Exhibit 99.1
Kopin Reports First Quarter 2004 Financial Results;
New Products Drive Year-Over-Year CyberDisplay Revenue Growth of 49 Percent
TAUNTON, Mass.--(BUSINESS WIRE)--April 15, 2004--Kopin Corporation
(NASDAQ: KOPN) today announced financial results for the first quarter
ended March 27, 2004.
Key Points for the First Quarter of 2004:
-- Revenue increased to $22.4 million from $21.1 million in the
fourth quarter of 2003 and from $18.0 million in the first
quarter of 2003
-- Net loss was $3.4 million, or $0.05 per share, for the first
quarter of 2004, compared with $2.2 million, or $0.03 per
share, for the first quarter of 2003
-- CyberDisplay revenue reached a record $12.8 million; III-V
revenue grew 9 percent sequentially to $9.5 million
-- Color CyberDisplay(TM) products accounted for 50 percent of
display revenue
"Robust demand from wireless and consumer electronics customers
drove 24 percent year-over-year revenue growth in the first quarter,"
said President and Chief Executive Officer Dr. John C.C. Fan. "We
credit this increase to the rapid success of our recently introduced
color CyberDisplay products and CyberEVF(TM) electronic viewfinder
systems, and to our dominant merchant market position in HBT
transistors at a time of substantial growth in wireless products."
Kopin's net loss for the three months ended March 27, 2004 was
$3.4 million, or $0.05 per share, compared with a net loss of $2.2
million, or $0.03 per share, for the same period in 2003. In the
fourth quarter of 2003, Kopin posted a net loss of $614,000, or $0.01
per share. Kopin's first-quarter 2004 net loss primarily reflects
lower initial yields associated with the transition from the Company's
legacy monochrome microdisplays to new color filter CyberDisplay
products and additional marketing and technical support associated
with increased color display activities.
"Customer uptake of our new color filter displays occurred much
faster than we anticipated," Fan said. "Late last year we announced
that our goal was to achieve 50 percent of CyberDisplay sales from
color products by the end of this year. With color products accounting
for half of our display sales in the first quarter, compared with 20
percent in the fourth quarter of 2003, we are well ahead of our goal.
As indicated by our JVC announcement today and recent display orders
from other customers, demand for Kopin's color products was very
strong. Although meeting this demand stressed our internal and
supplier capabilities and reduced our first-quarter yields,
successfully launching our new color display products is critical for
us to build on our leading position in the microdisplay market."
New CyberDisplay Products Gain Traction
CyberDisplay revenue for the three months ended March 27, 2004
increased for the fourth consecutive quarter, from $12.4 million in
the fourth quarter of 2003 to $12.8 million in the first quarter of
2004. First-quarter display revenue rose 49 percent year-over-year.
"Kopin's CyberDisplay revenue grew as our products gained traction in
emerging consumer and military applications. In the consumer segment,
we began to ramp shipments of our color filter CyberDisplay products
and CyberDisplay-based electronic viewfinder systems for digital still
cameras sold by Konica Minolta and German digital camera company
plawa-feinwerktechnik, as well as our existing camcorder customers. We
are also engaged in design-in activities with current and prospective
customers for additional digital still cameras, camcorders and other
applications," Fan said.
"In the military sector, we secured a production contract from
FLIR Systems AB for ruggedized 640M display modules to be used in
military night-vision goggles," said Fan. "In addition, Kopin was
awarded a $3.2 million Department of Defense contract to develop the
world's highest-density microdisplay for the U.S. Army's Future Force
Warrior Program. Our activities during the first quarter demonstrate
the utility of the CyberDisplay in virtually any near-to-eye
microdisplay application and validate Kopin's customer and end-market
diversification strategy."
Trends in Wireless Industry Drive III-V Products
Kopin posted III-V revenue of $9.5 million in the first quarter,
compared with $9.5 million in the first quarter of 2003. On a
sequential basis, III-V revenue increased 9 percent. "Kopin's
first-quarter III-V revenues reflect ongoing strength in the wireless
handset market and continued demand for our HBTs in WLAN and Wi-Fi
applications. During the quarter, we continued to advance our
GAIN-HBT(TM) transistors toward commercial availability. In addition,
Kopin continued to make progress in enhancing the performance of its
new generation CyberLite LEDs," said Fan.
Continued Revenue Growth Expected in Q2
Commenting on the outlook for the second quarter of 2004, Fan
said, "Innovation drives success for Kopin and the results of our
new product initiatives are already evident in 2004. Our color filter
CyberDisplay products and EVF systems are rapidly gaining momentum in
the market among new and existing customers. We expect growth in the
wireless handset, Wi-Fi and WLAN markets to pace our III-V revenues.
We are very pleased with our progress on GAIN HBTs, which we hope will
be designed into power amplifier circuits during the second half of
2004. We are also ready to start sampling our new CyberLite products
with our existing partners. Based on the current business environment
and trends in our end markets, we expect second-quarter 2004 revenue
to increase approximately 5 percent sequentially. Our continued
product innovation, backed by our strong financial position, will
enable us to be successful in 2004 and well into the future."
First-Quarter Conference Call
Kopin will provide a live audio webcast of its first-quarter
conference call for investors at 5:00 p.m. ET today, April 15, 2004.
