eMagin Corporation (EMAN) Misses Q2 EPS by 8c, Revenues In-Line

eMagin Corporation (NYSE: EMAN) reported Q2 EPS of ($0.11), $0.08 worse than the analyst estimate of ($0.03). Revenue for the quarter came in at $7.1 million versus the consensus estimate of $7.13 million.

“Our revenues of $7.1 million for the quarter, an increase of 34% over the prior year quarter, underscore the resurgence we have seen in our military and commercial businesses, both in the U.S. and abroad. Demand for our OLED microdisplays globally remains strong as demonstrated by the growth in orders as well as the requested acceleration of existing orders among many of our customers,” said Andrew Sculley, President and Chief Executive Officer. “During the quarter, we sold to 75 customers, including three new customers, and supplied displays for 53 new customer applications. We are supporting many programs that the U.S. military considers to be of high importance, including applications for night vision, thermal weapon sights, see-through HMD systems for mounted and dismounted missions as well as aviation helmet upgrades and prototypes for next generation helmet systems.”

“From a production perspective, our efforts led to higher yields which in turn contributed to a higher gross profit margin. In addition to the investments we have made in engineering resources, equipment and manufacturing processes, we received government funding in the second quarter for OLED display production and yield improvement,” continued Mr. Sculley. “As a result of these efforts, we are experiencing better delivery times and improving product quality, validated by the favorable reports we received from multiple customers who have conducted quality and service audits.”

“On the commercial front, as we continue our discussions with consumer OEM’s about potential licensing agreements, we are moving forward on the design and development work for next generation AR/VR microdisplays. We held a final design review with a consumer customer in July for a very high resolution VR microdisplay. During the quarter, we also completed work on a 120Hz-capable, compact interface for our 2k x 2k display which demonstrates the highest brightness and resolution in the market today. We continue to believe that our direct patterning (dPdTM) technology will be key to the acceptance of our displays in the consumer AR/VR market with consumer electronics companies and advancing our discussions with potential mass production and licensing partners.”

“Our backlog at the end of June was $10.3 million, an increase of $0.5 million from the end of 2017 despite our increase in sales. While our backlog may vary based on the timing of new orders and scheduled shipment dates, we are encouraged by the strong demand for our OLED microdisplays and expect our gross margins to expand as our volumes increase and as we continue to enhance our manufacturing processes and achieve additional yield improvements,” concluded Mr. Sculley.

For earnings history and earnings-related data on eMagin Corporation (EMAN) click here.

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