Kopin Completes Sale of Korean Assembly Facility for Approximately $8.1 Million
By Business Wire News
By Business Wire News
Kopin® Corporation (NADSAQ:KOPN), a leading developer of innovative augmented reality and virtual reality wearable computing technologies and solutions, today announced that it has finalized the sale of its Korean assembly facility and land for 9.5 billion Won or approximately 8.1 million US dollars as of the close of the transaction on June 10, 2016. Kopin had previously disclosed that it planned to divest the facility in Gyeonggi-do Korea after the facility, which supported the packaging of displays for camcorder and digital still camera products, ceased operations in 2013.
“This sale further strengthens our financial position ($90.9 million in cash, cash equivalents and marketable securities and no debt as of March 26, 2016) while reducing some remaining operating expenses at the facility,” said Dr. John C.C. Fan, President and CEO of Kopin. “Our strong capital base is key to executing upon our strategy in wearables as we move from development to partnerships and sales. For example, we recently began marketing to avid cyclists our augmented reality Solos™ eyewear which includes our patented Pupil™ optics.”
The 9.5 billion Won sale price (approximately $8.1 million as of June 10, 2016) is before any taxes and fees. The Company noted that approximately 10% of the purchase price, or 945 million Won ($828,000 US Dollars), was included in cash, cash equivalents and marketable securities in the balance sheet included in the Form 10-Q for the three months ended March 26, 2016.
Kopin Corporation is a leading developer and provider of innovative wearable technologies and solutions for integration into head-worn computing and display systems to military, industrial and consumer customers. Kopin’s technology portfolio includes ultra-small displays, optics, speech enhancement technology, system and hands-free control software, low-power ASICs, and ergonomically designed smart headset reference systems. Kopin’s proprietary components and technology are protected by more than 300 global patents and patents pending. For more information, please visit Kopin’s website at www.kopin.com.
Kopin and Pupil are trademarks of Kopin Corporation.
Statements in this press release may be considered “forward-looking” statements under the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These include, without limitation, statements relating to our statement that the transaction will reduce some operating expenses and we are moving from development to partnerships and sales. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the transaction may not eliminate operating expenses, we may not develop partnerships and if we do they may not result in future sales;it may take longer than the Company estimates to develop products; the Company’s productsmay not be accepted by the market place; there may be issues that prevent the adoption or further development of the Company’s wearable computing technologies;manufacturing, marketing or other issues may prevent either the adoption or acceptance of products; the Company might be adversely affected by competitive products and pricing; new product initiatives and other research and development efforts may be unsuccessful; the Company could experience the loss of significant customers; costs to produce the Company’s products might increase significantly, or yields coulddecline; the Company’s customers might be unable to ramp production volumes of their products, or the Company’s product forecasts could turn out to be wrong; manufacturing delays, technical issues, economic conditions or external factors may prevent the Company from achieving its goals; and other risk factors and cautionary statements listed in the Company’s periodic reports and registration statements filed with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the 12 months ended December 26, 2015, and the Company’s subsequent filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company and only as of the date on which they are made. The Company undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances occurring after the date of this release.