SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: April 25, 2003
KOPIN CORPORATION
(Exact Name of Registrant as Specified in Charter)
DELAWARE 0-19882 04-2833935
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
695 Myles Standish Blvd., Taunton, MA 02780-1042
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (508) 824-669
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(C) EXHIBITS.
99.1 Kopin Corporation Press Release, dated April 23, 2003.
ITEM 9. REGULATION FD DISCLOSURE.
The following information is furnished pursuant to Item 12, "Disclosure of
Results of Operations and Financial Condition."
Kopin Corporation issued a press release on April 23, 2003, a copy of
which is attached as Exhibit 99.1 to this report and incorporated herein by
this reference, in which it announced financial results for the first quarter
ended March 29, 2003. This information shall not be deemed to be "filed" for
the purposes of Section 18 of the Securities Exchange Act of 1934 and shall not
be deemed to be incorporated by reference in any filing under the Securities
Act of 1933.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
KOPIN CORPORATION
Dated: April 25, 2003 By: /s/ Richard A. Sneider
Richard A. Sneider
Treasurer and Chief Financial Officer
(Principal Financial and Accounting Officer)
EXHIBIT INDEX
Exhibit Number Description
99.1 Press Release, dated April 23, 2003
Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact:
Richard Sneider or Ehren Lister
Chief Financial Officer Account Executive
Kopin Corporation Sharon Merrill Associates, Inc.
(508) 824-6696 (617) 542-5300
rsneider@kopin.com elister@investorrelations.com
KOPIN REPORTS FIRST-QUARTER 2003 FINANCIAL RESULTS
Company Achieves Initial Volume Shipments of New CyberLite(TM) LED
TAUNTON, MASS., APRIL 23, 2003 -- Kopin Corporation (NASDAQ: KOPN) today
announced financial results for the first quarter ended March 29, 2003.
Financial highlights:
o First-quarter 2003 revenue increased approximately nine percent
sequentially to $18.0 million from fourth-quarter 2002 revenue of $16.5
million. For the first quarter of 2002, Kopin posted revenue of $17.6
million.
o Kopin's net loss for the first quarter of 2003 was $2.2 million, or $0.03
per share. This compares with a net loss of $15.1 million, or $0.22 per
share, in Q4 of 2002, and a net loss of $3.2 million, or $0.05 per share,
in the first quarter of 2002.
o Kopin maintained its strong financial position, ending the first quarter
with approximately $115.0 million in cash and marketable securities and no
debt.
"Kopin's first-quarter financial results reflect the diversity of our revenue
mix and demonstrated the validity of our strategy," said Dr. John C.C. Fan,
Kopin's president and CEO. "With contributions from our three distinct product
platforms, including initial revenue from our new CyberLite light-emitting
diode (LED), we were able to exceed our top-line expectation in a difficult
economic environment."
III-V
Kopin's III-V revenue increased 68.5 percent sequentially and 23.2 percent
year-over-year to $9.5 million, which included the initial revenue contribution
of $1.3 million from Kopin's new CyberLite LED. "During the first quarter, we
began shipping our CyberLite blue LED to a tier-one packaging customer in Asia.
Achieving volume production of a third product platform is a significant
accomplishment for Kopin, and we are pleased with the progress we have made
with the nanotechnology-based CyberLite. Our CyberLite ramp continues, and we
are working to secure additional product qualifications from customers in the
coming quarters. We believe our LED platform represents an exciting opportunity
to leverage our semiconductor materials expertise in 2003 and beyond," said Dr.
Fan.
"We also are pleased with the performance of our HBT products. Revenue grew
sequentially, reflecting a weak comparable fourth quarter of 2002 but also
stronger-than-anticipated orders, particularly for wireless local area network
applications. Our GAIN-HBT(TM) technology has been well received, and we are on
pace to secure a design win for this transistor in 2003," added Dr. Fan.
CYBERDISPLAY
CyberDisplay(TM) revenue decreased 21.2 percent sequentially to $8.6 million in
the first quarter of 2003 from $10.9 million in the fourth quarter of 2002. In
Q1 of 2002, CyberDisplay revenue was $9.9 million. "As we anticipated,
CyberDisplay sales experienced seasonal decline. In addition, we had no
research and development contract revenue during the quarter. This reflects a
transition in our contracts with the government. We expect contract revenues to
resume in the second quarter. Interest in our miniature displays continues to
grow, and we expect to secure a design win for the CyberDisplay 180K color
filter AMLCD in the coming months. Also, we have several new products under
active development that will enable us to explore new opportunities for the
CyberDisplay in additional consumer, military and industrial applications,"
said Dr. Fan.
BUSINESS OUTLOOK
Commenting on the outlook for the second quarter of 2003, Dr. Fan said, "During
the second quarter, our focus will be on the continued execution of Kopin's
strategy to diversify its product platforms and its customer base and to grow
revenue. We continue to invest and accelerate our CyberLite ramp, pursue
additional customer qualifications and work on derivative products from this
third platform. In our CyberDisplay business, we expect to announce several new
products in the second quarter and to have a design win for the 180K in the
coming months. These new products will strengthen our position as the leading
microdisplay supplier to the consumer, industrial and military markets.