Investors who want to hear the call should log on to the Investor
Relations section of Kopin's website, www.kopin.com, at least 15
minutes before the event's broadcast. The call will be available on
the Investor Relations section for one week. After that, investors can
access an archived version of the call on Kopin's website.
Kopin's first-quarter conference call also can be heard live by
dialing (913) 981-4900 five minutes prior to the call. A replay of the
call will be available from 8:00 p.m. ET Thursday, April 15 through
midnight ET Wednesday, April 21. To access the replay, dial (719)
457-0820, confirmation 333243.
About Kopin
Founded in 1984, Kopin (NASDAQ: KOPN) is pioneering the use of
nanotechnology to manufacture nanosemiconductor products that make
mobile electronic devices small, fast, bright, lightweight and power
efficient. With an intellectual property portfolio of more than 200
issued and pending patents, Kopin supplies the world's largest
electronics manufacturers and government agencies with breakthrough
semiconductor products. The Company's liquid-crystal microdisplays,
ultra-efficient transistors and high-brightness light emitting diodes
(LEDs) enhance the delivery and presentation of voice, video and data.
Kopin technology is currently used in nearly one-third of the world's
cell phones and camcorders and is the microdisplay standard for the
U.S. military. For more information, please visit Kopin's website at
www.kopin.com.
Statements in this news release may be considered
"forward-looking" statements under the "Safe Harbor" provisions of the
Private Securities Litigation Reform Act of 1995. These include
statements relating to Kopin's expectation that growth in the wireless
handset, Wi-Fi and WLAN markets will pace our III-V revenues; our
revenue projection for the second quarter of 2004; and the Company's
belief that its continued product innovation, backed by its strong
financial position, will enable the Company to be successful in 2004
and well into the future. These statements involve a number of risks
and uncertainties that could materially affect future results. Among
these risk factors are general economic and business conditions and
growth in the flat panel display, wireless, LED and gallium arsenide
integrated circuit and materials industries; the impact of competitive
products and pricing; availability of third-party components; the
successful CyberLite production ramp; the qualification of Kopin's
CyberLite manufacturing process by additional customers; availability
of integrated circuit fabrication facilities; cost and yields
associated with production of the Company's CyberDisplay imaging
devices, CyberLite LEDs and HBT transistor wafers; loss of significant
customers; acceptance of the Company's products; success of new
product and other research and development efforts; continuation of
strategic relationships; the value of shares of Micrel Semiconductor
held by the Company; Kopin's ability to accurately forecast revenue
levels; and other risk factors and cautionary statements listed in the
Company's periodic reports and registration statements filed with the
Securities and Exchange Commission. These include, but are not limited
to, the Company's Annual Report on Form 10-K for the year ended
December 31, 2003.
CyberDisplay, CyberEVF, CyberLite, GAIN-HBT and The
NanoSemiconductor Company are trademarks of Kopin Corporation.
The Company's condensed consolidated statement of operations and
balance sheet are attached.
Kopin - The NanoSemiconductor Company(TM)
Kopin Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
March 27, March 29,
2004 2003
Revenues:
Product revenues $22,132,996 $18,048,746
Research and development revenues 225,000 -
22,357,996 18,048,746
Expenses:
Cost of product revenues 19,083,813 15,058,930
Research and development 3,920,435 2,881,176
Selling, general and administrative 3,016,321 2,619,286
Other - 120,216
26,020,569 20,679,608
Loss from operations (3,662,573) (2,630,862)
Other income and expense:
Interest and other income 883,427 1,060,903
Interest and other expense (498,084) (393,538)
385,343 667,365
Loss before minority interest in income of
subsidiary (3,277,230) (1,963,497)
Minority interest in income of subsidiary (104,678) (273,551)
Net loss $(3,381,908) $(2,237,048)
Net loss per share:
Basic $(0.05) $(0.03)
Diluted $(0.05) $(0.03)
Weighted average number of common shares
outstanding:
Basic 70,055,138 69,391,207
Diluted 70,055,138 69,391,207
Kopin Corporation
Condensed Consolidated Balance Sheets
(Unaudited)
March 27, December 31,
2004 2003
ASSETS
Current assets:
Cash and marketable securities $115,572,990 $120,333,188
Accounts receivable, net 9,554,445 6,771,391
Inventory 7,946,404 5,920,364
Prepaid and other assets 2,245,754 1,451,374
Total current assets 135,319,593 134,476,317
Equipment and improvements, net 29,234,955 31,008,403
Other assets 8,073,547 9,335,749
Intangible assets, net - -
Total assets $172,628,095 $174,820,469
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $15,268,565 $14,365,686
Accrued expenses 2,218,809 2,224,928
Billings in excess of revenue earned 1,370,720 1,378,970
Total current liabilities 18,858,094 17,969,584
Minority interest 3,310,215 3,113,728
Stockholders' equity 150,459,786 153,737,157
Total liabilities and stockholders'
equity $172,628,095 $174,820,469
CONTACT: Kopin Corporation
Richard Sneider, 508-824-6696
rsneider@kopin.com
or
Sharon Merrill Associates, Inc.
Ehren Lister, 617-542-5300
elister@investorrelations.com