Exhibit 99.1
Kopin Corporation Reports Limited Financial
Results for the First Quarter of 2007
Company Remains on Track to Achieve Full-Year Revenue of $80
Million to $90 Million
TAUNTON, Mass.--(BUSINESS WIRE)--May 17, 2007--Kopin Corporation
(NASDAQ: KOPN) today announced limited financial results for the first
quarter ended March 31, 2007. The financial results reported today do
not take into account a planned restatement of certain financial
statements, as described in the Company's press release dated May 9,
2007 and Form 8-K filed with the Securities and Exchange Commission,
related to Kopin's historical stock option granting practices.
Therefore, these results should be considered preliminary until Kopin
files its Quarterly Report on Form 10-Q for the three months ended
March 31, 2007.
Financial Summary
-- Total revenue of $18.1 million compared with $18.7 million for
the first quarter of 2006 and $17.9 million for the fourth
quarter of 2006.
-- CyberDisplay revenue of $9.0 million compared with $5.9
million for the first quarter of 2006 and $8.9 million for the
fourth quarter of 2006.
-- III-V revenue of $9.1 million compared with $12.8 million for
the first quarter of 2006 and $9.0 million for the fourth
quarter of 2006. III-V revenue for the first quarter of 2006
included $850,000 from KoBrite as final payment under the
Company's joint venture agreement with KoBrite.
-- Cash, cash equivalents and marketable securities of $103.0
million as of March 31, 2007 compared with $105.4 million at
December 30, 2006. At March 31, 2007 the Company had no long
term debt.
Comments on the First Quarter
CyberDisplay Products
"Sales of our CyberDisplay products increased in the first quarter
as shipments of military display modules for the U.S. Army's Thermal
Weapons Sight II program (TWSII) contributed to a 54% year-over-year
increase in display revenue," said Kopin Chairman and Chief Executive
Officer Dr. John C.C. Fan. "On the commercial side of the business, we
are seeing increasingly strong demand for our electronic viewfinder
solutions in "prosumer" digital still cameras such as Olympus' new
SP-550 UZ, the industry's first ultra-wide optical zoom digital still
camera. The feedback we have received indicates that the consumer
response to this camera has been exceptional.
"On the mobile video eyewear front, current and prospective
customers are designing Kopin microdisplays into an array of new
applications, including 3D video," Dr. Fan continued. "Consumer demand
for mobile video is gaining momentum worldwide, creating new
opportunities for our video eyewear solutions. Kopin will showcase new
eyewear during next week's Society for Information Display's
International Symposium, Seminar and Exhibition (SID) in Long Beach,
California.
III-V Products
"During the quarter our integrated circuit customers continued
their migration to indium gallium phosphide (InGaP) transistors, the
new generation of HBT structures for advanced wireless handsets," Dr.
Fan said. "While sales of our III-V products were affected by industry
softness in the first quarter, we expect our HBT product revenue to
trend positively over the course of 2007, particularly in the second
half of the year. To meet the anticipated demand, we have been
increasing capacity both in Taunton and at our Taiwanese OEM. Two new
large-capacity machines already are beginning initial production, and
we remain on track to increase capacity by 50% in the second half of
this year.
Business Outlook
"We are excited about the prospects for our business in 2007 and
beyond," Dr. Fan said. "In CyberDisplay, we are installing an 8-inch
line that we expect to enhance our performance and manufacturing
efficiency as we introduce new displays featuring increasing levels of
resolution and capabilities. Installation of the 8-inch line is
progressing on schedule, and we anticipate releasing products to our
customers for qualification during the second half of the 2007. We
believe our new display products will be ideal for new
high-performance military and commercial applications, including video
eyewear. We are delighted with the progress of the video eyewear
market, and this year we expect to see a significant increase in
shipments over the prior year. In our III-V business, the transition
to InGaP transistors is accelerating. In terms of our overall
business, we remain on track to achieve our 2007 top-line guidance of
between $80 million and $90 million, with the majority of that revenue
in the second half of the year."
