eMagin Corporation (EMAN) Misses Q4 EPS by 3c, Revenues Miss

eMagin Corporation (NYSE: EMAN) reported Q4 EPS of ($0.05), $0.03 worse than the analyst estimate of ($0.02). Revenue for the quarter came in at $5.4 million versus the consensus estimate of $7.45 million.

“During 2018, we experienced growing demand for our products, especially from U.S. military and aviation programs, and expanded our presence among medical and other commercial customers. We sold to over 80 customers this past year and supplied products for over 20 new programs. At December 31, 2018, we had a backlog of non-binding purchase orders of approximately $10.6 million in products ordered for delivery through December 31, 2019, an increase of approximately $800,000 from our backlog of $9.8 million at December 31, 2017,” stated Andrew Sculley, Chief Executive Officer.

“Development efforts to support the F-35 helmet accelerated during the year. Under contract from Collins Aerospace, we designed, manufactured and delivered the initial displays for this multi-service, multi-country program which are being installed in helmets for flight tests scheduled for this year. We will continue to deliver displays throughout 2019 while working closely with the Collins Aerospace team in preparation for limited rate initial production (“LRIP”) scheduled for 2020.

“From a technology perspective, we continue to make significant advances with our high brightness, full-color microdisplays incorporating our color filter and patented Direct Patterning (“dPd”) technology which is critical to driving our growth in all the markets we serve. We have surpassed the 5,000 nits threshold requirements of Tier One companies for their enterprise and consumer AR/VR applications. Additionally, by making architectural improvements and using superior OLED materials, we have increased the efficiency and lifetime of our displays by more than 50%.

“We continue to refine our production processes and are upgrading our existing dPd equipment. This should increase production throughput as well as significantly extend the lifetime of our displays. In 2018, we received U.S. Army funding of $830,000 to support these efforts and are pursuing additional awards to fund production improvements and capacity expansion.

“While our full year revenues increased 19% on a year-on-year basis, we did experience a manufacturing equipment related issue in the fourth quarter. This resulted in lower yields and loss of production, affecting our fourth quarter and full-year performance. We addressed this issue and have made the necessary improvements to minimize the risk of future recurrences. It did not affect any of our U.S. military programs but did have an impact on production and deliveries early in the first quarter 2019.

“Going forward, we believe that the equipment purchases we have made over the past few quarters will improve the reliability of our manufacturing processes. In addition, as the only manufacturer of OLED microdisplays in the U.S., we are working closely with the Department of Defense for substantial funding of further production enhancements that will improve our production reliability, expand our capacity and lower our unit costs. Overall, we are extremely well-positioned as the only company whose products can meet the low power, high brightness, high contrast and resolution requirements for high-pixel density displays being demanded both for next generation enterprise and consumer VR/AR HMDs, as well as today’s military and commercial applications,” concluded Mr. Sculley.

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

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Vivos Therapeutics posts 35% revenue gain but widens net loss
• Z Squared outlines AI power strategy and Paradox Data acquisition