In This Article:
-
Total Revenue: $12.3 million, an 18% increase year over year.
-
Product Revenue: $11.1 million, up from $6 million in the prior year.
-
Defense Product Revenue: Increased by $5.4 million year over year.
-
Funded R&D Revenue: $1.2 million, a decrease of $2.7 million from the previous year.
-
Cost of Product Revenue: $8.7 million, 79% of product revenues, down from 95% in the prior year.
-
Gross Margin Improvement: Approximately $1.3 million due to lower estimated rework costs.
-
R&D Expenses: $1.8 million, down from $3.1 million in the previous year.
-
SG&A Expenses: $7.3 million, up from $6.5 million in the prior year.
-
Net Loss: $5.9 million or $0.05 per share, compared to a net loss of $8.2 million or $0.07 per share in the prior year.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Kopin Corp (NASDAQ:KOPN) received over $55 million in orders for 2024 and beyond, including new customers from the US and Europe, indicating an expanding revenue and customer base.
-
The company reported $12.3 million in revenue for Q2 2024, with defense applications showing a year-over-year growth of 106% to $10.4 million.
-
Incoming inspection rates at top customers improved to 97%, positively impacting product gross margins.
-
Kopin Corp (NASDAQ:KOPN) has a strong opportunity pipeline valued at over $500 million, with $350 million in the defense market.
-
The company is making progress on its strategic initiatives, including the development of advanced display technologies for defense and consumer applications.
Negative Points
-
Funded research and development revenues decreased by $2.7 million in Q2 2024 compared to Q2 2023 due to the completion of several programs.
-
SG&A expenses increased to $7.3 million in Q2 2024 from $6.5 million in Q2 2023, primarily due to higher legal fees.
-
The net loss for Q2 2024 was $5.9 million, although this was an improvement from the $8.2 million loss in Q2 2023.
-
The consumer segment is expected to remain minimal throughout the year, with limited revenue contribution.
-
The geopolitical issues in China and Korea have negatively impacted the 3D AOI market, which remains de minimis for Kopin Corp (NASDAQ:KOPN).
Q & A Highlights
Q: Was the strong defense revenue growth in Q2 driven by specific programs or was it broad-based? A: Michael Murray, President and CEO, explained that the growth was broad-based across the defense market, including thermal weapon programs, projectile thermal imagers, and eyepieces for rotary and fixed-wing orders. There is also increased interest from European companies and customers.