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5 November 2008


Kopin reports record revenue, despite III-Vs weakening

For third-quarter 2008, Kopin Corp of Taunton, MA, USA, which makes III-V heterojunction bipolar transistor (HBT) epiwafers and CyberDisplay LCDs, has reported record revenue of $30.7m, up 19% on $25.8m last quarter. “Despite a challenging macro-economic climate, we reported the highest quarterly revenue in our history,” says president & CEO Dr John C.C. Fan.

However, growth came from display revenue of $18.9m (up 39% on $13.6m), offsetting III-V revenue falling slightly by 3% from $12.2m to $11.8m (though up 6% from $11.1m a year ago).

Revenue from display products for military applications more than doubled year-on-year, reflecting Kopin’s participation in many US military programs.

“Our III-V product line remained a steady contributor during the quarter,” says Fan. “Among our wireless circuit partners, we have seen a continued migration toward InGaP (indium gallium phosphide) power amplifiers to handle the performance demands of today’s wireless handsets and mobile devices.” Kopin introduced its first InGaP HBTs a decade ago. “Our deep expertise only solidifies our competitive advantage as the market transitions toward this technology,” Fan reckons.

Due mainly to Kopin’s strategy of focusing on military products and other applications where its display technology is a differentiator, gross margin has risen by more than 1600 basis points over the last year to 33.8%. Operating income was $3.2m, compared to a loss of $677,000 a year ago.

Despite a loss of $2m from the sale of the firm Kenet (in which Kopin had a stake) and an impairment charge of $0.5m on corporate debt securities, net income was $1.5m (boosted by $1.2m of gains related to foreign currency fluctuations), compared with a net loss of $1.7m last quarter. As of 27 September, Kopin had no long-term debt, and cash and marketable securities totaled $92m.

“We begin the fourth quarter in a strong operational and financial position. While the macro-economic environment is unsettled, we believe our strong liquidity and our experience in managing through previous periods of financial contraction will enable us to succeed,” says Fan. “With our technical skill, differentiated products, manufacturing expertise and emphasis on higher-value applications, we are focused on continuing to improve our product mix, generate higher margins and drive revenue growth,” he concludes.

For full-year 2008, Kopin remains on track to achieve its revenue guidance of $105-115m.

See related items:

Kopin’s steady III-V revenues compensate for drop in CyberDisplays

Magnolia and Kopin to co-develop InN-based quantum dot solar cells

Kopin grows 61% year-on-year

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