Sunday, 22 Sep 2019

eMagin announces second quarter 2015 financial results

The improved financial results were due to increased contract revenues, and lower manufacturing costs and operating expenses

13 Aug 2015 | Editor

Revenues for second quarter 2015 were approximately US$7.0 million equalling approximately US$7.0 million for second quarter last year and up approximately 17% over first quarter 2015. Product revenues (primarily display sales) totalled US$5.4 million, about 22% less than second quarter last year.

R&D contract revenues increased significantly to approximately US$1.6 million from approximately US$62,000 in second quarter last year. The number of displays shipped decreased and the average selling price decreased slightly from last year. The change in average selling price is a result of changes in product and customer mix.

Gross margin for second quarter was 37 percent on gross profit of $2.6 million compared to a gross margin of 31 percent on gross profit of $2.2 million in second quarter last year. The increase in gross margin from last year was primarily due to increased gross profit from contract revenues, and lower manufacturing costs, including direct labour expense.

Operating expenses for second quarter decreased to US$2.7 million from US$3.2 million in second quarter last year. Operating expenses are comprised of R&D expenses and selling, general and administrative (SG&A) expenses. R&D expenses decreased to US$0.9 million from US$1.3 million in second quarter last year.

Operating profit for the second quarter increased US$0.9 million to a loss of US$0.1 million from a loss of US$1.0 million in second quarter last year. Net loss was US$0.1 million or US$0.00 per diluted share, versus a net loss of US$1.0 million or US$0.04 per diluted share in second quarter last year.

At June 30, 2015, the Company had approximately US$5.4 million of cash, cash equivalents, and investments in certificates of deposit, compared to US$6.0 million at December 31, 2014. The decrease in cash is due primarily investments in capital equipment and an increase in net inventories.

eMagin reports financial results
for Q2 2015 (US$ ,000)
Revenue - Products 5,426 6,956 10,530 13,215
Revenue - Contract 1,608 62 2,493 81
Revenue - Total 7,034 7,018 13,026 13,296
Gross profit 2,608 2,169 4,968 4,100
Operating expenses 2,668 3,213 4,699 6,758
Net (loss) Income (60) (1,044) 269 (2,658)
Net result per share - basic($) -- (0.04) 0.01 (0.11)


Based on current and forecasted market conditions, expected orders and current backlog, eMagin affirms our previous guidance that we expect revenues will total between $26 million to $29 million in 2015.

Andrew G. Sculley, President and CEO, said:

  • We are pleased the Company increased revenues 17% from first quarter
  • We equaled last year’s Q2 revenue and earned US$0.4 million in positive cash flow (EBITDA), an increase of US$1.0 million in cash flow over Q2 last year
  • Our improved financial results were due to increased contract revenues, and lower manufacturing costs and operating expenses
  • Also during the second quarter, we made progress in several key areas of the business that we believe position the Company for continued OLED technology leadership and revenue growth
  • Our work on developing production quantity ultra-high brightness, direct-patterned displays that eliminates the use of color filters progressed during the quarter
  • This work will result in manufacturable, full-color direct-patterned ultra-high brightness microdisplays that are about 20 times brighter than the typical smart phone display
  • These ultra-high brightness displays will help accelerate the penetration of our OLED microdisplays into new markets such as avionics and consumer headset applications
  • eMagin continues to lead the industry in this effort for direct patterned OLED at microdisplay pixel sizes
  • In addition, we completed our new, advanced HMD "head mounted display" prototype and have been demonstrating it to interested parties which include large tech companies, gaming companies and large chip manufacturers
  • The headset features 2,000 by 2,000 pixel resolution, a superior form factor, a wide 100+ degree field of view and has all the outstanding attributes of eMagin OLED microdisplays


About eMagin

A leader in OLED microdisplay technology, OLED microdisplay manufacturing know-how and mobile display systems, eMagin manufactures high-resolution OLED microdisplays and integrates them with magnifying optics to deliver virtual images comparable to large-screen computer and television displays in portable, low-power, lightweight personal displays. eMagin microdisplays provide near-eye imagery in a variety of products from military, industrial, medical and consumer OEMs.

Source: eMagin

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