KOPN

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved three major technical milestones in the U.S. Army color microLED program, including exceeding brightness targets required for daytime-readable augmented reality. Successfully converted entry into the First-Person View (FPV) drone market into multiple prototype orders tied to the Pentagon's Drone Dominance Program. Strategic pivot toward AI infrastructure leverages core microdisplay expertise to develop Neural I/o optical transceivers for high-performance computing. Operational leverage is improving as revenue scales across multiple platforms while management maintains disciplined, stable operating expenses. Onshoring strategy for OLED and microLED manufacturing serves as a durable competitive advantage in a procurement environment mandating trusted domestic sources. Performance in the core defense business remains robust, supported by sole-source and IDIQ contracts providing long-term revenue visibility through 2030. Management expects to achieve GAAP profitability and positive free cash flow starting in the fourth quarter of 2026. Full-scale domestic manufacturing for microLED products is scheduled to transition to production in mid-2027. Volume orders for the Sentinel FPV goggle are anticipated to begin in late Q4 2026 following Phase 2 evaluations of the Drone Dominance Program. The Neural I/o platform is on track for a 1.6 terabit per second transceiver demonstration at CES in January 2027. In-house OLED deposition capability is expected to come online in early 2027, projected to improve gross margins by at least 15 percentage points. Opening a new optics and photonics design center in Dallas, Texas, to accelerate R&D for the Neural I/o platform. Recorded a $1.4 million loss related to the deconsolidation of Kopin Europe during the second quarter. A $2.1 million income tax benefit was recognized following the expiration of a statute of limitations on an uncertain tax position. Federal appeal regarding the BlueRadios litigation is not expected to provide further updates until approximately mid-2027. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The demonstration will focus on real-time bit transmission and reception using a full transceiver tile. Management noted that early optical data pulls have already been shared with potential customers, exceeding performance expectations. The roadmap includes moving from the current demonstrator to monolithic IC development to meet 1.6 terabit per second specifications. Sentinel's primary differentiator is dual situational awareness, allowing pilots to maintain peripheral vision unlike traditional occluded goggles. Management expects tens of millions of dollars in potential orders for 2027, depending on which drone partners win the Gauntlet 2 awards. The shift from consumer-derived headsets to purpose-built defense solutions is driving the domestic FPV ecosystem. The market is segmented into near-package optics, co-packaged optics, and foundry services for other microLED developers. Management highlighted a specific strength in the 'transmit' side of transceivers, where competitors are currently struggling with yields and collimation. Recent U.S. government mandates restricting Chinese-made optical interconnects are expected to drive demand toward Kopin's domestic solutions. Management expressed high confidence in reaching $100 million in revenue by 2028, with a small potential to reach it in 2027. The company is preparing for SOX compliance in 2027 to align with this anticipated growth scale. Growth is anchored by the convergence of the IBAS program, FPV drone volume, and R&D orders for the Neural I/o platform.

