eMagin Posts Record Revenue for Third Quarter
http://www.businesswire.com/news/home/20091112006133/en
Announces $6 Million Program with U.S. Army Research Center
BELLEVUE, Wash.--(Business Wire)--
eMagin Corporation (OTCBB: EMAN), the leader in OLED technology for the design
and manufacture of OLED microdisplays for high resolution imaging products,
issued financial results for its third quarter ending September 30, 2009.
Andrew Sculley, eMagin`s president and chief executive officer, commented, "I am
pleased to report that eMagin posted record sales and solid profits in the third
quarter 2009, while securing an important military contract that will contribute
to continued growth in future quarters. Higher customer demand for the Company`s
proprietary OLED microdisplays drove our positive financial results, with
quarterly revenues exceeding $6.1 million while total revenues for the first
nine months rose to $17.1 million, a 27% increase as compared to the equivalent
period last year. Gross profit for the quarter rose by 47% to $3.5 million, as
the Company has seen substantial improvement of its manufacturing yield and
gross margin since last year. eMagin also gained momentum this quarter by
commencing the next phase of a multiple year contract with the US Army
Telemedicine and Advanced Technology Research Center, receiving orders for
custom display development, and achieving a new design win for a monocular
military device made by Liteye Systems."
"The credit agreement reached during the third quarter will provide access to
additional funds that can be used to help finance our capital program as we
continue to sign contracts within the military and further our strategic growth
into other key markets," continued Mr. Sculley.
Quarterly Results
eMagin Corporation generated revenue of $6.1 million for the third quarter of
2009 which represented a 17.8% increase over the prior year. Year to date,
revenues are up 27% over 2008. Gross margin was 57% of revenue on gross profit
of $3.5 million for the quarter compared to a gross margin of 46% for the same
period in 2008. The gross margin for the period reflects the overall improvement
to manufacturing processes that the Company has made over the past year to
improve yield, and reductions in royalty and warranty expense, partially offset
by higher contract costs.
Operating expenses in the quarter as a percentage of revenues were 37%. This is
up from the 31% reported in the third quarter of 2008, but down from 40% in the
second quarter of 2009. The increase from third quarter 2008 is due to an
increase in personnel costs, stock option expense, and professional services.
Operating income for the period totaled $1.3 million compared to $785,000 in the
third quarter of 2008. Net income for the third quarter of 2009 was $1.2 million
or $0.04 per diluted share versus net income of $361,000 or $0.02 per diluted
share in the same period last year.
eMagin continued to see steady improvement in the strength of its balance sheet
due to an increase in cash provided by operations and the elimination of its
debt. The Company retired all of its remaining debt during the third quarter.
The Company`s cash balance of $3.7 million as of September 30, 2009, was higher
than the $2.4 million as of December 31, 2008, a result which reflects cash from
operations of approximately $3.5 million offset by approximately $2.2 million
which was used for financing and investing activities.
Highlights
* eMagin has begun work on a $6 million, 2 year phase of a multi-year program
with the US Army Telemedicine and Advanced Technology Research Center (TATRC) to
develop an ultra-high resolution 3D-capable microdisplay for telemedicine
applications. This WUXGA (1920 x 1280 triad pixels) display will enable HMD
virtual reality equipment to be used for enhanced training by medical
professionals in traditional and innovative procedures, and is also suitable for
numerous military and commercial applications.
* eMagin`s SVGA+ OLED microdisplay is a key component in Liteye Systems` Model
750A HMD display product that has been incorporated into the Belgian-based Space
Applications Services` Wearable Augmented Reality program developed by the
European Space Agency. The lightweight, compact prototype device superimposes
text, graphics and video onto an astronaut`s field of view. The device has
already been successfully tested in the International Space Station and other
applications are being considered.
* For the third year in a row, eMagin has been recognized by Deloitte LLP as
part of its Fast 500 ranking. eMagin ranked 10th among companies located in
Washington and 309th for the fastest growing technology, media,
telecommunications, life sciences and clean technology companies in North
America.
Outlook
"With continued increases in income and cash flow from operations, as well as a
new credit line and no debt, the Company is in an excellent position to advance
in both the military and consumer markets," noted Mr. Sculley.
Quarterly Report and Conference Call
Full results will be published in the company's 10Q report for the quarter
ending September 30, 2009, to be filed on November 12, 2009 with the SEC. They
will also be available via the Company`s website, www.emagin.com.
In conjunction with its second quarter 2009 financial results, eMagin will host
a teleconference call and webcast for investors and analysts at 5:00 p.m. ET
today, November 12, 2009. To access the call, investors should call
1-866-730-5771and enter the passcode 45291014. A replay of the call will be
available from today at 8:00 p.m. through December 15, 2009. To access the
replay, investors should dial 1-888-286-8010 and enter the passcode 99931734.
