03.10.23
eMagin Corporation announced results for its fourth quarter and full-year 2022.
“We achieved near-record revenues of $8.4 million in the fourth quarter and full-year 2022 reve-nues of $30.5 million,” said eMagin CEO Andrew G. Sculley. “This represents significant growth relative to the fourth quarter and full year of 2021. We ended 2022 with robust shipments of dis-plays used in the Enhanced Night Vision Goggle–Binocular (ENVG-B) program, along with dis-plays for thermal weapons sights and medical applications.
“Bookings for the fourth quarter were strong, including a $1.7 million order for the F-35 Helmet Mounted Display System and more than $2 million in medical applications. Our backlog of open orders as of Dec. 31, 2022, shippable within 12 months, was $14.8 million,” Sculley added.
“In October, we achieved AS9100 REV D and ISO 9001:2015 quality certifications. These were important milestones for eMagin because these certifications are required by most customers in the aerospace, aviation and defense industries. Throughout 2022, we improved our positioning as a supplier of choice to address the rapidly expanding AR/VR market with our patented direct-patterned technology dPd. In April, we announced several patents related to our dPd technology. In May, our dazzling, full-color 10,000 cd/m2 WUXGA display with dPd technology, won the People’s Choice award for ‘Best New Display Technology’ at Display Week, the annual tradeshow of the Society for Information Display (SID).
“The fourth quarter of 2022 was the fifth consecutive quarter in which eMagin achieved year-over-year growth in product revenues and exceeded $7 million in quarterly product revenues. Thanks to our improved performance, we generated $1.9 million of positive EBITDA for the fourth quarter and $2.2 million in positive EBITDA for full year 2022,” Sculley concluded.
Fourth-Quarter Results
Total revenues for the fourth quarter of 2022 of $8.4 million, increased 17%, from $7.2 million in the prior-year period, and a sequential increase of $0.8 million from revenues for the third quarter of 2022. Total revenues consist of both product revenues and contract revenues.
Product revenues for the fourth quarter of 2022 were $7.8 million, an increase of $0.7 million from product revenues of $7.0 million reported in the prior-year period, and an increase of $0.7 million compared with the third quarter of 2022. The year-over-year quarterly increase in product revenue was due primarily to increased military market revenues, including shipments of displays used for night vision and thermal weapon sights, as well as increased industrial and commercial market revenues.
Contract revenues were $0.6 million, compared with $0.2 million in the prior-year period, due to development associated with a high-brightness display design for PEO STRI, and a proof-of-concept display for a tier-one consumer company.
Total gross margin for the fourth quarter was 41% on gross profit of $3.4 million, compared with gross margin of 24% on gross profit of $1.8 million in the prior-year period. The increase in gross margin was due in part to the successful qualification and sale of reclaimed displays that were pre-viously written off due to an initial quality issue that was subsequently resolved.
In the fourth quarter of 2022, the operating loss narrowed to $0.1 million, compared with $1.8 mil-lion in the prior-year period. Adjusted EBITDA for the fourth quarter was positive $2 million, compared with negative $0.8 million in the prior-year period.
As of the end of 2022, the company’s backlog of open orders scheduled for delivery over the next year was $14.8 million, which represented a 7% increase from the end of 2021.
Full-Year Results
Revenues for 2022 increased 17% to $30.5 million, from $26 million in 2021. Product revenues increased 19% to $28.8 million, from $24.2 million in 2021, primarily due to higher military reve-nues, including shipments of displays used for the ENVG-B program, and higher revenue contributions from medical customers. Contract revenues totaled approximately $1.7 million, represent-ing a 10% decrease from $1.9 million in 2021.
Gross margin for 2022 increased to 34%, compared with 18% in 2021. Gross margin for 2022 was positively impacted by the above-mentioned qualification and sale of reclaimed displays. Op-erating loss for 2022 narrowed to $2.9 million, versus $10 million in 2021. Net loss for 2022 narrowed to $1.1 million, or $0.01 per share. This compares with a net loss of $5.2 million, or $0.07 per share, in 2021. Adjusted EBITDA for the year was positive $2.2 million, compared with negative $4.1 million in the prior year.
