HBT boost for Kopin as it cuts LED operation
III-V wafer manufacturer Kopin has reduced its workforce by 40 as it prepares to transfer LED production to its Asia-based joint venture Ko-Brite.
The Taunton, MA, company revealed its plans to stop manufacturing LEDs earlier this month (see related story), with device production at Ko-Brite scheduled to be fully transferred by July 1 this year.
Away from LEDs, Kopin reported very strong growth in its other III-V activities in 2004.
While LED sales halved year-on-year to just $2.3 million in the year ended 25 December, 2004, revenue from sales of HBT transistor wafers soared 33% in the same period to reach $36 million.
Kopin CEO John Fan said that the strong increase was due to the success of a long-term contract with its largest HBT customer. "The agreement has allowed both parties to work together to reduce costs and improve efficiencies."
Write-down of assets related to its LED operation cost Kopin $5.3 million in the most recent quarter, contributing to the company's net loss of $13.8 million, or $0.20 per share, for 2004.
But with the cost savings expected to be realized from spinning off the LED operation, plus an expected cash benefit of $7.5 million after the transfer of production equipment and training to Ko-Brite has been completed, Kopin's financial position should improve significantly from the third quarter of 2005 onwards.
Kopin's overall revenue in 2004, which includes sales from the company's microdisplay business, was $87.4 million, up 14% on last year.