eMagin Corporation (EMAN) Tops Q4 EPS by 1c, Revenues Beat

eMagin Corporation (NYSE: EMAN) reported Q4 EPS of $0.00, $0.01 better than the analyst estimate of ($0.01). Revenue for the quarter came in at $7.3 million versus the consensus estimate of $7.2 million.

“We made significant progress on several fronts in 2019. From an operational perspective, the concerted effort by our entire workforce focused on production improvements and efficiencies, which led to improved manufacturing yields and production throughput as production volumes increased over 50% during the second half of 2019. Our R&D engineers and our manufacturing team have done an outstanding job and are committed to further identifying and implementing improvements to enhance our manufacturing processes,” commented CEO Andrew G. Sculley.

“Our cost reduction efforts which we started in the third quarter and continued into the fourth resulted in a 21% operating expense reduction on a year-over-year basis. The result is that our net loss was $205,000 or essentially break-even on a per share basis in the fourth quarter as compared to a loss of $2.5 million or $0.05 cents per share in the comparable period last year. Although it will take a few more quarters to realize the full benefit of the initiatives being put in place, we are very pleased with the progress we have made to date and our performance in the second half of the year.”

“From a demand perspective, we also see positive trends. For the fourth quarter, total revenue increased to $7.3 million or 35% over the prior year period. Our contract revenue was more than double from a year ago due to multiple contracts including one for the planned F-35 display improvements and a new project for a consumer electronics customer.”

“We had record bookings in the fourth quarter, exceeding $15 million, which led to a 75% increase in our backlog from the third quarter of 2019. At December 31, 2019, our backlog of open orders was $14.6 million, including $11.7 million scheduled for delivery through December 31, 2020. Despite our substantial backlog, we expect first quarter 2020 revenue to be lower year-over-year due to the timing of certain military orders. However, we anticipate stronger revenue in subsequent quarters and expect an overall increase in revenue for 2020,” continued Mr. Sculley.

“As the year ended, we continued to see strong demand and recognition for our OLED microdisplays. We were awarded the Enhanced Military Capability award as part of the Defense Manufacturing Technology Achievement Awards. This acknowledgement reflects the innovative OLED technology work that we achieved in a joint project with the U.S. Army Research, Development and Engineering Command, and the Night Vision Electronic Sensors Directorate (NVESD). Additionally, in December, we received two significant orders from prime contractors for our displays totaling $9.9 million and another to support the delivery of the F-35 Helmet Mounted Display Systems for $1.4 million.”

“We remain on target to achieve 10,000 nits brightness by the end of the second quarter. As we had mentioned previously, the U.S. military has requested 25,000 nits brightness which we expect to reach within three years and are pursuing government funding to help support this effort.”

“Finally, during the fourth quarter, we received 80 orders, of which 3 were from new customers, and supplied product for 23 new programs. We are pleased to announce that we started a new consumer related development project for a next generation display, as well as 2 orders from existing medical customers,” concluded Mr. Sculley.

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

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