eMagin corporation - Page 21

US based company, eMagin Corporation is aiming to set up a manufacturing venture in OLED (organic light emitting diodes-on-silicon) fabrication project in Malaysia, said chief financial officer, John Atherly.

eMagin will also explore the possibility of expanding its presence in the Asian region, and Malaysia in particular, by establishing a procurement and distribution centre through AIC Corporation Bhd.
Currently, AIC Corporation Bhd manufactures and provides engineering services for eMargin's OLED products.

Revenue for the three months ended June 30, 2005, of $0.7 million sequentially was unchanged from first quarter level. Revenue for the three and six months ended June 30, 2005 was $0.7 million and $1.3 million as compared to $1.4 million and $2.0 million for the same periods ended June 30, 2004.

Net loss and loss per share applicable to common stock for the three and six months ended June 30, 2005 was $4.5 million, or $0.05 per share and $8.0 million, or $0.10 per share as compared to a net loss of $1.4 million or $0.02 per share and $8.0 million, or $0.14 per share during the three and six month periods ended June 30, 2004.

Balance sheet showed $8.7 million in working capital at June 30, 2005 as compared to $14.9 million on December 31, 2004.

"I'm pleased to report that we are shipping our newest product, the Z800 3DVisor, to direct consumer customers as well as OEMs. We believe that this product represents a major breakthrough for the emerging virtual imaging industry," said Gary Jones, chief executive officer of eMagin.

Revenue for the three months ended March 31, 2005 of $0.7 million increased 28 percent from $0.5 million in the first quarter of 2004. As anticipated the results reflect limited production output as eMagin accommodates reconfiguration of its plant and processes toward monthly output of 15,000 to 20,000 microdisplays in 2005. This compares to a typical average output of 1,000 - 2,000 units per month in 2004.

Net loss applicable to common stock for the quarter was $3.5 million, or $0.04 per share as compared to a net loss of $6.6 million or $0.13 per share during the three months ended March 31, 2004. The 2004 loss was higher as a result of non-cash charges associated with debt conversion and expensing of unamortized interest discounts associated with the debt.

"With production resuming in May we've initially restarted the line to accommodate moderate throughput. We anticipate that we will generate between $1.0 million and $2 million of revenue during Q2, ramping production output upward throughout the remainder of the year. Our first shipments of microdisplays from our consumer OEM backlog are now occurring and we are projecting initial shipping availability of our first commercial Z800 3D Visor units to begin by the end of the quarter."

eMagin Corporation has received notification of allowance from the U.S. Patent and Trademark Office for an anode design that features improved stability. The design effectively extends the lifetime of eMagin's OLED microdisplays.

eMagin scientists developed a single-layer, semi-transparent capable anode with efficient hole injection properties. The approach can improve the overall stability of the anode and OLED life by simplifying both the manufacturing process and the device structure.

"As more commercial and military users are attracted to the excellent performance and durability of our OLED microdisplays, we are continuing to incrementally improve upon the technology to make it more broadly useful," said Susan Jones, eMagin's chief marketing and strategy officer. "This new patent represents an important method to make high efficiency, long life OLEDs that should be compatible with a wide range of OLED materials. Aspects of this invention are already proving its worth in our products."

OLED microdisplay maker eMagin today unveiled the Z800 3D Visor head-mounted-display (HMD). The Z800 uses two SVGA (800x600) 3D OLED displays (made by eMagin). It provides an immersive view equivalent to a 105" screen at twelve feet, and uses high-speed head tracking to permit 360 degree viewing. The Visor also includes state-of-the-art audio system with high-fidelity ear buds and a built-in noise-canceling microphone.

The Z800 will start shipping in Q2 2005 for $899. It will also be available for customization by OEMs.

eMagin announced their financial results for Q3 2004. Revenues in the quarter were $1.1 million, an increase of 45% as compared to Q3 2003 ($748,000). Revenues for the first nine months of 2004 amounted to $3.1 million, an increase of 102% compared to the same period in 2003 ($1.5 million).

emagin's net loss in the quarter was $2.3 million, compared to $0.9 million in Q3 2003.

eMagin were granted a new patent (#6,809,710) covering an innovative gray-scale pixel driver for electronic displays. The circuit effectively allows variable brightness in gray-scale OLED displays, enabling greater utility in bright sunlight applications.

emagin says that this technology will greatly facilitate systems design integration by providing an integrated solution removing the need for adding external circuit components.

eMagin announced today that it raised $2.9 million - from existing accredited investors. The investors bought common stock and warrants. Just last month eMagin raised $10.8 million through direct equity placement, and together it raised $13.7 million.

Only two weeks after demonstrating a tiled color UXGA display (1600x1200), eMagin doubled the resolution (1600x2400) to create the world's highest resolution OLED display and highest resolution microdisplay. This is not actually a single panel - the display is made from two UXGA displays are bundled in a near seamless manner.

eMagin calls the new display double-UXGA, or DUXGA.

eMagin announced that it raised $10.8 million through direct equity placement. Investors agreed to purchase 10,259,524 common stock shares at a price of $1.05 per share. The company sold 5,129,762 warrants to purchase shares at an exercise price of $1.21 per share (executable till April 2010). The placement agent was WR Hambrecht + Co.

This money will be used for general corporate purposes, including the purchase of inventory, capital equipment, and hiring of additional sales and support personnel.