eMagin Announces First Quarter 2023 Results

eMagin Corporation announced results for its first quarter ended March 31, 2023.

Total revenues for the first quarter of 2023 decreased 11% to $6.6 million, compared with $7.4 million reported in the prior-year period.

Total revenue consists of both product revenue and contract revenue. Product revenues for the first quarter of 2023 were $6.4 million, a decrease of $0.7 million from product revenues of $7.0 million reported in the prior-year period. The year-over-year decrease in display revenue was due to late deliveries resulting from unexpected production downtime and the timing of military orders. Contract revenues were $0.2 million compared with $0.3 million reported in the prior year, reflecting the timing of phases and milestones of these contracts.

“Our first-quarter results were mixed due to the timing of orders under the ENVG-B programs and $0.4 million of revenue that was delayed to the current quarter due to unexpected manufacturing downtime with one of our legacy deposition tools,” said Andrew G. Sculley, eMagin’s CEO. “We are pleased with our total sales backlog, which remains strong at $16 million, comparable to the end of Q4 2022, reflecting continued strength in bookings for the military and medical markets, and expect to receive additional follow-on orders under the ENVG-B programs this quarter.

“We are delighted to announce that in March, an innovative, production-capable dPd tool, which was designed to our specifications and ordered last year, arrived safely at the Port of Newark. This large, 160 metric ton tool will allow us to produce both commercial quantities of dPd technology displays in addition to expanding our existing OLED technology. The addition of this tool, when fully qualified, is expected to more than double our overall production capacity.

“Our proprietary dPd technology directly patterns primary RGB color OLED emitters on our silicon backplane, which creates ultra-high brightness light output at ultra-high resolutions with brilliant colors. This is in stark contrast to competing products that utilize color filters with white OLED that significantly degrades the light output. As we continue to advance this technology, future dPd milestones will include the addition of tandem OLED structures and other enhancements that will take the performance of AR/VR headsets and heads-up displays to even greater heights.”

Total gross margin for the first quarter decreased to 22%, resulting in a gross profit of $1.5 million, compared with a gross margin of 34%, which resulted in a gross profit of $2.5 million in the prior-year period. The gross margin decline was primarily due to production downtime, which resulted in a lower volume of displays produced and higher average product costs.

Operating loss for the first quarter of 2023 was $2.5 million, compared with an operating loss of $1.2 million in the prior-year period.