Interested in Kopin Corporation? Here are five stocks we like better. Revenue rose 51% year over year to $12.7 million, driven primarily by government-funded MicroLED development, collaborations and defense programs. Kopin narrowed its operating loss and reported $0.9 million in net income, helped by investment gains and a tax benefit. Management expects a stronger second half and projects GAAP profitability and positive free cash flow in the fourth quarter of 2026. The company ended June with $24.3 million in cash and $50.3 million in total cash, restricted cash and marketable securities. Kopin advanced several growth initiatives, including Color MicroLED milestones for Army applications, Sentinel FPV drone headset evaluations, in-house OLED production planned for early 2027 and a $15 million Fabric.AI development program for AI connectivity technology. Kopin Corp is the Technology Seen Behind Smart AR Glasses Kopin (NASDAQ:KOPN) reported second-quarter 2026 revenue growth of 51% year over year, driven by government-funded MicroLED development work, its collaboration with Fabric.AI, an augmented-reality thermal clip-on partnership and Army research programs. The company also outlined progress in its Color MicroLED, first-person-view drone, OLED manufacturing and AI infrastructure initiatives. Total revenue for the quarter ended June 27 reached $12.7 million, compared with $8.5 million a year earlier. Product revenue was largely flat at $7.6 million, versus $7.5 million in the prior-year quarter, as higher defense revenue from thermal weapon sights and liquid-crystal displays was mostly offset by lower industrial sales. Non-product revenue increased to $5.1 million from $1 million, reflecting grant, collaboration and funded research-and-development revenue. → MarketBeat Week in Review – 08/03 - 08/07 Beyond the Vision Pro: 3 Augmented Reality Small Caps to Watch Cost of product revenue was $6.6 million, or 86% of net product revenue, improving from $7.1 million, or 94% of net product revenue, in the year-earlier period. Chief Financial Officer Erich Manz attributed the improvement primarily to product mix. Research and development expense increased to $4.5 million from $1.9 million, largely because of funded R&D costs associated with the government award for ultra-bright, full-color MicroLED displays. Selling, general and administrative expense rose modestly to $5.1 million from $4.9 million, reflecting higher professional fees and accrued performance-based compensation. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Kopin Stock is a Transformative AR/VR Component Play Loss from operations narrowed to $3.5 million from $5.5 million. Net income attributable to common stockholders was $0.9 million, or $0.00 per share, compared with a net loss of $5.2 million, or $0.03 per share, a year earlier. Manz said the improvement reflected revenue growth, a $1.9 million rise in other income that included approximately $2.3 million of investment gains, and a $2.1 million income-tax benefit tied to the expiration of a statute of limitations on an uncertain tax position. At the end of June, Kopin had $24.3 million of cash and cash equivalents and $50.3 million of total cash, restricted cash and marketable securities. That total included $26 million of restricted cash, including $24.2 million collateralizing a supersedeas bond related to the BlueRadios litigation appeal. The company said it does not expect a further update on the federal appeal until approximately mid-2027. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Management maintained its expectation for a stronger second half that exceeds its prior guidance, though it did not provide a new numerical range. Manz said Kopin expects to begin generating GAAP profitability and positive free cash flow in the fourth quarter of 2026. Chief Executive Officer Michael Murray said Kopin achieved three milestones under the U.S. government’s Industrial Base Analysis and Sustainment, or IBAS, program for Color MicroLED development. The company reported more than 150,000 nits of single-panel full-color brightness, above the program’s threshold target; early integration progress for Army ground-soldier vision applications; and delivery and installation work for new MicroLED bonding equipment at its Westborough, Massachusetts headquarters. The bonding equipment is intended to attach MicroLED arrays to digital backplanes, a key production step. Kopin expects to transition to manufacturing product in mid-2027. Murray said the technology could support Army programs including Soldier Borne Mission Command, while the company is also pursuing applications in heads-up displays, weapon sights and helmet-mounted systems. During the question-and-answer session, Murray said Kopin expects to complete three additional IBAS milestones during the fourth quarter, positioning it to provide Color MicroLED samples to industry and government customers in 2027. He said the company expects awards and potentially low-rate initial production in 2027, while main production for the Army program remains slated for 2028. Kopin said it received multiple Sentinel FPV prototype orders from customers participating in evaluations tied to the Pentagon’s Drone Dominance