08.12.22
eMagin Corporation announced results for its second quarter ended June 30, 2022.
Total revenues for the second quarter of 2022 increased 14% to $7.2 million, compared with $6.3 million reported in the prior-year period. Product revenues for the second quarter of 2022 were $7 million, an increase of $1.3 million from product revenues of $5.7 million reported in the prior-year period. The year-over-year increase in display revenue was due to strength in military markets including shipments of displays used for the ENVG-B program, and higher revenue contributions from medical customers.
Contract revenues were $0.1 million compared with $0.5 million reported in the prior year, reflecting an anticipated decrease in second quarter development work associated with its proof-of-concept project.
Total gross margin for the second quarter was 22% resulting in a gross profit of $1.6 million, compared with a gross margin of 9%, which resulted in a gross profit of $0.6 million in the prior-year period.
Operating loss for the second quarter of 2022 narrowed to $1.8 million, compared with an operating loss of $2.9 million in the prior-year period, primarily reflecting the increased gross profit. Adjusted EBITDA for the second quarter of 2022 improved to negative $0.3 million, compared with negative $2 million in the prior-year period.
“eMagin’s second quarter was highlighted by a number of successes, including higher revenue, improved gross margin, new business wins, a People’s Choice Award at Display Week 2022, and progress on our AS9100/ISO certification,” said eMagin CEO Andrew G. Sculley.
“Our total revenues rose 14% to $7.2 million year over year while our gross margin improved to 22% from 9% a year ago,” Sculley added. “The gain in gross margin was driven in part by increased yields and a favorable sales mix, along with the impact of higher manufacturing volumes. This is the third consecutive quarter in which we realized year-over-year increases in throughput. The improved yields and increased throughput resulted from the impact of the new, government-funded equipment in our production facility and improvements in our manufacturing operations.
“As of the end of the second quarter, our total backlog of open orders remained strong at $14.3 million, with $12.8 million shippable over the next 12 months, reflecting demand for our displays for use in thermal weapon sights, military night-vision goggles, and medical applications,” he noted.
As previously announced, eMagin has committed the funds and ordered all equipment to be purchased under its $39 million in Defense Production Act Title III and the IBAS Program funding grants that were awarded in 2020.
As of the end of the second quarter, the company has qualified and added four pieces of equipment to its production line and received three additional pieces of equipment that are currently installed and being qualified. eMagin has five more major pieces of equipment on order, including an advanced, production-capable dPd organic deposition tool that is expected to improve yield and throughput of this technology for the benefit of AR/VR customers.
Total revenues for the second quarter of 2022 increased 14% to $7.2 million, compared with $6.3 million reported in the prior-year period. Product revenues for the second quarter of 2022 were $7 million, an increase of $1.3 million from product revenues of $5.7 million reported in the prior-year period. The year-over-year increase in display revenue was due to strength in military markets including shipments of displays used for the ENVG-B program, and higher revenue contributions from medical customers.
Contract revenues were $0.1 million compared with $0.5 million reported in the prior year, reflecting an anticipated decrease in second quarter development work associated with its proof-of-concept project.
Total gross margin for the second quarter was 22% resulting in a gross profit of $1.6 million, compared with a gross margin of 9%, which resulted in a gross profit of $0.6 million in the prior-year period.
Operating loss for the second quarter of 2022 narrowed to $1.8 million, compared with an operating loss of $2.9 million in the prior-year period, primarily reflecting the increased gross profit. Adjusted EBITDA for the second quarter of 2022 improved to negative $0.3 million, compared with negative $2 million in the prior-year period.
“eMagin’s second quarter was highlighted by a number of successes, including higher revenue, improved gross margin, new business wins, a People’s Choice Award at Display Week 2022, and progress on our AS9100/ISO certification,” said eMagin CEO Andrew G. Sculley.
“Our total revenues rose 14% to $7.2 million year over year while our gross margin improved to 22% from 9% a year ago,” Sculley added. “The gain in gross margin was driven in part by increased yields and a favorable sales mix, along with the impact of higher manufacturing volumes. This is the third consecutive quarter in which we realized year-over-year increases in throughput. The improved yields and increased throughput resulted from the impact of the new, government-funded equipment in our production facility and improvements in our manufacturing operations.
“As of the end of the second quarter, our total backlog of open orders remained strong at $14.3 million, with $12.8 million shippable over the next 12 months, reflecting demand for our displays for use in thermal weapon sights, military night-vision goggles, and medical applications,” he noted.
As previously announced, eMagin has committed the funds and ordered all equipment to be purchased under its $39 million in Defense Production Act Title III and the IBAS Program funding grants that were awarded in 2020.
As of the end of the second quarter, the company has qualified and added four pieces of equipment to its production line and received three additional pieces of equipment that are currently installed and being qualified. eMagin has five more major pieces of equipment on order, including an advanced, production-capable dPd organic deposition tool that is expected to improve yield and throughput of this technology for the benefit of AR/VR customers.