News Article
III-V revenues boost Kopin’s financial results
Total revenues for Q1 2011 increased 37% to a record $34.9 million much of it down to the booming smartphone market. Display revenues also grew 59% to $17.3 million, primarily as a result of higher military display sales.
Kopin Corporation, a supplier of advanced semiconductor materials and microdisplays for mobile applications, has announced financial results for the three months ended March 26, 2011.
Total revenues for the first quarter of 2011 increased 37% to a record $34.9 million, compared with $25.4 million for the same period in 2010. III-V revenue increased 21% to $17.6 million from $14.5 million for the comparable quarter last year, reflecting stronger first quarter orders from the Company's integrated circuit partners. Display revenue grew 59% to $17.3 million versus $10.9 million in the first quarter of 2010, primarily as a result of higher military display sales.
Net income for the first quarter of 2011 was $2.1 million, or $0.03 per diluted share, compared with $1.0 million, or $0.02 per diluted share, for the 2010 first quarter. Included in the 2010 results of operations was approximately $373,000 from the receipt of insurance proceeds and $686,000 from the sale of Micrel stock.
Gross margin for the first quarter of 2011 increased to 33.3% of product revenues from 26.5% of product revenues for the same period of 2010, reflecting an increase in sales of military displays and leveraging the III-V fixed costs over greater volume. R&D expense increased to $6.4 million, or 18.3% of revenues in 2011, compared with $4.3 million, or 16.9% of revenues in 2010, as a result of the Company's investments in the Golden-i product, III-V products for smartphones and the acquisition of Forth Dimension Displays (FDD).
"Kopin demonstrated strong results in the first quarter, driven by contributions from both our III-V and display products," said Kopin President and Chief Executive Officer John C.C. Fan. "Our earnings reflect our commitment to maintaining prudent expense management, while at the same time investing strategically in research and development and capacity expansion to execute our growth strategy."
"In early April we announced the availability to select customers of Golden-i Development Kits, our revolutionary wearable, voice-activated cloud computing product, which is being developed jointly with Motorola Solutions," Fan said. "The feedback from these customers will be reflected in the Golden-i products which are scheduled for general availability in 2012. Just as many compelling applications have been created for the iPhone and Android platforms, we see significant opportunities for developers to write applications for Golden-i."
Business Outlook
"We are excited about the Company's growth prospects," Fan said. "We continue to expect III-V to grow at an annualised rate of 20-25% over the next several years, driven primarily by global smartphone demand. In our display business, as is the historic pattern, revenue from military applications fluctuates quarter to quarter but we expect strong military revenues in 2011 as we continue to supply the US Army's Thermal Weapons Sight program."
"Looking ahead, we are focused on our two main goals: extending the leadership position of our III-V products to take advantage of the expected growth in smartphones and tablets; and advancing the development schedule for Golden-i toward a planned launch in 2012," Fan continued. "We started 2011 on a very good note, with strong operating results and in excellent financial condition, with $99 million of cash and no debt."
Based on the current business environment and conversations with its customers, Kopin is affirming its full-year 2011 guidance for total revenues in the range of $130 million to $140 million.
In conjunction with its first-quarter 2011 financial results, Kopin hosted a teleconference call for investors and analysts. The call is available as an archived audio webcast on the "Investors" section of the Kopin website, www.kopin.com .
