Kopin Corporation · NASDAQ:KOPN
Kopin — Investor Presentation (August 2010)
32 slides from Kopin's investor presentation, Aug 10, 2010
Slide 1: Enabling the Evolution of Mobile Media
Kopin Corporation Exhibit 99.1 Enabling the Evolution of Mobile Media
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements relate to our expected future financial and operating performance, growth in the markets in which our products a
Slide 3: Kopin Material Science Platform
Kopin Material Science Platform
Slide 4: Mobile Media Convergence III-V Performance
Mobile Media Convergence III-V Performance 1990 2000 2010 2012 and Beyond
Slide 5: III-V Technology: Enabling Mobile Media Convergence
III-V TECHNOLOGY ENABLING MOBILE MEDIA CONVERGENCE
Slide 6: III-V Proprietary Technology
III-V Proprietary Technology • HBT - Power amplifying transistors in mobile phones • Stacked III-V GaAs-based layers – 7-14 Layers of semiconductor materials, Going to Over 30 Layers • Manufacturing a uniform product in high volume key to customer retention • Next Generation of chips (HBT BiPHEMT) –
Slide 7: Customer & Product Time-Line
Customer & Product Time-Line Today Kopin is 45% of Merchant Market in HBT transistors. Product AIGaAs InGaP BiFET Evolution HBT HBT BiPHEMT
Slide 8: Revenue Growth Drivers for HBT
Revenue Growth Drivers for HBT Source: Morgan Stanley Research
Slide 9: HBT Comparable Valuation
HBT Comparable Valuation Company Ticker Price MC EV BV/ Share Rev EBITDA MC/Rev EV/ EBITD A Price/ BV Semiconductor - Wireless and III-V Anadigics ANAD $ 4.51 294.1 213.4 $ 2.87 152.5 (19.2) 1.9 -11.1 1.6 RF Micro Devices RFMD $ 4.13 1,119.3 1,180.2 $ 1.97 978.4 201.8 1.1 5.8 2.1 Skyworks SWKS $ 18.
Slide 10: CyberDisplay: A Union of Technology
CYBERDISPLAY A Union of Technology
Slide 11: World Leader in Microdisplays
World Leader in Microdisplays • Proprietary production process • Single crystal silicon transistors – Highest pixel density – Sharpest resolution • Digital Vision™ for Mobile Video Apps • Shipped 30 million displays to date
Slide 12: Leveraging Nanotechnology
Leveraging Nanotechnology • Patented materials separation process – display IC backplane fabrication outsourced – Transfer very thin IC layer to glass • High performance single crystal Si transistor • Fab-less foundry model – Keeps costs low by leveraging investments – Maintains flexible capacity St
Slide 13: Kopin CyberDisplay Advantage
Kopin CyberDisplay Advantage • Highest pixel density Active Matrix LCD • Color filter-type transmissive LCD (like LCD TV) • Ultra-Compact size – 0.16” – 0.97” diagonal • Wide range of resolutions for variety of Apps • Low power consumption • Module products for easy design-in
Slide 14: Applications for Cyber Display
Applications for Cyber Display • Military – Thermal Weapon Sights • M1 rifles, tripod rocket launcher, tanks • Consumer – Movie Viewing, 3-D viewing, Gaming
Slide 15: Military Applications
Military Applications • Leading provider of displays and high-level assemblies to the U.S. military Thermal Weapons Site Program – BAE Systems – displays – DRS – Modules= display + electronics – RTN – eyepieces • Ruggerdized to withstand extreme field conditions • Manufacturing Testing key competiti
Slide 16: Cyber Display TWS
Cyber Display TWS
Slide 17: Cyberdisplay Pipeline
Cyberdisplay Pipeline • Enhanced Night Vision Goggles – Overlay thermal imaging on night vision technology – Introduced 2009, awards anticipated Q4 2010 • Ultra-compact 3-D displays – compact eyewear that shows vivid color in 3D – 854 x 480 full-color resolution in fingernail size screen – targeted
Slide 18: Display Comparable Valuation
