Earnings look pretty good....
Thursday July 25, 4:28 pm Eastern Time
Press Release
SOURCE: Kopin Corporation
Kopin Corporation Posts 18 Percent Sequential Increase in Second Quarter 2002 Revenue
CyberDisplay Revenue Reaches Record High
TAUNTON, Mass.--(BUSINESS WIRE)--July 25, 2002--Kopin Corporation (Nasdaq: KOPN - News) today announced financial results for the quarter ended June 29, 2002.
Financial highlights for the second quarter:
Total revenue increased 18 percent sequentially to $20.8 million from $17.6 million in the first quarter of 2002, and 126 percent from the second quarter of 2001.
III-V revenue increased 23 percent to $9.4 million from $7.7 million in the first quarter of 2002. III-V revenue was up 144 percent from the $3.9 million recorded in the second quarter of 2001.
CyberDisplay revenue increased 15 percent sequentially to $11.4 million in the second quarter of 2002, including approximately $700,000 of contract revenue, from $9.9 million, which included approximately $200,000 of contract revenue, in the first quarter of 2002. CyberDisplay revenue improved 112 percent from $5.3 million, including contract revenue of $100,000, in the second quarter of 2001.
The Company's net loss was $1.6 million, or $0.02 per share. This compares with a net loss of $3.2 million, or $0.05 per share, in the first quarter of 2002, and a net loss of $15.2 million, or $0.24 per share, in the second quarter of 2001, excluding a second quarter of 2001 net investment gain of approximately $20.9 million and an impairment charge of $5.3 million.
"Customer momentum across both product areas enabled us to record double-digit percentage increases in our III-V and CyberDisplay revenues in the second quarter," said Dr. John C.C. Fan, Kopin's president and CEO. "Our business improved on the strength of a diversified mix of HBT transistor and display customers. We recorded our second consecutive cash flow positive quarter, and our balance sheet is the strongest in Kopin's history with more than $110 million in cash and equivalents and no debt. Taking advantage of our financial strength, we are aggressively investing in research and development and are proceeding well with substantial advances in all of our product lines, distancing ourselves from the competition."
III-V
"In our III-V product area, the story of the second quarter was steady demand and the bounce-back in orders from some HBT customers that had been comparatively quiet for several quarters," Fan said. "The performance of our III-V product group in Q2 is a testament to the progress we have made in increasing our market share."
During the second quarter, Kopin made significant strides in developing new technologies, particularly with its GAIN product development initiatives. "Our technology development initiatives are proceeding according to schedule, which we believe will enable Kopin to be first out of the gate with new materials and process technologies for wireless, fiber-optic and opto-electronic technologies," said Fan.
CyberDisplay
During the second quarter, Kopin showcased an array of current, emerging and future CyberDisplay-enabled products at the 2002 Society for Information Display Symposium (SID) in Boston. Among the applications: infrared military surveillance cameras, fiber-optic inspection systems and an infrared digital camera.
"The SID show gave us the perfect opportunity to highlight the CyberDisplay's role in new portable electronic devices," said Fan. "The CyberDisplay designs now under development are expected to greatly expand our opportunities to win microdisplay sockets in emerging commercial and defense applications."
Six-month Results
For the six months ended June 29, 2002, total revenue was $38.4 million, compared with $24.2 million for the same period last year, an increase of 59 percent. III-V product revenue was $17.1 million for the first six months of 2002, compared with $14.8 million for the first six months of 2001. Revenue from CyberDisplay products was $21.3 million in the first half of 2002, compared with $9.4 million in the first half of 2001. The net loss for the most recent six-month period, excluding the impact of the Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets, (SFAS No.142) adoption, was $4.8 million, or $0.07 per share, compared with a net loss of $22.0 million, or $0.34 per share excluding a net investment gain and an impairment charge, for the first six months of 2001.
The Company previously advised that in the first quarter of 2002 it had adopted SFAS No. 142 which required a change in the method for evaluating the potential impairment related to the carrying amount of goodwill. In conjunction with this adoption of SFAS No. 142, the Company discontinued the amortization of goodwill. In the second quarter, with the assistance of an independent appraisal firm, we completed our evaluation of our goodwill and recognized a non-recurring non-cash charge of $12.6 million, representing the cumulative effect of a change in accounting principle resulting from the implementation of SFAS No.142. This charge is shown below income (loss) before cumulative effect of accounting change and included in net income.
Business Outlook
Commenting on the outlook for the second half of 2002, Fan said, "Our focus will center on continuing to gain market share with III-V customers and adding more applications that use our CyberDisplay. We also expect to see the fruits of some of our new product development efforts."
"In the third quarter, we expect continued modest sequential revenue growth in both product lines from a strong mix of III-V and CyberDisplay customers," he said. "Buttressed by our strong balance sheet and industry-leading technologies, we will continue to invest in R&D to position Kopin to capitalize on the demand for new technologies in our markets."
Second-quarter Conference Call
Kopin will provide a live audio Webcast of its second-quarter conference call for investors at 5:00 p.m. ET today, July 25, 2002. Investors who want to hear the call should log on to the investor relations section of Kopin's Web site, www.kopin.com, |
