Kopin Receives $9Million Order for Thermal Weapon Sight Program
Options Could Increase the Order to $13Million
WESTBOROUGH, Mass.--(BUSINESS WIRE)--Kopin® Corporation (NASDAQ:KOPN), the largest U.S. developer of display systems for wearable technologies and military applications, today announced it has received a $9Million order for display modules in support of the U.S. Army’s Thermal Weapon Sight (TWS) program. This urgent order was placed by a major customer to replace a competing display technology which was not able to meet the stringent military specifications. As a result of this new order, we expect our revenue for 2014 will be in the range of $24Million to $28Million, an increase of $6Million from the earlier projection.
“Our overlay display systems for smart weapon sights can deliver brightness in excess of 5,000 ft-Lambert (or about 17,000 nits) for bright daytime use or very low brightness of 0.01 ft-Lambert for totally dark environments”
“Dismounted soldier environments such as TWS are the harshest environments for any product to endure,” stated Michael Presz, the Company’s Vice President of Government Programs. “We were informed that reliability issues were discovered with the alternative display technology during extensive testing. Our unique AMLCD technology, however, has demonstrated proven performance and reliability for the TWS program in over 15 years of deployment. Kopin has delivered more than 200,000 display units to the TWS program, either in component form, in a display module or as a complete eyepiece assembly, with essentially zero product returns.”
This urgent new order calls for the immediate delivery of Kopin’s VGA-resolution display modules, with continued production over the next 9 months. The customer has requested additional options which could continue production well into 2015 and increase the order to over $13 million if fully exercised.
“In addition to wearable technology, our defense business, based on very related technology, continues to be an important element of our overall mobile system strategy,” said Kopin President and Chief Executive Officer Dr. John C. C. Fan. “With our great success in the TWS program, we have now recorded over $300Million in total revenues from the defense sector. We believe the future in defense is tied to the development of the next-generation weapon sight technology. Kopin’s smart weapon sight system, consisting of Kopin’s ultra-high-brightness overlay display, Kopin’s see-through optics and symbology generator together with a laser-range-finder and ballistic calculator, provides critical targeting information to soldiers, day or night, through the use of augmented reality overlaid in a direct-view optical scope. We believe this patent-pending smart weapon sight, which can be installed on millions of existing commercial and military weapon sights worldwide, represents a game changer and an even bigger revenue opportunity for our defense business.”
“Our overlay display systems for smart weapon sights can deliver brightness in excess of 5,000 ft-Lambert (or about 17,000 nits) for bright daytime use or very low brightness of 0.01 ft-Lambert for totally dark environments,” continued Dr. Fan. “This ultra-high brightness display system including the symbology generator consumes only 200 mW displaying overlay symbology at 3,000 ft-Lambert (about 10,000 nits) brightness, which no other imaging system in the world can match. We expect our proprietary display technology to continue improving and breaking performance barriers, which will benefit both the wearable and military applications.”
Kopin is a leading developer and provider of innovative wearable technologies and solutions. Kopin’s technology portfolio includes ultra-small displays, optics, speech enhancement technology, software, low-power chipsets, and ergonomically designed headset computing systems. Kopin's proprietary components and technology are protected by more than 200 global patents and patents pending. For more information, please visit Kopin's website at www.kopin.com.
Safe Harbor Statement
Statements in this news release may be considered “forward-looking” statements under the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These include statements relating to the $9M production order for the U.S. Army’s Thermal Weapon Sight program which is expected to be fulfilled over a 9 month period; our expectation that our 2014 revenue will be increased to $24 million – $28 million; our customer’s options which can increase this order to approximately $13 million if fully exercised; our development of the next-generation weapon sight which will provide critical targeting information to soldiers, day or night, through the use of augmented reality overlaid on a direct-view optical scope; our expectation that the next-generation weapon sight represents a game changer for the US military and a large revenue opportunity for our defense business; and the expectation that our display technology will keep on improving and breaking performance barriers, which will benefit both wearable and military applications. 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, our eyepiece products lose qualification by the U.S. Army, the thermal weapon sight program could be cancelled, manufacturing, marketing or other issues that may prevent either the production, adoption or rapid acceptance of products; the customer may not exercise the options; new technologies may be adopted which replace LCD technologies, we may not be able to develop a scope that works in both day and night conditions, if we are able to develop a scope that works in day and night conditions there may be no demand for it, it may not be manufacturable or manufactured in a cost competitive way; competitive products and pricing; the loss of significant customers; the potential that costs to produce the Company’s microdisplay technology will increase significantly, or that yields will decline; the potential that military programs involving Kopin’s products will be delayed or cancelled; the potential that the Company’s military customers might be unable to ramp production volumes of their products; manufacturing delays, technical issues, economic conditions or external factors that may prevent the Company from achieving its forecasts; 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 28, 2013, and the Company’s subsequent filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no responsibility to update any of these forward-looking statements to reflect events or circumstances occurring after the date of this report.