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| 8-K - FORM 8-K - KOPIN CORP | d8k.htm |
 Kopin
Corporation
Enabling the Evolution of Mobile Media
Exhibit 99.1 |
 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 are sold, our market share for our products, and our significant
customers. We may use words such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “could,” “seeks,” “estimates,” and variations
of such words and similar expressions in identifying forward-looking statements. In
addition, any statements which refer to expectations, projections, our stock value multiple,
the value of Golden-i products, or other characterizations of future events or
circumstances are forward-looking statements. These statements are not guarantees of
future performance and involve certain risks, uncertainties and assumptions which are difficult
to predict. Actual outcomes and results may differ materially from what is expressed or
forecasted in such forward-looking statements, whether as a result of new information,
future events or otherwise. We refer you to the documents the Company files from time to
time with Securities and Exchange Commission, and specifically the “Risk Factors”
section of the Company’s Form 10-K for the period ended December 26, 2009 and Form
10-Q for the six months ended June 26, 2010. We do not undertake to update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise.
|
 Kopin
Material Science Platform |
 Mobile
Media Convergence 1990
2000
2010
2012 and Beyond
III-V Performance |
 III-V TECHNOLOGY
ENABLING MOBILE MEDIA CONVERGENCE |
 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)
–
Leading to industry consolidation
–
Added capacity in new Taiwan facility
–
Requires greater production
#1 Worldwide Supplier |
 Customer & Product Time-Line
Today Kopin is 45% of Merchant Market in HBT transistors.
Product
AIGaAs
InGaP
BiFET
Evolution
HBT
HBT
BiPHEMT |
 Revenue Growth Drivers for HBT
Source: Morgan Stanley Research |
 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
$ 18.34
3,218.5
2,903.0
$ 6.96
986.7
217.5
3.3
13.3
2.6
Triquint
TQNT
$ 6.98
1,083.3
925.7
$ 3.89
716.2
98.4
1.5
9.4
1.8
Avago
AVGO
$ 21.59
5,151.8
5,131.8
$ 5.03
1,760.0
451.0
2.9
11.4
4.3
AXT, Inc.
AXTI
$ 4.89
151.6
116.3
$ 3.04
66.4
9.5
2.3
12.3
1.6
Averages
2.2
6.9
2.3
KOPIN INC
KOPN
$ 3.64
242.4
123.4
$ 2.47
118.6
17.4
2.0
7.1
1.5 |
 CYBERDISPLAY
A Union of Technology |
 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 |
 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
Start with
SOI Wafers
Standard CMOS
IC Fab
Adhesive
Write
Silicon
Wafer
IC’s
Liftoff Circuits from
Silicon Substrate...
Add Front Glass
and Fill
Wafer Level
Transfer to Glass
IC’s
on Glass
Bond,
Package, & Test
Scribe ,Break
and Fill |
 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 |
 Applications for Cyber Display
•
Military
–
Thermal Weapon Sights
•
M1 rifles, tripod rocket launcher, tanks
•
Consumer
–
Movie Viewing, 3-D viewing, Gaming |
 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 competitive advantage
–
Shock & Vibe Chambers
–
Thermal |
 Cyber
Display TWS |
 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 at emerging high-end applications advanced night vision,
virtual reality and 3D HD gaming |
 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
247.6
212.4
$ 0.38
3.6
(38.9)
69.7
-5.5
7.3
Real ID
RLD
$ 17.62
435.0
516.1
$(2.79)
149.9
(25.9)
2.9
-20.0
-6.3
FLIR Systems
FLIR
$ 29.68
4,585.3
4,300.8
$ 8.56
1,220.0
399.2
3.8
10.8
3.5
Averages
30.3
10.9
4.4
KOPIN INC
KOPN
$ 3.64
242.4
123.4
$ 2.47
118.6
17.4
2.0
7.1
1.5 |
 GOLDEN –
i ™
Hands-Free Voice Activated Wireless Computing System
|
 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 18"
from eye
•
Access to all digital information when mobile |
 Broader Technology Platform
Partners:
Microsoft,
Motorola,
Micron
Technology,
Nuance,
Texas
Instruments, and Hill Crest Labs
Status:
Currently
shipping
software
development
kits
to
partners |
 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 / PowerPoint
–
Docs update by dictation or keyboard |
 Golden-i
™
Industrial TAM $11B
*add Flash Video clip
•
Telecommunications
–
service
technicians
•
Distribution
–
warehousing
and
postal
services
•
Industrial
–
nuclear
power,
oil
field
services
and
transportation
•
Medical
–
physicians,
nurses
and
records
departments
•
Construction
–
architects,
onsite
developers
and
contractors
•
Police, Fire, Emergency Response, Customs, Public Safety
|
 FINANCIAL OVERVIEW |
 ($
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
3.7
2.9
5.6
Income per share
$0.03
$0.05
$0.04
$0.08
Weighted average shares o/s
67.4
67.5
67.3
68.0
Income Statement Highlights |
 % of
Total Revenues by Category YTD 2010 ($55.6 Million)
III-V
52.8%
Military
33.6%
Consumer
Electronics
9.0%
Eyewear
1.7%
R&D
2.9%
FY 2009 ($114.7 million)
Military
44.9%
Consumer
Electronics
8.0%
R&D
5.7%
Eyewear
1.6%
III-V
39.8% |
       Balance
Sheet Highlights June 26, 2010
($ in millions)
Cash and marketable securities
$115.3
A/R and inventory
38.3
Other current assets
3.3
PP&E
21.3
Other assets
7.1
Total assets
$185.3
Current liabilities
$17.4
Other
Noncontrolling
interest
0.9
4.1
Equity
163.0
Total liabilities and equity
$185.3 |
 Target Operating Model
Revenue
100%
Gross Margin
35-45%
R&D
15-20%
SG&A
12-14%
Operating Income
8-12% |
 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 deserves a higher multiple
–
Display comps are either limited market opportunities (military)
or “pie-in-the sky”
scenarios (LED TVs) |
 Sum of the Parts
Analysis Kopin
stock
price
undervalued,
even
without
Golden-i™
warrant
Sum of the Parts Analysis
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
$1.79
Implied Valuation for KOPN
$12.64 -
$16.14
Golden-i upside
$??? |
 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 Golden-i
™
not properly reflected in valuation |
 Kopin Corporation
Enabling the Evolution of Mobile Media |