TAUNTON – Kopin Corp. said today it bucked the economic downturn in the second quarter by increasing revenue and earnings on the strength of its defense products and III-V transistors.
Kopin (Nasdaq: KOPN) posted a profit of $3.7 million, or 5 cents a share, in the three months ended June 27, compared with a net loss of $1.7 million, or 2 cents a share, in the same period a year ago. The results included a $1.5 million gain from the sale of patents and a $700,000 charge for currency fluctuations.
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Revenue grew 9 percent to $28.2 million compared with $25.8 million a year earlier. The company cut marketing and administrative expenses in half to $2.6 million.
“Our strong second-quarter results reflect the continued growth in sales of displays for military applications and the increasing contribution of our III-V product line, which is gaining momentum as the macroeconomic climate begins to improve,” Dr. John C.C. Fan, Kopin’s president and CEO, said in a statement.
Fan also noted that Kopin’s revenue increased 31 percent from the first quarter to the second, saying it “underscores the success of our strategy to drive value for tier one customers through superior products and technology advancements while maintaining a healthy balance sheet.”
CyberDisplay revenue increased 31 percent thanks to higher sales for defense products. Military display product revenue doubled to $13.7 million. III-V revenue fell 15 percent. Eyewear product revenue plunged 81 percent.
Kopin also has stockpiled cash this year. The company, which has no long-term debt, said it had $105.8 million in cash and marketable securities on hand as of June 27, compared with just $5.8 million at the end of last year.
The company said it has received positive initial feedback since its introduction in late April of Golden-i, a wireless voice-command-and-control microdisplay system that weighs 3 ounces. “We are pleased to be working with several strategic business partners, including Microsoft, Motorola, Nuance Communications and Texas Instruments, as Golden-i begins field testing,” Fan said, although he went on to say in a conference call with investors that he does not expect Golden-i to contribute significant revenue before 2011.
Kopin reiterated its forecast for 2009 revenue of $90 million to $110 million. “Although we continue to believe that the most challenging portion of 2009 is behind us, our visibility into sales of display products into consumer electronic applications is still limited by macroeconomic uncertainty,” Fan said.
Kopin renewed the lease on its nearly 62,000-square-foot corporate headquarters in Taunton’s Myles Standish Industrial Park last month, The Boston Globe reported.
Additional information is available at Kopin.com.
