Kopin Corp. (KOPN, Financial) filed Quarterly Report for the period ended 2009-06-27.
Kopin Corp. is a manufacturer of gallium arsenide transistor products and miniature flat panel displays for wireless communications and portable consumer electronics. The company\'s gallium arsenide heterojunction bipolar transistors are used to produce power amplifier circuits for wireless telephone handsets and gigabit circuits for fiber-optic and Internet data transmission. Kopin\'s CyberDisplay family of ultra-small high density imaging devices is designed for portable products including camcorders digital cameras and wireless handsets. (PRESS RELEASE) Kopin Corp. has a market cap of $224.7 million; its shares were traded at around $3.33 with a P/E ratio of 111.1 and P/S ratio of 2.
and development revenues consist primarily of development contracts with agencies of the U.S. government. For the three and six months ended June 27, 2009, research and development revenues were $2.1 million and $3.0 million respectively. This contrasted with $1.7 million and $3.8 million for the corresponding periods in 2008.
The back-end packaging manufacturing process of our displays which are sold for consumer applications is performed at Kowon. As discussed above, we expect sales of our display products in fiscal 2009 to decline as compared to fiscal year 2008 levels. Kowon had net income of $3.2 million and $1.5 million before intercompany eliminations for fiscal year 2008 and fiscal year 2007, respectively. We anticipate that sales of our display products for use in consumer electronic applications may decline such that Kowon may have a loss from operations in 2009. If sales of our display products for consumer electronic applications do not increase or new markets are not identified, we may have to record impairment charges on Kowons long lived assets, which are recorded in our financial statements at $2.7 million at June 27, 2009.
Tax provision. For the three and six months ended June 27, 2009 we have recorded a provision for income taxes of $367,000 and $636,000, respectively, compared to provisions of $208,000 and $419,000 for the three and six month periods ended June 28, 2008. Our provision for income taxes is comprised of our estimated alternative minimum tax and state income tax liabilities on our domestic taxable earnings and estimated foreign taxes due on our Korean subsidiarys taxable earnings.
As of June 27, 2009, we had cash and equivalents and marketable securities of $105,800,403 and working capital of $120,914,869 compared to $100,015,991 and $116,841,086, respectively, as of December 27, 2008. The change in cash and equivalents and marketable securities was primarily due to cash generated from operating activities of $12.2 million, partially offset by investments in capital equipment and other assets of approximately $0.6 million, and repurchases of our common stock of $5.3 million.
Subsequent to June 27, 2009 the Company entered into agreements to increase our investment in KTC from approximately 40% to approximately 80% for $6.2 million. The proposed increase in the Companys ownership is through two transactions. In the first, the Company will buy newly issued shares from KTC for $5.9 million. In the second transaction the Company with purchase the shares of Microelectronic Technology Inc. (MTI) for $0.3 million. The completion of this transaction is subject to government approvals. We will fund the purchase of
Read the The complete ReportKOPN is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
Kopin Corp. is a manufacturer of gallium arsenide transistor products and miniature flat panel displays for wireless communications and portable consumer electronics. The company\'s gallium arsenide heterojunction bipolar transistors are used to produce power amplifier circuits for wireless telephone handsets and gigabit circuits for fiber-optic and Internet data transmission. Kopin\'s CyberDisplay family of ultra-small high density imaging devices is designed for portable products including camcorders digital cameras and wireless handsets. (PRESS RELEASE) Kopin Corp. has a market cap of $224.7 million; its shares were traded at around $3.33 with a P/E ratio of 111.1 and P/S ratio of 2.
Highlight of Business Operations:
spend between $4.0 and $8.0 million on capital expenditures over the next twelve months; our expectation that our third quarter will be our strongest sales quarter for displays to customers who use them in consumer electronic products, followed by our second quarter then our fourth quarter and our first quarter; our expectation that we will sell more display products for military applications which we would not expect to have historical sales trends; our expectation that changes in near-term interest rates will not be material to our cash flows or income; our expectation that market risk associated with our international operations is unlikely to have a material adverse effect on our business, financial condition or results of operation. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industries in which we operate, managements beliefs, and assumptions made by management. In addition, other written or oral statements, which constitute forward-looking statements, may be made by or on behalf of us. Words such as expects, anticipates, intends, plans, believes, could, seeks, estimates, and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements, whether as a result of new information, future events or otherwise. Factors that could cause or contribute to such differences in outcomes and results include, but are not limited to, those set forth in our other periodic filings filed with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended December 27, 2008.and development revenues consist primarily of development contracts with agencies of the U.S. government. For the three and six months ended June 27, 2009, research and development revenues were $2.1 million and $3.0 million respectively. This contrasted with $1.7 million and $3.8 million for the corresponding periods in 2008.
The back-end packaging manufacturing process of our displays which are sold for consumer applications is performed at Kowon. As discussed above, we expect sales of our display products in fiscal 2009 to decline as compared to fiscal year 2008 levels. Kowon had net income of $3.2 million and $1.5 million before intercompany eliminations for fiscal year 2008 and fiscal year 2007, respectively. We anticipate that sales of our display products for use in consumer electronic applications may decline such that Kowon may have a loss from operations in 2009. If sales of our display products for consumer electronic applications do not increase or new markets are not identified, we may have to record impairment charges on Kowons long lived assets, which are recorded in our financial statements at $2.7 million at June 27, 2009.
Tax provision. For the three and six months ended June 27, 2009 we have recorded a provision for income taxes of $367,000 and $636,000, respectively, compared to provisions of $208,000 and $419,000 for the three and six month periods ended June 28, 2008. Our provision for income taxes is comprised of our estimated alternative minimum tax and state income tax liabilities on our domestic taxable earnings and estimated foreign taxes due on our Korean subsidiarys taxable earnings.
As of June 27, 2009, we had cash and equivalents and marketable securities of $105,800,403 and working capital of $120,914,869 compared to $100,015,991 and $116,841,086, respectively, as of December 27, 2008. The change in cash and equivalents and marketable securities was primarily due to cash generated from operating activities of $12.2 million, partially offset by investments in capital equipment and other assets of approximately $0.6 million, and repurchases of our common stock of $5.3 million.
Subsequent to June 27, 2009 the Company entered into agreements to increase our investment in KTC from approximately 40% to approximately 80% for $6.2 million. The proposed increase in the Companys ownership is through two transactions. In the first, the Company will buy newly issued shares from KTC for $5.9 million. In the second transaction the Company with purchase the shares of Microelectronic Technology Inc. (MTI) for $0.3 million. The completion of this transaction is subject to government approvals. We will fund the purchase of
Read the The complete ReportKOPN is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
