Core Viewpoint - Kopin (KOPN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Recent Performance and Outlook for Kopin - For the fiscal year ending December 2024, Kopin is expected to earn -$0.35 per share, reflecting a 94.4% decrease from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Kopin has increased by 15.7%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Kopin to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - Total revenues for Q3 2024 were $13.3 million, a 26% increase compared to $10.6 million in Q3 2023 [7][28] - Product revenues increased to $10.9 million from $5.5 million year-over-year, driven by higher defense product revenues which rose by $5.4 million [28][29] - Funded research and development revenues decreased to $2.3 million, down $2.7 million from the previous year due to the completion of several programs [29] - The net loss for Q3 2024 was $3.5 million or $0.03 per share, compared to a net loss of $2.5 million or $0.02 per share in Q3 2023 [34] Business Line Data and Key Metrics Changes - Defense products generated $10.4 million in revenue, reflecting a 109% year-over-year increase [7] - The industrial market secured a $1.5 million follow-on contract for a thermal imaging system integrated into firefighters' masks [12] - The 3D AOI automated optical inspection segment launched the next generation SXGA FLCoS microdisplay system, with initial orders received [13] Market Data and Key Metrics Changes - The global 3D AOI market is projected to grow from $700 million to $3 billion by 2030, positioning the company to serve various segments [14] - International business currently accounts for less than 5% of total revenue, but is expected to grow significantly due to geopolitical factors [40] Company Strategy and Development Direction - The company projects over $75 million in orders for 2024 and beyond, potentially the highest annual order total in its history [6] - A strategic focus for 2025 will be enhancing manufacturing and systems automation [18] - The company is expanding its European-based sales team to promote its full range of products to defense customers [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the financial trajectory for 2025 and beyond, citing favorable market dynamics in the AR VR sector and increased defense spending [28] - The new administration is expected to positively impact the company due to an emphasis on defense spending and support for small-cap companies [45] Other Important Information - The company has made significant strides in quality improvements, with incoming inspection rates reaching 94% in Q3 [17] - Legal expenses related to ongoing litigation were noted, with expectations for normalization in future quarters [33][72] Q&A Session Summary Question: Insights on international market traction and sales infrastructure - Management noted that international business is currently less than 5% of total revenue but expects significant growth due to geopolitical issues [40][42] Question: Clarification on revenue growth drivers - Revenue growth was attributed to a combination of product mix and production capabilities, with a favorable supply chain performance [48] Question: Future expectations for gross margins - Management indicated plans to continue improving gross margins into Q4 [49] Question: Details on the neural display technology - The neural display is seen as a significant opportunity, with potential applications in defense and consumer markets [51][54] Question: Impact of the new administration on supply chain and tariffs - The company has transitioned sensitive applications to a U.S. DoD approved provider, enhancing supply chain flexibility [58][59] Question: Backlog and order expectations - The backlog is projected to reach $75 million, driven by ongoing negotiations and expected orders in defense applications [66][67]

Core Viewpoint - Kopin reported a quarterly loss of $0.03 per share, better than the Zacks Consensus Estimate of a loss of $0.05, indicating a 40% earnings surprise [1] - The company has shown mixed performance in terms of earnings estimates and revenue growth over the past year [2][6] Financial Performance - For the quarter ended September 2024, Kopin posted revenues of $13.32 million, exceeding the Zacks Consensus Estimate by 4.64%, compared to $10.6 million in the same quarter last year [2] - The company has surpassed consensus revenue estimates three times in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $13.17 million, and for the current fiscal year, it is -$0.39 on revenues of $48.18 million [7] Stock Performance - Kopin shares have declined approximately 63.1% since the beginning of the year, contrasting with the S&P 500's gain of 25.8% [3] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Industry Outlook - The Electronics - Miscellaneous Products industry, to which Kopin belongs, is currently ranked in the top 23% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Kopin's stock performance [5]