Display Comparable Valuation Company Ticker Price MC EV BV/ Share Rev TTM EBITDA TTM MC/Rev EV/ EBITDA Price/ BV Display & Optoelectronics eMagin EMAN $ 3.19 62.7 56.6 $ 0.64 24.6 5.2 2.6 11.0 5.0 Universal Display PANL $ 20.30 764.3 701.3 $ 1.57 17.0 (14.7) 44.9 -47.6 12.9 Microvision MVIS $ 2.79 2
Slide 19: Golden-i: Hands-Free Voice Activated Wireless Computing System
GOLDEN – i ™ Hands-Free Voice Activated Wireless Computing System
Slide 20: Extends Mobile Computing Convergence
Extends Mobile Computing Convergence • Early computing products lacked mobility • Recent mobile solutions use small form factor Golden-i ™ Next-gen Mobile Computing Solution • Wireless cloud computing communications system • Hands-free real time streaming video • Equivalent 15" PC display virtually
Slide 21: Broader Technology Platform
Broader Technology Platform Partners: Microsoft, Motorola, Micron Technology, Nuance, Texas Instruments, and Hill Crest Labs Status: Currently shipping software development kits to partners
Slide 22: Feature-Rich Mobile Experience
Feature-Rich Mobile Experience • Bluetooth/WiFi headset, 15-inch virtual display, hands-free, natural- speech-recognition interface – Hands free – voice & gesture control – Wireless Control up to 7 devices & systems – Natural speech recognition – MS Windows CE 6.0 – Full e-mail / Word / Excel / Powe
Slide 23: Golden-i Industrial TAM $11B
Golden-i ™ Industrial TAM $11B *add Flash Video clip • Telecommunications – service technicians • Distribution – warehousing and postal services • Industrial – nuclear power, oil field services and transportation • Medical – physicians, nurses and records departments • Construction – architects, ons
Slide 24: Financial Overview
FINANCIAL OVERVIEW
Slide 25: Income Statement Highlights
($ in millions except per share data) Q2 2010 Q2 2009 YTD Q2 2010 YTD Q2 2009 Total revenues $30.2 $28.2 $55.6 $49.7 Cost of product revenues 21.9 19.4 39.4 34.0 Gross Margin 25.0% 25.7% 25.7% 27.2% R&D 4.9 3.8 9.2 6.9 SG&A 4.2 2.6 7.9 7.0 Income from operations (0.7) 2.5 (0.7) 1.7 Net income 1.9 3.
Slide 26: % of Total Revenues by Category
% of Total Revenues by Category YTD 2010 ($55.6 Million) III-V 52.8 % FY 2009 ($114.7 million) III-V 39.8% Military 33.6% Consumer Electronics 9.0% Eyewear 1.7% R&D 2.9% Military 44.9% Consumer Electronics 8.0% R&D 5.7% Eyewear 1.6%
Slide 27: Kopin
Ea KOPIN
Slide 28: Target Operating Model
Target Operating Model Revenue 100% Gross Margin 35-45% R&D 15-20% SG&A 12-14% Operating Income 8-12%
Slide 29: Overall Valuation Perspective
Overall Valuation Perspective • Kopin deserves higher multiple with higher Growth Rates and ability move into bigger markets – Semi comps are older, slower growth companies with lower multiples • Kopin’s display business has solid financial results and opportunity to move into bigger markets hence d
Slide 30: Sum of the Parts Analysis
Sum of the Parts Analysis Sum of the Parts Analysis Kopin stock price undervalued, even without Golden-i™ warrant Share price of Semiconductor segment: (Reference slide 8) $1.85 Share price of display segment: $50M (display revs) x 10 (group MC/Rev) = $500M (Reference slide 16) $8.00 Cash per share
Slide 31: Kopin Investment Highlights
Kopin Investment Highlights • Expanding market share with leading III-V & display customers • 40% CAGR in smart phone sales expected over next 5 years • Over 200 issued/pending patents • $115 million in cash and marketable securities with no debt • Golden-i™ very large TAM of $11B • Display and Gold
Slide 32: Kopin Corporation
Kopin Corporation Enabling the Evolution of Mobile Media