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KOPN clown show - no wonder the downgrade by DEDE Fan clearly states in opening - "I want to comment, we will remain profitable. I do want to comment that we will remain profitable throughout 2021." Q & A Kevin Dede -- H.C. Wainwright -- Analyst Good morning, gents. Thanks for taking my questions. I -- I -- I think the -- the big elephant in the room, John, is -- and I think I understood you correctly regarding what you think Kop -- that you Kopin will be positive for the balance of this year. Did -- did I hear that correctly? Could you add some more color to that and maybe give us some revenue boundaries on -- on how you expect that to happen given that most of the new stuff you're speaking to, the three new programs, are coming on to bolster second half '21 revenue? Fan totally ignores profitability part of question - John Fan -- Founder, Chairman, Chief Executive Officer, and President Yeah, only a few comment, then I will leave it to Rich to talk about it. And then we have three new program coming in. From the experience we have the FWS-I, who's going to -- to really hit the -- started production last year, 2019 actually, and then go to full local production in 2020. There are learning curve to be paid. So we are now putting in new equipment and new process in there. First, going back to the question that Glenn asked. That AR VR adoption cycle, especially for consumer, has been really brought in. We are really talking about -- these brought in between three years because of pandemic. So accordingly, we actually increased our R&D. He hasn't told that to people. And I think all these things make use to this year. I'm not entirely certain about -- we're still feeling much better, continue to still get better against last year. And I think Rich would take comment on that. Rich. Interpretation by Sneider - Richard Sneider -- Chief Financial Officer WTF ??? Yeah, and just to clarify for John. John indicated that he was not expecting profitability for the year. That's not in our forecast right now. Surface -- it's -- it's kind of a little light on Q4 where the revenue came out very, very strong. But -- but I understand that it would drove the P&L, R&D revenue was very strong. And as we've announced, we have a number of collaborations going on to develop the technologies for the new products. And one of the issues with that is that it's pretty expensive. These are customer-funded development programs, and most of them are. As we have said, our subcontractor invoices us. We essentially could tap that invoice, approved to the customer, and fills up as our revenue. And so -- and since it was year-end, we had a number of vendors who created a significant number of invoices. So frankly, their revenue was a couple of million dollars higher than we probably would have expected. But that was really half two of revenue from contractors. Now, we do get a margin on that number so which could help profitability inflation. So that was one of the factors that drove our profitability. The risk margin improvement was a result of our efficiency efforts. And according to John, points the learning curve on FWS-I tells us to be partners with the learning curve on these new programs because we are still in this pandemic situation and we still have to continue to work with our supply chain. We actually have the same type of issues that we saw a year ago. From time to time, we do get a notice that some supply is slowing down. And so -- which actually does make our results even more impressive that, in the pandemic, we were able to produce results that they were. But -- so we're being cautious. And as John indicated, we are still investing significantly in MicroOLED and MicroLED because that's where the big money is going to be in the future. John Fan -- Founder, Chairman, Chief Executive Officer, and President Yeah, I think a good point to make is that MicroLED is one of the hottest things right now people are pursuing. We're obviously are involved before and some R&D on it. And we efficiently get. We also have many contractors developing these tools that are still putting out. Kevin Dede -- H.C. Wainwright -- Analyst OK, John. And thanks for it. Appreciate the color. I apologize for misunderstanding the prepared remarks. No you didn't misunderstand ! Fan has his head up his ass ! |
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Msg # | Subject | Author | Recs | Date Posted |
6125 | Re: KOPN clown show - no wonder the downgrade by DEDE | frankenberry | 0 | 3/4/2021 12:50:10 PM |