eMagin Expects 2Q 2011 Revenue of Approximately $7.4 Million

eMagin Corporation announced that revenue for the second quarter of fiscal 2011 will be approximately $7.4 million.
Although the gap between actual production and planned production narrowed during the second quarter, the company’s production output still did not meet targeted levels.
eMagin’s base business and demand for microdisplays remain strong. The company continues to take the necessary steps to increase production output, including adding extra shifts, preventive maintenance and installing additional equipment; a new seal machine is planned to come on-line this year. Management is confident that production should show improvement in the second half of the year. In addition, capacity and yields are projected to improve further in 2012 as the company brings its next generation OLED deposition machine on-line.
Due to the lower than planned production output coupled with the delay into 2012 of two military programs totaling approximately $6 million in revenue, eMagin is now projecting revenue between $29 million and $33 million for fiscal 2011.