eMagin reports its financial results for Q4 2016

OLED microdisplay maker eMagin reported its financial results for Q4 2016. Revenues in the fourth quarter were $4.6 million, down 33% from Q4 2015 - mostly because of a decline in sales to maturing US military programs. Net loss for the quarter was $3.5 million (up from $2.1 million in Q4 2015). For the whole year of 2016 revenues were $21.4 million.

eMagin XGA096 OLED-XL photo

eMagin also announced that it signed a multi-million dollar agreement with "another" Tier-1 consumer electronics company - "an easily recognizable one". This is the third such agreement in the past 15 months. eMagin says that the commercial sector will become more important and will start generating revenues in Q1 2017. eMagin is in active discussions with partners to enable the high volume production capabilities required by the commercial market demand. eMagin started producing samples of its 2k x 2k displays and these should enter mass production in Q2 2017.

eMagin believes it has the best technology as it is the only one capable of producing direct patterned displays - which are higher in brightness and efficiency. The company started shipping limited quantities of these displays to some key strategic partners and potential partners.

eMagin also completed prototyping a new 0.48-inch full-color XGA microdisplays that is aimed towards industrial and commercial customers. These displays are relatively cost-effective compared to its larger and higher-resolution displays.

In the industrial sector, eMagin announced a new major medical company that adopted its WUXGA display in its next-gen surgical equipment, and in the military sector it announced that it was selected for several new projects int he US and Europe (including a major European defense program in which sales are expected to exceed $3.5 million through 2018).

Regarding eMagin's own new thermal commercial projects (BlazeSpark and BlazeTorch), eMagin says that production has now started and demo units were distributed to prospective customers. eMagin says it will require expanded marketing and promotion efforts - as there are broader applications than previously anticipated.

Source: 
Seeking Alpha
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OLED Microdisplays
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Posted: Mar 29,2017 by Ron Mertens

Comments

Submitted by Frankenberry on Wed, 03/29/2017 - 19:57

"we think eMagin has finally reached an inflection point"

Oppenheimer -

Uerkwitz observed:

 

“eMagin reported 4Q16 earnings on 3/28. While continued winding down of old military contracts drove the weak 4Q, we think eMagin has finally reached an inflection point. With an expected ramp of new military programs, Blaze products making their way to consumers, and revenue-producing development contracts with (now) three major consumer electronics companies, we expect 2017 growth, and the most diversified revenue stream in the past ten years. This sets up 2018 and beyond rather nicely. We maintain a Perform rating for now, however, as we have time to watch the development of a manufacturing strategy, and real consumer shipments of headsets are likely over a year away.”
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