Kopin (KOPN) Q2 2025 Earnings Call August 12, 2025 08:30 AM ET Speaker0Good morning, everyone, and welcome to the Kopin Corporation Second Quarter twenty twenty five Earnings Call. Please note this event is being recorded. At this time, I would like to turn the conference over to Brian Purnovo, Investor Relations for Kopin.Speaker1Thank you. Good morning, everyone. Before we get started, I'd like to remind everyone that today's call taking place on 08/12/2025, will be making forward looking statements as de ...

PRESS RELEASE Bloomberg (THEON:NA) / Reuters (THEON.AS) Strategic Investment and Partnership with KOPIN Corporation - Augmented Reality System DevelopmentLong-Term Supply Agreement with eMagin Corporation – OLED DisplaysStrategic Industrial Partnership with ALEREON – Wireless CommunicationExtending AR-MR-VR Capability via Investment in VARJO 11 August, 2025 – Theon International Plc (THEON) is proud to announce new strategic investments and strategic partnerships as part of its THEON NEXT initiative, build ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported) May 13, 2025 KOPIN CORPORATION (Exact Name of Registrant as Specified in Charter) Delaware 000-19882 04-2833935 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.) 125 North Drive, Westborough, MA 01581 (Address of Principal Executive Offices) ...

Company Overview - Kopin is a leading provider of specialized application-specific optical solutions for high-performance and mission-critical AR and VR applications[7] - The MicroDisplay market is forecasted to reach $6 billion in 2028 with a 20% CAGR[9] - Kopin is the 1 MicroDisplay provider for attractive end markets in defense, enterprise & industrial, and consumer sectors[9] - Kopin has deeply ingrained, long-tenured relationships with global market leaders with strategic focus on existing and emerging high-performance defense (90%), enterprise & industrial and consumer applications (10%)[9] Market Opportunity - The Department of Defense budget request for 2025 is $849.8 billion[17] - The global AR/VR market is expected to reach $71.2 billion in 2029, with AR at $29.6 billion (18% CAGR) and VR at $12.9 billion (23.2% CAGR)[52] - The global MicroDisplay market is projected to reach $9.2 billion in 2030 with a 17.6% CAGR[51] Technology and Products - Kopin offers a proprietary MicroDisplay portfolio including OLED, LCOS, µLED, and AMLCD MicroDisplays[19] - Existing programs in production & development represent approximately $70 million in revenue potential[40] - Kopin's µLED MicroDisplay has the potential for significantly higher brightness than OLED (up to 40x higher)[49] Intellectual Property and Manufacturing - Kopin has an extensive IP portfolio with over 200 pending or issued patents[57] - Kopin has manufacturing facilities in the United States and the United Kingdom[24]

Industry Overview - The AR/VR industry has faced a challenging journey towards commercialization, with many startups and established tech giants attempting to succeed but ultimately failing [1]. Investment Insights - Private investors are seeking value in the AR/VR sector, looking for opportunities with exponential growth potential [1]. - A preference for long and highly concentrated positions is noted, emphasizing the importance of thorough research to identify winning investments [1].

Group 1 - Kopin Corporation held its Q1 2025 Earnings Conference Call on May 13, 2025, with key participants including CEO Michael Murray and CFO Richard Sneider [1][2][6] - The call included forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, highlighting the company's expectations and projections [4][5] - The company acknowledged potential risks that could affect actual results, including product demand and market conditions [4][5]

Kopin (KOPN) Q1 2025 Earnings Call May 13, 2025 05:00 PM ET Company Participants Brian Prenoveau - Investor Relations ExecutiveMichael Murray - CEO, President & ChairmanRichard Sneider - Treasurer & CFO Conference Call Participants Glenn Mattson - AnalystGeorge Gianarikas - Managing Director and Senior AnalystJaeson Schmidt - Director of Research - Senior Research Analyst Operator Good day, everyone, and welcome to the Kopin Corporation's First Quarter twenty twenty five Earnings Call. Please note that this ...

Kopin (KOPN) Q1 2025 Earnings Call May 13, 2025 05:00 PM ET Speaker0 Good day, everyone, and welcome to the Kopin Corporation's First Quarter twenty twenty five Earnings Call. Please note that this event is being recorded. At this time, I'd like to turn the conference over to Brian Prineveau, Investor Relations for Kopen. Please go ahead. Speaker1 Thank you, and good afternoon, everyone. Before we get started, I'd like to remind everyone that during today's call, taking place on 05/13/2025, we will be makin ...