Program. Sentinel is a first-person-view headset designed to provide drone imagery while preserving a user’s peripheral awareness, unlike fully enclosed goggles. Murray said Drone Dominance Program winners could require tens of thousands of FPV goggles, with volume orders potentially beginning in late 2026 following Phase II evaluations and awards. He added that the company is negotiating several larger production orders for 2027 and characterized the potential Sentinel opportunity next year as “tens of millions of dollars,” though he said results will depend on which drone manufacturers win program awards. The company has received more than $45 million in orders so far in 2026, according to management. Its defense activity also includes a $21.5 million follow-on thermal imaging production contract, European helmet-mounted display programs, a DarkWAVE development order with Theon, and initial Sentinel production orders. Kopin is bringing OLED deposition in-house to support FPV demand and international OLED orders. Its OLED deposition line is expected to come online in early 2027. Murray said the company expects in-house deposition to improve gross margin by at least 15 points next year by reducing external margin costs, and said the system should cover expected demand through 2027 and 2028. Kopin plans to open an optics and photonics design center in Dallas before year-end. The facility is expected to include laboratory, engineering, research-and-development and manufacturing capacity focused on the company’s Neural I/o platform and application-specific optical solutions. The company is working with Fabric.AI under a $15 million initial development order to develop GPU-to-GPU connectivity technology. Kopin expects to complete a demonstrable chiplet by the end of 2026 and demonstrate the Neural I/o platform at CES in January 2027. Murray said the demonstration is expected to show real-time transmission and reception of data through a transceiver tile, with a roadmap toward a 1.6-terabit-per-second solution. Management said it has signed several new nondisclosure agreements, including with current NVIDIA NVLink partners, and has received early interest from potential quantum-computing and semiconductor customers. However, Murray said he does not expect production revenue from Neural I/o in 2027, instead anticipating development and R&D orders that could range from $20 million to $30 million for a chip program. He said production revenue would more likely begin in 2028. Kopin also said both phases of its optical automation program are operational and remain on track to produce approximately $1 million in annual operating-expense savings while increasing production capacity as utilization rises. Kopin Corporation (NASDAQ: KOPN) is a technology company specializing in the development and manufacture of high-resolution microdisplays and optical components for wearable electronics. Headquartered in Westborough, Massachusetts, Kopin designs both liquid crystal on silicon (LCOS) and organic light-emitting diode (OLED) microdisplays, as well as complete display engines and optical modules tailored for use in augmented reality (AR), virtual reality (VR), industrial, medical, and defense applications. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Kopin Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: $12.7 million for Q2 2026, a 51% increase year-over-year from $8.5 million. Product Revenue: $7.6 million, a slight increase from $7.5 million in the year-ago period. Non-Product Revenue: $5.1 million, up from $1.0 million in Q2 2025. Cost of Product Revenues: $6.6 million, or 86% of net product revenues, improved from 94% in the prior year. Research and Development Expenses: $4.5 million, up from $1.9 million in Q2 2025. Selling and General Administrative Expenses: $5.1 million, compared to $4.9 million in the year-ago quarter. Loss from Operations: Narrowed to $3.5 million from $5.5 million in Q2 2025. Net Income: $0.9 million, or $0.00 per share, compared to a net loss of $5.2 million, or $0.03 per share, in Q2 2025. Cash Position: Cash and cash equivalents of $24.3 million; total cash, restricted cash, and marketable securities of $50.3 million. Warning! GuruFocus has detected 5 Warning Signs with KOPN. Is KOPN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Achieved over 150,000 nits of single-panel full-color brightness, exceeding the IBAS program's threshold target for daytime-readable AR displays. Received multiple new prototype orders for Sentinel FPV from customers in the US government's Drone Dominance Program, with potential for tens of thousands of units. Expect to begin GAAP profitability and positive free cash flow in Q4 2026, with revenue growth across multiple platforms driving operational leverage. Strong demand signals for Neural IO, with over 200 downloads of the AI interconnect white paper and interest from major Tier 1 OEMs, including Nvidia NVLink partners. In-house OLED deposition line expected online in early 2027, projected to improve gross margins by at least 15 points through vertical integration. Received $45 million in orders year-to-date in 2026, with a solid second half expected to exceed prior guidance. Four consecutive quarters of exemplary