Ron Mertens from OLED-Info.com recently had the opportunity to interview Susan Jones, eMagin's Executive Vice President and Chief Marketing Officer.
eMagin is engaged in the design, development, manufacturing and marketing of virtual imaging products that utilize OLEDs, OLED-on-silicon micro displays and information technology solutions. Focused on Micro displays, eMagin is selling its micro displays to companies that incorporate them into products such as cameras, army helmets or headsets, etc.
Q: First of all, thank you for accepting to do this interview session with us... Let's begin. What kind of OLED microdisplays are you currently selling?
eMagin is currently selling SVGA+ OLED and OLED-XL microdisplays that have 852x600 color triad pixels, SVGA 3D OLED and OLED-XL microdisplays that have 800x600 color triad pixels. We also just announced the availability of a limited number of interface design and reference kits with prototypes of our new SVGA 3DS OLED-XL microdisplay that is the same resolution as the SVGA-3D, but with a much smaller diagonal.
Q: How do your OLED microdisplays fare against LCD products?
The OLED microdisplays have been very successful in direct competition for new design wins. We recently announced that our displays had been chosen for the French Army’s FELIN program; last year (2005) Rockwell Collins OLED-based SO35, which had been selected already for the Land Warrior Program, won a competitive run-off for the US Army’s Mounted Warrior Program. There are a great number of other companies that have made similar decisions. Power efficiency, cost, temperature range, and high speed performance are the driving advantages.
Q: Can you give us some details about OLED display costs vs. LCD costs?
OLED-based systems are usually lower cost to integrate and certainly lower cost to maintain. The price can be higher or lower than an LCD of equivalent resolution, depending on the specifications and quantities purchased.
Q: You seem to be very excited about the OLED-XL. Why is this such a big breakthrough? Are you already selling these displays? Are there any products (planned or available) that incorporate OLED-XL?
Typically, when you improve a display product you try to get better performance in one or two critical parameters. With the OLED-XL technology, we hit the trifecta, improving power efficiency, brightness, and luminance lifetime.
Our Z800 3D visors already use OLED-XL displays. There are several systems in development by customers that will employ our new OLED-XL-based microdisplays. One may be announced very soon. So the excitement is shared in the industry, and justified.
Q: Can you name your microdisplay competition?
Kopin, Microvision, MED.
Q: Can you comment about MicroEmissive Displays (MED) new P-LED microdisplay products?
We don’t typically comment on other companies’ specific products. In general, P-LED is an interesting technology we have looked at and continue to monitor as having potential, but the full-color life characteristics of what we have seen so far has not been adequate for our customers.
Q: eMagin always had OLED production woes... Are these over? When will you begin real mass-production of your displays?
Our line has been running consistently now for more than six months, and the new processes developed for the OLED-XL products are proving more robust than those we developed for our original microdisplays. As a result, we are more confident than ever in our manufacturing capability.
Q: So far we have seen your displays in the high-end of the market (such as military or security products, and HMDs). Do you have plans to penetrate more consumer oriented markets, such as digital cameras for example?
Our Z800 3DVisor at $549 is a consumer product that employs two of our SVGA 3D OLED microdisplays. While we cannot comment on other products, the 3DVisor has caught the attention of other consumer electronics manufacturers. There is potential for this technology to eventually be adapted to mass markets, but eMagin is currently focusing on its military and commercial customers as eMagin’s current manufacturing capacity is best suited to those markets.
Q: Gary Jones mentioned your 'next generation IC' several times. Can you give more technical information?
We have just announced the availability of an interface design reference kit with early samples of our SVGA-3DS product. The new chip design uses the OLED-XL device, but is built on the new IC. This combination provides greater pixel-to-pixel uniformity and adds many other built-in features that many of our customers have requested, such as the option of digital or analog interfaces. On-chip display circuitry ensures consistent color and brightness over a wide range of operating temperatures.
In addition, various signal processing functions can be modified: the device's flexible row and column sequencer functions provide such options as reflecting the image both vertically and horizontally and positioning sub-SVGA images anywhere in the active area. There are many high speed imbedded capabilities in the silicon IC that forms the display’s active matrix backplane.