Revenue Growth - Q3 2024 total revenue increased 26% to $13.3 million compared to $10.6 million in Q3 2023[1] - Q3 2024 product revenues increased 98% year-over-year, with defense product revenues up 109% and industrial product revenues up 58%[1][4] - Net product revenues for the three months ended September 30, 2024, increased to $10.92 million from $5.51 million in the same period last year, representing a 98.5% growth[14] - Total revenues for the nine months ended September 28, 2024, reached $35.69 million, up from $31.82 million for the same period in 2023, reflecting a 12.0% increase[14] - Total display revenues for the three months ended September 28, 2024, were $13.3 million, compared to $10.6 million in the prior year, an increase of 25.5%[15] - Display revenues from the defense category for the three months ended September 28, 2024, were $10.4 million, up from $5.0 million in the same period last year, a growth of 108.0%[15] Expenses - Cost of product revenues for Q3 2024 was $8.3 million, or 76% of net product revenues, down from 99% in Q3 2023[5] - Selling, General and Administration (SG&A) expenses increased to $5.2 million from $4.8 million in Q3 2023, primarily due to higher legal fees[7] - Research and Development (R&D) expenses decreased by 16% to $2.6 million compared to $3.1 million in Q3 2023[6] - The cost of product revenues for the three months ended September 30, 2024, rose to $8.32 million, compared to $5.44 million in the prior year, an increase of 53.1%[14] - Selling, general, and administrative expenses for the nine months ended September 28, 2024, increased to $19.71 million from $15.91 million in the same period last year, a rise of 23.0%[14] - Litigation damages recorded for the nine months ended September 28, 2024, amounted to $24.8 million, with no such expenses reported in the prior year[14] Net Loss - Net loss for Q3 2024 was ($3.5) million, or ($0.03) per share, compared to a net loss of ($2.5) million, or ($0.02) per share in Q3 2023[8] - The net loss for the three months ended September 30, 2024, was $3.46 million, compared to a net loss of $2.45 million in the same period last year, representing a 41.2% increase in losses[14] - Basic and diluted net loss per share for the three months ended September 30, 2024, was $(0.03), compared to $(0.02) in the prior year[14] Research and Development - Funded research and development revenues declined by $2.7 million or 54% due to the completion of certain defense development programs[4] - Research and development revenues decreased to $2.27 million for the three months ended September 30, 2024, compared to $4.96 million in the prior year, a decline of 54.3%[14] - New products introduced include high-resolution spatial light modulators for biomedical research and advancements in AI-enabled NeuralDisplay™ technology[3] Future Outlook - The company expects to achieve double-digit revenue growth for 2024, supported by a strong order pipeline and new development projects[2][3] Current Assets - Total current assets increased to $63.0 million as of September 28, 2024, compared to $39.8 million at the end of 2023[13]

