- Q1 2021 Total Revenues Increase 48% Year over Year
- Research & Development Revenues Increase 82% Year over
Year
- Net Cash Used in Operating Activities was $0.2 Million for Q1
2021 versus $3.9 million in Q1 2020
The third table labeled "Condensed Consolidated Statements of
Operations" was a duplicate of the one below it and instead
included non-GAAP information. It should be removed.
The updated release reads:
KOPIN REPORTS SOLID RESULTS FOR FIRST
QUARTER 2021
- Q1 2021 Total Revenues Increase 48% Year over Year
- Research & Development Revenues Increase 82% Year over
Year
- Net Cash Used in Operating Activities was $0.2 Million for Q1
2021 versus $3.9 million in Q1 2020
Kopin Corporation (Nasdaq: KOPN), a leading provider of
high-resolution micro-displays and sub-systems for defense,
enterprise and consumer augmented reality (AR), virtual reality
(VR) and mixed reality (MR) systems, today provided an update on
its business initiatives and reported financial results for the
first quarter ended March 27, 2021.
"We are pleased with the strong start to the year, reflecting
increasing demand from customers in multiple market segments,” said
Dr. John C.C. Fan, Kopin’s CEO. “Revenues increased by
approximately 48% in the first quarter of 2021 as compared to the
first quarter of 2020, primarily driven by our defense production
and funded development programs where we now have more than 10
programs in various stages of development. Several of these are
scheduled to reach initial production ramp and revenues in the
second half of this year and beyond. Our active pipeline of
development programs includes using our advanced display products
in armored vehicle targeting and training systems, rotary-wing
aircraft helmets, automatic and semi-automatic rifle day scopes and
targeting systems, among others. These programs are all using our
microdisplays and are increasingly utilizing our sophisticated
optics systems and ruggedized assemblies. We believe we are the
sole source supplier to most of these programs.
“Our R&D activities have been increasing in the past several
quarters, reflecting the significant opportunities we see in the
augmented and virtual reality space. In particular, our
customer-funded R&D revenues jumped more than 80%
year-over-year, primarily because of the accelerating interest in
our efforts developing the next generation of displays and display
technologies.”
Dr. Fan continued, “We also want to address the global
semiconductor chip shortage that has impacted so many industries.
While we do use semiconductor materials in our products,
fortunately we did not experience any meaningful impact from the
shortage in the first quarter of 2021. The current environment is
dynamic, however, and we are working closely with our suppliers and
customers to manage this potential issue.
“In short, we are continuing to make strong progress in
executing our strategy and it is showing in our performance. We are
experiencing the strongest defense segment activities in Kopin's
history and we expect to make a number of exciting announcements in
the coming months. We believe that both AR and VR have gained
tremendous traction in the past year and we expect this momentum to
continue for some time, with Kopin positioned to capitalize on this
opportunity,” concluded Dr. Fan.
First Quarter Financial Results
Total revenues for the first quarter ended March 27, 2021 was
$11.7 million, compared with $7.9 million for the first quarter
ended March 28, 2020, a 48% increase year over year.
Cost of Products Sold for the first quarter ended March 27, 2021
was $6.4 million, compared with $5.6 million for the first quarter
ended March 28, 2020. Gross margin for the first quarter of 2021
was 15% compared with 5% for the first quarter of 2020.
Research and Development (R&D) expenses for the first
quarter of 2021 were $3.6 million compared to $2.3 million for the
first quarter of 2020, a 52% increase year over year. The increase
was driven by the increase in funded research and development
revenues.
Selling, General and Administrative (SG&A) expenses were
$5.9 million for the first quarter of 2021, compared to $3.4
million for the first quarter of 2020. Non-GAAP SG&A expenses
were $3.5 million for the first quarter of 2021, compared to $3.3
million for the first quarter of 2020, a 5% increase year over
year. A table that reconciles this non-GAAP financial measure to
SG&A expenses, as reported, is included below.
