By PBN Staff
TAUNTON - Wearable-technology-maker Kopin Corp. posted a $21.6 million profit during the first quarter of 2013, mostly due to $20.2 million in income from its divested III-V operations as well as an income tax benefit of $13 million, the company announced after close of business Wednesday.
During the quarter, Kopin completed the sale of its III-V product line and investment in Kopin Taiwan Corp. to IQE PLC.
Comparatively, during the first quarter of 2012, Kopin posted a loss of $2.6 million, or 4 cents per diluted share.
Even as Kopin’s bottom line rose year-over-year during the quarter, its revenue fell 41.8 percent. The drop was attributed to a 65.8 percent decrease in display revenue for military applications to $2.6 million during the three months ended March 30, from $7.6 million during the same period 2012 (and which was in addition to the loss in revenue from the sold-off III-V business).
“During the first quarter, Kopin continued our investment in forming strategic relationships with top technology companies to solidify our position as a leader in providing the critical components and concept systems that accelerate our partners’ development of branded wearable computing products,” John C. C. Fan, Kopin president and CEO, said in a statement.
“Our IP portfolio is strong and places us at the forefront of this emerging market. As we transform to a solution- and license-based model, we anticipate producing faster-growing recurring revenue that will drive higher gross margins,” said Fan.
The company said it expected its full-year 2013 revenue to range between $18 million and $22 million. The low figure was attributed to “significant operating expenses” to advance its critical components and license concept systems for wearable technology products.
In its release, Kopin said that its 2013 focus would be on developing technology and product and establishing relationships, “not necessarily on achieving revenue … Accordingly, the company’s 2013 net losses may exceed its current estimates.”
“As we’ve stated before, 2013 is our investment year to focus and position Kopin to seize the wearable computing wave, which we expect to hit in early 2014,” said Fan in a statement. “We’re very encouraged by our progress and expect to make a number of exciting announcements through the next 12 months.”