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eMagin Corporation (NYSE Amex: EMAN), the leader in OLED technology for the design and manufacture of OLED microdisplays for high resolution imaging products, today announced financial results for the third quarter of 2011 ended September 30, 2011.
“The competitive strength of our technology and products continues to drive progress at eMagin. We matched our best quarter ever in terms of revenues, at $8.3 million, and saw sequential improvement in our performance,” stated Andrew Sculley, President and CEO. “Our new OLED deposition machine has arrived at our production facility in Hopewell Junction, New York, and we have begun installing the new equipment. We expect the new OLED deposition machine to be operating in first quarter of 2012. When fully operational, we expect a 10-fold increase in deposition capacity and improvements in yield.”
Mr. Sculley added, “We continue to anticipate that we will meet our 2011 revenue guidance of between $29.0 and $33.0 million based on several factors including current market conditions, production capacity, the Company’s backlog under existing contracts, shipments to a significant new customer in the high-end camera business, and other potential new business.”
Revenues for the third quarter were $8.3 million, essentially the same as for the comparable period in 2010. On a sequential basis, third quarter revenue was up 10.9% over second quarter revenue of $7.4 million. Gross margin for the third quarter was 53% of revenues for gross profit of $4.4 million, compared to a gross margin of 66% for gross profit of $5.5 million in the same quarter last year. Gross margin for the third quarter improved over the second quarter gross margin of 49% due to semi-fixed production expenses being spread over a higher revenue base.
Operating expenses for the third quarter of 2011 were $2.8 million, or 33% of revenues, versus operating expenses of $2.6 million, or 31% of revenues, for the prior year period. On a sequential basis, operating expenses declined approximately $250,000 from the second quarter of 2011. For the third quarter of 2011, selling, general and administrative (SG&A) expenses were lower at $2.0 million, compared to $2.1 million for the prior year period, and $2.2 million for the second quarter of 2011.