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News

21 May 2007

 

Kopin expects HBT sales to recover in second-half 2007

For first-quarter 2007, Kopin Corp of Taunton, MA, USA has reported revenue of $18.1m, down from $18.7m a year ago but up slightly from $17.9m last quarter.

Counteracting CyberDisplay revenues rising from $5.9m a year ago to $9.0m, III-V revenues (GaAs-based HBT epiwafers) of $9.1m are down from $12.8m a year ago.

“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,” says chairman and CEO Dr John C.C. Fan. “Our integrated circuit customers continued their migration to indium gallium phosphide (InGaP) transistors, the new generation of HBT structures for advanced wireless handsets . . . the transition to InGaP transistors is accelerating,” Fan adds. “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.”

Kopin remains on track to achieve its 2007 revenue guidance of $80-90m (up 12-27% on 2006), with most coming in second-half 2007, says Pan.

*Kopin granted stay of delisting by Nasdaq while it restates results

Like its results for Q4/2006 and full-year 2006, the Q1/2007 results are preliminary. Kopin has been unable to file the corresponding form 10-K and 10-Q financial reports with the Securities and Exchange Commission on time. This is due to the firm’s voluntary review of its past stock option granting practices by an independent special investigative committee appointed by the board of directors (assisted by legal and accounting experts).

On 3 May, the committee issued its preliminary findings that some of the 34 grant dates between 1995 and 2006 were dated incorrectly (mostly due to administrative delay between approval and allocation of options, but in certain cases due to the selection of earlier grant dates). However, the committee uncovered no information indicating that anyone acted with conscious recognition that the backward selection of grant prices would violate any plan provision or would require the firm to incur compensation expense as a result. Nevertheless, Kopin will need to restate certain financial statements for fiscal years 1995 through 2006 and the related interim periods.

Subsequently, on 15 May, the Nasdaq Listing and Hearing Review Council stayed the delisting of Kopin’s common stock on The Nasdaq Stock Market until the firm’s situation can be further reviewed. Kopin has been given until 1 June to provide more information to support its request for a stay of its delisting.

See related items:

Kopin’s III-V revenue fell again in Q4/2006, but expects strong rebound in 2007

Kopin and Finisar receive further Nasdaq non-compliance notices

Visit: http://www.kopin.com