Click here to close now.

SYS-CON MEDIA Authors: Pat Romanski, Marty Puranik, Marco Meinardi, Mike Kavis, Peter Silva

News Feed Item

Kopin Corporation Provides Business Update and Fourth-Quarter and Fiscal Year 2013 Operating Results

Kopin Corporation (NASDAQ: KOPN), a leading developer of innovative wearable computing technologies and solutions, today provided an update on its business initiatives and reported financial results for the fourth quarter and fiscal year ended December 28, 2013.

Woman wearing Kopin's natural looking concept smart eyewear. (Photo: Business Wire)

Woman wearing Kopin's natural looking concept smart eyewear. (Photo: Business Wire)

“Since announcing our strategy to provide innovative solutions for wearable devices last year, we have made substantial progress in establishing Kopin as a preeminent developer of critical components, reference systems and total system solutions for wearable computing,” said Dr. Fan, Kopin’s President and Chief Executive Officer. “In February we hosted our first wearable technology event to give our current and potential customers, analysts and shareholders an opportunity to see the results of our transformation efforts over the last year. Based on the large turn-out, favorable press reports and positive comments we received, the event was a huge success.”

“At the event we demonstrated new components and a number of different concept headset designs operated by voice commands and natural speech for both consumer and enterprise markets,” Dr. Fan continued. “The highlight of the event was our Pupil™ display module, a microdisplay module that combines our signature transmissive LCD microdisplay and miniaturized optics from Olympus. The Pupil display module provides see-through, bright images in a package small enough to invisibly merge with eyeglasses. We believe technology break-throughs such as this will drive the adoption of wearable headset technologies much sooner than originally thought. And with a strong cash position and a debt-free balance sheet, we have the means to execute our strategy and maintain our level of investment in the growing wearable systems market.”

Kopin will discuss the following highlights on today’s conference call:

  • Kopin’s recent event which discussed major trends in the wearable market and demonstrated Kopin’s new industrial and consumer reference designs.
  • Kopin’s Pupil™ display module, the latest innovation in display technology for the smart eyewear market, to rave reviews from customers, media, and analysts.
  • Kopin’s Wearable Tech Center and acoustics lab now operating in Silicon Valley.

Outlook

“The past year has seen a significant uptick in interest in wearable computing from companies interested in offering enterprise, industrial, and consumer products. With major companies increasingly approaching this market, Kopin is uniquely positioned to partner with them to get to market faster and more effectively,” Dr. Fan said.

“2013 was in line with financial guidance. For 2014 we will continue our investments in technology development, we expect to expand our customer base and see our existing customers begin to offer products,” Dr. Fan continued. “There are strong signs that wearable headsets will begin to be introduced starting in late 2014 and grow rapidly into 2015. For Kopin, we expect to have our first generation components as well as concept and reference systems ready by the end of this summer, and then prepare for component manufacturing in the second half of 2014, with substantial wearable revenue growth expected in 2015.”

Kopin expects full-year 2014 revenue in the range of $18 million to $22 million and a net loss in the range of $32 million to $40 million for the 12 months ending December 27, 2014. Excluding the effects of working capital, its stock buyback program and other investing and financing activities, Kopin estimates it will use between $30 million and $35 million to fund operations for the fiscal year 2014.

Fourth Quarter Results

Total revenues for the fourth quarter ended December 28, 2013, were $5.5 million, compared with $8.6 million for the fourth quarter of 2012, primarily reflecting a decline in sales of display products for military applications.

In the fourth quarter we took a noncash charge to write-down certain intangible assets of approximately $1.5 million. We also recorded an impairment change in an equity investment of approximately $2.5 million.

Net loss for the fourth quarter of 2013 was $9.7 million, or $0.16 per share, compared with net loss of $3.9 million, or $0.06 per share, for the same period of 2012.

Full Year Results

Total revenues for the 12 months ended December 28, 2013, were $22.9 million, compared with $34.6 million in the same period of 2012, primarily reflecting a decline in sales of display products for military applications.

Research and development expenses for the year were $17.5 million compared with $14.3 million in the same period of 2012, reflecting an increase in costs to develop our wearable and military technologies.

Selling, general and administrative expenses were $19.1 million in 2013, compared with approximately $17.2 million in the same period of 2012.

