14 August 2012

Kopin’s Q2 revenue growth suppressed awaiting launch of next-gen iPhone

For second-quarter 2012, Kopin Corp of Taunton, MA, USA, a supplier of III-V semiconductor products and microdisplays for mobile applications (including smartphones, tablet PCs, military thermal weapons sights and wearable computers), has reported total revenue of $22.8m, down 9.5% on $25.2m last quarter and 27% on $31.4m a year ago.

Revenue from III-V products was $15.8m, down slightly from $16m a year ago but up 10% on $14.3m last quarter. Revenue from display products was $7m, down 36% on $10.9m last quarter and less than half the $15.4m a year ago.

“Display product revenues were down in the second quarter due to decreased US 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,” says president & CEO John C.C. Fan. 

Although down from $31m a year ago, operating expenses have risen from $27.6m last quarter to $28.3m. Of this, R&D expenses have fallen further, from $7.1m a year ago and $5.1m last quarter to $5m.

Compared with net income of $0.8m a year ago, net loss has risen from $2.2m last quarter to $5.9m. During the quarter, cash and marketable securities fell further, from $102m to $96.3m.

During the quarter, Kopin’s III-V product purchase and supply agreement with Skyworks Solutions Inc of Woburn, MA, USA (which manufactures analog and mixed-signal semiconductors) was extended through December 2013 under terms similar to previous agreements. “Skyworks has been an outstanding customer and partner for many years, and we look forward to continuing to supply them,” says Fan.  

“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,” Fan reckons. “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,” he adds.

“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,” notes Fan. “Orders we had anticipated in our 2012 guidance likely will not occur this year.” Consequently, Kopin is cutting its full-year 2012 revenue guidance from $110-120m to $90-100m.  

See related items:

Kopin’s III-V revenue drops 18% in Q1

Kopin’s III-V revenue grows 12% in Q4/2011 to $17.4m

Kopin’s III-Vs revenue falls 3% in Q3

Kopin’s first-half III-V revenue up 10% year-on-year

Kopin’s Q1 revenue up 37% year-on-year to record $35m

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