Kopin Corporation revenue dropped on 12.1% and EBITDA Margin dropped on 55.5 pp from -99.8% to -155%
03/12/2019 • About Kopin Corporation (
$KOPN) • By InTwits
Kopin Corporation reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -155.4%
- Kopin Corporation spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 is 0.0%. Average EBITDA Margin for the same period was -96.4%
- Kopin Corporation has low CAPEX intensity: 5 year average CAPEX/Revenue was 5.0%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: $1m in FY2018, $3m in FY2017, $0m in FY2016, $1m in FY2015, $1m in FY2014
- The company has unprofitable business model: ROIC is -62.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Kopin Corporation's Revenue dropped on 12.1%. Revenue decline showed acceleration in FY18Q4 - it was 32.1% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.4 pp from 1.1% to 2.5% in 2018. During the last 5 years EBITDA Margin topped in FY2015 at -72.1% and was declining since that time.
Gross Margin showed almost no change in FY2018. During the last 5 years Gross Margin bottomed in FY2016 at 21.3% and was growing since that time. SG&A as a % of Revenue jumped on 37.4 pp from 73.8% to 111% in FY2018.
Net Income margin dropped on 56.0 pp from -90.7% to -147% in FY2018.
Investments (CAPEX, working capital and M&A)
Kopin Corporation's CAPEX/Revenue was 4.8% in FY2018. CAPEX/Revenue increased slightly on 1.3 pp from 3.5% in FY2015 to 4.8% in FY2018. It's average CAPEX/Revenue for the last three years was 5.5%.
Return on investment
The company operates at negative ROIC (-62.4%) and ROE (-57.0%). ROIC dropped on 23.9 pp from -38.5% to -62.4% in FY2018. ROE dropped on 23.8 pp from -33.2% to -57.0% in FY2018. ROIC stuck to a declining trend at -9.3 pp per annum in FY2014-FY2018. During the last 5 years ROE topped in FY2015 at -14.4% and was declining since that time.
Leverage (Debt)
The company has no debt. Cash dropped on 42.3%.
Management team
The company's CEO is John C C Fan. John C C Fan is a founder and has 29 years tenure with the company. The company's CFO is Richard A Sneider. Richard A Sneider has 20 years tenure at the company.
Financial and operational results
FY ended 12/29/2018
Kopin Corporation ($KOPN) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 31.807 | 32.054 | 22.643 | 27.841 | 24.465 | -12.1% |
| Gross Profit | 12.169 | 10.530 | 4.828 | 9.723 | 8.634 | -11.2% |
| SG&A | 19.908 | 18.135 | 16.962 | 20.541 | 27.211 | 32.5% |
| EBITDA | -25.473 | -23.097 | -19.479 | -27.796 | -38.008 | |
| Net Income | -28.212 | -14.693 | -23.434 | -25.241 | -35.870 | |
Balance Sheet
|
|---|
| Cash | 14.636 | 19.768 | 15.822 | 24.848 | 14.326 | -42.3% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.490 | 1.123 | 0.395 | 2.794 | 1.183 | -57.7% |
Ratios
|
|---|
| Revenue growth | 38.9% | 0.8% | -29.4% | 23.0% | -12.1% | |
| EBITDA growth | -21.1% | -9.3% | -15.7% | 42.7% | 36.7% | |
|
|---|
| Gross Margin | 38.3% | 32.8% | 21.3% | 34.9% | 35.3% | 0.4% |
| EBITDA Margin | -80.1% | -72.1% | -86.0% | -99.8% | -155.4% | -55.5% |
| SG&A, % of revenue | 62.6% | 56.6% | 74.9% | 73.8% | 111.2% | 37.4% |
| Net Income Margin | -88.7% | -45.8% | -103.5% | -90.7% | -146.6% | -56.0% |
| CAPEX, % of revenue | 4.7% | 3.5% | 1.7% | 10.0% | 4.8% | -5.2% |
|
|---|
| ROIC | -23.0% | -24.4% | -23.6% | -38.5% | -62.4% | -23.9% |
| ROE | -23.1% | -14.4% | -27.8% | -33.2% | -57.0% | -23.8% |
Kopin Corporation ($KOPN) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 6 | 6 | 5 | 8 | | 29.1% | 0.3% | -16.5% | -32.1% |
| EBITDA | -9 | -8 | -10 | -11 | | | | | |
| Net Income | -6 | -9 | -10 | -11 | | | | | |
Balance Sheet
|
|---|
| Cash | 24 | 23 | 19 | 14 | | 31.4% | -25.5% | -25.2% | -42.3% |