"From a financial perspective, for the second quarter of 2003 we expect HBT
revenues to decline sequentially. However, we expect a rapid resumption of
CyberDisplay revenue growth and CyberLite revenues of more than $2 million,"
Dr. Fan continued. "In summary, based on current business conditions and order
patterns, we expect sequential top-line revenue growth of approximately 10
percent."
FIRST-QUARTER CONFERENCE CALL
Kopin will provide a live audio Webcast of its first-quarter conference call
for investors at 5:00 p.m. ET today, April 23, 2003. Investors who want to hear
the call should log on to the Investor Relations section of Kopin's Web site,
www.kopin.com, at least 15 minutes before the event's broadcast. The call will
be available on the Investor Relations section for one week. After that,
investors can access an archived version of the call on Kopin's Web site.
Kopin's first-quarter conference call also can be heard live by dialing (719)
457-2621 five minutes prior to the call. A replay of the call will be available
from 8:00 p.m. ET Wednesday, April 23 through 11:59 p.m. ET Tuesday, April 29.
To access the replay, dial (719) 457-0820 and refer to confirmation code
672494.
ABOUT KOPIN
Founded in 1984, Kopin is pioneering the use of the Wafer Engineering
Process(TM) and nanotechnology to manufacture components that make electronic
products as small, fast, bright, lightweight and inexpensive as possible. With
an intellectual property portfolio of more than 200 issued and pending patents,
Kopin supplies the world's largest electronics manufacturers and government
agencies with breakthrough semiconductor products. The Company's liquid-crystal
microdisplays, ultra-efficient transistors and high-brightness GaN LEDs enhance
the delivery and presentation of voice, video and data. Kopin technology is
currently used in one-third of the world's cell phones and nearly one-third of
the world's camcorders and is the microdisplay standard for the U.S. military.
For more information, please visit Kopin's Web site at www.kopin.com.
CyberDisplay, CyberLite, GAIN-HBT, NanoPockets and Wafer Engineering Process
are trademarks of Kopin Corporation.
Statements in this news release may be considered "forward-looking" statements
under the "Safe Harbor" provisions of the Private Securities Litigation Reform
Act of 1995. These include statements relating to: Kopin Corporation's
anticipated second-quarter sequential revenue growth of approximately 10
percent; CyberLite revenues of more than $2 million; the expectation that
contract revenue will resume in the second quarter; the expectation of a design
win for the CyberDisplay 180K in the coming months; and the expectation of a
GAIN transistor design win in 2003. These statements involve a number of risks
and uncertainties that could materially affect future results. Among these risk
factors are general economic and business conditions and growth in the flat
panel display, LED and gallium arsenide integrated circuit and materials
industries; the impact of competitive products and pricing; availability of
third-party components; the successful CyberLite production ramp; the
qualification of our CyberLite manufacturing process by additional customers;
availability of integrated circuit fabrication facilities; cost and yields
associated with production of the Company's CyberDisplay imaging devices,
CyberLite LEDs and HBT transistor wafers; loss of significant customers;
acceptance of the Company's products; success of new product and other research
and development efforts; continuation of strategic relationships; the value of
shares of Micrel Semiconductor held by the Company; Kopin's ability to
accurately forecast revenue levels; and other risk factors and cautionary
statements listed in the Company's periodic reports and registration statements
filed with the Securities and Exchange Commission. These include, but are not
limited to, the Company's Annual Report on Form 10-K for the year ended
December 31, 2002.
The Company's condensed consolidated statement of operations and balance sheet
are attached.
# # #
KOPIN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 29, March 30,
2003 2002
Revenues:
Product revenues $ 18,048,746 $ 17,355,889
Research and development revenues 227,056
18,048,746 17,582,945
Expenses:
Cost of product revenues 15,058,930 14,645,593
Research and development 2,881,176 3,308,745
Selling, general and administrative 2,619,286 3,022,202
Other 120,216 265,426
20,679,608 21,241,966
Loss from operations (2,630,862) (3,659,021)
Other income and expense:
Interest and other income 1,060,903 708,825
Interest and other expense (393,538) (14,232)
667,365 694,593
Loss before minority interest in income of (1,963,497) (2,964,428)
subsidiary
Minority interest in income of subsidiary (273,551) (220,148)
Net loss $ (2,237,048) $ (3,184,576)
Net loss per share:
Basic $ (0.03) $ (0.05)
Diluted $ (0.03) $ (0.05)
Weighted average number of common shares outstanding:
Basic 69,391,207 69,163,120
Diluted 69,391,207 69,163,120
KOPIN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 29, December 31,
2003 2002
ASSETS
Current assets:
Cash and marketable securities $ 115,149,347 $ 117,991,312
Accounts receivable, net 9,871,710 6,680,538
Inventory 5,424,538 4,773,333
Prepaid and other assets 1,152,257 1,118,944
Total current assets 131,597,852 130,564,127
Equipment and improvements, net 33,395,476 34,748,361
Other assets 9,748,058 8,773,040
Intangible assets, net 360,649 480,866
Total assets $ 175,102,035 $ 174,566,394
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 10,545,709 $ 7,414,774
Accrued payroll and expenses 6,931,227 7,302,586
Total current liabilities 17,476,936 14,717,360
Minority interest 3,024,803 2,931,366
Stockholders' equity 154,600,296 156,917,668
Total liabilities and stockholders' equity $ 175,102,035 $ 174,566,394