Needham & Company Downgrades Kopin Corp (KOPN) to Hold; Weaker Military Sales; Lack of Earnings Growth

Needham & Company downgraded Kopin Corp (NASDAQ: KOPN) Buy to Hold.

Analyst, Rajvindra S. Gill, said, "Management provided 2012 annual guidance of $110-120MM, significantly below our $160MM estimate, primarily due to Defense Department budget cuts adversely affecting KOPN’s military segment. While the III-V business is performing nicely due to accelerating smartphone growth, the military business is undercutting the overall growth trajectory and hurting operating leverage. With a projected loss of $(0.01) in 2012 and little earnings growth likely in 2013, we found ourselves hard pressed to maintain the Buy rating. We could become more constructive if we see some sustainability in the military business and growth in the Golden-i initiative."

FY12 EPS estimate cut from $0.26 to (0.01).

For an analyst ratings summary and ratings history on Kopin Corp click here. For more ratings news on Kopin Corp click here.

Shares of Kopin Corp closed at $3.63 yesterday.

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