Delaware
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000-15751
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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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Exhibit Number
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Description
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eMagin Corporation
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Date: August 9, 2012
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By:
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/s/ Paul Campbell
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Paul Campbell
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Chief Financial Officer
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Exhibit Number
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Description
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●
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eMagin unveiled and demonstrated its WUXGA OLED-XL microdisplay at the Society for Information Display (SID) conference in Boston in June. The response was very enthusiastic and more than a dozen trade and business reporters, several analysts and numerous attendees visited eMagin’s booth and met with Company management. The WUXGA OLED-XL microdisplay offers unmatched performance to a broad range of significant markets including diagnostic equipment and medical devices, simulation and training, homeland security, first responders, aviation, industrial, and augmented reality.
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●
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The Company completed installation of its new OLED deposition machine. Work is progressing toward fully automated production expected in September. eMagin continuously evaluates its equipment needs based on demand forecasts and will augment its production as needed.
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●
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Received a $2.4 million R&D contract from the U.S. Navy for a high brightness 2,000 by 2,000 pixel OLED microdisplay. The $1.1 million Phase I of the project will begin immediately and run through September 2012 when the $1.3 million Phase II option period, which runs an additional 12 months, begins. The proposed work in this program will result in a next generation digital goggle for avionic applications where it is critical to display high brightness, high resolution sensor video to the pilot’s head-mounted display, leveraging the accomplishments of prior Night Vision and Electronic Sensors Directorate (NVESD) OLED programs and further improving the OLED performance. It is contemplated this work will facilitate the use of eMagin’s OLED microdisplays in environments requiring a very high brightness display such as aircraft cockpits.
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●
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Awarded $3.5 million subcontract for Display Beam Combiner Assembly (DBCA) for the Enhanced Night Vision Goggle (ENVG) program from ITT Excelis.
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●
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Received $2.75 million multi-year purchase order from a subcontractor on the Light Weapon Thermal Sight (LWTS) program, the clip-on sight version of the Thermal Weapon Sight (TWS) program.
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●
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The U.S. SOCOM program, which is being funded by a $1.1 million SBIR grant, is on schedule and qualification testing is progressing.
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●
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The new XGA display for electronic viewfinders is on schedule for completion in 2012. Samples are expected to be shipped to a potentially large customer in August.
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eMagin is continuing to ship on a $3.1 million follow-on order for OLED displays for the U.S. Army Remote Viewer. The displays must be delivered in 2012.
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●
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Deliveries continued under the Javelin Soldier-mounted anti-tank missile launcher program.
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●
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Shipments continued for the Felin Soldier Modernization program in its second year of fielding.
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●
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eMagin continued to ship displays for three of Flir’s industrial thermal cameras.
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●
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Shipments to a manufacturer of high-end digital cinematography cameras continued.
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●
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The Company is moving forward with work on direct patterning for color displays. No other company to management’s knowledge is capable of patterning the OLED emission layer at the small pixel size of eMagin’s displays. OLED microdisplay companies use color filters to get full color displays. Direct patterning will improve the display efficiency or brightness by a factor of 4 to 5.
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●
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eMagin added an “In The News” page to its website under “Investor Relations” at www.emagin.com.
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●
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The Company will present at the Rodman & Renshaw Annual Global Investment Conference (September 9-11) and has set October 2, 2012, for an analyst/investor event, both in New York City.
