eMagin posted their financial results for Q2 2013: $7 million in revenues (down from $8.6 in Q2 2012) and a net loss of $1 million. These are disappointing results due to lower contract revenues from US government agencies and manufacturing challenges.
The new SNU deposition tool is still problematic. eMagin accomplished almost half of the OLED deposition on the new machine, but neither yield nor output are where they want them to be. The company is utilizing personnel and other resources to optimize the tool - which incurred higher manufacturing costs. Currently the yields are about the same in the new tool and in the older Satella machine.
Due to the disappointing Q2 results, manufacturing challenges and "ongoing constraints in US government spending", eMagin is lowering its 2013 revenue guidance to $32-35 million (down from $34-39 million). eMagin has $13.4 million in cash (this did not change from the end of 2012).
Regarding the XGA camera EVF, eMagin says that they have been making good progress in color gamut and they are still working together with a large camera maker.
The company is also continuing its direct-patterning development. They expect this technology to enable them to produce displays that are 4-5 times more efficient (or brighter) than current designs (which use color-filters). The company ordered a $1.2 million custom tool for direct patterning, they expect it to be delivered by the spring of 2014.
eMagin also reported a new $3.5 million contract for VGA OLED micro display from a new customer to supply a Thermal Weapon Sight program. Initial shipments began in the first quarter of 2013 and will continue at least through May 2014. The company also expects follow-on orders from that customer.
Disclaimer: the author of this post holds some shares in eMagin
