News

Kopin Corp of Taunton, MA, USA has reported record revenue of $29.2m for third-quarter 2007, up 87% on $15.6m a year ago and 34% on $21.8m last quarter. However, growth is due to CyberDisplay revenue of $18.1m (up on $5.6m a year ago and $10.7m on last quarter). In contrast, III-V (GaAs HBT epiwafer) revenue of $11.1m is flat on last quarter and up just 11% on $10.0m a year ago. This is mainly due to an industry-wide inventory correction, according to president and CEO Dr John C.C. Fan.

Net loss was $772,000, reflecting a high proportion of display sales into the bridge digital camera market (aggressively priced to capture market share); continued investments to expand capacity and infrastructure in both CyberDisplay and III-Vs; and professional expenses of $430,000 from the stock option review.

During the quarter, in October, Kopin became the first firm to produce 6-inch HBT wafers in volume using Aixtron’s new integrated concept metal-organic chemical vapor deposition (IC MOCVD) systems (installed as part of Kopin’s plan to increase HBT manufacturing capacity by 50% through internal expansion and the addition of capacity at KTC, Kopin’s licensed original equipment manufacturer of HBT products in Hsinchu, Taiwan).

Correspondingly, due partly to capital equipment investment of $5.7m, cash reserves fell from $105.4m to $94.1m in the first nine months of 2007.

“As we look to 2008, we expect the investments we are making in our display and III-V product lines to drive growth and success in the quarters ahead,” says Fan. Kopin now expects to achieve the upper end of its revenue guidance of $90-95m for full-year 2007. “We anticipate growth in our HBT revenues to be fueled in part by WiMAX applications as we begin 2008,” adds Fan.

*The Q3/2007 financial results are preliminary (until Kopin files its report on Form 10-Q for Q3/2007), as they do not take into account a planned restatement of financial statements for 1995-2006 (as described in Form 8-K filed with the Securities and Exchange Commission on 9 May) related to Kopin’s ongoing review of its historical stock option granting practices.

In late October, the Nasdaq Stock Market’s board of directors granted Kopin until 17 December either to file all overdue periodic reports necessary to regain compliance with filing requirements or to discuss with Nasdaq (so that Nasdaq staff can update to the board on whether Kopin should remain listed on the Nasdaq Global Market).

See related items:

Kopin starts shipping 6-inch HBT wafers produced in IC MOCVD systems

Kopin expects strong III-V revenues to end 2007

Search: Kopin HBT GaAs WiMAX

Visit: www.kopin.com