Delaware
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000-24757
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56-1764501
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(a)
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Financial statements of business acquired.
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(b)
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Pro forma financial information.
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Shell company transactions.
Not applicable.
(d) Exhibits.
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Exhibit Number
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Description
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99.1
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Press Release of eMagin Corporation dated March 16, 2011
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eMagin Corporation
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Date: March 17, 2011
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By:
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/s/ Paul Campbell | |
Paul Campbell | |||
Chief Financial Officer | |||
Exhibit Number
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Description
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99.1
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Press Release of eMagin Corporation dated March 16, 2011
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·
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eMagin was awarded a subcontract by ITT Corporation for the supply of display beam combiner assemblies (DBCA), including eMagin's OLED-XL microdisplays. The U.S. Army awarded a contract to ITT's Night Vision & Imaging business units for the Enhanced Night Vision Goggle (ENVG). eMagin's subcontract has a potential value of $15.2 million.
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·
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eMagin was awarded additional subcontracts from two major U.S. Military contractors whose products have received contracts from the U.S. Army under the Enhanced Night Vision Goggle (ENVG) program for the supply of OLED microdisplays. These two awards have a potential value of $7.6 million and $5.5 million each to the Company. It is noteworthy that eMagin’s microdisplay components are being used by two of three remaining companies in competition for ENVG contracts, excluding the aforementioned subcontract already awarded to eMagin by ITT Corporation.
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·
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The Company continued to ship microdisplays that serve a variety of military applications under several fielded programs. Customers included Sagem (FELIN, the French Army’s integrated soldier system), OASYS (U.S. Army's Thermal Weapon Sight Remote Viewer Program), L-3 Communications (optical/display subsystem for U.S. Army, Javelin Soldier-Mounted Anti-Tank Missile System), and Qioptic (Vipir II thermal sight).
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·
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Soldier modernization programs in NATO countries continue to be an important market for eMagin displays for use in weapons sights, night vision goggles, target designators and helmet-mounted situational awareness. Production fielding of the FELIN program in France began in 2010 and will continue through 2014. eMagin OLED displays were also included in Brigade level fielding tests of the U.S. Army’s land warrior program.
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·
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eMagin completed the design of a 1920 x 1200 resolution display for the U.S. Army’s Telemedicine and Technology Research Center (TATRC). The microdisplay is the highest resolution microdisplay developed to date by eMagin, and has higher resolution than an HDTV but is of a size less than 1 inch in diagonal. The HD-resolution display will feature more than 7 million sub-pixels and a contrast ratio of 100,000 to 1, while consuming less than 350 milliwatts of power. eMagin will continue to receive contract revenue from this ongoing R&D project for a total of $6.4 million through 3Q11.
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·
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eMagin’s product reliability improved significantly during 2010, driven by improved processes which contributed to more robust displays, and more effective inspection and testing prior to shipping.
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·
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The Company reached an agreement to build its first production OLED deposition machine, one that will leverage the latest advances in the Company's proprietary manufacturing processes. The new machine, which will cost approximately $4.0 million, is expected to increase OLED deposition capacity by approximately tenfold, to increase yield significantly and to contribute to substantially more automated processes. Full integration of the OLED deposition machine to the production line is on track and expected by the end of 2011.
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·
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In the third and fourth quarters, eMagin delivered custom microdisplays following completion of the design phase of a $3.2 million subcontract for a specialized OLED microdisplay in the first quarter.
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·
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eMagin shipped additional orders to FLIR Systems, which uses the eMagin OLED microdisplay in its P-series and GLF-series state-of-the-art infrared cameras, which can be used for predictive and preventative maintenance as well as a range of non-destructive industrial inspections.
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§
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The Company’s industry-leading OLED microdisplays have been used in the development of two new head mounted display products from Liteye Systems, the LE-720A HMD, a rugged, high performance solution for situational awareness applications, and the LE-800, which is configured to maximize peripheral vision for helmet-mount applications.
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·
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eMagin was again recognized by Deloitte LLP through inclusion in its annual Fast 500 ranking for the fourth year in a row. In 2010, eMagin ranked 185th among the fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America.
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·
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On May 18, 2010, eMagin commenced trading on the NYSE Amex. The move to this exchange was accomplished as a result of initiatives taken during the last two years to improve the Company’s financial results and position the Company for growth.