Included in the 2013 results of operations are a noncash charge to write-down certain intangible assets of approximately $1.5 million and impairment charges in investments of approximately $5.0 million

On January 16, 2013 we sold our III-V product line and investment in Kopin Taiwan Corporation (KTC). The gain on the sale and the results of operations of our III-V product line and KTC through the date of sale are shown as discontinued operations. Our net loss from continuing operations for the 12 months ended December 28, 2013 was $24.9 million, or $0.40 per share, compared with net loss from continuing operations of $21.2 million, or $0.33 per share, for the same period of 2012. Net loss for the 12 months ended December 28, 2013 was $4.7 million, or $0.08 per share, compared with net loss of $18.4 million, or $0.29 per share, for the same period of 2012.

Cash used in operating activities for the fiscal year 2013 was $19.7 million and we used $8.0 million for the repurchase of our common stock. Kopin’s cash, equivalents and marketable securities was $112.7 million at December 28, 2013. Kopin has no long-term debt.

Financial Results Conference Call

In conjunction with its fourth quarter and fiscal year end 2013 financial results, Kopin will host a teleconference call for investors and analysts at 5:00 p.m. ET today. To participate, please dial (877) 709-8150 (U.S. and Canada) or (201) 689-8354 (International). The call will also be available as a live and archived audio webcast on the “Investors” section of the Kopin website, www.kopin.com.

About Kopin

Kopin is a leading developer and provider of innovative wearable technologies and solutions. Kopin’s technology portfolio includes ultra-small displays, optics, speech enhancement technology, software, low-power chipsets, and ergonomically designed headset computing systems. Kopin's proprietary components and technology are protected by more than 200 global patents and patents pending. For more information, please visit Kopin's website at www.kopin.com.

Kopin, CyberDisplay, Pupil and Golden-i are trademarks of Kopin Corporation.

Forward-Looking Statements

Statements in this news release may be considered “forward-looking” statements under the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These include, without limitation, statements relating to; the wearable eyewear market is ready to go mainstream; our belief that technology breaks through such as our Pupil display module will drive the adoption of wearable technologies much sooner than originally thought; our belief that we have a strong cash position and have the means to execute our strategy and maintain our level of investment in the growing wearable systems market for the foreseeable future; our expectation that for 2014 we will continue our investments in technology development, expand our customer base and see our existing customers begin to offer products; we expect to have our first generation components as well as concept and reference systems ready by the end of this summer, and then prepare for component manufacturing in the second half of 2014, with substantial wearable revenue growth expected in 2015; our expectation that our full-year 2014 revenue will be in the range of $18 million to $22 million our a net loss will be in the range of $32 million to $40 million for the 12 months ending December 27, 2014, and our expectation that we will use between $30 million and $35 million to fund operations for the fiscal year 2014. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: it may take longer than the Company estimates to develop products; the Company’s products may not be accepted by the market place; the Company’s 2014 financial expectations may turn out to be wrong; there may be issues that prevent the adoption or further development of the Company’s wearable computing technologies; manufacturing, marketing or other issues may prevent either the adoption or acceptance of products; the Company might be adversely affected by competitive products and pricing; new product initiatives and other research and development efforts may be unsuccessful; the Company could experience the loss of significant customers; costs to produce the Company’s products might increase significantly, or yields could decline; the Company’s customers might be unable to ramp production volumes of its products, or the Company’s product forecasts could turn out to be wrong; manufacturing delays, technical issues, economic conditions or external factors may prevent the Company from achieving its financial guidance; and other risk factors and cautionary statements listed in the Company’s periodic reports and registration statements filed with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the 12 months ended December 29, 2012, and the Company’s subsequent filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no responsibility to update any of these forward-looking statements to reflect events or circumstances occurring after the date of this report.

 
 
Kopin Corporation
Supplemental Information
(Unaudited)
           
Three Months Ended Twelve Months Ended
 

December 28, 2013

December 29, 2012

December 28, 2013

December 29, 2012

Display Revenues by Category (in millions)
Military Application $ 1.1 $ 4.7 $ 8.6 $ 19.6
Consumer Electronics Applications 3.4 2.8 12.0 11.6
Research and Development   1.1   1.1   2.3   3.4
Total $

5.5

$ 8.6 $ 22.9 $ 34.6
 
 
Stock-Based Compensation Expense
Continuing Operations
Cost of product revenues $ 160,000 $ 77,000 $ 415,000 $ 334,000
Research and development 166,000 77,000 423,000 289,000
Selling, general and administrative   229,000   495,000   3,365,000   3,604,000
$ 555,000 $ 649,000 $ 4,203,000 $ 4,227,000
Discontinued Operations
Cost of product revenues $ - $ 46,000 $ - $ 180,000
Research and development - 18,000 - 78,000
Selling, general and administrative   -   1,000   -   2,000
$ - $ 65,000 $ - $ 260,000
 
