eMagin Reports 2Q 2011 Net Income of $3 Million

eMagin Corporation announced that it has filed its financial results on Form 10-Q for the second quarter ended June 30, 2011, as required to regain compliance with the NYSE/Amex’s continued listing requirements. The company will have regained compliance once Amex has issued it a letter indicating this. The full 10-Q is expected to be available for viewing on the SEC website on Tuesday, Oct. 11, 2011.

Revenues for the second quarter of 2011 were $7.4 million and operating income was $623,375. Net income for the period was $3 million, or $0.01 per diluted share. The gross margin for the second quarter increased to 49%, a significant improvement from the 41% reported in the first quarter of 2011, as revenues increased and production improved.

On Aug. 11, 2011, eMagin announced that due to a change in auditors, it would delay its 10-Q filing in order to address a change in the accounting treatment of certain warrants as well as a change in the method of calculating earnings per share. With respect to the warrants, the company has only one remaining warrant currently outstanding (which is for one million shares). All other warrants have been exercised or have expired.

“We are pleased with the improved results for the second quarter,” stated Andrew Sculley, president and CEO. “Our business continues to expand into additional applications. We have begun shipments to our new high-end camera customer. Our new OLED deposition machine, which is expected to arrive at our production facility in Hopewell Junction, NY, in early November, will result in improvements in capacity and yield.”

“Our base business remains strong and we continue to be optimistic that we will meet our 2011 revenue guidance of between $29.0 and $33.0 million based on several factors, including current market conditions, production capacity, the company’s backlog under existing contracts, initial shipments to a significant new customer, and other potential new business,” Mr. Sculley added.