News

9 August 2006

 

Kopin's III-V sales flat on last quarter, but expanding HBT capacity by 50%

Kopin Corp of Taunton, MA, USA has reported second-quarter 2006 revenue of $18.9m (at the low end of guidance of $18.5-20.5m). This is down 10% on
$21.0m on a year ago but flat on $18.7m last quarter.

However, III-V revenues were up 34% from $9.0m a year ago, to $12.1m, though down slightly from $12.8m last quarter (which included $850,000 related to R&D and training services for Kopin's KoBrite joint venture). CyberDisplay revenues were down from $12.0m a year ago to $6.8m, though up from $5.9m last quarter.

Net income was $1.9m (including $1.2m from the sale of shares in Micrel Semiconductor Inc, minus a charge of $381,000 in stock-based compensation expense). This compares with $1.9m a year ago and $78,000 last quarter.

HBT products enjoyed a strong second quarter due to "an increase in wireless handset sales and, more importantly, a higher percentage of HBT content per handset to accommodate the increased functionality of new models," said president and chief executive officer Dr John C.C. Fan.

For first-half 2006, total revenue was $37.6m (down 6% from $39.9m a year ago). III-V revenues of $24.9m (up 35% from $18.4m) were counteracted by CyberDisplay revenues of $12.7m (down 41% from $21.5m). Net income was $1.9m (including the $1.2m from the sale of Micrel Semiconductor shares, offset by stock-based compensation expense of $816,000), down from $3.0m a year ago.

"With a global handset market projected to produce over 950m units in 2006, Kopin has begun a major capacity expansion to accommodate increased demand for our HBT transistors," Fan said. "Our capacity expansion is taking a
two-pronged approach: the installation of additional III-V equipment in our domestic facilities and the qualification of our Taiwanese HBT OEM partner, KTC. We anticipate getting initial production from both locations by year
end as we work toward our goal of a 50% capacity increase in the next 12 months."

Kopin expects Q3 revenues up slightly to $19-20.5m. "We anticipate continued strength in our III-V business, driven by demand for advanced wireless handsets equipped with our transistors, including our newest transistor solution, the GAIN-HBT," said Fan.

Visit: http://www.kopin.com