Jake, you ever check out KOPN? One of my longer term holdings. Secondary wireless play, Cyberdisplays. 6mth chart looks like this thing could pop, William%r steep incline.
Thinking of doubling up on this one.
Kopin Corporation (KOPN)
Price: $9.16
Buy
F01E: ($0.50)
F02E: $0.05
Sandy Harrison, Communications Components
“This week, Kopin announced revenue and earnings shortfall for Q2:01. The Company revised downward its Q2:01 revenue guidance to a range of $8.7 million to $9.2 million, down from $10 million to $12 million, and EPS (excluding one-time adjustments) in the range of ($0.20) to ($0.23), down from ($0.12) to ($0.17). The Company attributed the expected shortfall to softer than anticipated demand for its III-V (GaAs) products due to the continued weakness in the wireless and broadband communications markets. While orders from new customers continue to offer encouraging signs for future growth prospects, they were not large enough to make up for the overall decline driven by its larger customers who continue to work through excess inventories. On a positive note, demand for the Company’s CyberDisplay products remains strong, and is on track to grow approximately 40% sequentially, in line with our expectations. Accordingly, we are lowering our 2001 revenue and EPS estimates to $52.0 million and ($0.50), down from $58.0 million and ($0.37), respectively, to reflect the revised guidance. In addition, we are lowering our 2002 revenue and EPS estimates to $73.0 million and $0.05, down from $75.0 million and $0.07, respectively. We believe Kopin’s long-term fundamentals remain intact despite the persisting demand slowdown for wireless handsets and broadband access equipment. During this quarter, the Company has announced multi-year contracts to supply InGaP HBT wafers to Alpha Industries (AHAA:Nasdaq:Buy) and Anadigics (ANAD:Nasdaq:NR), and is currently shipping products to these new customers. The Company has also increased its R&D investments over the past few months and has made technological advances in the development of InP and GAIN HBTs. Additionally, we believe the expanding applications for its CyberDisplay products could provide further upside to the Company’s revenue pipeline. As such, we remain confident that the Company should be an early beneficiary upon the return of growth in the respective markets and we maintain our Buy rating.” |
