Kopin Corp. said first-quarter revenue was essentially flat year over year at $10.6 million, up from $10.5 million in the same period last year, as a sharp drop in product sales was offset by a surge in non-product revenue tied to government awards and collaborations.
Product revenue fell 41% to $5.4 million from $9.2 million a year earlier, while non-product revenue jumped 292% to $5.2 million from $1.3 million. The company said the decline in product sales reflected lower shipments for thermal weapon sight applications and liquid crystal displays.
Costs moved in different directions. Cost of product revenues declined 26% to $5.6 million from $7.6 million, but because product revenue fell more sharply, cost of product revenues rose to 103% of net product revenue from 83% a year ago.
Research and development spending more than doubled, climbing 133% to $4.9 million from $2.1 million, driven by funded work on ultra-bright, full-color microLED displays for soldier-borne augmented reality applications. Selling, general and administrative expenses increased 28% to $6.0 million from $4.7 million, mainly due to higher professional fees and accrued performance-based compensation.
The company ended the quarter with $34.1 million in cash and cash equivalents, and $59.5 million in total cash, restricted cash and marketable securities, including $25.3 million of restricted cash tied to litigation. Kopin said that cash position supports operations through at least the end of the second quarter of 2027.
Since quarter-end, Kopin disclosed several new orders and partnerships. It announced a strategic collaboration with fabric.ai backed by a $15 million initial development order and a 19.9% equity stake in fabric.ai. It also said it entered the FPV drone market with a $3.2 million initial Sentinel FPV order, won a $21.5 million follow-on thermal-imaging eyepiece production contract, secured $5.6 million in new European pilot helmet-mounted display orders, and received a $1 million initial Darkwave development order from Theon International.
The company also said it purchased equipment to begin full-scale U.S. OLED microdisplay manufacturing at its Westborough, Massachusetts headquarters. The market has reacted to these announcements by moving the company's shares 8.15% to a price of $5.375. For the full picture, make sure to review KOPIN CORP's 8-K report.
