eMagin Corp. has announced financial results and corporate highlights for the third quarter ended September 30, 2016.
Revenues for the third quarter of 2016 were US$ 4.3 million, down 20% from the third quarter of 2015. Product revenues totalled US$ 3.5 million, 24% less than third quarter last year, primarily due to lower volumes from maturing military programs partially offset by a lower average price due to product mix. R&D contract revenues totalled approximately US$ 769,000, consistent with the third quarter last year.
Operating expenses for the third quarter of 2016, including R&D expenses, increased to US$ 3.7 million from US$ 3.3 million in the third quarter of 2015. Third quarter operating expenses reflect higher spending on the development and marketing of our consumer products as well as the costs associated with the consolidation of the Company’s finance and procurement functions.
Operating loss for the third quarter increased to US$ 2.4 million from a loss of US$ 2.2 million in the third quarter last year. Net loss for third quarter of 2016 increased to US$ 2.4 million, or US$ 0.08 per basic and diluted share, from a loss of US$ 2.2 million, or US$ 0.09 per basic and diluted share, in the third quarter of 2015.
At September 30, 2016, the Company had approximately US$ 6.9 million of cash and cash equivalents compared to US$ 9.3 million of cash and cash equivalents at December 31, 2015. During the quarter we increased our R&D investment and began to build inventory for our consumer product launch.
| eMagin reports financial results for Q3 2016 (US$ ,000) |
2015 Q3 |
2014 Q3 |
2015 9 months |
2014 9 months |
|---|---|---|---|---|
| Revenue - Products | 3,536 | 4,633 | 13,612 | 15,163 |
| Revenue - Contract | 769 | 772 | 2,227 | 3,265 |
| Revenue - Total | 4,305 | 5,405 | 16,839 | 18,428 |
| Gross profit | 1,282 | 1,106 | 5,952 | 6,074 |
| Operating expenses | 3,707 | 3,334 | 10,512 | 8,033 |
| Net (loss) Income | (2,425) | (2,228) | (4,560) | (1,959) |
| Net result per share - basic($) | (0.08) | (0.09) | (0.15) | (0.08) |
Outlook
Andrew G. Sculley, President and CEO, said
- Advance our product development discussions with Tier One companies to incorporate OLED technology into their next generation products
- Further penetrate high growth commercial/industrial markets including medical devices and other vertical markets where integration of our OLED microdisplays and optics technology advances product development and adoption
- Expand our presence in existing and future major military programs and overall customer count in domestic and international military markets
- Launch new products focused on the consumer market which offer high performance and broad appeal at an attractive price
- Advance discussions with high volume production partners to utilize our leading production and process technologies
- Continue our progress in manufacturing improvements including yield enhancement and production capacity expansion