The call will also be available as an archived audio webcast on the "Investors"
section of eMagin's website, www.emagin.com for four weeks following the call.
About eMagin Corporation
A leader in OLED microdisplay technology and personal display systems, eMagin
integrates high-resolution OLED microdisplays with magnifying optics to deliver
virtual images comparable to large-screen computer and television displays in
portable, low-power, lightweight personal displays. eMagin microdisplays provide
near-eye imagery in a variety of products from military, industrial, medical and
consumer OEMs. The company's own Z800 3DVisor provides 3D stereovision and
headtracking for PC gaming, training and simulation, immersion therapy, and
other applications. More information about eMagin is available at
www.emagin.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, including those regarding eMagin Corporation's
expectations, intentions, strategies and beliefs pertaining to future events or
future financial performance. Actual events or results may differ materially
from those in the forward-looking statements as a result of various important
factors, including those described in the Company's most recent filings with the
SEC. Although we believe that the expectations reflected in the forward-looking
statements are reasonable, such statements should not be regarded as a
representation by the Company, or any other person, that such forward-looking
statements will be achieved. The business and operations of the Company are
subject to substantial risks which increase the uncertainty inherent in
forward-looking statements. We undertake no duty to update any of the
forward-looking statements, whether as a result of new information, future
events or otherwise. In light of the foregoing, readers are cautioned not to
place undue reliance on such forward-looking statements.
EMAGIN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
September 30, December 31,
2009
2008
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 3,709 $ 2,404
Investments - held to maturity 97 97
Accounts receivable, net 4,111 3,643
Inventory 2,065 2,374
Prepaid expenses and other current assets 885 796
Total current assets 10,867 9,314
Equipment, furniture and leasehold improvements, net 811 381
Intangible assets, net 44 47
Other assets 92 -
Deferred financing costs, net - 362
Total assets $ 11,814 $ 10,104
LIABILITIES AND SHAREHOLDERS` EQUITY
Current liabilities:
Accounts payable $ 728 $ 1,026
Accrued compensation 807 837
Other accrued expenses 985 804
Advance payments 116 694
Deferred revenue 220 164
Debt - 1,691
Other current liabilities 715 798
Total current liabilities 3,571 6,014
Commitments and contingencies
Redeemable common stock: 522,500 redeemable shares as of December 31, 2008 - 429
Shareholders` equity:
Preferred stock, $.001 par value: authorized 10,000,000 shares: - -
Series B Convertible Preferred stock, (liquidation preference of $5,739,000) - -
stated value $1,000 per share, $.001 par value: 10,000 shares designated and 5,739 issued
and outstanding at September 30, 2009 and December 31, 2008.
Common stock, $.001 par value: authorized 200,000,000 shares, issued and 17 15
outstanding, 16,961,902 shares as of September 30, 2009 and 15,213,959 as of
December 31, 2008, net of redeemable common stock
Additional paid-in capital 206,475 204,818
Accumulated deficit (198,249 ) (201,172 )
Total shareholders` equity 8,243 3,661
Total liabilities and shareholders` equity $ 11,814 $ 10,104
EMAGIN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenue:
Product $ 5,260 $ 4,181 $ 14,560 $ 11,139
Contract 847 1,004 2,543 2,330
Total revenue, net 6,107 5,185 17,103 13,469
Cost of goods sold:
Product 1,996 2,412 5,817 7,030
Contract 611 389 1,528 1,080
Total cost of goods sold 2,607 2,801 7,345 8,110
Gross profit 3,500 2,384 9,758 5,359
Operating expenses:
Research and development 463 306 1,376 1,614
Selling, general and administrative 1,772 1,293 5,083 4,797
Total operating expenses 2,235 1,599 6,459 6,411
Income (loss) from operations 1,265 785 3,299 (1,052 )
Other income (expense):
Interest expense (76 ) (508 ) (417 ) (1,677 )
Other income, net 1 84 41 294
Total other income (expense) (75 ) (424 ) (376 ) (1,383 )
Net income (loss) $ 1,190 $ 361 $ 2,923 $ (2,435 )
Income (loss) per share, basic $ 0.07 $ 0.02 $ 0.18 $ (0.18 )
Income (loss) per share, diluted $ 0.04 $ 0.02 $ 0.12 $ (0.18 )
Weighted average number of shares outstanding:
Basic 16,513,101 14,617,235 16,133,646 13,854,860
Diluted 26,592,267 23,430,416 24,471,486 13,854,860
eMagin Corporation
Business and Media:
Susan Jones, 425-284-5214
sjones@emagin.com
or
Investors:
Paul Campbell, 425-284-5220
pcampbell@emagin.com
Copyright Business Wire 2009
