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 its fourth quarter and full year ending December 31, 2011.
“2011 was a key year in the development of eMagin as we opened additional avenues of growth by securing R&D contracts with a diversified leading manufacturer of highly engineered critical components, the University of Rochester for the Department of Energy and the United States Special Operations Command (SOCOM), while completing contracts and maintaining our ongoing relationships with U.S. Army Telemedicine and Advanced Technology Research Center (TATRC) and the Night Vision and Electronic Sensors Directorate (NVESD). We also won a contract to commercialize our new, very high resolution (1920x1200) WUXGA display and secured an important first-time customer in a new market, electronic viewfinders, which could grow substantially in the future,” stated Andrew Sculley, President and CEO. “We also continued to address our production output challenges, which were primarily due to the limited capabilities of our current OLED deposition machine and which impacted our ability to meet growing customer demand for our advanced OLED microdisplays. Our new OLED deposition machine has been installed and is now being tested and qualified at our Hopewell Junction, New York, manufacturing facility. When fully operational, the new deposition machine is expected to increase OLED deposition capacity by approximately tenfold, to increase yield, and to contribute to a substantially more efficient, automated process, with lower maintenance requirements and greater utilization. The greater production efficiencies expected to be realized from the new machine will enable us to further address our key domestic and international markets, which include a range of military, commercial, industrial, medical, and consumer applications.”
Revenues for the fourth quarter were $8.0 million, an increase of $65,000 over the comparable period in 2010. Gross margin for the fourth quarter increased 7% to 65% of revenue on gross profit of $5.2 million, compared to a gross margin of 62% of revenue on gross profit of $4.9 million in the same quarter last year. The year-over-year improvement in gross margin was achieved through increased volume of production and improved contract margin.