Net Loss Attributable to Kopin Corporation for the first quarter
of 2021 was $4.1 million, or $0.05 per share, compared with Net
Loss Attributable to Kopin Corporation of $3.6 million, or $0.04
per share, for the first quarter of 2020. Non-GAAP Net Loss
Attributable to Kopin Corporation for the first quarter of 2021 was
$1.8 million, or $0.02 per share, compared with Non-GAAP Net Loss
Attributable to Kopin Corporation of $3.5 million, or $0.04 per
share, for the first quarter of 2020. A table that reconciles these
non-GAAP financial measures to Net Loss Attributable to Kopin
Corporation and Net Loss Per Share, as reported, is included
below.
Net Cash Used in Operating Activities for the first quarter
ended March 27, 2021 was approximately $0.2 million. Kopin's Cash
and Equivalents and Marketable Securities were approximately $35.6
million at March 27, 2021 as compared to $20.7 million at December
26, 2020. During the quarter ended March 27, 2021, we issued 2.4
million shares under our then-existing At-The-Market (ATM) program
and generated $15.5 million in net cash proceeds which concluded
our initial $20 million ATM program.
We have no long-term debt.
All amounts above are estimates and readers should refer to our
Form 10-Q for the quarter ended March 27, 2021, for final
disposition as well as important risk factors.
Kopin Corporation
DISCUSSION REGARDING THE USE OF NON-GAAP FINANCIAL
MEASURES
Our earnings release contains some or all of the following
financial measures that have not been calculated in accordance with
United States Generally Accepted Accounting Principles (“GAAP”):
(i) non-GAAP SG&A expenses, (ii) non-GAAP Net Loss Attributable
to Kopin Corporation, and (iii) non-GAAP Net Loss Per Share. A
non-GAAP financial measure is a numerical measure of a company’s
historical or future financial performance, financial position or
cash flows that excludes amounts, or is subject to adjustments that
have the effect of excluding amounts, that are included in the most
directly comparable measure calculated and presented in accordance
with GAAP in the statements of operation, balance sheets, or
statements of cash flows of a company; or, includes amounts, or is
subject to adjustments that have the effect of including amounts,
that are excluded from the most directly comparable measure so
calculated and presented. As set forth in the “Unaudited
Reconciliations of Non-GAAP Financial Measures” table found below,
we derive such non-GAAP financial measures by excluding stock-based
compensation expenses from the respective GAAP financial measure
that is most directly comparable to each non-GAAP financial
measure. Management uses these non-GAAP financial measures to
evaluate our operating performance and compare it against past
periods, make operating decisions, forecast for future periods, and
compare our operating performance against peer companies. These
non-GAAP financial measures provide management with additional
means to understand and evaluate the operating results and trends
in our ongoing business by eliminating an item that management
believes might otherwise make comparisons of our ongoing business
with prior periods and competitors more difficult, obscure trends
in ongoing operations or reduce management’s ability to make
forecasts.
We provide investors with non-GAAP Net Loss Attributable to
Kopin Corporation and non-GAAP Net Loss Per Share because we
believe it is important for investors to be able to closely monitor
and understand changes in our ability to generate income from
ongoing business operations. We believe these non-GAAP financial
measures give investors an additional method to evaluate historical
operating performance and identify trends, an additional means of
evaluating period-over-period operating performance and a method to
facilitate certain comparisons of our operating results to those of
our peer companies. We also believe that providing non-GAAP Net
Loss Attributable to Kopin Corporation and non-GAAP Net Loss Per
Share allows investors to assess the extent to which our ongoing
operations impact our overall financial performance. We further
believe that providing non-GAAP Net Loss Attributable to Kopin
Corporation and non-GAAP Net Loss Per Share allows investors to
assess the overall financial performance of our ongoing operations
by eliminating the impact of stock-based compensation expense,
which may not occur in each period presented and which may
represent non-cash items unrelated to our ongoing operations.