First-Quarter Conference Call
Kopin will host a conference call at 5:00 p.m. ET today, May 17,
2007, to discuss its preliminary first-quarter financial results. To
participate in the call, please dial (800) 479-9001 or (719) 457-2618
five minutes prior to the call. The call will be available live and in
an archived format on the investor relations section of the Company's
website, www.kopin.com
About Kopin
Kopin Corporation produces lightweight, power-efficient,
ultra-small liquid crystal displays and heterojunction bipolar
transistors (HBTs) that are revolutionizing the way people around the
world see, hear and communicate. Kopin has shipped more than 20
million displays for a range of consumer and military applications
including digital cameras, personal video eyewear, camcorders, thermal
weapon sights and night vision systems. The Company's unique HBTs,
which help to enhance battery life, talk time and signal clarity, have
been integrated into billions of wireless handsets as well as into
WiFi, VoIP and high-speed Internet data transmission systems. Kopin's
proprietary display and HBT technologies are protected by more than
200 global patents and patents pending. For more information, please
visit Kopin's website at www.kopin.com.
CyberDisplay and The NanoSemiconductor Company are trademarks of
Kopin Corporation.
Kopin - The NanoSemiconductor Company(TM)
Safe Harbor Statement
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. When used in this
release, the words "estimates," "expects," "anticipates," "projects,"
"plans," "intends," "believes," "sees," and variations of such words
or similar expressions are intended to identify forward-looking
statements. These include statements relating to potential new
applications for Kopin's CyberDisplay products; the planned increase
in HBT capacity; the timeline for initial production related to the
installation of the 8-inch wafer line; the projected increase in
mobile video eyewear shipments in 2007; and the Company's revenue
guidance of $80 million to $90 million for full-year 2007 and the
expectation that the majority of that revenue will occur in the second
half of the year. These statements involve a number of risks and
uncertainties that could materially affect future results. These risk
factors include, but are not limited to: technical, manufacturing,
marketing or other issues that may prevent either the adoption or
rapid acceptance of products; competitive products and pricing; the
risk that new product initiatives and other research and development
efforts may not be successful; the loss of significant customers; the
potential that costs to produce the Company's microdisplay and HBT
products will increase significantly, or that yields will decline; the
potential that the Company's revenue guidance and product forecasts
will turn out to be wrong; the potential that military programs
involving Kopin's products will be delayed or cancelled; the potential
that the Company's military and commercial customers might be unable
to ramp production volumes of their products; market acceptance of
video eyewear, digital still cameras, toys, military systems, cellular
phones or other products in which Kopin's products are integrated;
manufacturing delays, technical issues, economic conditions or
external factors that may prevent the Company from achieving its
financial guidance; the potential consequences surrounding any
findings relating to the Special Investigative Committee's review of
Kopin's historical stock option grants; the likelihood that the
Company will be required to restate historical financial statements,
and the impact of this restatement; the potential that Kopin may be
delisted from The Nasdaq Stock Market; uncertainty of results of
pending civil litigation related to Kopin's stock option grant
practices; the potential for further delays related to the Company's
regulatory filings and other risk factors and cautionary statements
listed in the Company's periodic reports and registration statements
filed with the Securities and Exchange Commission. Additional
information concerning these and other risks and uncertainties are
discussed in the Company's filings with the Securities and Exchange
Commission, including without limitation , the Company's Form 10-Q for
the six-month period ended July 1, 2006 and its Annual Report on Form
10-K for the year ended December 31, 2005 under the heading "Risk
Factors." Any forward-looking statements speak only as of the date on
which it is made, and the Company undertakes no obligation to update
any forward-looking statements for any reason, including to reflect
events or circumstances after the date on which such statements are
made or to reflect the occurrence of anticipated or unanticipated
events or circumstances.
CONTACT: Kopin Corporation
Richard Sneider, 508-824-6696
Chief Financial Officer
rsneider@kopin.com
or
Sharon Merrill Associates, Inc.
Scott Solomon, 617-542-5300
Vice President
ssolomon@investorrelations.com