on-time, in-full delivery and quality performance, reflecting operational maturity. Product revenue growth was minimal, with only a slight increase from $7.5 million to $7.6 million year-over-year, as growth was driven by non-product revenue. Research and development expenses more than doubled to $4.5 million from $1.9 million, driven by funded R&D costs, which could pressure margins if not offset by future revenue. Cash position remains constrained with $24.3 million in cash and equivalents, and $26 million of restricted cash tied to the Blue Radios litigation appeal, limiting financial flexibility. The company faces uncertainty in the Drone Dominance Program, as revenue depends on which drone manufacturers win Gauntlet 2 awards, with potential for lower-than-expected volumes. Neural IO production revenue is not expected until 2028, with only development revenue anticipated in 2027, delaying a major growth catalyst. The deconsolidation of European operations resulted in a $1.4 million loss this quarter, impacting financial results. Gross margins, while improved, remain low at 86% of net product revenues, indicating ongoing cost pressures in product sales. Q: Can you provide more color on what proof points will be on display at the planned NeuroIO demo at CES in January 2027?A: Michael Murray (CEO): The demonstrator with Fabric AI will show real-time transmission and reception of bits as a full transceiver tile. We will also demonstrate how we plan to scale that tile down into semiconductor sizes to achieve the 1.6 terabits per second specification. We are on track, and the first pull of optical data has already impressed potential customers we showed it to last week. Q: What has the inbound interest been from potential partners since the release of the first AI interconnect white paper, and what questions are they asking?A: Michael Murray (CEO): We have received over 200 downloads of the white paper, including from major Tier 1 OEMs and companies building racks and backplanes. A key takeaway is that while Kopin has a fantastic transmit side, many companies are struggling with the receive side of the transceiver. We are learning that our transmitter is a great potential component, and we expect to release about four more white papers over the next calendar year. Q: What investments are needed to scale production of Sentinel FPV, and when might you know how many units could be associated with the Drone Dominance Program?A: Michael Murray (CEO): The major investment was the OLED deposition tool, which we purchased this year for under $10 million, with payments spread over several quarters. The rest of the manufacturing pieces are within our current CapEx and OpEx. We expect to see more orders by the end of this year as Gauntlet 2 awards are issued, and we should have a very good order book for Sentinel FPV by the end of Q4. Q: How is Kopin able to enable peripheral vision in its Sentinel FPV goggles when others cannot?A: Michael Murray (CEO): It comes down to our application-specific optical solutions. We chose a non-occluded design that doesn't fully cover the warfighter's eyes, allowing them to see their feet, keep their eyes on their rifle, and maintain situational awareness. This is a deliberate insight for the drone team environment, unlike consumer headsets that fully block vision. Q: How should we think about the TAM opportunity for the micro LED transmitter component within AI data center infrastructure versus the receiver side?A: Michael Murray (CEO): We segment the market into three parts: our transceiver portfolio for near-package optics, co-packaged optics where our micro LEDs sit inside another semiconductor company's product, and foundry services where we build micro LEDs for other companies. The total addressable market is $63 billion in the US alone. We are particularly strong on the transmit side, as many major semiconductor companies have abundant receiver technologies but struggle with micro LED transmitters. Q: At what point might you start building out additional manufacturing capacity for AI infrastructure micro LEDs, and could customers provide funded CapEx or R&D?A: Michael Murray (CEO): Our priority is the IBAS award and Soldier-Borne Mission Command, but the government is happy that our production line utilization will increase from shipping AI infrastructure micro LEDs. Several companies are willing to support us in growing capacity, and the US government is also willing to work with us since they need US-based optics. We likely won't make a decision on additional capacity until about this time next year. Q: Can you update us on how things are progressing with Theon and how your European business is tracking?A: Michael Murray (CEO): Things are going well with Theon. We just completed the $1 million order to adapt the connector for Darkwave to connect to Theon's night vision goggle, and they are now in testing. We are also working with Theon on a number of display opportunities, and the relationship is opening new doors, specifically within NATO. Q: You mentioned exceeding previous guidance for the second half. Do you have a bracket of guidance you're anticipating for the year now?A: Erich Manz (CFO): We are looking at exceeding the numbers we last