(BSNS WIRE) Kopin Reports 145 Percent Increase in Third-Quarter Revenue; Ne
Kopin Reports 145 Percent Increase in Third-Quarter Revenue; Net Income Reaches
Record $4.1 million
Business/Technology Editors
TAUNTON, Mass.--(BUSINESS WIRE)--Oct. 26, 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 third quarter ended September 30, 2000.
Financial highlights for the period included:
--Revenue increased 145 percent to $23,830,731 compared to
$9,736,281 for the same period in 1999.
--Product revenue increased 153 percent to $23,279,680 in the
third quarter from $9,191,188 for the same period a year ago.
--Net income of $4,191,281 or $0.06 per fully diluted share,
increased from a net loss of $353,785, or $0.03 per fully diluted
share, in the third quarter of 1999.
--Revenue from GaAs products increased 133 percent to $17,930,268
from $7,702,000 for the third quarter of 1999.
--CyberDisplay revenue increased 259 percent to $5,349,412 from
$1,489,188 for the third quarter of 1999.
For the nine months ended September 30, 2000, revenue was $68.0
million compared with $25.1 million for the same period last year, an
increase of 171 percent. Net income for the most recent nine-month
period was $10.3 million, or $0.15 per share, versus a net loss of
$1,395, or $0.00 per share, for the same period a year earlier.
Revenue from gallium arsenide products rose 167 percent to $53.9
million from $20.2 million for the year-ago period. Revenue from
CyberDisplay products increased 368 percent to $13.1 million for the
nine months ending September 30, 2000 compared with $2.8 million for
the same nine-month period one year earlier.
"We enjoyed substantial year-over-year gains in both our GaAs and
CyberDisplay businesses, and our nine-month revenues and earnings
surpass 1998 and 1999 combined," said Dr. John C.C. Fan, Kopin's
president and chief executive officer. "Despite softness in the
wireless handset market and the difficulty of a couple suppliers in
keeping up with our aggressive CyberDisplay production schedule, which
made the third quarter challenging, we were still able to deliver
record profits."
In its GaAs business, Kopin continued to see strong demand in the
third quarter from partners such as Nortel Networks, for transistors
that are incorporated into their high-speed OC-192 SONET chipsets. "We
remain bullish about the long-term outlook for both the wireless and
optical markets, and are confident that we are well-positioned to
capitalize on their future growth," continued Fan.
During the third quarter, Kopin announced the formation of its
Optical Communication Products Group, which will focus on developing
new technologies and products for emerging broadband telecom
applications.
In September, Kopin named Dr. Hong Choi to chief technology
officer. Dr. Choi, who spent 17 years at the Massachusetts Institute
of Technology's Lincoln Laboratory, is spearheading new market
opportunities across both the GaAs and CyberDisplay businesses. Under
Dr. Choi's direction, Kopin plans to augment the success of its
fiber-optics business with next generation optoelectronic
manufacturing capabilities to take advantage of emerging uses of
optical devices for communications applications.
As part of that effort, Kopin this week announced the acquisition
of privately held Super Epitaxial Products, Inc. (SEP), a leader in
the research and development of materials and devices. "As a
cornerstone of our plans to broaden the scope of Kopin's optical
communications business, SEP dovetails with our GaAs technology and
wafer manufacturing capabilities," Dr. Fan said.
CyberDisplay Highlights
Just one year after beginning commercial production of the
product, during the third quarter of 2000 Kopin shipped its
one-millionth CyberDisplay. "Opportunities for our CyberDisplay have
never been more expansive," Dr. Fan said. "Our partnership
announcement this week with ACCESS Co. of Japan, to package our
CyberDisplay with ACCESS' NetFront software is just one example of
those opportunities. Our collaboration is the first of its kind to use
small format, high resolution displays to create video-enabled
Web-browsing capabilities in portable electronic devices including 3G
wireless phones. ACCESS NetFront Software is the current platform used
in NTT DoCoMo i-mode phones in Japan.
Business Outlook
Commenting on the outlook for Kopin's GaAs business, Dr. Fan said,
"The transition to new technologies and products in wireless made our
third quarter challenging. While we expect that gallium arsenide
revenue in the fourth quarter of 2000 will be even with the third
quarter, industry projections and our own discussions with customers
suggest that we will see growth resume again in the first quarter of
2001.
"To accommodate that growth, we continue to move ahead with our
gallium arsenide expansion," Dr. Fan continued. "We expect that our
new fab in Taunton will be up and running by the end of the current
quarter. This new fab will provide highly scalable production capacity
that should allow us to reduce lead times and deliver a predictable
supply.
