eMagin Announces 2Q 2015 Financial Results

eMagin Corporation announced financial results and corporate highlights for the second quarter of 2015.
 
Revenues for second quarter 2015 were approximately $7.0 million equaling approximately $7.0 million for second quarter last year and up approximately 17% over first quarter 2015. Product revenues (primarily display sales) totaled $5.4 million, about 22% less than second quarter last year. R&D contract revenues increased significantly to approximately $1.6 million from approximately $62,000 in second quarter last year.
 
“We are pleased the company increased revenues 17% from first quarter,” said Andrew G. Sculley, eMagin’s president and CEO. “We equaled last year’s Q2 revenue and earned $0.4 million in positive cash flow (EBITDA), an increase of $1.0 million in cash flow over Q2 last year. Our improved financial results were due to increased contract revenues, and lower manufacturing costs and operating expenses.
 
“Also during the second quarter, we made progress in several key areas of the business that we believe position the company for continued OLED technology leadership and revenue growth,” Sculley added. “Our work on developing production quantity ultra-high brightness, direct-patterned displays that eliminates the use of color filters progressed during the quarter. This work will result in manufacturable, full-color direct-patterned ultra-high brightness microdisplays that are about 20 times brighter than the typical smart phone display. These ultra-high brightness displays will help accelerate the penetration of our OLED microdisplays into new markets such as avionics and consumer headset applications.
 
“In addition, we completed our new, advanced HMD ‘head mounted display’ prototype and have been demonstrating it to interested parties, which include large tech companies, gaming companies and large chip manufacturers,” Sculley continued. “The headset features 2,000 by 2,000 pixel resolution, a superior form factor, a wide 100+ degree field of view and has all the outstanding attributes of eMagin OLED microdisplays.”
 
Gross margin for second quarter was 37% on gross profit of $2.6 million compared to a gross margin of 31% on gross profit of $2.2 million in second quarter last year. The increase in gross margin from last year was primarily due to increased gross profit from contract revenues, and lower manufacturing costs, including direct labor expense.
 
Operating profit for the second quarter increased $0.9 million to a loss of $0.1 million from a loss of $1.0 million in second quarter last year. Net loss was $0.1 million or $0.00 per diluted share, versus a net loss of $1.0 million or $0.04 per diluted share in second quarter last year. Adjusted EBITDA improved $1.0 million to $0.4 million from a loss of $0.6 million in second quarter last year.
 
At June 30, 2015, the company had approximately $5.4 million of cash, cash equivalents, and investments in certificates of deposit, compared to $6.0 million at Dec. 31, 2014. The decrease in cash is due primarily investments in capital equipment and an increase in net inventories.
 
Based on current and forecasted market conditions, expected orders and current backlog, eMagin affirms its previous guidance that it expects revenues will total between $26 million to $29 million in 2015.