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June 30, 2012
(unaudited)
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December 31, 2011
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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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4,041
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$
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7,571
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||||
Investments
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5,745
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|||||||
Accounts receivable, net
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6,834
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5,576
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||||||
Inventories, net
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2,364
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2,760
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||||||
Prepaid expenses and other current assets
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967
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1,008
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||||||
Total current assets
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22,486
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22,660
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||||||
Long-term investments
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1,014
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1,000
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||||||
Equipment, furniture and leasehold improvements, net
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6,912
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5,980
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||||||
Other assets
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126
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127
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||||||
Deferred tax asset
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8,165
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8,165
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||||||
Total assets
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$
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38,703
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$
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37,932
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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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966
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$
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961
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||||
Accrued expenses
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1,921
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2,246
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||||||
Other current liabilities
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506
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614
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||||||
Total current liabilities
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3,393
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3,821
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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 $5,659,000) stated value $1,000 per share, $.001 par value: 10,000 shares designated and 5,659 issued and outstanding as of June 30, 2012 and December 31, 2012
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—
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—
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||||||
Common stock, $.001 par value: authorized 200,000,000 shares, issued and outstanding, 23,542,853 shares as of June 30, 2012 and 23,513,978 as of December 31, 2011
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24
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24
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||||||
Additional paid-in capital
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222,280
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220,838
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||||||
Accumulated deficit
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(186,531
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)
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(186,656
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)
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Treasury stock, 150,000 shares as of June 30, 2012 and 25,000 shares as of December 31, 2011
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(463
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)
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(95
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)
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||||
Total shareholders’ equity
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35,310
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34,111
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||||||
Total liabilities and shareholders’ equity
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$
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38,703
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$
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37,932
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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|||||||||||||||
2012
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2011
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2012
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2011
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Revenue:
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||||||||||||||||
Product
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$
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7,124
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$
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5,948
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$
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12,954
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$
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10,258
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||||||||
Contract
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1,463
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1,501
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1,770
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2,632
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||||||||||||
Total revenue, net
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8,587
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7,449
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14,724
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12,890
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||||||||||||
Cost of goods sold:
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||||||||||||||||
Product
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3,480
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3,043
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6,782
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5,652
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||||||||||||
Contract
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594
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780
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748
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1,366
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||||||||||||
Total cost of goods sold
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4,074
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3,823
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7,530
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7,018
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||||||||||||
Gross profit
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4,513
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3,626
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7,194
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5,872
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||||||||||||
Operating expenses:
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||||||||||||||||
Research and development
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1,258
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774
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2,398
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1,306
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||||||||||||
Selling, general and administrative
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2,344
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2,228
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4,607
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4,369
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||||||||||||
Total operating expenses
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3,602
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3,002
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7,005
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5,675
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||||||||||||
Income from operations
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911
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624
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189
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197
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||||||||||||
Other income (expense):
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||||||||||||||||
Interest expense, net
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(5
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)
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(30
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)
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(8
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)
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(59
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)
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||||||||
Other income, net
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12
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13
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18
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29
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||||||||||||
Change in fair value of warrant liability
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—
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2,577
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—
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(480
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)
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|||||||||||
Total other income (expense), net
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7
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2,560
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10
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(510
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)
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|||||||||||
Income (loss) before provision for income taxes
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918
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3,184
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199
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(313
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)
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|||||||||||
Provision for income taxes
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341
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213
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74
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54
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||||||||||||
Net income (loss)
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$
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577
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$
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2,971
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$
|
125
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$
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(367
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)
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|||||||
Less net income allocated to participating securities
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140
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763
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30
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—
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||||||||||||
Net income (loss) allocated to common shares
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$
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437
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$
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2,208
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$
|
95
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$
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(367
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)
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|||||||
Income (loss) per share, basic
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$
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0.02
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$
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0.10
|
$
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0.00
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$
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(0.02
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)
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|||||||
Income (loss) per share, diluted
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$
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0.02
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$
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0.01
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$
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0.00
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$
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(0.02
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)
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|||||||
Weighted average number of shares outstanding:
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||||||||||||||||
Basic
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23,469,777
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21,853,631
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23,488,475
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21,688,174
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||||||||||||
Diluted
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25,167,605
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25,717,758
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25,344,779
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21,688,174
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Non-GAAP Information
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||||||||||||||||
(unaudited)
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||||||||||||||||
Three Months Ended
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Six Months Ended
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|||||||||||||||
June 30,
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June 30,
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|||||||||||||||
2012
|
2011
|
2012
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2011
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|||||||||||||
Net income (loss)
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$ | 577 | $ | 2,971 | 125 | $ | (367 | ) | ||||||||
Change in fair value of warrant liability
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- | (2,577 | ) | - | 480 | |||||||||||
Severance
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- | - | (47 | ) | 9 | |||||||||||
Adjusted net income (loss)
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577 | 394 | 78 | 122 | ||||||||||||
Non-cash compensation
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651 | 505 | 1,400 | 1,361 | ||||||||||||
Depreciation and amortization expense
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54 | 36 | 111 | 70 | ||||||||||||
Interest expense
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5 | 30 | 8 | 59 | ||||||||||||
Provision for income taxes
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341 | 213 | 74 | 54 | ||||||||||||
Adjusted EBITDA
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$ | 1,628 | $ | 1,178 | 1,671 | $ | 1,666 | |||||||||