Kopin Corporation · NASDAQ:KOPN
Kopin — Sidoti 2021 Fall Virtual Investor Conference
18 slides from Kopin's conference presentation, September 2021
Slide 1: Sidoti 2021 Fall Virtual Investor Conference
Sidoti 2021 Fall Virtual Investor Conference
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This document contains forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and similar expressions that convey uncertainty of future events or outcomes are i
Slide 3: Kopin at a Glance
KOPIN AT A GLANCE Focus Focus Leading provider of specialized solutions combining advanced microdisplay and optics technologies 2021 Defense (72%) and industrial/enterprise/consumer (28%) with sole source status on a number of End Markets(1) Target key programs Market Market SizeSize Global microdis
Slide 4: Representative Products and End Products
REPRESENTATIVE PRODUCTS AND END PRODUCTS Kopin Products: Displays, Modules and Subassemblies Customer End Products Defense Dust-Free Module Enterprise Displays Modules Subassemblies Consumer Kopin Confidential 4
Slide 5: Tier 1 Customer Base
TIER 1 CUSTOMER BASE Defense New Vision Enterprise/Ind. Consumer Kopin Confidential 5
Slide 6: Proprietary AMLCD Microdisplay Manufacturing Technology
PROPRIETARY AMLCD MICRODISPLAY MANUFACTURING TECHNOLOGY Si IC LCD CyberDisplay Virtual Image Lens CyberDisplay High Brightness LCD for Outdoor Applications Kopin Confidential 6
Slide 7: Why Customers Choose Kopin – We Solve Problems Like This
WHY CUSTOMERS CHOOSE KOPIN – WE SOLVE PROBLEMS LIKE THIS DVO Stays on Weapon Maintain Fixed Reticle Retains Boresight GPS & Compass 230.63° 37 23.516 122 02.625 Generic Target ID Display Engine Friend/FOE + = Active Target Reticle Wind & Range Rapid Targeting 875m > First Shot Accuracy Retrofit Revi
Slide 8: Growth Driver: Military Sole Source Supplier on Key Defense Programs
GROWTH DRIVER: MILITARY SOLE SOURCE SUPPLIER ON KEY DEFENSE PROGRAMS IN PRODUCTION Sole Program Customer Kopin Product Source Commentary Supplier* F-35 Strike Fighter • World’s most advanced jet fighter LCDs for pilot helmet • Announced $2.7M follow-on order in April 2020 visor • Program scheduled f
Slide 9: Growth Driver Military: Strong Momentum in Defense
GROWTH DRIVER MILITARY: STRONG MOMENTUM IN DEFENSE – PROGRAMS IN LRIP & DEVELOPMENT U.S. Army M1A2 SEPv4 L3Harris NGSW-FC U.S. Army Helicopters Classified Replacing CRTs with modern FWS-CS displays Classified Sole Source Supplier* Full color LCD displays for helicopter pilots Sole Source Supplier* L
Slide 10: Growth Driver Enterprise and Industrial Markets
GROWTH DRIVER ENTERPRISE AND INDUSTRIAL MARKETS Enterprise and Industrial Public Safety Representative Products Google Glass Realwear hmt-1® 3M Scott Sight® • Voice and gesture-controlled wearable devices • Enables firefighters to see through smoke and measure • Provides actionable workflow insights
Slide 11: Growth Driver Consumer: AR/VR Represents an Enormous Market Opportunity
GROWTH DRIVER CONSUMER: AR/VR REPRESENTS AN ENORMOUS MARKET OPPORTUNITY Global Spending on AR/VR(1) Enterprise & Consumer AR/VR in Early Stages of Adoption Adoption % Today R: 77 AG $103B earC Mass 4-y Adoption Early $11B Adoption 2019 2023 Time Select AR/VR Players and Products VR Glasses Google Gl
Slide 12: Growth Driver Consumer: Differentiated OLED Technology
GROWTH DRIVER CONSUMER: DIFFERENTIATED OLED TECHNOLOGY Core Intellectual Property Double-Stack OLED Structure R G B Light Out Cathode Cathode Light Extraction Structure IP 3 Double- Charge Generation Stack Color Filters OLED Structure Anode “White” OLED Emitter Layers Si Circuits Anode Novel Anode S
Slide 13: LED Microdisplays
LED MICRODISPLAYS • LED microdisplay has potential for even higher brightness than OLED • Hybrid integration of Si backplane and InGaN LED Arrays by wafer scale bonding • Si backplane and LED wafers processed separately • Kopin Initially Developing a Monochrome Display Kopin Backplane • Color LED mi
Slide 14: Comprehensive IP Portfolio
COMPREHENSIVE IP PORTFOLIO Breakdown of Patents >200 pending or issued patents Headset Display Majority of patents are related to Ergonomic wearables Design Optics Other >20 patents related to OLED backplane technology Kopin Confidential 14
Slide 15: Balance Sheet
BALANCE SHEET ($ in millions) 6/26/21 Cash and marketable securities $30.8 Accounts receivable 7.4 Inventory 6.3 Other current assets 5.5 PP&E and ROU 3.1 Equity investments 4.5 Other long-term assets 0.2 Total Assets $57.8 Accounts payable 5.1 Accrued expense and other 10.2 Operating lease liabilit
Slide 16: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS ($ in millions, except per share amounts) Q2 2021 Q2 2020 Revenue $9.9 $8.8 Gross profit (1) 0.9 1.9 R&D 3.9 2.2 SG&A 4.0 2.9 Operating loss (4.1) (1.1) Net loss (3.8) (1.1) Net loss per share (basic & diluted) $(0.04) $(0.01) (1) Gross profit is calculated as net product
Slide 17: Conclusion – Investment Highlights
CONCLUSION – INVESTMENT HIGHLIGHTS Unique Market Position: Only player in the market that offers solutions addressing applications requiring leading 1 edge expertise in microdisplays and optics Industry Leader: #1 microdisplay provider for defense and industrial end markets, serving as sole source s
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