||||||||||||
| Net (loss) income per share | $ | 0.01 | $ | (0.14 | ) | $ | (0.05 | ) | $ | (0.29 | ) | |||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 63,066,031 | 62,643,506 | 63,074,842 | 62,586,854 | ||||||||||||
| Diluted | 65,030,089 | 62,643,506 | 63,074,842 | 62,586,854 | ||||||||||||
| Kopin Corporation | ||||||||
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Condensed Consolidated Balance Sheets |
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| (Unaudited) | ||||||||
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June 27, 2015 |
December 27, 2014 |
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| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and marketable securities | $ | 88,320,562 | $ | 90,858,936 | ||||
| Accounts receivable, net | 8,457,514 | 3,802,324 | ||||||
| Inventory | 3,065,712 | 4,081,886 | ||||||
| Prepaid and other current assets | 853,329 | 1,181,474 | ||||||
| Note receivable | 14,966,671 | - | ||||||
| Total current assets | 115,663,788 | 99,924,620 | ||||||
| Equipment and improvements, net | 4,107,309 | 4,589,421 | ||||||
| Goodwill and intangible assets | 1,292,538 | 1,593,210 | ||||||
| Other assets | 2,943,350 | 1,900,828 | ||||||
| Note receivable | - | 14,933,335 | ||||||
| Total assets | $ | 124,006,985 | $ | 122,941,414 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,778,554 | $ | 5,503,734 | ||||
| Accrued expenses | 5,656,102 | 5,870,719 | ||||||
| Deferred income taxes | 1,282,000 | 1,282,000 | ||||||
| Billings in excess of revenue earned | 3,522,416 | 586,471 | ||||||
| Total current liabilities | 15,239,072 | 13,242,924 | ||||||
| Lease commitments | 314,812 | 311,187 | ||||||
| Total Kopin Corporation stockholders' equity | 108,993,599 | 109,846,959 | ||||||
| Noncontrolling interest | (540,498 | ) | (459,656 | ) | ||||
| Total stockholders' equity | 108,453,101 | 109,387,303 | ||||||
| Total liabilities and stockholders' equity | $ | 124,006,985 | $ | 122,941,414 | ||||