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December 31,
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||||||||
2010
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2009
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|||||||
(In thousands, except
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||||||||
share and per share data)
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||||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$
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7,796
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$
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5,295
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||||
Investments – held to maturity
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3,100
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100
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||||||
Accounts receivable, net
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5,150
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4,563
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||||||
Inventory
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1,905
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2,179
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||||||
Prepaid expenses and other current assets
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777
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687
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||||||
Total current assets
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18,728
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12,824
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||||||
Long-term investments – held to maturity
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1,500
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—
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||||||
Equipment, furniture and leasehold improvements, net
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3,287
|
1,021
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||||||
Intangible assets, net
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39
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43
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||||||
Other assets
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92
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92
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||||||
Deferred tax asset
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9,056
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—
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||||||
Total assets
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$
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32,702
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$
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13,980
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||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$
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1,100
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$
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1,122
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||||
Accrued compensation
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1,975
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956
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||||||
Other accrued expenses
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1,781
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791
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||||||
Advance payments
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101
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211
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||||||
Deferred revenue
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26
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238
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||||||
Other current liabilities
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170
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891
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||||||
Total current liabilities
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5,153
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4,209
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||||||
Commitments and contingencies
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||||||||
Shareholders’ equity:
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||||||||
Preferred stock, $.001 par value: authorized 10,000,000 shares:
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||||||||
Series B Convertible Preferred stock, (liquidation preference of $5,679,000) stated value $1,000 per share, $.001 par value: 10,000 shares designated and 5,679 issued and outstanding as of December 31, 2010 and 5,739 issued and outstanding as of December 31, 2009
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—
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—
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||||||
Common stock, $.001 par value: authorized 200,000,000 shares, issued and outstanding, 21,210,445 shares as of December 31, 2010 and 16,967,244 shares as of December 31, 2009
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21
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17
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||||||
Additional paid in capital
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209,591
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206,664
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||||||
Accumulated deficit
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(182,063
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)
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(196,910
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)
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Total shareholders’ equity
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27,549
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9,771
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||||||
Total liabilities and shareholders’ equity
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$
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32,702
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$
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13,980
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Three Months Ended
December 31,
(unaudited)
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For the Year Ended
December 31,
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|||||||||||||||
2010
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2009
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2010
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2009
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Revenue:
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||||||||||||||||
Product
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$
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5,769
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$
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5,216
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$
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23,596
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$
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19,775
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||||||||
Contract
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2,194
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1,503
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6,862
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4,047
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||||||||||||
Total revenue, net
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7,963
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6,719
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30,458
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23,822
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||||||||||||
Cost of goods sold:
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||||||||||||||||
Product
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1,783
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2,048
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8,373
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7,865
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||||||||||||
Contract
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1,265
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782
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3,645
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2,310
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||||||||||||
Cost of goods sold
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3,048
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2,830
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12,018
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10,175
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||||||||||||
Gross profit
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4,915
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3,889
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18,440
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13,647
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||||||||||||
Operating expenses:
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Research and development
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483
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618
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2,370
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1,996
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||||||||||||
Selling, general and administrative
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3,181
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1,819
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10,055
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6,900
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||||||||||||
Total operating expenses
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3,664
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2,437
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12,425
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8,896
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||||||||||||
Income (loss) from operations
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1,251
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1,452
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6,015
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4,751
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||||||||||||
Other income (expense):
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||||||||||||||||
Interest expense
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(36
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)
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(49
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)
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(115
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)
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(466
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)
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||||||||
Other income, net
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6
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26
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16
|
67
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||||||||||||
Total other expense, net
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(30
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)
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(23
|
)
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(99
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)
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(399
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)
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||||||||
Income (loss) before provision for income taxes
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1,221
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1,429
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5,916
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4,352
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||||||||||||
Income tax (benefit) expense
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(9,006
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)
|
90
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(8,931
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)
|
90
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||||||||||
Net income (loss)
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$
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10,227
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$
|
1,339
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$
|
14,847
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$
|
4,262
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||||||||
Income (loss) per common share, basic
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$
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0.50
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$
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0.08
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$
|
0.77
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$
|
0.26
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||||||||
Income (loss) per common share, diluted
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$
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0.32
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$
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0.05
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$
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0.49
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$
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0.17
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||||||||
Weighted average number of shares outstanding:
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||||||||||||||||
Basic
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20,583,516 | 16,964,544 | 19,239,933 | 16,343,650 | ||||||||||||
Diluted
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32,288,364
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28,605,470
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30,422,133
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25,503,200
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||||||||||||
Three Months Ended
December 31,
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For the Year Ended
December 31,
|
|||||||||||||||
2010
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2009
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2010
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2009
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|||||||||||||
Net income
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$ | 10,227 | $ | 1,340 | $ | 14,847 | $ | 4,262 | ||||||||
Severance
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175 | — | 1,144 | — | ||||||||||||
Settlement
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650 | — | 650 | — | ||||||||||||
Adjusted net income
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11,052 | 1,340 | 16,641 | 4,262 | ||||||||||||
Non-cash compensation
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445 | 184 | 1,793 | 1,110 | ||||||||||||
Depreciation and amortization expense
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33 | 16 | 86 | 82 | ||||||||||||
Interest expense
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36 | 49 | 115 | 466 | ||||||||||||
Income tax (benefit) expense
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(9,006 | 90 | (8,931 | ) | 90 | |||||||||||
Adjusted EBITDA
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$ | 2,560 | $ | 1,679 | $ | 9,704 | $ | 6,010 | ||||||||