2015 Q1 Form 10-Q Financial Statement

#000077126615000018 Filed on May 11, 2015

View on sec.gov

Income Statement

Concept 2015 Q1 2014 Q1 2013 Q3
Revenue $8.585M $8.585M $9.532M
YoY Change 0.0% 82.85% 16.39%
Cost Of Revenue $5.284M $4.225M $4.622M
YoY Change 25.05% -29.16% -4.88%
Gross Profit $1.857M $1.845M $3.861M
YoY Change 0.65% 92150.0% 57.53%
Gross Profit Margin 21.63% 21.49% 40.51%
Selling, General & Admin $4.386M $4.997M $5.050M
YoY Change -12.22% -13.09% 7.56%
% of Gross Profit 236.2% 270.83% 130.79%
Research & Development $4.860M $5.086M $5.587M
YoY Change -4.45% 19.75% 17.86%
% of Gross Profit 261.72% 275.68% 144.7%
Depreciation & Amortization $680.0K $930.0K $920.0K
YoY Change -26.88% -15.45% -63.2%
% of Gross Profit 36.62% 50.41% 23.83%
Operating Expenses $9.246M $10.08M $10.64M
YoY Change -8.3% 0.86% 12.74%
Operating Profit -$5.945M -$9.614M -$10.31M
YoY Change -38.16% -0.29% 68.88%
Interest Expense $2.170M $420.0K $1.450M
YoY Change 416.67% -20.75% -1912.5%
% of Operating Profit
Other Income/Expense, Net $2.192M $479.8K $1.486M
YoY Change 356.9% -122.51% -377.64%
Pretax Income -$3.753M -$9.134M -$8.823M
YoY Change -58.91% -22.42% 32.88%
Income Tax $12.50K -$143.0K -$33.00K
% Of Pretax Income
Net Earnings -$3.885M -$3.838M -$4.469M
YoY Change 1.22% -57.98% -33.54%
Net Earnings / Revenue -45.25% -44.71% -46.88%
Basic Earnings Per Share -$0.06 -$0.06 -$0.08
Diluted Earnings Per Share -$0.06 -$0.06 -$0.08
COMMON SHARES
Basic Shares Outstanding 63.08M shares 62.53M shares 62.65M shares
Diluted Shares Outstanding 63.08M shares 62.53M shares 62.65M shares

Balance Sheet

Concept 2015 Q1 2014 Q1 2013 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $89.66M $106.1M $112.3M
YoY Change -15.53% -19.23% 18.76%
Cash & Equivalents $14.98M $14.81M $14.81M
Short-Term Investments $74.69M $91.33M $97.46M
Other Short-Term Assets $900.0K $800.0K $1.200M
YoY Change 12.5% -33.33% -36.84%
Inventory $3.654M $2.361M $2.843M
Prepaid Expenses
Receivables $4.421M $2.368M $2.825M
Other Receivables $14.90M $0.00 $0.00
Total Short-Term Assets $111.2M $111.7M $129.6M
YoY Change -0.47% -23.93% -1.11%
LONG-TERM ASSETS
Property, Plant & Equipment $4.247M $5.350M $6.191M
YoY Change -20.63% -23.0% -81.63%
Goodwill $947.5K $1.022M $1.081M
YoY Change -7.33% 49.3% -5.28%
Intangibles $462.6K $1.342M $3.349M
YoY Change -65.54% -65.24% 83.1%
Long-Term Investments
YoY Change
Other Assets $2.367M $2.784M $19.06M
YoY Change -14.99% -87.48% 105.19%
Total Long-Term Assets $8.023M $25.38M $29.68M
YoY Change -68.39% -24.75% -39.97%
TOTAL ASSETS
Total Short-Term Assets $111.2M $111.7M $129.6M
Total Long-Term Assets $8.023M $25.38M $29.68M
Total Assets $119.2M $137.1M $159.3M
YoY Change -13.05% -24.09% -11.75%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.525M $4.148M $4.295M
YoY Change -15.03% 33.54% -54.8%
Accrued Expenses $4.800M $4.600M $5.600M
YoY Change 4.35% -14.81% -37.78%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $12.00M $10.85M $13.27M
YoY Change 10.59% -0.31% -35.86%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $300.0K $300.0K $300.0K
YoY Change 0.0% 0.0% -72.73%
Total Long-Term Liabilities $300.0K $300.0K $300.0K
YoY Change 0.0% 0.0% -72.73%
TOTAL LIABILITIES
Total Short-Term Liabilities $12.00M $10.85M $13.27M
Total Long-Term Liabilities $300.0K $300.0K $300.0K
Total Liabilities $11.80M $11.20M $13.80M
YoY Change 5.36% -3.45% -51.58%
SHAREHOLDERS EQUITY
Retained Earnings -$179.8M -$156.8M -$138.0M
YoY Change 14.61% 29.23% -0.78%
Common Stock $326.3M $322.7M $322.0M
YoY Change 1.1% 0.86% 0.85%
Preferred Stock
YoY Change
Treasury Stock (at cost) $42.74M $42.74M $40.44M
YoY Change 0.0% 24.06% 17.38%
Treasury Stock Shares 12.10M shares 12.10M shares 11.52M shares
Shareholders Equity $107.4M $125.9M $145.5M
YoY Change
Total Liabilities & Shareholders Equity $119.2M $137.1M $159.3M
YoY Change -13.05% -24.09% -11.75%

