Kopin Corporation (Nasdaq: KOPN), a leading supplier of advanced semiconductor products and microdisplays for mobile applications including smartphones, tablet PCs, military thermal weapons sights and wearable computers, today reported financial results for the second quarter ended June 30, 2012.
Comments on Display and III-V
“Our second-quarter results were in line with our previously stated expectations,” said Dr. John C.C. Fan, Kopin’s President and Chief Executive Officer. “Display product revenues were down in the second quarter due to decreased U.S. military spending, while III-V revenues were essentially flat as the market awaits the launch of the next-generation iPhone in the second half of the year.”
“We continued to make significant progress on our two key product lines, III-V and Golden-i,” Dr. Fan said. “For our III-V products, the future bodes well as Kopin and Skyworks Solutions, Inc. extended our purchase and supply agreement through December 2013 under terms similar to our previous agreements. Skyworks has been an outstanding customer and partner for many years, and we look forward to continuing to supply them with the highest quality III-V products.”“During the second quarter we continued to advance our Golden-i platform technology, and are pleased to report that our industrial partner is on track to launch a Golden-i-enabled product in 2012,” Dr. Fan said. “Golden-i is a software-based, application-driven technology that will enable both device makers and software application developers to create new breeds of wireless head-worn, hands-free, mobile devices for numerous products and markets. Among the applications we are developing with our partners is artificial intelligence software that supplements the current ‘command and control’ voice technology with natural speech recognition for our focused markets. We are very excited about the prospects for our Golden-i platform as we move into 2013 and beyond.” Business Outlook “Our renewed purchase and supply agreement with Skyworks, combined with our strong relationships with other customers, positions our III-V business well for the future,” Dr. Fan said. “While the growth trajectory of the wireless handset market may not be as steep as anticipated at the beginning of 2012, the market remains strong. In our military display business, the decline in defense spending has prompted one customer to review various options to reduce costs, which is currently affecting an existing program. As a result of this review, orders we had anticipated in our 2012 guidance likely will not occur this year. Consequently, we are reducing our full-year 2012 revenue guidance to $90 million to $100 million from a previous range of $110 million to $120 million.”