Concluded Fan, "Our aggressive ramp-up schedule for CyberDisplay
has put significant stress on our suppliers. We are working with our
suppliers to resolve the production issues. We are forecasting flat
revenue until they catch up."
Third-quarter Conference Call
Kopin will provide a live audio Webcast of its third-quarter
conference call for investors at 5:00 p.m today. Investors who want to
hear the call should log on to the investor relations section of
Kopin's Web site, www.kopin.com, at least 15 minutes prior to the
event's broadcast. Then, follow the instructions provided to assure
that the necessary audio applications are downloaded and installed.
The call will be available on the investor relations section for one
week. After that, investors can access an archived version of the call
on Kopin's Web site.
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
third-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.
The Company's condensed consolidated statement of operations and
balance sheet are attached.
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Kopin Corporation
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended
September 30, October 2,
2000 1999
Revenue:
Product sales $ 23,279,680 $ 9,191,188
Research and development 551,051 545,093
23,830,731 9,736,281
Costs and expenses:
Cost of sales 17,643,127 7,162,856
Research and development 1,713,681 1,550,513
Selling, general and
administrative 1,520,358 1,525,932
Other 66,900 89,816
20,944,066 10,329,117
Income (loss) from operations 2,886,665 (592,836)
Other income and expense:
Interest and other income 1,446,321 374,814
Interest (94,290) (85,622)
1,352,031 289,192
Net income before minority
interest 4,238,696 (303,644)
Minority interest (47,414) (50,141)
Net income $ 4,191,282 $ (353,785)
Net income per share -Basic $ 0.07 $ (0.01)
Net income per share -Diluted $ 0.06 $ (0.01)
Weighted average number of
common shares
outstanding - Basic 63,237,559 50,331,780
Weighted average number of
common shares
outstanding - Diluted 67,278,717 50,331,780
Nine Months Ended
September 30, October 2,
2000 1999
Revenue:
Product sales $ 66,922,088 $ 23,102,252
Research and development 1,043,050 1,978,026
67,965,138 25,080,278
Costs and expenses:
Cost of sales 48,450,166 16,984,338
Research and development 6,241,616 4,897,327
Selling, general and
administrative 6,501,474 3,869,929
Other 466,974 269,091
61,660,230 26,020,685
Income (loss) from operations 6,304,908 (940,407)
Other income and expense:
Interest and other income 4,331,890 1,316,450
Interest (280,336) (301,782)
4,051,554 1,014,668
Net income before minority
interest 10,356,462 74,261
Minority interest (77,263) (75,656)
Net income $ 10,279,199 $ (1,395)
Net income per share -Basic $ 0.16 $ --
Net income per share -Diluted $ 0.15 $ --
Weighted average number of
common shares
outstanding - Basic 62,759,293 49,873,132
Weighted average number of
common shares
outstanding - Diluted 67,714,654 49,873,132
See notes to consolidated financial statements.
Kopin Corporation
Condensed Consolidated Balance Sheet
September 30, December 31,
2000 1999
(Unaudited)
ASSETS
Current assets:
Cash and equivalents $ 87,037,865 $ 99,099,403
Accounts receivable, net 16,839,932 11,202,982
Inventory 4,500,765 6,157,195
Prepaid expenses 1,434,164 1,651,905
Total current assets 109,812,726 118,111,485
Equipment and improvements, net 38,668,337 20,671,261
Other assets 9,909,587 4,352,793
Intangible assets 1,629,529 1,938,190
Total assets $160,020,179 $145,073,729
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued
expenses $ 8,866,935 $ 9,487,726
Current portion of long-term
obligations 1,531,887 2,142,373
Total current liabilities 10,398,822 11,630,099
Long-term obligations, less
current portion 1,500,000 2,567,100
Minority interest 1,368,786 809,238
Stockholders' equity 146,752,571 130,067,292
Total liabilities and
stockholders' equity $160,020,179 $145,073,729
See notes to consolidated financial statements.
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--30--jb/bos*
CONTACT: Kopin Corporation
Richard Sneider
(508) 824-6696
rsneider@kopin.com
or
Sharon Merrill Associates, Inc.
Scott Solomon
(617) 542-5300
ssolomon@InvestorRelations.com
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
ELECTRONIC GAMES/MULTIMEDIA HARDWARE INTERNET MANUFACTURING EARNINGS
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