Q: Who are your business partners? Who's IP are you using in your products?
We license Eastman Kodak’s IP. We have added substantial IP of our own and developed proprietary practices and procedures. We also have various sources for materials and components with their own IP.
Q: Can you give some more information about the sales of the 3DVisor?
Our markets are extending beyond gaming into simulation and training, virtual tours, handheld devices, and other commercial-industrial applications.
Q: In his latest update, Gary Jones said that the financials of eMagin are improving. When will you break even? Will you require more cash?
We’re on track to our highest revenues to date and costs are down. Last quarter we reported record sales revenue. At the same time, we’ll need to upgrade and expand our manufacturing capabilities to sustain this momentum. That need requires more capital. Right now, it’s a matter of balance. Once that balance is achieved, it will be easier to predict profitability.
Q: Jones has also mentioned that eMagin received several inquires about an investment or acquisition. When can we expect to have news on these offers?
We cannot provide further details on this matter at this time.
Q: eMagin is selling both OEM/ODC products and consumer products (3DVisor). Isn't that proving too difficult for a small company?
It has been a challenge, and it has stretched our resources. Most of our sales of displays and many Z800 3DVisors are to OEM/ODC customers. The development of the Z800 3DVisor and its high performance components was a necessary step to accelerate opening a wide range of applications markets. A benefit of the 3DVisor's success has been increased overall interest in near-eye displays especially those based on OLED technology for both consumer and industrial applications. The 3DVisor has permitted many developers with reasonable cost access to high end simulator capabilities. With the breakthrough OLED-XL technology and the new IC’s capabilities, we will focus on enabling the growing number of OEM/ODC customers.
Q: I can see no mention of the EyeBud system in your site. Is this a dead product?
Eyebud is on hold at this time. We determined that the SVGA-3DS would be a better fit for this product to reach the sensitive cost and performance goals we now expect to be required for the Eyebud market.
Q: There were rumors about a partnership between eMagin and a game-console company (Nintendo was the leading candidate...). Was there any basis to these rumors? Will we see the 3DVisor as a game-console accessory?
We do not comment on speculation. If something important happens and we are permitted by a customer to discuss it, then we would disclose it.
Q: Where do you see the OLED market in 5 years?
Certainly, the market for OLED microdisplays will have grown substantially. The first commercial systems using our products have only been in use for a short time. There are a number of systems based on our microdisplays in development, and the indications are that there will be many more. Soldier modernization, night vision, immersive training, and augmented reality are some of the driving applications.
More important, though, is the convergence of two trends the desire for big, high resolution screens and the rapid adoption of mobile devices. A personal display, that is, a near-eye virtual imaging system, really does deliver the big-screen experience in a mobile environment. It's private, too; a user can review proprietary information with full screen detail or large screen movies virtually anywhere, even in the middle of a crowded airline terminal.
Q: Where do you see eMagin in 5 years?
We expect eMagin will continue to be the leader in near-eye OLED microdisplay technologies, and this will be the technological backbone of the personal display market. We believe eMagin will be a direct component and subsystem supplier to OEM/ODM military, medical, and commercial customers in an enormous range of applications.
I expect eMagin will also be working with several manufacturing and OEM partners enabling new low cost consumer products. These consumer products will be opening a major new market segment for head worn high resolution video supporting games, video entertainment, portable computing, and communications systems.
Q: When do you think we'll be able to buy an OLED TV?
From what all of us have seen at SID, there are some manufacturers who have splendid prototypes. These companies don’t build prototypes with such care unless they are moving toward the market.
Q: What do you have to say to your shareholders?
eMagin has turned some important corners in 2006:
- Moving to a new generation of OLED device technology and a new, higher performance IC design
- Sustaining the growth of an award-winning consumer product in a brand new category
- Consistently improving manufacturing performance over an extended period
So as challenging as the year has been to us financially, our work has led to increased revenues, broader interest in our products, and more widespread acceptance of the new personal display market category, all of which lays a groundwork for the future.
Thank you again for your time, I wish both you and eMagin good luck!
