Kopin Corporation, a leading provider of specialized optical solutions and high-performance microdisplays for defense, enterprise, consumer, and medical applications, has announced its financial results for the second quarter ended June 29, 2024.
CEO Commentary
Michael Murray, Chief Executive Officer, highlighted the quarter’s achievements, noting, “The second quarter saw significant growth, driven by a 106% increase in defense product sales and the acquisition of five new customer development orders. These developments offer substantial multi-million-dollar production revenue opportunities moving forward. This success validates our strategic shift towards focusing on defense products, which we initiated last year. Furthermore, our operational focus on enhancing margins for thermal weapon sights has been fruitful.”
Murray continued, “Looking ahead, we anticipate sustained growth from new clients and projects. Notably, we secured a development award for the U.S. Army’s Next Generation-Short Range Interceptor (NG-SRI) system, a program expected to transition to full production by 2027 and potentially generate tens of millions in revenue for Kopin.”
Financial Highlights
For the second quarter of 2024, Kopin reported total revenues of $12.3 million, an 18% increase from $10.5 million in the same period of 2023. Defense product revenues surged by 106% year-over-year, while industrial product revenues decreased by 30%. Funded R&D revenues fell by 70% due to the completion of certain defense development programs now moving into production.
Cost of product revenues for the quarter was $8.7 million, or 79% of net product revenues, compared to $5.7 million, or 95% of net product revenues, in Q2 2023. This reduction in cost percentage reflects lower rework costs and improved operational efficiency.
R&D expenses were $1.8 million, down 41% from $3.1 million in Q2 2023. The decrease is attributed to reduced customer-funded R&D and the successful completion of certain programs. Internal R&D expenses increased slightly due to advancements in NeuralDisplay™ technology.
SG&A expenses rose to $7.3 million, from $6.5 million in the same period last year, primarily due to higher legal fees related to the BlueRadios lawsuit. Legal expenses amounted to $3.1 million for the quarter, up from $1.9 million in Q2 2023.
The net loss for Q2 2024 was $5.9 million, or $0.05 per share, compared to a net loss of $8.2 million, or $0.07 per share, in Q2 2023.
Earnings Call and Webcast
Kopin management will host a conference call to discuss these results on Thursday, August 8, 2024, at 8:30 AM Eastern Time (5:30 AM Pacific Time). The call will include a question and answer session.
- U.S. Dial-in Number: 888-349-0106
- International Number: 412-902-0131
- Webcast Link: Q2 2024 Webcast
A telephonic replay will be available until August 15, 2024.
- Toll-Free Replay Number: 877-344-7529
- International Replay Number: 412-317-0088
- Replay Passcode: 10191338
For further details, please refer to our Form 10-Q for the quarter ended June 29, 2024.
