Revenues for first quarter 2015 were US$6.0 million versus US$6.3 million for first quarter last year, a decrease of approximately 5%. Display average selling price increased and the number of displays shipped decreased from last year. The increase in average selling price is a result of changes in product and customer mix.
Gross margin for first quarter was 39 percent on gross profit compared to a gross margin of 31 percent on gross profit in first quarter last year. The increase in gross margin from last year was primarily due to lower manufacturing expenses, higher yield and a higher average selling price.
Operating expenses for first quarter decreased to US$2.0 million from US$3.5 million in first quarter last year. The decrease was due primarily to the significant increase in funded R&D contracts, which tends to reduce the non-funded internal expense and to the requirements of the respective R&D contracts being worked on in each year. SG&A expenses decreased by $1.1 million, the decrease of approximately 47% is primarily a result of a decrease of approximately US$0.4 million in the allowance for doubtful accounts, and decreases in personnel and non-cash compensation costs.
| eMagin reports financial results for Q1 2015 (US$ ,000) |
2015 Q1 |
2014 Q1 |
|---|---|---|
| Revenue - Products | 5,104 | 6,259 |
| Revenue - Contract | 885 | 19 |
| Gross profit | 2,360 | 1,931 |
| Operating expenses | 2,031 | 3,429 |
| Net (loss) Income | 246 | (1,618) |
| Net result per share - basic($) | 0.01 | (0.07) |
At March 31, 2015, the Company had approximately US$6.7 million of cash, cash equivalents, and investments in certificates of deposit, compared to US$6.0 million at December 31, 2014. The increase in cash is due to more favorable operational results.
However, compared to March 31, 2014, the Company had approximately US$8.3 million of cash, cash equivalents, and investments in certificates of deposit and corporate bonds, down from US$11.0 million at December 31, 2013.
Andrew G. Sculley, President and CEO, said:
- We are pleased the Company turned a profit in first quarter and earned $0.9 million in EBITDA
- Our improvement in financial results was due to lower manufacturing costs, better yield and significantly lower operating expenses
- Also during the first 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
- Our work on developing production quantity ultra-high brightness, direct-patterned displays that eliminates the use of color filters progressed during the quarter
- We recently invested in new direct patterning equipment for this effort
- 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
- eMagin continues to lead the industry in this effort for direct patterned OLED at microdisplay pixel sizes
- In addition, although we encountered a delay during the quarter, our new, advanced HMD 'head mounted display' prototype was recently completed
- 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 advantages of eMagin OLED microdisplays
- We are currently demonstrating the headset to potential partners and customers
