eMagin Corporation Announces 3Q 2022 Results

eMagin Corporation announced results for its third quarter ended Sept. 30, 2022.

Total revenues for the third quarter of 2022 increased 31% to $7.6 million, compared with $5.8 million reported in the prior-year period.

Total revenue consists of both product revenue and contract revenue. Product revenues for the third quarter of 2022 were $7 million, an increase of $1.7 million from product revenues of $5.3 million reported in the prior-year period. The year-over-year increase in display revenue was due to strength in military markets, including shipments of displays used for the ENVG-B program, and higher revenue contributions from medical customers.

Contract revenues were $0.6 million compared with $0.5 million reported in the prior year, reflecting an increase due to development associated with a high-brightness display design for the Department of Defense and a proof-of-concept display for a tier-one consumer company.

Total gross margin for the third quarter increased to 37%, resulting in a gross profit of $2.9 million, compared with a gross margin of 10%, which resulted in a gross profit of $0.6 million in the prior-year period. The gross margin improvement resulted from several factors including higher yields, increased volumes, a more favorable product mix, and the successful qualification and sale of product that had previously been written off because of an initial quality issue that was ultimately resolved.

“eMagin’s third quarter was highlighted by a 31% year-over-year revenue increase leading to improved gross margins and positive EBITDA, along with new business wins and continued growth in our backlog of open orders,” said eMagin CEO Andrew G. Sculley.

“Our total revenues rose to $7.6 million, compared to $5.8 million a year ago, while our gross margin improved to 37% from 10% a year ago,” added Sculley. “This is the fourth consecutive quarter in which we realized year-over-year increases in throughput and product revenues of more than $7 million. The improved yields and increased throughput and revenues were the result of the new, government-funded equipment in our production facility and improvements in our manufacturing operations. Moreover, our EBITDA for the third quarter of 2022 was a positive $0.7 million.

“Our display sales grew during the third quarter of 2022, reflecting strong military shipments and increased medical segment revenues,” he noted. “As of the end of the third quarter, ongoing demand for our displays for use in thermal weapon sights, military night-vision goggles, and medical applications drove our total backlog to $16.6 million from $14.3 million at the end of last quarter. Approximately 93% of the total third quarter backlog is deliverable within the next 12 months.”

Operating loss for the third quarter of 2022 narrowed to $0.1 million, compared with an operating loss of $3.3 million in the prior-year period, primarily reflecting the higher gross profit as noted above.