“We achieved near-record revenues of $8.4 million in the fourth quarter and full-year 2022 reve-nues of $30.5 million,” said eMagin CEO Andrew G. Sculley. “This represents significant growth relative to the fourth quarter and full year of 2021. We ended 2022 with robust shipments of dis-plays used in the Enhanced Night Vision Goggle–Binocular (ENVG-B) program, along with dis-plays for thermal weapons sights and medical applications.
“Bookings for the fourth quarter were strong, including a $1.7 million order for the F-35 Helmet Mounted Display System and more than $2 million in medical applications. Our backlog of open orders as of Dec. 31, 2022, shippable within 12 months, was $14.8 million,” Sculley added.
“In October, we achieved AS9100 REV D and ISO 9001:2015 quality certifications. These were important milestones for eMagin because these certifications are required by most customers in the aerospace, aviation and defense industries. Throughout 2022, we improved our positioning as a supplier of choice to address the rapidly expanding AR/VR market with our patented direct-patterned technology dPd. In April, we announced several patents related to our dPd technology. In May, our dazzling, full-color 10,000 cd/m2 WUXGA display with dPd technology, won the People’s Choice award for ‘Best New Display Technology’ at Display Week, the annual tradeshow of the Society for Information Display (SID).
“The fourth quarter of 2022 was the fifth consecutive quarter in which eMagin achieved year-over-year growth in product revenues and exceeded $7 million in quarterly product revenues. Thanks to our improved performance, we generated $1.9 million of positive EBITDA for the fourth quarter and $2.2 million in positive EBITDA for full year 2022,” Sculley concluded.
Fourth-Quarter Results
Total revenues for the fourth quarter of 2022 of $8.4 million, increased 17%, from $7.2 million in the prior-year period, and a sequential increase of $0.8 million from revenues for the third quarter of 2022. Total revenues consist of both product revenues and contract revenues.
Product revenues for the fourth quarter of 2022 were $7.8 million, an increase of $0.7 million from product revenues of $7.0 million reported in the prior-year period, and an increase of $0.7 million compared with the third quarter of 2022. The year-over-year quarterly increase in product revenue was due primarily to increased military market revenues, including shipments of displays used for night vision and thermal weapon sights, as well as increased industrial and commercial market revenues.
Contract revenues were $0.6 million, compared with $0.2 million in the prior-year period, due to development associated with a high-brightness display design for PEO STRI, and a proof-of-concept display for a tier-one consumer company.
Total gross margin for the fourth quarter was 41% on gross profit of $3.4 million, compared with gross margin of 24% on gross profit of $1.8 million in the prior-year period. The increase in gross margin was due in part to the successful qualification and sale of reclaimed displays that were pre-viously written off due to an initial quality issue that was subsequently resolved.
In the fourth quarter of 2022, the operating loss narrowed to $0.1 million, compared with $1.8 mil-lion in the prior-year period. Adjusted EBITDA for the fourth quarter was positive $2 million, compared with negative $0.8 million in the prior-year period.
As of the end of 2022, the company’s backlog of open orders scheduled for delivery over the next year was $14.8 million, which represented a 7% increase from the end of 2021.
Full-Year Results
Revenues for 2022 increased 17% to $30.5 million, from $26 million in 2021. Product revenues increased 19% to $28.8 million, from $24.2 million in 2021, primarily due to higher military reve-nues, including shipments of displays used for the ENVG-B program, and higher revenue contributions from medical customers. Contract revenues totaled approximately $1.7 million, represent-ing a 10% decrease from $1.9 million in 2021.
Gross margin for 2022 increased to 34%, compared with 18% in 2021. Gross margin for 2022 was positively impacted by the above-mentioned qualification and sale of reclaimed displays. Op-erating loss for 2022 narrowed to $2.9 million, versus $10 million in 2021. Net loss for 2022 narrowed to $1.1 million, or $0.01 per share. This compares with a net loss of $5.2 million, or $0.07 per share, in 2021. Adjusted EBITDA for the year was positive $2.2 million, compared with negative $4.1 million in the prior year.
