Earnings report (.06 vs concensus .05):
_________________
Kopin Posts 207 Percent Gain in Second Quarter Product Revenue; Net Income Reaches a Record $3.8 Million
TAUNTON, Mass.--(BUSINESS WIRE)--July 27, 2000--Kopin Corporation (NASDAQ: KOPN), a leading developer and manufacturer of gallium arsenide (GaAs) heterojunction bipolar transistor (HBT) products and miniature flat panel displays, today reported financial results for the second quarter ended July 1, 2000.
Financial highlights for the period included:
-- Revenue increased 183 percent to a record $24,395,000 compared
to $8,614,000 for the same period in 1999, and rose 24 percent
sequentially.
-- Product revenue increased 207 percent to $24,332,000 in the
second quarter from $7,926,000 for the same period a year ago, and 26
percent sequentially from $19,310,000 in the first quarter of 2000.
-- Net income climbed to $3,815,000 or $0.06 per fully diluted
share, from $147,000 or $0.00 per fully diluted share, in the second
quarter of 1999, and increased 68 percent from the sequential quarter.
-- Revenue from GaAs HBT products increased 194 percent to
$19,487,000 from $6,624,000 for the second quarter of 1999, and 19
percent from the first quarter of 2000.
-- CyberDisplay revenue increased 258 percent to $4,845,000 from
$1,354,000 for the second quarter of 1999 and up 69 percent from
$2,875,000 in the first quarter of 2000.
For the six months ended July 1, 2000, revenue was $44,134,000 compared to $15,344,000 for the same period last year, an increase of 188 percent. Net income for the most recent six-month period was $6,088,000 or $0.09 per share, versus $352,000, or $0.01 per share, for the identical period a year earlier. Revenue from GaAs HBT products rose 187 percent to $35,922,000 from $12,538,000 for the year-ago period. Revenue from CyberDisplay products increased 442 percent to $7,720,000 for the six months ending July 1, 2000 compared to $1,424,000 for the same six-month period one year earlier.
Overall Company Outlook
"Our financial results reflect the solid growth that both our GaAs HBT and CyberDisplay businesses enjoyed during the second quarter. For the third quarter, despite the projected softening of HBT sales, we still expect some sequential total revenue growth because of the growth in our CyberDisplay business. We expect rapid growth to resume in the fourth quarter, " said Dr. John C.C. Fan, Kopin's president and chief executive officer.
HBT Outlook
Commenting on Kopin's business outlook, Fan said, "We have just completed a record quarter for sales of our gallium arsenide products and we believe the long-term fundamentals for the wireless handset market are still very positive. However, as Conexant, our largest customer, discussed last week and Nokia indicated just yesterday, it appears that third-quarter wireless handset sales will be flat. Given that outlook, we expect that our HBT sales will be flat in the third quarter, but will resume sequential growth in the fourth quarter."
CyberDisplay Outlook
Kopin continues to experience strong growth, which has been fueled by orders from companies including Matsushita (Panasonic) and JVC, as well as new orders from Samsung Electronics. In May 2000, Samsung introduced in Europe and the United States six new camcorder models equipped with the Kopin CyberDisplay 320. Companies comprising 60 percent of the world camcorder market now use Kopin's CyberDisplay.
Reflecting the consistent growth of its CyberDisplay business, Kopin this morning announced a $2.3 million contract to establish CyberDisplay 1280 production capability for the U.S. Army's COMANCHE helicopter program.
"During the quarter we continued to extend our position as the enabling technology for imaging applications," Fan said. "The U.S. Army's order is another example of the depth and versatility of our CyberDisplay, and of our ability to produce the display to the exacting specifications."
Strategy
"Kopin's HBT strategy is to partner with the leading circuit manufacturers in each of the world's dominant wireless handset platforms as well as in the exploding market for broadband fiber optics," Fan said. "In our CyberDisplay business, Kopin's mission is to continue to grow its market share in camcorders while securing design and production wins for digital cameras, 3G wireless handsets and other next-generation communications devices that will require state-of-the-art display content. Capacity expansion remains the key to successfully executing this strategy and to enabling Kopin to strengthen its position as a high volume producer in each of these markets. We continue to be excited about our future and believe we are well positioned to be a market leader."
