Kopin Corporation (NASDAQ:KOPN) Q1 2015 Earnings Conference Call Transcript

May 05, 2015 • 05:00 pm ET

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Kopin Corporation (NASDAQ:KOPN) Q1 2015 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings and welcome to Kopin's Q1 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Rich Sneider, CFO. Please go ahead.

Executive
Rich Sneider

Welcome, everyone, and thank you for joining us this morning. John will begin today's call with a discussion of our strategy, technology and markets. I will go through the first quarter 2018 results at a high-level. John will conclude our prepared remarks. And then we'll be happy to take your questions.

(Forward-Looking Cautionary Statements)

And with that, I'll turn the call over to John.

Executive
John Fan

Thank you for joining us this morning to discuss our first quarter results. Strengthening our military operations primarily drove performance in this quarter. As we have talked about in the past, our displays and optics have been developed initially for military, meeting its demand for quality and reliability. So the military has always been a key market for Kopin. In Q1, we have continued ramp of the F-35 fighter jet program, where Kopin is the sole supplier of displays for the pilot helmets. In addition to our current purchase agreement, we have been notified that we will be received -- we'll receive shortly follow-on orders through 2019.

After quarter-end, we received the initial production authorization for FWS-I program consisting of 5,000 eyepieces to be delivered over the next year, with shipments beginning in this August. The second part of the program, the FWS-C is also tracking on plan in the initial phase of development. At the same time, we're moving through the early development process on the armored vehicle program, we won the last quarter. And we are pleased that the program was just expanded to include the development of additional eyepiece scopes, increasing the potential total value of the program for Kopin from $40 million to $80 million.

Finally, our new Brillian LCD microdisplay product line, which was created specifically to meet the extremely high brightness requirements of the next generation avionic AR applications and they have been well-received by our customers. We expect follow-on orders as development continues on new helmets utilizing the display. We're also seeing good uptake in the industrial enterprise AR business. Many of our partners have indicated strong reception for their new industrial products. In addition, we're excited to report a major design win with a global USA Tier 1 company for a new AR-smart glass for enterprise applications.

Perhaps, it is appropriate for us to discuss briefly the current status of AR and VR headsets. Without any doubt, the developments of AR and VR headsets have been undergoing major adjustments, winners and losers. So there should be no doubt that the transformation of the handheld smartphones to hands-free wearable will certainly happen. All major disruptive transformations, there will be many twists and turns along the way. We always have our belief that adoption and transformation