11.12.21
eMagin Corporation announced results for its quarter ended Sept. 30, 2021.
Total revenues for the third quarter of 2021 were $5.8 million, compared with $7.3 million reported in the prior-year period.
Total revenue consists of both product revenue and contract revenue. Product revenues for the third quarter of 2021 were $5.3 million, a decrease of $1.7 million from product revenues of $7.0 million reported in the prior-year period. The year-over-year decrease in display revenue primarily resulted from unexpected downtime experienced with manufacturing equipment and resulting capacity constraints that delayed $1.3 million in display shipments into the fourth quarter.
Contract revenues were $0.5 million compared with $0.3 million reported in the prior-year, reflecting an increase in development work associated with the contract of a tier-one consumer company. eMagin is continuing to work on a proof of concept and anticipates ongoing contract revenue with this customer.
Total gross margin for the third quarter was 10% on gross profit of $0.6 million, compared with a gross margin of 23% on gross profit of $1.7 million in the prior-year period.
Operating loss for the third quarter of 2021 was $3.3 million, compared with an operating loss of $1.9 million in the prior-year period, primarily reflecting the decreased gross profit as discussed above.
Additionally, the company is experiencing raw material pricing pressures and is working to manage potential changes in allocation from vendors due to supply-chain issues in the semiconductor industry.
“eMagin has always set the standard for innovation and performance in the microdisplay industry, and in the third quarter we reached a number of important milestones,” said eMagin CEO Andrew G. Sculley. “In addition to our proof-of-concept display work for a tier-one AR/VR customer, we developed the production capability to satisfy demand for our high-brightness XLE displays and unveiled prototypes of what are now the world’s brightest, full-color Direct Patterning Display (dPd) microdisplays.
“In terms of revenue, our third-quarter results were mixed, with continued display revenue growth in our ENVG-B program, and increased shipments to medical customers,” he added. “However, our year-over-year decrease in total revenue reflected the timing of certain military orders and $1.3 million in shipments that will be delayed until the fourth quarter due to unexpected manufacturing tool downtime. Overall, as of the end of the third quarter, our sales backlog grew to $14.9 million, up from $10.3 million at the end of the second quarter, reflecting continued strength in bookings for the military night vision and eye-care markets.”
Total revenues for the third quarter of 2021 were $5.8 million, compared with $7.3 million reported in the prior-year period.
Total revenue consists of both product revenue and contract revenue. Product revenues for the third quarter of 2021 were $5.3 million, a decrease of $1.7 million from product revenues of $7.0 million reported in the prior-year period. The year-over-year decrease in display revenue primarily resulted from unexpected downtime experienced with manufacturing equipment and resulting capacity constraints that delayed $1.3 million in display shipments into the fourth quarter.
Contract revenues were $0.5 million compared with $0.3 million reported in the prior-year, reflecting an increase in development work associated with the contract of a tier-one consumer company. eMagin is continuing to work on a proof of concept and anticipates ongoing contract revenue with this customer.
Total gross margin for the third quarter was 10% on gross profit of $0.6 million, compared with a gross margin of 23% on gross profit of $1.7 million in the prior-year period.
Operating loss for the third quarter of 2021 was $3.3 million, compared with an operating loss of $1.9 million in the prior-year period, primarily reflecting the decreased gross profit as discussed above.
Additionally, the company is experiencing raw material pricing pressures and is working to manage potential changes in allocation from vendors due to supply-chain issues in the semiconductor industry.
“eMagin has always set the standard for innovation and performance in the microdisplay industry, and in the third quarter we reached a number of important milestones,” said eMagin CEO Andrew G. Sculley. “In addition to our proof-of-concept display work for a tier-one AR/VR customer, we developed the production capability to satisfy demand for our high-brightness XLE displays and unveiled prototypes of what are now the world’s brightest, full-color Direct Patterning Display (dPd) microdisplays.
“In terms of revenue, our third-quarter results were mixed, with continued display revenue growth in our ENVG-B program, and increased shipments to medical customers,” he added. “However, our year-over-year decrease in total revenue reflected the timing of certain military orders and $1.3 million in shipments that will be delayed until the fourth quarter due to unexpected manufacturing tool downtime. Overall, as of the end of the third quarter, our sales backlog grew to $14.9 million, up from $10.3 million at the end of the second quarter, reflecting continued strength in bookings for the military night vision and eye-care markets.”