+44 (0)24 7671 8970
More publications     •     Advertise with us     •     Contact us
 
News Article

Kopin Reports Record Full-Year 2009 Earnings of $19.4 Million; Best Fourth Quarter in Company History

Company Posts Full-Year Revenues of $114.7 MillionFourth-Quarter Revenues Increase 13% to $33 MillionFourth-Quarter Net Income Grows to $5.3 Million, $0.08 Per ShareKopin Exits Year with Cash and Marketable Securities of $114.5 Million and No Debt

Kopin Corporation (NASDAQ: KOPN) today reported the following financial results for the three and twelve months ended December 26, 2009:

 

(in millions, except per share data)
Three Months Ended
12 Months Ended


December 26, 2009
December 27, 2008
December 26, 2009
December 27, 2008
Revenues







III-V
$15.0
$10.9
$46.5
$47.0
Display

18.0


18.2
68.2
67.8
Total
$33.0
$29.1
$114.7
$114.8
Net Income
$5.3
$1.8
$19.4
$2.6
Net Income per Diluted Share
$0.08
$0.03
$0.29
$0.04

 

"We capped a strong year with the best fourth quarter in our history," said President and Chief Executive Officer Dr. John C.C. Fan. "After a difficult economic environment to start the year, III-V revenues ended 2009 with a flourish, increasing approximately 37% year-over-year in the fourth quarter. Our display products continued the solid momentum that began at the end of 2008. Gross margin improved by 300 basis points for the fourth quarter to 30.8% of product revenues from 27.8% for the same period in 2008, reflecting higher sales of CyberDisplay products for military applications and an increase in III-V product volume in the 2009 period."

 

Net income increased to $5.3 million, or $0.08 per diluted share, in the fourth quarter of 2009 from $1.8 million, or $0.03 per diluted share, for the comparable period of 2008. The fourth quarter of 2008 results of operations included a loss of $1.1 million associated with impairment of loans to Kopin Taiwan Corporation (KTC), and a non-cash impairment charge of approximately $0.8 million related to corporate debt securities. "Our record 2009 net income resulted from our strategy, which we implemented several years ago, of focusing on offering higher-margin products and migrating from selling components to more complete system solutions," said Dr. Fan. "We generated $22 million of cash from operating activities in 2009 while making significant investments in personnel, new product development and capacity for both products lines, and completing the acquisition of KTC.

 

Our 2009 results are a testament to our basic philosophy of aggressively investing in technology while being fiscally conservative." For the fiscal year ended December 26, 2009, Kopin reported record net income of $19.4 million, or $0.29 per diluted share, compared with net income of $2.6 million, or $0.04 per diluted share, for the 12 months ended December 27, 2008. Significant items for the 12-month period of 2009 included gains of $6.3 million on the sale of patents that the Company is no longer using; $1.2 million from the repayment of a receivable from KTC previously written-off; $0.6 million representing the write-up of Kopin's investment in KTC to its fair market value immediately prior to the purchase of the additional shares by the Company in 2009 partially offset by a $0.9 million expense from an impairment write-down of certain marketable debt securities which were deemed other-than-temporarily impaired.

 

Significant items for the 12 months ended December 27, 2008 included: a loss of $2.7 million associated with the sale of Kenet; a loss of $1.2 million associated with impairment of loans to KTC; and a non-cash impairment charge of $1.3 million related to corporate debt securities. Gross margin increased to 29.7% of product revenues for the 12 months ended December 26, 2009, compared with 27.5% of product revenues for the comparable period of 2008. Cash and marketable securities totaled $114.5 million at December 26, 2009, an increase of approximately $14.5 million from December 27, 2008. During 2009 Kopin repurchased $5.3 million of stock under its buy-back program and had capital expenditures of $3.7 million. Kopin has no long-term debt.