Financial Data and Key Metrics Changes - Copen Corporation reported a record revenue growth of 25% year-over-year for 2024, with fourth-quarter revenue increasing by 71% compared to 2023 [10][31] - The net loss for Q4 2024 was $1.9 million, or $0.01 per share, compared to a net loss of $6.5 million, or $0.06 per share in Q4 2023 [34] - For the full year 2024, total revenues were $50.3 million, up from $40.4 million in 2023, with product revenues increasing to $43.6 million from $25.9 million [35][38] Business Line Data and Key Metrics Changes - Product revenues for Q4 2024 were $12.6 million, compared to $6.8 million in Q4 2023, driven by a nearly 100% increase in defense product revenues [31][32] - R&D expenses for Q4 2024 were $3.1 million, up from $2.2 million in the previous year, primarily due to costs associated with establishing OLED deposition capabilities [33] Market Data and Key Metrics Changes - The company noted a significant increase in demand for optical systems and soldier-worn systems globally, particularly in Europe and the United States [57] - Copen is actively pursuing government funding requests exceeding $100 million, indicating strong market engagement despite potential budget cuts [55] Company Strategy and Development Direction - Copen is focused on its "One Copen" strategy, which aims to unify operations and reduce redundancies while enhancing capabilities in defense and consumer markets [12][16] - The company is implementing AI-assisted factory and process automation to improve manufacturing efficiency and reduce costs, with a goal of achieving at least $75 million in annual revenue by 2027 [20][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, projecting revenue between $52 million and $55 million despite geopolitical and supply chain uncertainties [14] - The company is confident in its ability to navigate tariff impacts due to its strategic initiatives and dual supply chains for OLED displays [15][16] Other Important Information - Copen has made significant progress in its neural display technology, with plans to demonstrate it in a headset within the year [44] - The company has been awarded a multi-million dollar R&D contract for a new optical prototype for the Army, highlighting its ongoing innovation efforts [25] Q&A Session Summary Question: Technical improvements in neural display and commercial readiness - Management confirmed that neural display technology is demonstrable and plans to showcase it in a headset soon [44][45] Question: Expectations for OPEX development in 2025 - OPEX is expected to be in the range of $10 to $12 million for SG&A, with internal R&D targeted at 7% of revenues [48] Question: Impact of government changes on customer engagements - Management reported no significant impacts from government budget cuts and noted an increase in training and simulation requests, indicating strong demand [56][57] Question: Gross margin dynamics and future estimates - Management acknowledged a slight decrease in gross margin due to inefficiencies in scaling production but expects margin expansion throughout 2025 [70][80] Question: Update on the lawsuit - No updates were provided on the lawsuit, but management expressed confidence in reducing damages and managing legal costs moving forward [82][90]

Financial Data and Key Metrics Changes - Copen Corporation reported a record revenue growth of 25% year-over-year for 2024, with Q4 revenue increasing by 71% compared to Q4 2023 [10][31] - The net loss for Q4 2024 was $1.9 million, or $0.01 per share, compared to a net loss of $6.5 million, or $0.06 per share in Q4 2023 [34] - For the full year 2024, total revenues were $50.3 million, up from $40.4 million in 2023, with product revenues increasing to $43.6 million from $25.9 million [35][38] Business Line Data and Key Metrics Changes - Product revenues in Q4 2024 were $12.6 million, compared to $6.8 million in Q4 2023, driven by a nearly 100% increase in defense product revenues [31][32] - R&D expenses for Q4 2024 were $3.1 million, up from $2.2 million in the previous year, primarily due to costs associated with establishing OLED deposition capabilities [33] Market Data and Key Metrics Changes - The company noted a significant increase in demand for optical systems and soldier-worn systems globally, particularly in Europe and the United States [57] - Copen is actively pursuing government funding requests exceeding $100 million, indicating strong market engagement despite potential budget cuts [55] Company Strategy and Development Direction - Copen is focused on its "One Copen" strategy, which aims to unify operations and reduce redundancies while enhancing capabilities in defense markets [12][16] - The company is implementing AI-assisted factory and process automation to improve manufacturing efficiency and reduce costs, with a goal of achieving at least $75 million in annual revenue by 2027 [20][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in 2025, projecting revenues between $52 million and $55 million despite geopolitical and supply chain uncertainties [14][17] - The company is witnessing an influx of new opportunities in defense, medical, and industrial markets, driven by increased demand for micro-displays and optics [21][22] Other Important Information - Copen's cash and equivalents were approximately $36.6 million at the end of 2024, with net cash used in operating activities around $14.2 million [39] - The company has been awarded several contracts, including a $14 million purchase order for thermal imaging assemblies and additional funding for extended reality prototypes [28] Q&A Session Summary Question: Technical improvements in neural display and commercial readiness - Management indicated that neural display technology is demonstrable and they aim to showcase it in a headset soon [44][45] Question: OPEX development expectations for 2025 - Expected S, G, and A expenses are projected to be around $10 to $12 million, with internal R&D targeted at 7% of revenues [48] Question: Impact of government changes on customer engagements - Management reported no significant impacts from government budget cuts and noted an increase in requests for training and simulation opportunities [56][57] Question: Gross margin dynamics and future estimates - Management acknowledged a slight decrease in gross margin due to inefficiencies in scaling production but expects margin expansion throughout 2025 [70][80] Question: Update on the lawsuit and legal expenses - Management provided no new updates on the lawsuit but indicated that legal expenses are expected to normalize, with appeal costs projected to be below $1 million [90]