Home  »  Market Insights   »  Kopin Corporation (KOPN) Stock Trending Down Despi...

Kopin Corporation (KOPN) Stock Trending Down Despite Promising Q1 2021 Financial Reports

Kopin Corporation (KOPN) stock prices were down 6.33% as of the market closing on May 3rd 2021, bringing the price per share down to USD$7.70 at the end of the trading day. Subsequent pre-market fluctuations saw the stock fall by another 3.90%, bringing it down to USD$7.40.


3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free

Sponsored


Promising Financial Reports

This news came hot on the heels of the company’s announcement of their financial reports for the first quarter of 2021. Contrary to the falling stock price, the numbers reported were quite promising. The onset of the global pandemic and resulting government sanctions that rendered unprecedented numbers of people homebound saw a surge in market demand for AR and VR technologies.

Surging Revenue

KOPN capitalized on the burgeoning sector and increased customer demand, as evidenced by the company’s 48% increase in revenues for Q1 2021 as compared to Q1 2020. Major contributors of this increase in demand were the company’s defense productions and funded development programs, of which the company now has 10 of in varying stages of development. KOPN anticipates commercialization and revenue generation from these programs by the second half of 2021.

Success of R&D Efforts

The company’s existing pipeline of development programs includes the use of proprietary advanced display products that use KOPN micro-displays and increasingly utilizing the company’s cutting-edge optics system and ruggedized assemblies. This success is reflective of continued efforts in the increasing allocation of resources towards Research and Development. As KOPN continues to develop next-gen displayed and display technologies, accelerated interest in these efforts have resulted in a customer-funded R&D revenue increase of more than 80% year-over-year.

Resilience During Semiconductor Chip Shortage

The past several fiscal quarters have been marked by a shortage of semiconductor chips that has severely disrupted all sectors that make use of the short-supplied chips. KOPN fortunately managed to avoid any significant adverse effects of the shortage and continues to coordinate closely with suppliers and customers to maintain their supply chain and manage this potential issue should it arise.

Solid Liquidity Position

As of March 27th, 2021, KOPN reported cash, cash equivalents, and marketable securities of USD$35.6 million. This is a substantial increase from the USD$20.7 million reported as of December 26th, 2020, and reflects the success of the company’s ATM program. Over the course of the period ended March 27th, 2021, ACST issues 2.4 million shares under their USD$ 20 million At-The-Market program, generating USD$15.5 million in net cash as a result.

Future Outlook for KOPN

With the recent financing activities providing KOPN with a stellar liquidity position, the company is poised to leverage its resources to continue its trajectory of growth. Investors hope the recent downtrend will be corrected in favor of significant and sustained increases in shareholder value.

Leave a Comment

Your email address will not be published. Required fields are marked *

Most Popular

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

Related Posts

Biotech Stocks to Buy for Sep-2021

Biotechnology (biotech) refers to the use of microbes and cellular biology in health-related research and development. It is not just therapies that biotechnology companies develop.

635

SPECIAL GIFT

WE HAVE A GIFT FOR YOU

Download Free eBook For

7 GROWTH STOCKS FOR 2021

100% free. stop anytime no spam