eMagin Corporation (NYSE MKT: EMAN)
, the leader in the technology, development, design and manufacture of Active Matrix OLED microdisplays for high resolution imaging products, today announced financial results for the second quarter ended June 30, 2013.
“Our second quarter 2013 results reflect some of the challenges we have continued to face as an R&D provider and high tech manufacturer. Although product revenue, primarily displays, increased 15 percent for the first half of 2013 versus the first half of 2012, and total revenues for the first half increased 5.5 percent over the first half of last year, our overall revenues were lower in the second quarter compared to the year-ago quarter primarily due to lower contract R&D from U.S. government agencies, which have been impacted by sequestration and other budget-related issues as well as manufacturing challenges including those associated with bringing our new OLED deposition tool up to full operation and the fulfillment of large volume orders with stringent specifications,” said Andrew G. Sculley, President and CEO.
“While we were pleased that almost half of the OLED deposition was accomplished during the second quarter using our new deposition tool and that overall, we have produced more units year to date than in the comparable period last year, neither yield nor output are where we want them to be. We are continuing to utilize personnel and other resources to further optimize the tool and we remain confident that yield, which is now about equal to our Satella deposition tool, will continue to improve. However, as a result of our efforts to improve the new deposition tool’s yield and output, we experienced higher than anticipated manufacturing costs in the quarter, which impacted our operating performance.”
Mr. Sculley continued, “Strong demand from domestic and international customers, particularly in the military segment, reflects our continued technological leadership in the emerging OLED microdisplay industry. We intend to remain the technology leader in the OLED microdisplay space by offering new generations of super bright, super-efficient microdisplays, including our new OLED-XLS, which is ideally suited to meet even the most demanding military applications, and our new, direct patterning technology, which we view as the next technological step to higher brightness and efficiency.”