Revenues for the first quarter rose 39 percent to $8.5 million versus $6.1 million for the first quarter of 2012. The growth in revenues is primarily attributable to increased display sales, which were higher in the first quarter than any other quarter in the comany's history, and an increase in average selling price due to the mix of products sold.
Gross margin for the first quarter was 44 percent on gross profit compared to a gross margin of 44 percent on gross profit in the same quarter last year. The cost per display increased from the prior year due to higher manufacturing costs associated with the new SNU OLED deposition tool. It is expected that the cost will decrease as the new tool is further optimised.
Operating expenses for the first quarter of 2013 were unchanged versus the prior year period. Operating expenses are comprised of R&D expenses and selling, general and administrative (SG&A) expenses. R&D expense increased 4.4 percent versus the year-ago quarter to 14 percent of revenues in the first quarter of 2013 from 18.7 percent of revenues in the year-ago quarter. SG&A expense, which was essentially flat year-over-year, decreased to 26.3 percent of revenue this year versus 37 percent in the year-ago quarter.
| eMagin reports financial results for Q1 2013 (US$ ,000) |
2013 Q1 |
2012 Q1 |
|---|---|---|
| Revenue - Products | 8,129 | 5,830 |
| Revenue - Contract | 374 | 307 |
| Gross profit | 3,751 | 2,681 |
| Operating expenses | 3,429 | 3,403 |
| Net (loss) Income | 205 | (452) |
| Net result per share - basic($) | 0.01 | (0.02) |
At March 31, 2013, the Company had approximately $14.4 million of cash, cash equivalents, and investments in certificates of deposit and corporate bonds, compared to $13.4 million at December 31, 2012.
Guidance
Based on current and expected market conditions, expected orders, and current backlog, eMagin affirms its 2013 revenue guidance range of $34 million to $39 million.
Andrew G. Sculley, President and CEO, said:
- Demand for our products from domestic and international customers remains strong across our market segments and interest in our new Digital SVGA, XGA, VGA displays and high brightness OLED technology is expanding rapidly
- With industry leading AMOLED microdisplay technology and increasing domestic and international markets, we believe we are well-positioned for continued growth
- During the first quarter, we continued to operate both the Satella deposition tool and the new SNU deposition tool
- We will continue to operate both OLED deposition tools while we optimise the new SNU tool and bring it to its full capabilities through additional process and procedural enhancements that will improve volume and yield
- The new SNU tool is a unique and highly complex system and, like any one-of-a-kind system of such complexity, it requires many hours of operation to identify and fine-tune sub-systems or processes to achieve optimum output specifications
- Even as we are optimizing the new tool, we are making other manufacturing improvements, including the purchase of other new tools needed for higher volume production and installation of the MES system, a software platform to enable product traceability and precise manufacturing controls, which will be essential as we ramp up volume production
