11.13.17
eMagin Corporation announced financial results and corporate highlights for the third quarter ended Sept. 30, 2017.
Revenues for the third quarter of 2017 were $4.3 million, flat with the third quarter of 2016. Product revenues totaled $4.0 million versus $3.5 million in the third quarter last year. The year-on-year increase in product revenue was due to an increase in display revenues from the gradual ramp up of new US military programs and increased demand by international customers, offset by the impact of production issues in the quarter that have since been resolved.
Overall gross margin for the third quarter was 7% on gross profit of $278,000 compared to a gross margin of 30% on gross profit of $1.3 million in the prior year period. Operating loss for the third quarter was $3.0 million versus an operating loss of $2.4 million in the third quarter of last year.
“We experienced a heightened level of activity in the third quarter, both in our commercial initiatives as well as our military programs,” said Andrew Sculley, president and CEO. “While this was not reflected in our financial results for the period, in part due to a manufacturing issue we have since resolved, our activities during the quarter enabled us to achieve major milestones towards the commercialization of our display technology in the consumer sector and positioned us for stronger performance in our military business in the quarters ahead. In particular, we believe our accomplishments with multiple consumer partners demonstrate the critical role eMagin’s display technology plays in driving the AR/VR market to the next level.
“Our agreements with these tier-one consumer electronics companies, each following rigorous and extensive diligence on our direct patterning technology, are outstanding endorsements of eMagin’s direct patterning technology. On the military side of our business, we saw increased booking activity for both our US programs as well as with foreign military customers. We booked over 90 new orders totaling more than $6.5 million in the third quarter and are seeing the pace continue into the fourth quarter with several sizeable orders. Overall, I believe that we have made significant progress in all areas of our business this year and are well-positioned entering 2018,” concluded Sculley.
Revenues for the third quarter of 2017 were $4.3 million, flat with the third quarter of 2016. Product revenues totaled $4.0 million versus $3.5 million in the third quarter last year. The year-on-year increase in product revenue was due to an increase in display revenues from the gradual ramp up of new US military programs and increased demand by international customers, offset by the impact of production issues in the quarter that have since been resolved.
Overall gross margin for the third quarter was 7% on gross profit of $278,000 compared to a gross margin of 30% on gross profit of $1.3 million in the prior year period. Operating loss for the third quarter was $3.0 million versus an operating loss of $2.4 million in the third quarter of last year.
“We experienced a heightened level of activity in the third quarter, both in our commercial initiatives as well as our military programs,” said Andrew Sculley, president and CEO. “While this was not reflected in our financial results for the period, in part due to a manufacturing issue we have since resolved, our activities during the quarter enabled us to achieve major milestones towards the commercialization of our display technology in the consumer sector and positioned us for stronger performance in our military business in the quarters ahead. In particular, we believe our accomplishments with multiple consumer partners demonstrate the critical role eMagin’s display technology plays in driving the AR/VR market to the next level.
“Our agreements with these tier-one consumer electronics companies, each following rigorous and extensive diligence on our direct patterning technology, are outstanding endorsements of eMagin’s direct patterning technology. On the military side of our business, we saw increased booking activity for both our US programs as well as with foreign military customers. We booked over 90 new orders totaling more than $6.5 million in the third quarter and are seeing the pace continue into the fourth quarter with several sizeable orders. Overall, I believe that we have made significant progress in all areas of our business this year and are well-positioned entering 2018,” concluded Sculley.