About Kopin
Kopin Corporation is a leading manufacturer of gallium arsenide (GaAs) transistor products and miniature flat panel displays for wireless communications and portable consumer electronics. The Company's GaAs heterojunction bipolar transistors are used to produce power amplifier circuits for wireless telephone handsets and gigabit circuits for fiber optic and Internet data transmission. Kopin's CyberDisplay family of ultra-small, high density imaging devices is designed for ultra-portable products including camcorders, digital cameras and wireless handsets. Kopin's Web site is located at www.kopin.com.
Statements in this news release about Kopin Corporation's second quarter 2000 financial results and the Company's expectations for future growth may be considered "forward-looking" statements under the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties that could materially affect future results. Among these risk factors are general economic and business conditions and growth in the flat panel display and gallium arsenide integrated circuit and materials industries, the impact of competitive products and pricing, availability of third-party components, availability of integrated circuit fabrication facilities, cost and yields associated with production of the Company's CyberDisplay imaging devices and HBT transistor wafers, loss of significant customers, acceptance of the Company's products, continuation of strategic relationships and other risk factors and cautionary statements listed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission, including but not limited to the Company's annual report on Form 10-K for the year ended December 31, 1999.
Kopin Corporation
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended Six Months Ended
July 1 July 3 July 1 July 3
2000 1999 2000 1999
Revenue:
Product sales $24,332,145 $ 7,926,132 $43,642,408 $13,911,064
Research and
development 62,499 688,269 491,999 1,432,933
24,394,644 8,614,401 44,134,407 15,343,997
Costs and expenses:
Cost of sales 16,829,991 5,891,308 30,807,039 9,821,482
Research and
development 1,426,068 1,347,670 4,527,935 3,346,814
Selling, general
and administrative 3,354,580 1,421,067 4,981,116 2,343,997
Other 312,174 91,375 400,074 179,275
21,922,813 8,751,420 40,716,164 15,691,568
Income (loss)
from operations 2,471,831 (137,019) 3,418,243 (347,571)
Other income
and expense:
Interest and
other income 1,446,506 407,120 2,885,569 941,636
Interest (100,160) (97,896) (186,046) (216,160)
1,346,346 309,224 2,699,523 725,476
Net income before
minority interest 3,818,177 172,205 6,117,766 377,905
Minority interest (3,002) (25,682) (29,849) (25,515)
Net income $ 3,815,175 $ 146,523 $ 6,087,917 $ 352,390
Net income
per share
-Basic $ 0.06 $ 0.00 $ 0.10 $ 0.01
Net income
per share
-Diluted $ 0.06 $ 0.00 $ 0.09 $ 0.01
Weighted average
number of
common shares
outstanding
- Basic 63,037,210 49,745,576 62,520,160 49,647,528
Weighted average
number of
common shares
outstanding
- Diluted 68,154,383 52,598,432 68,068,015 52,576,408
Kopin Corporation
Condensed Consolidated Balance Sheet
July 1, December 31,
2000 1999
(Unaudited)
ASSETS
Current assets:
Cash and equivalents $95,533,374 $ 99,099,403
Accounts receivable, net 15,399,301 11,202,982
Inventory 4,154,116 6,157,195
Prepaid expenses 1,166,341 1,651,905
Total current assets 116,253,132 118,111,485
Equipment and
improvements, net 31,056,741 20,671,261
Other assets 8,551,612 4,352,793
Intangible assets 1,696,430 1,938,190
Total assets $157,557,915 $145,073,729
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and
accrued expenses $10,581,693 $9,487,726
Current portion of
long-term obligations 1,617,836 2,142,373
Total current liabilities 12,199,529 11,630,099
Long-term obligations,
less current portion 1,750,000 2,567,100
Minority interest 1,323,105 809,238
Stockholders' equity 142,285,281 130,067,292
Total liabilities and
stockholders' equity $157,557,915 $145,073,729
CONTACT: Richard Sneider
Chief Financial Officer
Kopin Corporation
(508) 824-6696
rsneider@kopin.com
or
Scott Solomon
Vice President
Sharon Merrill Associates, Inc.
(617) 542-5300
ssolomon@investorrelations.com |
