Kopin Corp (KOPN) Tops Q3 EPS by 1c, Revenues Beat

Kopin Corp (NASDAQ: KOPN) reported Q3 EPS of ($0.01), $0.01 better than the analyst estimate of ($0.02). Revenue for the quarter came in at $9.5 million versus the consensus estimate of $8.2 million.

“Our momentum continued in the third quarter for revenue growth as well as technology development. Total third quarter 2020 revenues increased 55% year- over- year, our strongest year- over- year growth in 10 quarters. We also made further progress in streamlining our cost structure, even as we continue to invest aggressively in next-generation OLED microdisplays,” said Dr. John C.C. Fan, CEO of Kopin.

“Our business was strong across multiple segments and was led by our defense product revenues which increased 140% in the third quarter of 2020 compared with the third quarter in 2019. This significant increase was driven by two production programs -- the display sub-assembly system for the FWS-I thermal weapon sight program and displays for the F-35 Fighter jet program. As announced in September, we were awarded a $22.9 million follow-on contract for the FWS-I program, with scheduled shipments through 3Q next year. We expect to build on this current defense production business in the coming years with the additional programs that we have in development. These programs include using our products in armored vehicle targeting systems, rotary-wing aircraft helmets, and both automatic and semi-automatic rifle day scopes and targeting systems, among others.

“Near the end of Q3, we also observed exciting growth from our Enterprise customers who incorporate our high-resolution displays and modules into their AR products. One trend we are seeing is that the forced remote and socially distanced approach to work during the pandemic has accelerated the adoption by many enterprise organizations in the implementation and roll-out of AR devices to their workforces. We expect the enterprise and consumer markets for AR and VR will continue to gain traction, with Kopin leading the market with the microdisplay technologies and solutions to meet this need. We expect that our current defense and enterprise production programs, including the addition of three of current defense development programs transitioning into production in 2021, will continue driving the revenue momentum.”

Dr. Fan continued, “On October 28, 2020, we participated in a webinar sponsored by Insight Media which discussed our recent breakthrough results and roadmap of high-brightness color Organic Light Emitting Diode (OLED) microdisplays (To listen to a replay of the webinar, please click here). A major challenge for OLED microdisplays has been achieving high brightness combined with low power (for small battery needs) and wide color gamut. In this webinar we shared the results of high brightness (7,000 nits), 100% sRGB color and low power consumption from our color 720p OLED display using a duo-stack OLED structure and our patent-pending ColorMax™ technology. We also outlined the technical path to achieving even greater brightness (30,000 nits) from color OLED microdisplays. We believe our proprietary ColorMax™ technology and unique approach to tandem OLED structures will open new opportunities for our defense, enterprise and consumer customers. Our leading microdisplay technologies are well appreciated, which has driven the rapid growth in externally funded development programs for advanced displays.”

Dr. Fan concluded, “We believe that the long-awaited adoption of AR and VR systems is finally beginning to take hold. As expected, these systems are being adopted first in defense, followed by industrial/enterprise and consumer applications. Almost all of our defense programs in development are related to AR and VR applications. As AR and VR continue to gain traction in the new remote world, Kopin is ideally positioned to meet this demand. With industry leading displays and modules for wearable AR and VR devices, Kopin clearly sees growing opportunities in the defense, industrial and consumer segments. We are making great progress in executing our strategy to improve the performance of the Company and expect strong results in Q4. We are excited about our future.”

For earnings history and earnings-related data on Kopin Corp (KOPN) click here.

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