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Technology Stocks : Kopin Corp. (KOPN) -- Ignore unavailable to you. Want to Upgrade?

To: John J. Riley who wrote (737)	7/12/1999 9:23:00 AM
From: kinkblot	Read Replies (1) \| Respond to of 1820

Lower-than-expected is expected, it's a recurring theme in the Kopin serial (quarterly since 1992). From the CSFB 'Research Alert' July 9th, disseminated by Reuters: CSFB said it thinks the company's aggressive pricing of its displays to solidify its leadership is the right strategy, but it will likely result in lower-than-expected 1999 revenue and earnings. I wonder what information Pitt is basing his estimates on? I find no discussion of CyberDisplay pricing in recent press releases from Kopin. Any information that could have a material impact on the price of KOPN stock should be released through public channels or not at all. * The following statement has been included in their most recent Form 10-Q and 10-K filings to the SEC, under the section "Liquidity and Capital Resources": As a result of the current cost structure of the CyberDisplay product line, the ability of the CyberDisplay product line to achieve profitability is dependent upon achieving significant sales volumes and reasonable gross profit margins. The Company has not yet produced the CyberDisplay product at volumes necessary to achieve profitability. Accordingly, there can be no assurances that the Company will obtain sufficient sales volumes, or if sufficient sales volumes are achieved, produce the CyberDisplay at a gross margin which will allow the product line to generate a profit. So, is the aggressive pricing only temporary, until such time as the CyberDisplay's lead has been 'solidified'? It's one thing when profitability can be achieved through economies of scale (as implied above), another to count on hiking prices at some time in the future. Kopin may be assuming they'll have their customer(s) over a barrel once products incorporating the display become commercially successful. I'm not so sure about that. With reflective LCOS ramping up, and with SOITEC promoting their lift-off technology for transmissive microdisplays, Kopin's technical advantage is not what it once was. Also, from such a concentrated customer base, the loss of any one would be devastating to Kopin. WT * JMHO - may not be the policy of Kopin management