Good morning, and welcome to the eMagin Second Quarter 2019 Earnings Conference Call. [Operator Instructions]
I would now like to turn the conference over to Mr. Mark Koch, Vice President of Finance. Please go ahead.
Good morning, everyone. We're very glad to have you join us today for our second quarter 2019 earnings conference call. During today's call, we may make forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on the Company's current expectations, projections and beliefs and are subject to a number of risks and uncertainties. Such statements include references to projections of future revenues, plans for product development and production, the Company's ability to ramp up production, future contracts and agreements, product benefits, operations, future financing, liquidity and capital resources as well as statements containing words like believes, expect, plan, target, etc.
You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control. Please refer to our earnings release for the second quarter of 2019 and the Company's filings with the Securities and Exchange Commission for information concerning factors that could cause actual results to differ materially from those expressed or implied by such statements. We undertake no obligation to update or revise any forward-looking statements to reflect future events or circumstances.
With that, I would like to turn the call over to Jeff Lucas, our President and CFO.
Thanks, Mark, and welcome all to our second quarter 2019 call. I will start by providing an overview of the trends and results for the quarter, discuss the impact of production issues we are encountering and the actions we are taking to resolve them. And we'll then provide a business update. Finally, I will conclude the call with a discussion on the financial results followed by your questions.
The second quarter of 2019 was a challenging one for the Company. While we enjoy a solid base of customers and a healthy backlog, deliveries were impacted by continuing production issues and, as a result, revenue and profitability fell short of our expectations. We are taking several actions to address the shortfall, which I will discuss shortly, and are seeing early signs of progress.
There are a few key points to note about the quarter. Revenue decreased year-over-year and sequentially due to a display production-related issues. Our product gross profit and gross margins suffered due to low production yields resulting in higher unit material costs and lower production volumes over which we allocate our fixed manufacturing cost. Our R&D and SG&A expenses declined both year-over-year and sequentially as we made expense reductions and have implemented additional cost control actions.
Our backlog of products scheduled for delivery through June 30th 2020, continues to be solid at $11.6 million, an increase of approximately $1 million over the backlog of $10.6 million at December 31st 2018. During the quarter, we also completed two separate registered direct offerings,
Vice President of Finance
President, Chief Financial Officer
Chief Executive Officer
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