We calculate non-GAAP SG&A expenses, non-GAAP Net Loss
Attributable to Kopin Corporation and non-GAAP Net Loss Per Share
by eliminating stock-based compensation expense from each of
Selling, General and Administrative expenses, Net Loss Attributable
to Kopin Corporation, and Net Loss Per Share, respectively, each of
which is derived from our condensed consolidated statements of
operations. We exclude stock-based compensation because (1) the
total amount of expense is partially outside of our control because
it is based on factors such as stock price, which may be unrelated
to our performance during the period in which the expense is
incurred and (2) the amount of the expense can vary significantly
between companies due to factors that can be outside of the control
of such companies.
The non-GAAP financial measures presented in the table below
should not be considered in isolation and are not an alternative
for the respective GAAP financial measure that is most directly
comparable to each such non-GAAP financial measure. Readers are
cautioned against placing undue reliance on these non-GAAP
financial measures and are urged to review and consider carefully
the adjustments made by management to the most directly comparable
GAAP financial measures to arrive at these non-GAAP financial
measures. Non-GAAP financial measures may have limited value as
analytical tools because they may exclude certain expenses that
some investors consider important in evaluating our operating
performance or ongoing business performance. Further, non-GAAP
financial measures are likely to have limited value for purposes of
drawing comparisons between companies as a result of different
companies potentially calculating similarly titled non-GAAP
financial measures in different ways because non-GAAP measures are
not based on any comprehensive set of accounting rules or
principles.
Conference Call
Kopin will host a conference call this morning at 8:30am ET. To
participate, please dial 1-800-437-2398 (U.S. and Canada) or
1-323-289-6576 (International). The call will also be available as
a live and archived audio webcast on the Investor Relations section
of Kopin's website at www.kopin.com.
About Kopin
Kopin Corporation is a leading developer and provider of
innovative wearable technologies and critical components for
integration into wearable computing systems for defense, industrial
and consumer products. Kopin’s technology portfolio includes
ultra-small displays, optics, and low-power ASICs. For more
information, please visit Kopin’s website at www.kopin.com.
Forward-Looking Statements
Statements in this press release may be considered
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), which are subject to the safe harbor created by
such sections. Words such as "expects," "believes," "can," "will,"
"estimates," and variations of such words and similar expressions,
and the negatives thereof, are intended to identify such
forward-looking statements. We caution readers not to place undue
reliance on any such "forward-looking statements," which speak only
as of the date made, and advise readers that these forward-looking
statements are not guarantees of future performance and involve
certain risks, uncertainties, estimates, and assumptions by us that
are difficult to predict. These forward-looking statements may
include statements with respect to: when our development programs
will go into production and generate revenues; our belief that we
are the sole source supplier defense programs; our expectation that
we will make a number of announcements in the coming months; and
our belief that Kopin is in a great position to capitalize in the
future. Various factors, some of which are beyond our control,
could cause actual results to differ materially from those
expressed in, or implied by, such forward-looking statements. All
such forward-looking statements, whether written or oral, and
whether made by us or on our behalf, are expressly qualified by
these cautionary statements and any other cautionary statements
that may accompany the forward-looking statements. In addition, we
disclaim any obligation to update any forward-looking statements to
reflect events or circumstances after the date of this press
release, except as may otherwise be required by the federal
securities laws. These forward-looking statements are only
predictions, subject to risks and uncertainties, and actual results
could differ materially from those discussed. Important factors
that could affect performance and cause results to differ
materially from management's expectations are described in Part I,
Item 1A. Risk Factors; Part II, Item 7. Management's Discussion and
Analysis of Financial Condition and Results of Operations; and
other parts of our Annual Report on Form 10-K for the fiscal year
ended December 28, 2019, or as updated from time to time our
Securities and Exchange Commission filings.