Total $ 555,000 $ 714,000 $ 4,203,000 $ 4,487,000
 
Other Financial Information
Depreciation and amortization
Continuing Operations $ 568,000 $ 515,000 $ 3,626,000 $ 3,779,000
Discontinued Operations $ - $ 911,000 $ - $ 5,282,000
Total Depreciation and amortization $ 568,000 $ 1,426,000 $ 3,626,000 $ 9,060,000
 
Capital expenditures $ 217,000 $ 1,368,000 $ 737,000 $ 9,832,000
Treasury stock purchases $ 2,005,000 $ 1,355,000 $ 7,992,000 $ 3,456,000

           
 
Kopin Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
 
Three Months Ended Twelve Months Ended
December 28, 2013 December 29, 2012 December 28, 2013 December 29, 2012
Revenues:
Product revenues $ 4,509,219 $ 7,497,259 $ 20,574,812 $ 31,298,419
Research and development revenues   1,040,712     1,077,223     2,322,897     3,343,441  
5,549,931 8,574,482 22,897,709 34,641,860
Expenses:
Cost of product revenues 3,864,598 5,072,252 20,655,216 22,041,953
Research and development 4,041,767 3,629,886 17,534,020 14,300,161
Selling, general and administrative 3,473,445 4,146,576 19,124,750 17,165,870
Impairment of intangibles assets and goodwill   1,511,414     -     1,511,414     1,704,770  
  12,891,224     12,848,714     58,825,400     55,212,754  
Loss from operations (7,341,293 ) (4,274,232 ) (35,927,691 ) (20,570,894 )
 
Other income (expense), net   (2,340,162 )   (327,890 )   (2,133,968 )   566,161  
 

Loss before (provision) benefit for income taxes, equity losses in

unconsolidated affiliates and net loss from noncontrolling interest

(9,681,455 ) (4,602,122 ) (38,061,659 ) (20,004,733 )
 
(Provision) benefit for income taxes   54,484     (1,073,000 )   12,933,209     (1,099,000 )
 
Loss before equity loss in unconsolidated affiliate and net loss from
noncontrolling interest (9,626,971 ) (5,675,122 ) (25,128,450 ) (21,103,733 )
 
Equity loss in unconsolidated affiliate   (216,907 )   (87,107 )   (625,098 )   (679,587 )
 
Loss from continuing operations (9,843,878 ) (5,762,229 ) (25,753,548 ) (21,783,320 )
Income from discontinued operations, net of tax   -     1,428,734     20,147,532     2,789,048  
Net loss (9,843,878 ) (4,333,495 ) (5,606,016 ) (18,994,272 )
 
Net loss attributable to noncontrolling interest   184,041     472,042     896,400     632,342  
 
Net loss $ (9,659,837 ) $ (3,861,453 ) $ (4,709,616 ) $ (18,361,930 )
 
Net (loss) income per share:
Basic
Continuing operations $ (0.16 ) $ (0.08 ) $ (0.40 ) $ (0.33 )
Discontinued operations   -     0.02     0.32     0.04  
Net (loss) income per share $ (0.16 ) $ (0.06 ) $ (0.08 ) $ (0.29 )
Diluted
Continuing operations $ (0.16 ) $ (0.08 ) $ (0.40 ) $ (0.33 )
Discontinued operations   -     0.02     0.32     0.04  
Net (loss) income per share $ (0.16 ) $ (0.06 ) $ (0.08 ) $ (0.29 )
 
 
Weighted average number of common shares outstanding:
Basic   61,528,968     63,415,345     62,347,852     63,617,680  
Diluted   61,528,968     63,415,345     62,347,852     63,617,680  

       
 
Kopin Corporation
Condensed Consolidated Balance Sheets
 
 
December 28, 2013 December 29, 2012
ASSETS
Current assets:
Cash and marketable securities $ 112,729,201 $ 92,485,349
Accounts receivable, net 2,388,461 5,517,365
Inventory 3,078,055 5,789,753
Prepaid and other current assets 1,412,285 1,600,873
Current assets held for sale   -   21,573,729
 
Total current assets 119,608,002 126,967,069
 
Equipment and improvements, net 6,034,963 8,486,406
Other assets 20,488,758 11,609,595
Noncurrent assets held for sale - 29,145,732
 
