KOPIN with a seriously good qtr
Voop
BSNS WIRE) Kopin Reports Record Sales and Profits; First Quarter 2000 Reve
Kopin Reports Record Sales and Profits; First Quarter 2000 Revenue Increases
193% and Net Income Increases 1,000% over First Quarter 1999
Business/Technology Editors
TAUNTON, Mass.--(BUSINESS WIRE)--April 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 first quarter ended March 31, 2000.
Among the financial highlights in the first quarter of 2000:
--Revenue increased 193 percent to a record $19,740,000 compared
to $6,730,000 for the same period in 1999, and 45 percent
sequentially.
--Net income rose 1,000 percent to $2,273,000, or $0.07 per fully
diluted share, from $206,000, or $0.01 per fully diluted share, in the
first quarter of 1999, and 198 percent from the sequential quarter.
--Revenue from GaAs products increased 179 percent to $16,435,000
from $5,898,000 in the first quarter of 1999, and 48 percent from the
fourth quarter of 1999.
--CyberDisplay revenue increased to $2,875,000, up 47 percent from
$1,954,000 in the fourth quarter of 1999.
"Demand for our HBT and CyberDisplay products continues to grow at
a record pace," said Dr. John C.C. Fan, Kopin's president and chief
executive officer. "In both businesses, we hold the pole position with
an enabling technology that is being integrated into the next
generation of wireless communications and portable devices. We have
continued to successfully execute our strategy to extend our
leadership by expanding manufacturing capacity and application areas.
We are pleased that despite our significant investments in scaling up
our operations and capacity, we have been able to further improve our
performance."
HBT Highlights
Kopin's HBT transistor revenue growth was paced by orders from
leading power amplifier manufacturers and broadband communications
providers. During the quarter, Kopin expanded its HBT manufacturing
capacity and in March successfully finished the installation and
expansion phase of six new production machines. The Company also
ordered eight additional HBT production systems, which will be
delivered in calendar year 2000. This production expansion will bring
to 16 the total number of high-volume systems installed at Kopin by
the end of 2000--including multi-6-inch wafer production systems. To
meet customer demand, Kopin is in the process of identifying a second
HBT production site.
Dr. Fan continued, "Demand for our HBT transistors continues to be
very strong, which requires continued investment in the expansion of
our manufacturing capacity. Adding a second site and purchasing
additional wafer production systems will enable us to double our HBT
production capacity again. This means shorter cycle times, improved
efficiency and the ability to continue aggressively expanding our HBT
business."
CyberDisplay Highlights
Kopin's CyberDisplay business also experienced stellar growth in
the first quarter. The Company won a volume order to manufacture its
display for new Panasonic brand camcorders introduced by Matsushita
Electric Industrial Co. With this win, Kopin's CyberDisplay is now
being used by two of the world's largest camcorder manufacturers. In
addition, in late March, JVC expanded its CyberDisplay order to
include the newest JVC digital camcorders being launched in the United
States.
"As with our HBT business, capacity expansion has been a
significant focus for CyberDisplay," Dr. Fan said. "We increased
our production capacity tenfold last year. We see exciting potential
to further expand our penetration into the digital camera and
camcorder markets."
Outlook
Dr. Fan concluded, "By delivering on our goals during the first
quarter, we have set the stage to make 2000 a year of substantial
growth. Looking ahead, on the HBT side of our business, we are staying
on our course to aggressively expand capacity by installing new
production systems and bringing on a second site. We believe we
are poised for continued order strength as HBT-based power amplifiers
become increasingly pervasive in the wireless handset market. On the
CyberDisplay side, we are focused on capturing additional socket wins
to make our CyberDisplay the standard for high-resolution, miniature
flat panel displays in high volume consumer electronic applications as
well as in Internet accessed wireless phones. In addition, we plan to
leverage this success and improve the operating efficiency of our
CyberDisplay business by continuing to automate major production
processes and add additional capacity."
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 first
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, Year 2000
matters and the 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.
-0-
*T
Kopin Corporation
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended
April 1, April 3,
2000 1999
Revenue:
Product sales $ 19,310,263 $ 5,984,932
Research and development 429,500 744,664
19,739,763 6,729,596
Costs and expenses:
Cost of sales 13,977,048 3,930,174
Research and development 3,101,867 1,999,144
Selling, general and administrative 1,626,536 922,930
Other 87,900 87,900
18,793,351 6,940,148
Income (Loss) from operations 946,412 (210,552)
Other income and expense:
Interest and other income 1,439,063 534,516
Interest (85,886) (118,264)
1,353,177 416,252
Net income before minority interest 2,299,589 205,700
Minority interest (26,847) 167
Net income $ 2,272,742 $ 205,867
Net income per share -Basic $ 0.07 $ 0.01
Net income per share -Diluted $ 0.07 $ 0.01
Weighted average number of common shares
outstanding - Basic 31,001,555 24,776,306
Weighted average number of common shares
outstanding - Diluted 34,009,621 26,278,758
See notes to consolidated financial statements.
Kopin Corporation
Condensed Consolidated Balance Sheet
(Unaudited)
April 1, December 31,
2000 1999
ASSETS
Current assets:
Cash and equivalents $103,681,335 $ 99,099,403
Accounts receivable, net 13,029,949 11,202,982
Inventory 4,180,838 6,157,195
Prepaid expenses 1,247,738 1,651,905
Total current assets 122,139,860 118,111,485
Equipment and improvements, net 21,236,366 20,671,261
Other assets 5,942,817 4,352,793
Intangible assets 1,957,778 1,938,190
Total assets $151,276,821 $145,073,729
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 9,916,423 $ 9,487,726
Current portion of long-term obligations 1,848,521 2,142,373
Total current liabilities 11,764,944 11,630,099
Long-term obligations, less current portion 1,998,817 2,567,100
Minority interest 844,404 809,238
Stockholders' equity 136,668,656 130,067,292
Total liabilities and stockholders' equity $151,276,821 $145,073,729
See notes to consolidated financial statements.
*T
--30--mm/bos*
CONTACT: Kopin Corporation Sharon Merrill Associates, Inc.
Richard Sneider Scott Solomon
Chief Financial Officer Vice President
508/824-6696 617/542-5300
rsneider@kopin.com ssolomon@investorrelations.com
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS HARDWARE INTERNET
MANUFACTURING SOFTWARE EARNINGS
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