 

Business Highlights Display Products

 

"Continued strong demand from our defense partners drove excellent results in our display business," Dr. Fan said. "Military display revenues increased 7% in the fourth quarter and 40% for full-year 2009, reflecting our position as a critical display supplier for the U.S. Army's Thermal Weapons Sight (TWS) programs. This program marks just one step in the Department of Defense's strong commitment to develop and deploy the most advanced technology for its soldiers. We are proud to play a vital role in that effort. Leveraging our participation in the TWS programs, we also are actively engaged with the U.S. military in designing advanced display solutions for a range of projects still in development." Display revenues by category were as follows:

 



Three Months Ended
12 Months Ended

Display Revenues by Category
(in millions )


Dec. 26, 2009


Dec. 27, 2008


Dec. 26, 2009


Dec. 27, 2008

Military Applications
$13.2
$12.3
$51.5
$36.8
Consumer Electronic Applications
2.1
3.3
9.2
18.2
Eyewear Applications
0.6
0.8
1.8
6.4
Research & Development
2.1
1.8
5.7
6.4









Total
$18.0
$18.2
$68.2
$67.8

 

Golden-i(TM)

"Complementing the success of our military display programs, we continue to achieve significant progress on our exciting new Golden-i initiative," Dr. Fan said. "Golden-i combines game-changing mobile video communications with voice-activated, hands-free computing. The lightweight, wireless Bluetooth/WiFi device provides access to virtually any digital information - on demand - through our near-eye, 15-inch virtual PC display.

 

The Golden-i program is being developed in partnership with a number of the world's technology leaders, including Microsoft, Motorola, Nuance Communications, and Texas Instruments. Motorola recently unveiled a prototype Golden-i headset at the Mobile World Congress in Barcelona." This month, Kopin reached a key milestone in bringing its proprietary technology to market, with the announcement of the availability of Golden-i headset Software Developer Kits (SDK) for field testing. "End-users are encouraged to develop application software based on our operating software for their specific application. Golden-i is being designed initially for industrial applications, and is also expected to be used for military, communications and entertainment applications. "We expect to begin initial shipments of Golden-i SDKs in the second quarter of this year," Dr. Fan said.

 

III-V Products

 

"Our III-V product line posted double-digit percentage growth in the fourth quarter, which we believe was driven by accelerating consumer demand for smartphones," Dr. Fan said. "Our unique GaAs HBT technology is helping the world's leading integrated circuit manufacturers design power amplifiers with the enhanced performance and power efficiency required by today's multimedia mobile devices.

 

Despite a challenging economic climate during much of the past year, I am pleased to say business was strong across our entire III-V customer base in the second half of 2009."

 

Business Outlook

 

"Anchored by a strong balance sheet, manufacturing know-how and technology expertise, we are well positioned to generate sustained growth," Dr. Fan said. "Innovation is an integral part of our history and strategy. While other companies have struggled during the economic downturn, we have capitalized on the opportunity by expanding our technology and product portfolios. We have continued to enhance our manufacturing capabilities and capacity, add new management and scientific talents, patent new technologies and develop the advanced new display systems and III-V structures that we believe will become growth engines for the Company in the coming years. Our near-term prospects are also bright. Based on the current business environment, we expect revenues of between $120 million and $130 million for 2010."

 

Fourth-Quarter Conference Call

 

In conjunction with its fourth-quarter 2009 financial results, Kopin will host a teleconference call for investors and analysts at 5:00 p.m. ET today. To hear the conference call, please dial (877) 407-5790 (U.S. and Canada) or (201) 689-8328 (International). The call also will be available as a live and archived audio webcast on the "Investors" section of the Kopin website, www.kopin.com.

×
Search the news archive

To close this popup you can press escape or click the close icon.
×
  • 1st January 1970
  • 1st January 1970
  • 1st January 1970
  • 1st January 1970
  • View all news 22645 more articles
Logo
×
Register - Step 1

You may choose to subscribe to the Compound Semiconductor Magazine, the Compound Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: