Kopin Corporation (NASDAQ:KOPN) Q1 2020 Earnings Conference Call - Final Transcript

May 05, 2020 • 08:30 am ET

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Kopin Corporation (NASDAQ:KOPN) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Kopin Corporation First Quarter 2020 Earnings Conference Call.

At this time, I would like to turn the conference over to Richard Sneider, Chief Financial Officer. Please go ahead, sir.

Executive
Richard Sneider

Thank you, operator. 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 results at a high level. John will conclude our prepared remarks, and then we'll be happy to take your questions.

I would like to remind everyone that during today's call, taking place on Tuesday, May 5, 2020, we will be making forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on the company's current expectations, projections, beliefs and estimates and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those forward-looking statements.

Potential risks include, but are not limited to, demand for our products, operating with well our subsidiaries, market conditions and other factors discussed in our most annual report on Form 10-K and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to update the forward-looking statements made during today's call.

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

Executive
John C.C. Fan

Good morning, and thank you for joining us to discuss our first quarter results. Given the unprecedented circumstances we are facing, I want to start by expressing my hope that all of you and your families are staying safe and well. Before I discuss our strong start to the year, I first want to review our response to COVID-19, and how it has impacted our business. Like all companies, in March, we quickly shift our employees to remote work where possible.

Our teams adjusted quickly and that structure has worked well, but as a defense-related company, we have many employees considered essential and they have continued to work every day. I cannot tell you how grateful I am to this group, their positive attitude and their commitment to see Kopin succeed. While our AMLCD products are making a Class 10 cleanroom, which provide an inherent level of safety and protection with mask, gloves and goggles. We did take extra precautions.

The COVID thing has varied and is directly responsible for a strong first quarter, and the momentum was carried into second quarter. We have had a very good start to the year with demand holding steady. Our suppliers keep us in stock with only a few minor bumps and interruptions. Our dedicated employees keeping the business on track and are performing. We are very pleased with the results. In particular, our defense business is strong with product revenues increasing 144%.

In the enterprise sector, our core applications area has slowed recently. Others have remained strong, particularly in the -- for the safety. Our total revenue increased about 42% compared with the first quarter of 2019. In addition, we