Benzinga | Jan 20, 2022 08:12AM EST

eMagin Corporation Sees Prelim. Q4 Product Revenues $6.8M-$7M; Sees Total Revenue $7M-$7.2M vs $8M Est.

Company Anticipates Increased Fourth-quarter Product Revenues in the range of $6.8 million to $7.0 million

Advanced OLED Manufacturing Equipment to be Added to Production Line Through 2022

HOPEWELL JUNCTION, N.Y., Jan. 20, 2022 (GLOBE NEWSWIRE) -- eMagin Corporation, or the "Company", (NYSE:EMAN), a leader in the development, design, and manufacture of high-resolution micro OLED displays for virtual and augmented reality solutions, today announced its preliminary revenues for the fourth quarter of 2021 and 2021 year-end sales backlog.

The Company's product revenue for the fourth quarter is expected to be in the range of $6.8 million and $7.0 million, representing a 10% to 13% increase from the fourth quarter of 2020, and a 28% to 32% sequential increase from the third quarter of 2021. The Company's contract revenue for the fourth quarter is expected to be approximately $0.2 million, compared with $1.5 million in the fourth quarter of 2020. Total revenue for the fourth quarter is expected to be in the range of $7.0 million to $7.2 million, compared with total revenue of $7.7 million for the fourth quarter of 2020.

"We expect to end the year with a positive fourth-quarter book-to-bill ratio on strong fourth-quarter bookings that exceeded $7.1 million, positioning us well for the year ahead," said eMagin CEO Andrew G. Sculley. "Our core military business is benefitting from a ramp-up in volume of our existing programs and we are actively pursuing several additional programs."

"Additionally, following the positive reception among industry analysts and trade media for our greater than 10,000 cd/m2 Direct Patterning Display (dPd(tm)) prototypes, which we unveiled in October and believe to be the brightest high-resolution, full-color OLED microdisplays in the world, we continue to have active discussions with customers regarding a variety of consumer, industrial and military applications. We look forward to sharing additional details regarding our product roadmap and fourth quarter results on our fourth-quarter conference call in March."

"Our expected fourth quarter 2021 growth in product revenue compared to last year's fourth quarter reflects continued improvements in our manufacturing yields, production throughput and overall operating effectiveness," said eMagin CFO Mark Koch. "The expected quarter-over-quarter decline in contract revenue was primarily due to the timing of certain development work for a tier-one consumer customer. eMagin is continuing to work on this project and anticipates ongoing contract revenue with this customer."

As of December 31, 2021, the Company's backlog of open orders scheduled for delivery over the next twelve months, was approximately $13.8 million, an increase of more than 26% from the backlog of $10.9 million at the end of 2020, and an increase of approximately 5% from the $13.2 million backlog as of the end of the third quarter of 2021. As of December 31, 2021, the Company had cash of approximately $5.4 million compared with cash of $8.3 million as of December 31, 2020, and $7.3 million as of September 30, 2021. The Company's revolving credit loan balance was approximately $1.9 million on December 31, 2021, compared with $2.0 million on September 30, 2021, and $1.9 million as of December 31, 2020.

As previously announced, the Company has been designing, specifying, and ordering advanced OLED manufacturing equipment under its $34 million in Defense Production Act Title III funding and $5 million IBAS funding grants. The Company has placed orders for all major pieces of equipment funded by these programs, including an order for an advanced, production-capable dPd organic deposition tool that is expected to improve yield and throughput of this innovative technology by the end of 2023. Overall, the Company remains on track and on budget with the requirements of these important government grants and anticipates improvements in manufacturing yield and reliability over the next 24 months as this equipment is qualified and added to the production line.