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7 May 2008


Kopin grows 61% year-on-year

For first-quarter 2008, Kopin Corp of Taunton, MA, USA has reported revenue of $29.2m, up slightly on last quarter’s record of $28.9m. This is also up 61% on $18.1m a year ago (CyberDisplays up 89% from $9m to $17.1m; III-V products up 33% from $9.1m to $12.1m).

“In our III-V business, our strategy to improve efficiency, quality and cost by significantly expanding our 6-inch HBT wafer capacity drove strong year-over-year performance in the quarter,” says president and CEO Dr John C.C. Fan.

Net income was $1m, compared with a net loss of $3.3m a year ago. “Our bottom line improved as a result of a favorable sales mix during the quarter which featured the sale of higher-margin products,” Fan adds. Q1/2008 was also favorably impacted by lower bad debt expense of about $270,000 and foreign exchange gains of about $400,000 (partially offset by higher expenses of about $225,000 associated with Kopin’s 2006 and 2007 US Securities and Exchange Commission filings).

“The future of our III-V business is bright,” Fan reckons. In April, Kopin extended its HBT purchase and supply agreement with long-term customer Skyworks Solutions Inc of Woburn, MA to fulfill all of its 4-inch and most of its 6-inch HBT wafer requirements through July 2010. To accommodate III-V product demand, Kopin recently completed the installation of three new MOCVD reactors, boosting its capability for processing 6-inch GaAs wafers for HBTs used in both power amplifiers and new wireless and optoelectronic applications.

“We are optimistic that our momentum will continue in the quarters ahead,” Fan says, highlighting longer-term opportunities for III-V products in areas such as solar cells and wireless broadband. “We have installed new capacity and capability for all of our product lines and we are actively improving the performance of our products as well as developing exciting new products,” he adds. Despite seeing some indications of a softening in the consumer electronics market segment, based on strength in other market segments Fan believes that Kopin is on track to achieve its revenue guidance of $105-115m for 2008 (up 7-17% on 2007’s $98.1m).

*The Massachusetts Superior Court has dismissed two derivative lawsuits filed against Kopin, as a nominal defendant, and certain officers and directors, in connection with the firm’s historical stock option granting process, the accounting for past stock options, and historical sales of stock. The plaintiffs may appeal the decision.

See related items:

Kopin awarded phase II NASA STTR solar cell development contract

Kopin extends Skyworks’ HBT purchase and supply agreement

Kopin reports flat year for III-V product line

Search: Kopin Skyworks GaAs HBT MOCVD Solar cells