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 third quarter ended September 30, 2013.
Andrew G. Sculley, President and CEO, stated, “Demand during the third quarter remained strong, particularly from the military segment. In addition to completing deliveries of large numbers of displays for key programs, we strengthened our leadership position by advancing our technology development programs and making further investments in developing new processes that provide ultra-high brightness displays, a critically important attribute for a growing number of applications that are used in direct sunlight or daylight, such as wearable personal headsets.”
Mr. Sculley continued, “Fewer government R&D contracts due to the U.S. government sequestration and budget issues, increased labor requirements and additional time spent to install a fix on the new OLED deposition tool, prevented us from meeting our production and revenue targets for the third quarter. In addition, while we solved a major design issue in August that resulted in improved performance of the tool, we experienced a part problem early in the fourth quarter and were forced to curtail production on the new tool for two weeks. This part has now been replaced but we believe our fourth quarter results will be impacted.
“With the design flaw solved, I am confident we will continue to see improvement in the new tool’s yield and output and we will address any further operational issues should they arise. In early October, Robert J. Kaizerman joined eMagin as Vice President of Manufacturing. His experience encompasses all aspects of operations, production, supply chain management, quality systems, manufacturing and engineering in entrepreneurial high tech environments. Robert has already made a number of valuable contributions to our operations and I’m confident he will continue to do so and help us drive the Company’s growth.”