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Kopin completes key milestone for F-35 helmet displays

EditorNatashya Angelica
Published 07/18/2024, 02:22 PM
KOPN
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WESTBOROUGH, Mass. - Kopin Corporation (NASDAQ: NASDAQ:KOPN), a leading developer of display technologies for defense and consumer applications, has announced the completion of a significant production milestone for its advanced Organic Light Emitting Diode on Silicon (OLEDoS) micro-displays, which are set to be incorporated into the F-35 Lightning II Helmet Mounted Display System (HMDS) supplied to Collins Aerospace.

The company has finalized the production qualification for its OLEDoS display technology, which is expected to replace the current Active Matrix Liquid Crystal Display (AMLCD) in the F-35 helmets under a multi-year procurement agreement. This transition to OLEDoS is anticipated to occur over the next few years, with Collins Aerospace funding Kopin's acquisition of the necessary production test equipment to facilitate mass production.

Bill Maffucci, Kopin’s Vice President of Business Development and Strategy, confirmed that the OLEDoS display has undergone full performance validation in preparation for customer qualification and flight testing. This marks the last step before the display technology enters final qualification and full-rate production, solidifying Kopin's position as the exclusive supplier of the F-35 HMDS displays for two consecutive generations.

The F-35, a central program within the Department of Defense, is being procured in various configurations for the U.S. Air Force, Marine Corps, and Navy. Kopin's technological advancements play a critical role in the program's development, providing pilots with enhanced visual systems.

Kopin Corporation's portfolio covers a range of display and optical technologies, including microdisplays, eyepiece assemblies, and head-mounted display systems that feature high-resolution displays and energy-efficient designs. These components are integral to a wide array of products across defense, enterprise, and consumer markets.

The information in this article is based on a press release statement from Kopin Corporation. While forward-looking statements regarding Kopin's role as a sole-source supplier and the expected transition to OLEDoS technology have been made, these are subject to risks, uncertainties, and assumptions and are not guarantees of future performance.

In other recent news, Kopin Corporation reported a first-quarter decrease in total revenues by 7%, amounting to $10 million, and a net loss of $32.5 million. Despite these figures, Kopin showcased strong operational initiatives, including a doubled book-to-bill ratio and a backlog exceeding $55 million for 2024 and beyond.

The company also announced significant leadership changes, with Michael Murray elected as the new Chairperson of the Board, Dr. Jill Avery appointed as the Lead Independent Director, and Margaret Seif joining the board. Concurrently, Scott Anchin, a board director and audit committee head, announced his resignation.

Lake Street Capital Markets maintained its Buy rating on Kopin and highlighted the potential for the stock's appreciation. The firm believes that upcoming contract wins, progress updates, intellectual property monetization, equity investments, or a potential settlement with BlueRadios could act as catalysts to improve market sentiment and narrow the valuation gap with its peers.

The U.S. Army awarded Kopin a contract to develop advanced see-through Augmented Reality (AR) display optics. The goal of this development is to enhance the visual systems used by dismounted soldiers, addressing and overcoming the limitations of current military optical technologies.

In other developments, Kopin is facing a potential delisting from the Nasdaq Capital Market due to non-compliance with the minimum bid price requirement. However, the company's shareholders approved an amendment to increase the authorized shares of common stock from 150 million to 200 million.

InvestingPro Insights

Kopin Corporation (NASDAQ: KOPN), while achieving a significant production milestone with its OLEDoS display technology, presents a mixed financial outlook. According to InvestingPro data, the company's market capitalization stands at a modest $131.5 million. Despite the potential for increased business from the F-35 Lightning II Helmet Mounted Display System, Kopin's revenue has declined by 14.84% over the last twelve months as of Q1 2024, reflecting potential challenges in its commercial operations.

InvestingPro Tips suggest that the stock is currently in overbought territory, which could signal caution for potential investors. Moreover, the company's stock price movements have been quite volatile, with a significant return over the last week but a notable hit over the last six months. Investors interested in the defense technology sector may want to consider these factors, as well as the fact that analysts do not anticipate Kopin will be profitable this year, and the company has not been profitable over the last twelve months.

For readers looking to delve deeper into Kopin Corporation's financials and future outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/KOPN. With the use of the coupon code PRONEWS24, users can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking valuable insights that could inform investment decisions. There are currently 11 more InvestingPro Tips listed for Kopin, offering a comprehensive view of the company's financial health and market potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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