Cashflow Statement

Concept 2015 Q1 2014 Q1 2013 Q3
OPERATING ACTIVITIES
Net Income -$3.885M -$3.838M -$4.469M
YoY Change 1.22% -57.98% -33.54%
Depreciation, Depletion And Amortization $680.0K $930.0K $920.0K
YoY Change -26.88% -15.45% -63.2%
Cash From Operating Activities -$5.477M -$6.145M -$5.650M
YoY Change -10.87% 87.93% -2192.59%
INVESTING ACTIVITIES
Capital Expenditures $314.4K $444.4K -$10.00K
YoY Change -29.25% 44.31% -99.63%
Acquisitions
YoY Change
Other Investing Activities $8.250K $14.13K $1.730M
YoY Change -41.6% -148.06%
Cash From Investing Activities $3.280M $4.364M $1.720M
YoY Change -24.85% -76.82% -127.26%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00 $298.6K
YoY Change -100.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $0.00 -$170.2K -3.760M
YoY Change -100.0% -95.37% 37500.0%
NET CHANGE
Cash From Operating Activities -$5.477M -$6.145M -5.650M
Cash From Investing Activities $3.280M $4.364M 1.720M
Cash From Financing Activities $0.00 -$170.2K -3.760M
Net Change In Cash -$2.197M -$1.950M -7.690M
YoY Change 12.64% -116.42% 27.11%
FREE CASH FLOW
Cash From Operating Activities -$5.477M -$6.145M -$5.650M
Capital Expenditures $314.4K $444.4K -$10.00K
Free Cash Flow -$5.792M -$6.589M -$5.640M
YoY Change -12.11% 84.18% -289.26%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">BASIS OF PRESENTATION</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> The accompanying condensed consolidated financial statements include the accounts of Kopin Corporation, its wholly-owned subsidiaries, Kowon Technology Co., Ltd. (Kowon), a majority owned (</font><font style="font-family:inherit;font-size:10pt;">93%</font><font style="font-family:inherit;font-size:10pt;">)&#160;subsidiary located in Korea, Intoware Ltd. (Intoware), a majority owned (</font><font style="font-family:inherit;font-size:10pt;">58%</font><font style="font-family:inherit;font-size:10pt;">) subsidiary located in the United Kingdom, and eMDT America Inc. (eMDT), a majority owned (</font><font style="font-family:inherit;font-size:10pt;">80%</font><font style="font-family:inherit;font-size:10pt;">) subsidiary located in California (collectively, the Company). Ownership interests of Kowon, Intoware and eMDT not attributable to the Company are referred to as noncontrolling interests. All intercompany transactions and balances have been eliminated. The condensed consolidated financial statements for the </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;28, 2015</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">March&#160;29, 2014</font><font style="font-family:inherit;font-size:10pt;"> are unaudited and include all adjustments which, in the opinion of management, are necessary to present fairly the results of operations for the periods then ended. These condensed consolidated financial statements should be read in conjunction with the Company&#8217;s financial statements and notes thereto, included in the Company&#8217;s Annual Report on Form 10-K for the year ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;27, 2014</font><font style="font-family:inherit;font-size:10pt;">. </font></div><div style="line-height:120%;padding-top:6px;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company ceased its production activities at its Kowon facility in </font><font style="font-family:inherit;font-size:10pt;">2013</font><font style="font-family:inherit;font-size:10pt;">, but as of </font><font style="font-family:inherit;font-size:10pt;">March&#160;28, 2015</font><font style="font-family:inherit;font-size:10pt;"> the closure of this facility did not meet the criteria for assets held for sale. </font></div><div style="line-height:120%;padding-top:6px;text-align:left;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">During the second quarter of </font><font style="font-family:inherit;font-size:10pt;">2014</font><font style="font-family:inherit;font-size:10pt;">, the Company paid approximately </font><font style="font-family:inherit;font-size:10pt;">$0.3 million</font><font style="font-family:inherit;font-size:10pt;"> to acquire an additional </font><font style="font-family:inherit;font-size:10pt;">29%</font><font style="font-family:inherit;font-size:10pt;"> ownership in its eMDT subsidiary.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-align:left;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The results of the Company's operations for any interim period are not necessarily indicative of the results of the Company's operations for any other interim period or for a full fiscal year.</font></div><div style="line-height:120%;text-align:left;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">During the </font><font style="font-family:inherit;font-size:10pt;">three months ended</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;">March&#160;28, 2015</font><font style="font-family:inherit;font-size:10pt;">, the change in the Company's accumulated other comprehensive income was the net of $</font><font style="font-family:inherit;font-size:10pt;">0.1 million</font><font style="font-family:inherit;font-size:10pt;"> foreign currency translation adjustment, </font><font style="font-family:inherit;font-size:10pt;">$0.8 million</font><font style="font-family:inherit;font-size:10pt;"> unrealized holding gains on marketable securities and </font><font style="font-family:inherit;font-size:10pt;">$(0.4) million</font><font style="font-family:inherit;font-size:10pt;"> of reclassified holding gains.</font></div></div>

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