| Short Term Debt | 0 | 0 | 0 | 0 | | | | | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | | | |
Ratios
|
|---|
| Gross Margin | 28.1% | 41.2% | 28.6% | 40.4% | | -0.6% | 10.6% | -3.9% | -0.4% |
| EBITDA Margin | -163.4% | -141.6% | -190.0% | -137.1% | | 24.4% | -17.3% | -61.8% | -99.0% |
| Net Income Margin | -97.9% | -155.5% | -191.0% | -146.0% | | 81.6% | -31.8% | -56.7% | -130.2% |
Peers in Semiconductors
Below we provide Kopin Corporation benchmarking against other companies in Semiconductors industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NanoFlex Power Corp ($OPVS) | | | | 72.5% | 354.8% |
| MoSys, Inc. ($MOSY) | | -18.4% | 37.2% | 46.8% | 87.7% |
| SMART Global Holdings, Inc. ($SGH) | | | -16.9% | 42.5% | 69.3% |
| Micron Technology, Inc. ($MU) | | -1.0% | -23.4% | 63.9% | 49.5% |
| Adesto Technologies Corporation ($IOTS) | | 4.3% | 1.6% | 27.6% | 48.8% |
| |
|---|
| Median (67 companies) | 54.6% | 9.7% | 5.2% | 10.9% | 5.0% |
|---|
| Kopin Corporation ($KOPN) | | 0.8% | -29.4% | 23.0% | -12.1% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| CEVA, Inc. ($CEVA) | 90.2% | 90.9% | 91.6% | 92.1% | 89.8% |
| NVE Corporation ($NVEC) | 77.9% | 80.3% | 76.1% | 78.5% | 79.0% |
| Rambus, Inc. ($RMBS) | 85.9% | 84.7% | 80.1% | 79.9% | 76.8% |
| Universal Display Corporation ($OLED) | 76.0% | 64.2% | 83.9% | 80.8% | 75.5% |
| Intermolecular, Inc. ($IMI) | 48.3% | 57.4% | 66.5% | 67.5% | 70.3% |
| |
|---|
| Median (65 companies) | 46.4% | 47.7% | 48.0% | 49.1% | 51.0% |
|---|
| Kopin Corporation ($KOPN) | 38.3% | 32.8% | 21.3% | 34.9% | 35.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| NVE Corporation ($NVEC) | 58.8% | 66.0% | 61.8% | 65.6% | 65.1% |
| Micron Technology, Inc. ($MU) | 31.7% | 35.0% | 25.4% | 47.9% | 65.0% |
| NXP Semiconductors N.V. ($NXPI) | 25.7% | 41.5% | 21.6% | 46.2% | 49.9% |
| Texas Instruments Incorporated ($TXN) | 39.7% | 42.0% | 43.5% | 46.7% | 48.6% |
| Intel Corp ($INTC) | 42.8% | 41.0% | 35.2% | 41.7% | 45.7% |
| |
|---|
| Median (66 companies) | 9.9% | 11.5% | 9.2% | 10.7% | 10.0% |
|---|
| Kopin Corporation ($KOPN) | -80.1% | -72.1% | -86.0% | -99.8% | -155.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Alpha and Omega Semiconductor Limited ($AOSL) | 3.0% | 6.6% | 6.5% | 12.2% | 42.2% |
| Renesola Ltd. ($SOL) | 3.5% | 0.0% | 0.0% | 78.0% | 41.7% |
| First Solar, Inc. ($FSLR) | 7.6% | 4.0% | 7.9% | 17.5% | 33.0% |
| Sigma Designs Inc ($SIGM) | 11.0% | 6.5% | 6.2% | 14.1% | 29.3% |
| Micron Technology, Inc. ($MU) | 19.0% | 24.8% | 46.9% | 23.3% | 29.2% |
| |
|---|
| Median (66 companies) | 3.6% | 4.0% | 3.7% | 4.7% | 4.4% |
|---|
| Kopin Corporation ($KOPN) | 4.7% | 3.5% | 1.7% | 10.0% | 4.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| SMART Global Holdings, Inc. ($SGH) | | | 2.5% | 21.5% | 51.7% |
| Texas Instruments Incorporated ($TXN) | 25.1% | 29.8% | 34.9% | 43.1% | 47.5% |
| Micron Technology, Inc. ($MU) | 18.8% | 15.8% | 0.8% | 21.5% | 42.9% |
| Applied Materials Inc ($AMAT) | 15.8% | 15.2% | 19.0% | 31.2% | 36.4% |
| NVIDIA Corporation ($NVDA) | 9.2% | 13.3% | 13.1% | 27.3% | 35.3% |
| |
|---|
| Median (73 companies) | 5.7% | 3.8% | 1.7% | 3.2% | 5.2% |
|---|
| Kopin Corporation ($KOPN) | -23.0% | -24.4% | -23.6% | -38.5% | -62.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| MACOM Technology Solutions Holdings, Inc. ($MTSI) | 25.4x | 3.3x | 3.0x | 7.2x | 98.6x |
| Inphi Corporation ($IPHI) | | -6.4x | 4.5x | 33.7x | 32.2x |
| JinkoSolar Holding Company Limited ($JKS) | 4.2x | 3.3x | 4.1x | 11.0x | 8.2x |
| Lattice Semiconductor Corporation ($LSCC) | -1.8x | | 6.5x | 19.0x | 3.9x |
| Renesola Ltd. ($SOL) | 7.0x | 35.0x | 123.6x | 2.3x | 3.3x |
| |
|---|
| Median (46 companies) | -0.5x | -0.2x | 0.2x | 0.4x | 0.3x |
|---|
