eMagin reports Q4 EPS 1c vs. (3c) last year

Reports Q4 revenue $8.4M vs. $7.2M last year "We achieved near-record revenues of $8.4 million in the fourth quarter and full-year 2022 revenues of $30.5 million," said eMagin CEO Andrew Sculley. "This represents significant growth relative to the fourth quarter and full year of 2021. We ended 2022 with robust shipments of displays used in the Enhanced Night Vision Goggle-Binocular program, along with displays for thermal weapons sights and medical applications. Bookings for the fourth quarter were strong, including a $1.7 million order for the F-35 Helmet Mounted Display System and more than $2 million in medical applications. Our backlog of open orders as of December 31, 2022, shippable within 12 months, was $14.8 million. 2022 included a number of contract wins and operational highlights. In June, the U.S. Army’s Program Executive Office for Simulation, Training, and Instrumentation awarded us a $2.5 million, two-year development contract to secure a U.S. source for high-performance microdisplays that provide high brightness and visual acuity, even in bright daylight conditions. Upon completion, this contract has the option of a follow-on production agreement.In October, we achieved AS9100 REV D and ISO 9001:2015 quality certifications. These were important milestones for eMagin because these certifications are required by most customers in the aerospace, aviation and defense industries. Throughout 2022, we improved our positioning as a supplier of choice to address the rapidly expanding AR/VR market with our patented direct-patterned technology dPd. In April, we announced several patents related to our dPd technology. In May, our dazzling, full-color 10,000 cd/m2 WUXGA display with dPd technology, won the People’s Choice award for ‘Best New Display Technology’ at Display Week, the annual tradeshow of the Society for Information Display. Additionally, we designed an improvement to the R&D chamber for our existing OLED deposition tool that will enable us to further enhance this technology. This improved R&D chamber was delivered in December and is currently being set up for our dPd runs. The production-capable dPd organic deposition tool that we purchased last year under Title III funding has passed acceptance testing at the vendor’s facility and will be delivered to our newly expanded cleanroom this April to begin the installation and qualification processes. We continue to be the only U.S. manufacturer of OLED microdisplays and our manufacturing operations in New York’s Hudson Valley are benefiting from equipment installed under our Defense Production Act Title III and IBAS funding grants. We are seeing increases in manufacturing yields, throughput, and efficiencies, and anticipate continued improvements as we take delivery and qualify the remaining tools under the program, including the new dPd-capable, organic deposition tool. We appreciate the continued support provided by these programs and we remain on track and within the requirements of the Title III and IBAS funding grants. The fourth quarter of 2022 was the fifth consecutive quarter in which eMagin achieved year-over-year growth in product revenues and exceeded $7.0 million in quarterly product revenues. Thanks to our improved performance, we generated $1.9 million of positive EBITDA for the fourth quarter and $2.2 million in positive EBITDA for full year 2022. In 2023, we will be presenting our next set of dPd technology-based products to customers building consumer devices as well as starting the qualification process for our new production tool."