eMagin Corporation (EMAN) Q2 2012 Earnings Call August 9, 2012, 5:00 pm ET Executives Andrew Sculley – CEO, President Paul Campbell – CFO Analysts Dennis Van Zelfden – Brazos Research Andrew Abrams – Avian Security Aram Fuchs – Fertilemind Capital (Tom McGraw) – Private Investor Jonathan Pierce – Credit Suisse Dennis Van Zelfden – Brazos Research Bill Sutherland – Northland Capital Market Presentation Operator
Risk factors are included in the company’s Form 10K for 2011 on file with the Securities and Exchange Commission. Except where it’s directly required by federal securities laws we undertake no obligation to publicly update or revise any forward looking statements whether as a result of new information, future events, changes in circumstances or any other reasons.With that I’d like to turn the call over to Andrew Sculley, President and CEO of eMagin. Andrew Sculley Thanks, Paul, and thanks everyone for joining us on the call today. I’d like to begin with a brief overview of our business, some key highlights. Paul will then discuss our financial results for the second quarter of 2012 and finally we’ll open it up to your questions. I’m pleased to report record revenues of $8.6 million for the second quarter. This was driven by a 20% increase in the OLED micro display sales versus last year. And this is from both new and existing customers. During the quarter we captured the highest level of new business bookings in our history, which drove our backlog to new heights. We also saw further improvement in our manufacturing processes which resulted in greater throughput and higher yields so we’re very happy about this. For the remainder of 2012 we expect the further strengthening of demand in our key segments. Our most advanced OLED micro displays including a new WXGA micro display which we successfully unveiled at the society for information display in Boston this June. It’s also called SID. There it’s really the displays are virtually unmatched in being able to address the most demanding requirements that we have from all of our customers. Based on the response from security analysts and others attending SID conference I’m proud to say that our reputation as a leading innovator and partner of choice continues to grow.
With a strong product portfolio, a pipeline of new products in development, additional manufacturing capacity coming online and growing our intellectual property portfolio we believe we are well positioned to meet our key goals for this year and beyond.We’re manufacturing displays on our new OLED deposition tool. We’re still working on full automation for the tool for operations and this will optimize production capacity. Displays are coming off the new tool are much higher quality with significantly improved uniformity. This improvement in uniformity is both the benefit of the customer so every display looks the same. It will allow us to tighten speck or and or get better yield. Once fully optimized the new machine is expected to provide a tenfold increase in OLED deposition capacity, as we said before. During the period we will continue to also produce on the OLED deposition machine that we have now during the rest of this quarter. And that’s in order to optimize or enhance our throughput and meet the increasing customer demand. Worth mentioning that the new tool, the OLED deposition tool is unique. No other OLED deposition tool has its particular design characters aspects. It was jointly designed by us and the manufacturer SNU Precision to meet what we think of as our future demand requirement. Sorry, future display requirement. Now let me give you an update on some specific programs and then I’ll turn the call back over to Paul to review the financial results. First as I mentioned above, or previously, we unveiled and demonstrated out new WXGA full color display in June in the SID conference. This new product generated excitement among security analysts and industry trade reporters and a number of positive articles written highlighting our cutting edge technology. And just as a reminder, I should remind you that the WUXGA display has phenomenal resolution of 19 20 by 1200 pixels and that’s better or higher resolution than the full HDTV in your living room. Read the rest of this transcript for free on seekingalpha.com