eMagin corporation - Page 14

eMagin issued a press release today regarding their OLED lighting project they are conducting together with the University of Rechester. eMagin says that the partnership will seek to drastically improve the amount of useful light emitted from the device by developing technologies that use nano-particle based plasmonic scattering of light.

So this is an OLED lighting project, and it doesn't seem directly related to microdisplays (although eMagin does say that this can lead to more efficient microdisplays, too). In fact eMagin comments that "Success in this research effort has the potential to revolutionize the multi-billion-dollar markets for home, commercial and industrial lighting systems....We look forward to working with our partners at the University of Rochester to advance the next generation of OLED technology for lighting solutions with an eye toward commercialization.

Last month we reported that the US DOE funded $1.2 million (out of $1.5 million) to a research at the University of Rochester aimed towards increasing the efficiency and light output of OLEDs by improving the device’s light extraction through the use of an internal scattering layer. Today we have some new information on that project.

The three-year effort aims to increase the light output of OLEDs by 3.5 times. The idea is to try and make the light within the OLED scatter randomly and then capture it in metal rods inserted into the organic diode. The researchers will collaborate with eMagin in this project.

eMagin reported their first quarter 2011 financial results. The company reported production issues and delays a few weeks ago, and the quarter was impacted by those issues. But the company is seeing seeing significant improvements and they are approaching last year's yield levels. eMagin's new OLED deposition machine will come on-line in 2012 which will improve things further.

Total revenue in the quarter was $5.4 million and the net loss was $282,000. Cash flow is positive and the company expects to return to profitability next quarter. The company also received $1.3 million of new contract awards for microdisplay product development and commercialization projects to be completed in 2011.

eMaginn introduced new low-power/high-contrast 0.5" diagonal VGA OLED-XL microdisplays that feature 15-micron pixels, 10,000:1 contrast ratio, a coltage drive pixel approach and eMagin's True Black technology that uses less than 60mW (which is less than half of the requirement for eMagin's SVGA+ OLED-XL microdisplays). eMagin says that the new display is useful for military, industrial and commercial applications (including thermal weapon sights, laser target designators, and industrial thermal imaging cameras).

The new microdisplays use pulse width modulation (PWM) pixel hold times (a first time for eMagin) to virtually eliminate motion artifacts in video imagery, with the extra benefit of providing better dimming range and gray level response for low light and night vision applications.

eMagin reports that during Q1 2011 the company faced production issues and manufacturing delays, following preventative maintenance in the first quarter. eMagin has been taking a number of steps to restore its production schedule, including running extra shifts on weekends. The company expects that revenues in the first quarter will only be around $5.5 million, but for the whole year they still maintain their revenue guidance of $35 to $40 million.

In August 2010 eMagin announced that they plan to build their own AMOLED microdisplay deposition machine, in an attempt to boost production capacity tenfold.

eMagin hired a team of five design engineers that has extensive experience working on the silicon backplane for eMagin's newest and most sophisticated OLED microdisplay designs including the SXGA (1280x1024) and the TATRC WUXGA (1920x1200), as well as the two customer products designed in 2009 for 2010 manufacturing.

The new team will enable eMagin to develop new microdisplays more rapidly and more efficiently. eMagin also hopes that this in-house team will enable better integration between the backplane design and the OLED process. The new team will also help eMagin's research contracts.

eMagin posted their financial results for 4Q 2010 - $8 million in revenue - a 19% increase over 4Q 2009. The company says that they see an increased demand for their OLED microdisplays and they now over 185 customers in 32 countries. Net income for the fourth quarter was $10.2 million - which includes a $9.1 million tax benefit.

The company expects to record total revenue of $35 million to $40 million during 2011. eMagin reported $30.5 million in revenue in 2010, so they are projecting a 14%-30% increase year over year.

eMagin reported their quarterly earnings, and posted a record net income of $2.8 million on revenues of $8.3 million. eMagin says they shipped a record number of OLED microdisplays in the quarter - with a strong growth in the military market.

eMagin plans to have over $30 million revenues in all of 2010.

Elbit Systems announced that it has won a 5-year $68 million contract from the US Army. Elbit will supply the Army with AN/AVS-7 Head-Up Display components. The new display units increase situational awareness and safety by allowing pilots to fly "head out of the cockpit" during day and night operations.

Elbit's AN/AVS-7 HUDs include an eMagin OLED SVGA+ microdisplay.

eMagin has announced that they have been awarded a $15.2 million subcontract by ITT Corporation to supply them with OLED-XL microdisplays. These will go into ITT's Spiral Enhanced Night Vision Goggle (SENVG).

The SENVG incorporates the 18 mm image intensifier tube, utilizes several qualified ENVG subassemblies, including the DBCA from eMagin and is powered by 3 AA batteries.