Total assets $ 146,131,723 $ 176,208,802
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,868,865 $ 5,121,324
Accrued expenses 6,822,556 6,731,823
Billings in excess of revenue earned 547,681 1,220,395

Current liabilities held for sale

  -   7,102,895
 
Total current liabilities 11,239,102 20,176,436
 
Lease commitments 329,435 322,477

Noncurrent liabilities held for sale

- 623,979
 
Total Kopin Corporation stockholders' equity 134,553,247 148,733,680
Noncontrolling interest   9,939   6,352,230
Total stockholders' equity   134,563,186   155,085,910
Total liabilities and stockholders' equity $ 146,131,723 $ 176,208,802

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The Workspace-as-a-Service (WaaS) market will grow to $6.4B by 2018. In his session at 16th Cloud Expo, Seth Bostock, CEO of IndependenceIT, will begin by walking the audience through the evolution of Workspace as-a-Service, where it is now vs. where it going. To look beyond the desktop we must understand exactly what WaaS is, who the users are, and where it is going in the future. IT departments, ISVs and service providers must look to workflow and automation capabilities to adapt to growing ...
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add sc...
Business and IT leaders today need better application delivery capabilities to support critical new innovation. But how often do you hear objections to improving application delivery like, “I can harden it against attack, but not on this timeline”; “I can make it better, but it will cost more”; “I can deliver faster, but not with these specs”; or “I can stay strong on cost control, but quality will suffer”? In the new application economy, these tradeoffs are no longer acceptable. Customers will ...
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, includin...
Data-intensive companies that strive to gain insights from data using Big Data analytics tools can gain tremendous competitive advantage by deploying data-centric storage. Organizations generate large volumes of data, the vast majority of which is unstructured. As the volume and velocity of this unstructured data increases, the costs, risks and usability challenges associated with managing the unstructured data (regardless of file type, size or device) increases simultaneously, including end-to-...
The excitement around the possibilities enabled by Big Data is being tempered by the daunting task of feeding the analytics engines with high quality data on a continuous basis. As the once distinct fields of data integration and data management increasingly converge, cloud-based data solutions providers have emerged that can buffer your organization from the complexities of this continuous data cleansing and management so that you’re free to focus on the end goal: actionable insight.
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing...
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data th...
In the consumer IoT, everything is new, and the IT world of bits and bytes holds sway. But industrial and commercial realms encompass operational technology (OT) that has been around for 25 or 50 years. This grittier, pre-IP, more hands-on world has much to gain from Industrial IoT (IIoT) applications and principles. But adding sensors and wireless connectivity won’t work in environments that demand unwavering reliability and performance. In his session at @ThingsExpo, Ron Sege, CEO of Echelon...
As organizations shift toward IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection &E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 16th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships, will disc...
The Internet of Things (IoT) is causing data centers to become radically decentralized and atomized within a new paradigm known as “fog computing.” To support IoT applications, such as connected cars and smart grids, data centers' core functions will be decentralized out to the network's edges and endpoints (aka “fogs”). As this trend takes hold, Big Data analytics platforms will focus on high-volume log analysis (aka “logs”) and rely heavily on cognitive-computing algorithms (aka “cogs”) to mak...
With several hundred implementations of IoT-enabled solutions in the past 12 months alone, this session will focus on experience over the art of the possible. Many can only imagine the most advanced telematics platform ever deployed, supporting millions of customers, producing tens of thousands events or GBs per trip, and hundreds of TBs per month. With the ability to support a billion sensor events per second, over 30PB of warm data for analytics, and hundreds of PBs for an data analytics arc...
Hadoop as a Service (as offered by handful of niche vendors now) is a cloud computing solution that makes medium and large-scale data processing accessible, easy, fast and inexpensive. In his session at Big Data Expo, Kumar Ramamurthy, Vice President and Chief Technologist, EIM & Big Data, at Virtusa, will discuss how this is achieved by eliminating the operational challenges of running Hadoop, so one can focus on business growth. The fragmented Hadoop distribution world and various PaaS soluti...
HP and Aruba Networks on Monday announced a definitive agreement for HP to acquire Aruba, a provider of next-generation network access solutions for the mobile enterprise, for $24.67 per share in cash. The equity value of the transaction is approximately $3.0 billion, and net of cash and debt approximately $2.7 billion. Both companies' boards of directors have approved the deal. "Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investme...
One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understand...