eMagin Corporation Announces 1Q 2022 Results

eMagin Corporation announced results for its first quarter ended March 31, 2022.

Total revenues for the first quarter of 2022 increased to $7.4 million, compared with $6.8 million reported in the prior-year period. Total revenue consists of both product revenue and contract revenue.

Total gross margin for the first quarter was 34%, resulting in a gross profit of $2.5 million, compared with a gross margin of 25%, which resulted in a gross profit of $1.7 million in the prior-year period. The increase in gross margin reflects increased product revenues, higher yields, and the impact of higher average selling prices in the current year’s periods due to a favorable sales mix, combined with the impact of higher manufacturing volumes.

Operating loss for the first quarter of 2022 narrowed to $1.2 million, compared with an operating loss of $2 million in the prior-year period, primarily reflecting the increased gross profit as noted above.

“In what was a terrific first quarter for eMagin, our display revenues of $7 million were up 15% year over year while our quarterly display revenue gross margin improved to 32%,” said eMagin CEO Andrew G. Sculley. “The quarter was marked by diversified sales and contract revenue, and we began to realize the contributions of new engineering talent, including a 27% increase in display production from the first quarter of last year. The increase in gross margin was driven in part by increased yields, and a favorable sales mix, along with the impact of higher manufacturing volumes.

“We achieved continued growth in display revenue from our ENVG-B program, and with shipments to customers in NATO countries and international distributors. Overall, as of the end of the first quarter, our backlog of open orders remained strong at $13.6 million, reflecting demand for our displays for use in thermal weapon sights, military night vision goggles, and medical applications,” Sculley added.

“We are continuing our proof-of-concept display work for a tier-one AR/VR customer while designing and refining our production capabilities to satisfy demand for our high-brightness XLE displays and full-color Direct Patterning Display (dPd™) microdisplays. We are also in discussions with a number of consumer companies regarding potential applications of our proprietary dPd technology,” he added.

“During the quarter, we announced the award of four additional patents related to the creation of high-resolution displays with unique pixel structures and proprietary fabrication methods to further protect our market position as the only microdisplay company with dPd technology,” Sculley concluded.

In April 2022, Kevin Trompak joined eMagin as its VP of business development. Prior to joining eMagin, Trompak led global sales and business development efforts for Veeco Instruments, a global capital equipment supplier that designs and builds processing systems used to manufacture high-tech microelectronics devices.