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Kopin secures first order for new microdisplay system

Published 10/08/2024, 08:46 PM
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WESTBOROUGH, Mass. - Kopin Corporation (NASDAQ: NASDAQ:KOPN), known for its high-performance microdisplays and optical systems, announced it has received its first production purchase order for the SXGA-R15, a new microdisplay system designed for 3D Automated Optical Inspection (3D AOI). The order was placed by Mirtec Co. Ltd., a South Korean company that leads in 3D AOI technology, which is crucial for detecting defects in advanced electronics manufacturing.

The order includes both Kopin's previous generation systems and the SXGA-R15, with the majority being the latter, scheduled for delivery in 2025. The SXGA-R15 is noted for its 25% reduction in size and weight over its predecessors, as well as its cost-effective performance due to a new software and firmware interface. This makes it particularly suitable for high-speed manufacturing environments where precision is paramount.

Mirtec, with its reputation for high-performance inspection devices, especially in the automotive electrical sector, has recognized the advantages of the SXGA-R15 in enhancing quality control for the production of complex electronic components. The CEO of Mirtec, Chanwha Pak, commended Kopin's product for meeting manufacturers' needs for precision and performance at an economical price point.

Greg Truman, Kopin's Vice President of Business Development for Europe and Asia, expressed confidence that the SXGA-R15 system positions Kopin to leverage the growing demand in Asia and other global markets. He emphasized the system's suitability for sectors with rising needs for high-precision 3D inspection, such as semiconductor manufacturing and automotive electronics.

The global market for 3D AOI systems is projected to grow from $700 million to $3 billion by 2030, according to Zion Market Research, driven by the complexity and miniaturization of electronic components. This growth trajectory suggests a significant opportunity for Kopin's new microdisplay system.

This news is based on a press release statement from Kopin Corporation, and it reflects the company's recent developments in securing orders for its innovative microdisplay system, which has implications for investors interested in the technology and manufacturing sectors.

In other recent news, Kopin Corporation has been awarded a contract to advance its augmented reality Head-Up Display (HUD) technology for military applications. The company also secured a $1.3 million order for its Emerald microdisplay modules, which are expected to contribute to revenue growth for fiscal year 2025. Despite ongoing litigation, Kopin maintained its Buy rating from Lake Street Capital Markets. The company announced a public offering of 37,550,000 shares of common stock and pre-funded warrants, aiming to raise approximately $27 million. Furthermore, Kopin introduced a new SXGA-R15 drive board for 3D Automated Optical Inspection machines, and secured a $2 million order from Collins Aerospace for active-matrix liquid crystal displays. Despite a 7% decrease in total revenues for Q1 2024, amounting to $10 million, and a net loss of $32.5 million, the company has a backlog exceeding $55 million for 2024 and beyond. These are the recent developments at Kopin Corporation.

InvestingPro Insights

As Kopin Corporation (NASDAQ: KOPN) secures its first production order for the SXGA-R15 microdisplay system, investors should consider some key financial metrics and insights from InvestingPro.

Kopin's market capitalization stands at $113.78 million, reflecting its position as a smaller player in the technology sector. The company's revenue for the last twelve months as of Q2 2024 was $41.55 million, with a quarterly revenue growth of 17.94% in Q2 2024. This growth aligns with the company's recent success in securing new orders and potentially capitalizing on the expanding 3D AOI market.

However, investors should note that Kopin faces some financial challenges. An InvestingPro Tip indicates that the company is not profitable over the last twelve months, with an operating income margin of -54.91%. This suggests that while Kopin is making strides in product development and market positioning, it still needs to improve its profitability.

Another InvestingPro Tip highlights that Kopin holds more cash than debt on its balance sheet. This could provide the company with financial flexibility to invest in research and development, crucial for maintaining its competitive edge in the microdisplay market.

It's worth noting that Kopin's stock has experienced significant volatility, with a 54.99% price decline over the past six months. This volatility, combined with the company's current financial performance, underscores the importance of careful consideration for potential investors.

For those interested in a deeper analysis, InvestingPro offers additional tips and insights. There are 7 more InvestingPro Tips available for Kopin, providing a more comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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