Kopin Corporation Unaudited Reconciliations of Non-GAAP
Financial Measures (Unaudited) Three Months
Ended March 27, 2021
March 28, 2020 GAAP
Selling, general and administration
5,905,706
3,432,092
Stock-based compensation expense
2,382,329
89,356
Non-GAAP Selling, general and administration
3,523,377
3,342,736
Kopin Corporation Supplemental Information
(Unaudited) Three Months Ended
March 27, 2021 March 28, 2020 Display Revenues by Category
(in millions) Defense
$
5.0
$
3.5
Industrial/Enterprise
2.0
2.2
Consumer
0.5
0.2
R&D
3.6
2.0
License and Royalties
0.6
-
Total
$
11.7
$
7.9
Stock-Based Compensation Expense Cost of product
revenues
$
134,000
$
14,000
Research and development
94,000
55,000
Selling, general and administrative
2,382,000
89,000
$
2,610,000
$
158,000
Other Financial Information Depreciation and
amortization
$
205,000
$
171,000
Kopin Corporation Condensed Consolidated Statements of
Operations (Unaudited) Three Months Ended
March 27, 2021 March 28, 2020 Revenues: Net product revenues
$
7,568,845
$
5,919,206
Research and development
3,560,743
1,959,399
Other revenues
546,781
-
11,676,369
7,878,605
Expenses: Cost of product revenues
6,396,671
5,647,847
Research and development
3,563,300
2,339,748
Selling, general and administration
5,905,706
3,432,092
15,865,677
11,419,687
Loss from operations
(4,189,308
)
(3,541,082
)
Other income (expense), net
36,585
(86,909
)
Loss before provision for income taxes and net loss (income)
(4,152,723
)
(3,627,991
)
from noncontrolling interest Tax provision
(33,000
)
(29,000
)
Net loss
(4,185,723
)
(3,656,991
)
Net loss (income) attributable to noncontrolling interest
39,485
61,472
Net loss attributable to Kopin Corporation
$
(4,146,238
)
$
(3,595,519
)
Net loss per share: Basic and diluted
$
(0.05
)
$
(0.04
)
Weighted average number of common shares outstanding: Basic
and diluted
87,378,288
82,536,416
Kopin Corporation Condensed Consolidated Balance
Sheets (Unaudited) March 27, 2021
December 26, 2020 ASSETS Current assets: Cash and marketable
securities
$
35,633,682
$
20,748,550
Accounts receivable, net
7,807,465
9,260,865
Inventory
5,455,134
4,455,756
Contract assets and unbilled receivables
1,115,419
3,521,753
Prepaid and other current assets
2,036,754
1,469,256
Total current assets
52,048,454
39,456,180
Plant and equipment, net
1,662,315
1,626,930
Operating lease right-of-use assets
1,521,315
1,780,039
Equity investments
4,522,445
4,523,525
Other assets
162,473
162,473
Total assets
$
59,917,002
$
47,549,147
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable
$
5,594,876
$
5,606,910
Accrued expenses
4,523,189
4,295,315
Customer deposits
2,782,056
3,950,031
Deferred tax liabilities
538,826
554,031
Contract liabilities and billings in excess of revenue earned
1,176,872
1,493,847
Operating lease liabilities
886,609
982,375
Total current liabilities
15,502,428
16,882,509
Other long term liabilities
1,580,670
1,546,737
Operating lease liabilities, net of current portion
643,043
821,306
Total Kopin Corporation stockholders' equity
42,367,182
28,435,431
Noncontrolling interest
(176,321
)
(136,836
)
Total stockholders' equity
42,190,861
28,298,595
Total liabilities and stockholders' equity
$
59,917,002
$
47,549,147
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210504005365/en/
Richard Sneider, 508-870-5959 Treasurer and Chief
Financial Officer Richard_Sneider@kopin.com or Market Street
Partners Joann Horne, 415-445-3233
JHorne@marketstreetpartners.com
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