Financial Data and Key Metrics Changes - Total revenues for Q2 2024 were $12.3 million, an 18% increase from $10.5 million in the prior year [14] - Product revenues increased to $11.1 million from $6 million year-over-year, driven by higher defense product revenues which rose by $5.4 million [14] - The net loss for Q2 2024 was $5.9 million or $0.05 per share, compared to a net loss of $8.2 million or $0.07 per share in Q2 2023 [16] Business Line Data and Key Metrics Changes - Defense applications generated $10.4 million in revenue, reflecting a year-over-year growth of 106% [3] - Funded research and development revenues decreased to $1.2 million, down $2.7 million from Q2 2023 due to the completion of several programs [14] - Fossil product revenues accounted for $8.7 million or 79% of product revenues, compared to $5.7 million or 95% in the previous year [14] Market Data and Key Metrics Changes - Incoming inspection rates at top customers improved to 97% from 86% in the previous quarter, positively impacting product gross margins [4] - The company received a 1,200-unit production order for OLED microdisplays for the Indian armed forces, with deliveries scheduled over six months [5] - The opportunity pipeline has extended to over $500 million, with $350 million in the defense market and $150 million in other markets [9] Company Strategy and Development Direction - The company is focusing on defense products, with a transformation plan that has led to over $55 million in orders for 2024 and beyond [3] - The strategy includes enhancing synergies across three sites and expanding capabilities to improve efficiencies and accountability [9] - The company aims to grow yearly revenues to $100 million or beyond, with multiyear demands scheduled out to 2030 in some programs [13] Management's Comments on Operating Environment and Future Outlook - Management expects Q3 revenues to increase cautiously above analyst guidance, anticipating a stronger second half of 2024 [4] - The company is experiencing increased interest from European customers, indicating a broad-based increase in defense spending [19] - Management highlighted the importance of geopolitical issues and NATO spending as factors driving demand for their products [8] Other Important Information - The company has developed an integrated visual acuity system for warfighters, which is expected to enter production in 2025 [24] - The U.S. Army awarded a Phase I SBIR contract to Kopin for research on optical approaches for visual augmentation systems [5] - The company is actively pursuing sales of assets to fund damages related to the Blue Radios lawsuit, with significant progress reported [31] Q&A Session Summary Question: Was the strength in defense broad-based or driven by specific programs? - Management indicated that the strength was across the board, with increases in various defense market segments [19] Question: How should gross margin trend for the rest of the year? - Management expects gross margins to continue to trend upward due to improved quality and reduced rework costs [20] Question: Is Q3 expected to be up sequentially? - Management confirmed that they do expect Q3 revenues to be up sequentially [21] Question: Can you provide an update on the IVAS strategy and feedback from purchasers? - Management stated that they are working with multiple partners and expect production to begin in 2025, with immediate revenue anticipated [23][24] Question: What is the status of the armored vehicle program and potential consumer applications? - Management confirmed that they are developing an automotive-qualified device and are receiving inquiries from electric vehicle manufacturers [25][26] Question: What is the outlook for the 3D AOI market? - Management noted that the market has been down but expects a rebound, with new product introductions planned [27] Question: What is the status of the medical distribution partner? - Management is in negotiations with a large market leader to white label their CR3 headset, with hopes to announce a partnership soon [37] Question: Can you clarify the F-35 advanced displays and revenue opportunities? - Management detailed that they are in production readiness for OLED displays and expect significant revenue from multiple applications [39][41]

Kopin (KOPN) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -25%. A quarter ago, it was expected that this maker of wearable technologies would post a loss of $0.06 per share when it actually produced a loss of $0.06, delivering no surprise. Over the last four quarters, the company has surp ...

Exhibit 99.1 Kopin Corporation Reports Financial Results for the Second Quarter 2024 ● Q2 2024 product revenues increased 84% compared to the same period in 2023 ● Defense product revenues increased 106% partially of set by a 30% decrease in Industrial product revenues ● 5 new customers placed development orders fueling opportunities for multi-million dollar per year production revenues WESTBOROUGH, MA, August 8, 2024 – Kopin Corporation (Nasdaq: KOPN), a leading provider of application-specific optical sol ...

For fiscal 2024, EPS may rise 35.9% to reach $20.21. Sales may see a lift of 17.7% to $158.82 billion. It's easily one of the virtual reality stocks to buy. Roblox supports VR gameplay, allowing users to experience gaming content through an immersive platform. Further, its community of grassroots developers can (relatively) quickly bring VR titles to the table. Over time, demand for participation in this network could rise. To be fair, Roblox isn't generating earnings. However, it has consistently mitigated ...

1 Safe Harbor Statement We may refer to information regarding potential markets for products and other industry data. We believe that all such information has been obtained from reliable sources that are customarily relied upon by companies in our industry. However, we have not independently verified any such information. Management bases all estimates as to potential markets in the future upon their best judgment as of the date of this presentation. Whether or not such estimates may be achieved will depend ...

Kopin's initial efforts were on improving the display and then the optics. We are now tackling the neurological challenges and previously announced that we are working on a software-defined AI-enabled backplane, which we call our neural display. The neural display architecture features embedded sensor pixels within the screen focused on the user's eyes, providing immediate feedback to the AI software powering the display. The feedback from these pixel sensors empowers the software to quickly adjust the cont ...