announced, which was $52 million to $60 million for the year. We are not providing official guidance today, but we expect to at least exceed what we had put out before. Q: Can you give us a range of the opportunity that the Sentinel FPV drone opportunity could represent in 2027?A: Michael Murray (CEO): It's definitely tens of millions of dollars in new customer orders and deliveries expected in 2027, and the scale could double that depending on who wins the most in the Drone Dominance gauntlets. We are partnered with several of the top five contenders, so our results are dependent on their success. Q: Would you expect revenue in calendar 2027 from IBAS and SBMC, and what about production orders for NeuroIO?A: Michael Murray (CEO): We expect to see awards next year and likely some low-rate initial production in 2027, with main production slated for 2028. For NeuroIO, we don't expect production revenue in 2027, likely 2028, but we do expect development orders in 2027 in the $20 million to $30 million range. We are considering moving to a monolithic IC development sooner than planned due to strong customer interest. Q: Once your in-house OLED tools are online in 2027, how could that impact profitability?A: Michael Murray (CEO): We will be vertically integrated, cannibalizing our own devices that we currently have deposited in Europe. By eliminating the margin stacking we pay to our European partners, we expect at least 15 points of gross margin improvement next year, and that might be a low number. The system will be fine for internal capacity for 2027 and 2028, and we can easily add capacity by adding another reactor node for about a 10% throughput increase. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Kopin (KOPN) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.01. This compares to a loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this maker of wearable technologies would post a loss of $0.01 per share when it actually produced a loss of $0.02, delivering a surprise of -100%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Kopin, which belongs to the Zacks Electronics - Miscellaneous Products industry, posted revenues of $12.73 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 7.32%. This compares to year-ago revenues of $8.45 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kopin shares have added about 79.9% since the beginning of the year versus the S&P 500's gain of 13.3%. While Kopin has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kopin was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is breakeven on $15.4 million in revenues for the coming quarter and -$0.02 on $58.78 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Products is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Enovix Corporation (ENVX), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -7.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Enovix Corporation's revenues are expected to be $8.44 million, up 13% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kopin Corporation (KOPN) : Free Stock Analysis Report Enovix Corporation (ENVX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Three Major Milestones Achieved in U.S. Army Color MicroLED Program, Including Record-Setting 150,000+ Nit Full-Color Brightness and Installation of U.S. Bonding Capability, Keeping Kopin on Track for Domestic MicroLED Production in Mid-2027 Multiple Sentinel FPV™ Prototype Orders Received as U.S. Government’s Drone Dominance Program Accelerates; New Dallas Optics & Photonics Design Center to Accelerate Neural I/o™ Delivery for AI Infrastructure WESTBOROUGH, Mass., August 10, 2026--(BUSINESS WIRE)--Kopin Corporation (Nasdaq: KOPN) ("Kopin" or the "Company"), a leading provider of application-specific optical systems and high-performance microdisplays for defense, AI-infrastructure, enterprise, industrial, consumer and medical products, today announced preliminary unaudited financial results for its second quarter ended June 27, 2026. Second Quarter Financial Summary: Second Quarter 2026 & Subsequent Operational Highlights Announced three major milestones in the Company’s color MicroLED development program under the U.S. Government’s Industrial Base Analysis and Sustainment (IBAS) initiative: surpassing 150,000 nits of single-panel, full-color brightness, exceeding the program’s threshold target; successful early integration progress toward U.S. Army ground soldier vision systems, supporting future programs such as Soldier Borne Mission Command (SBMC); and delivery of new U.S. MicroLED bonding equipment at the Company’s Westborough headquarters. Secured multiple new prototype orders for Sentinel FPV™ from customers evaluating the product as a core part of their offerings for the U.S. Government’s one-way attack (OWA) drone initiative, including several active contenders in the U.S. Government’s Drone Dominance Program (DDP). Each engagement represents the potential for significant volume production, with DDP volume orders expected to begin in late August 2026 immediately following Phase 2 evaluations and awards. Advanced the Company’s Neural I/o™ AI infrastructure initiative with Fabric.AI — signing several new non-disclosure agreements, including several with current NVIDIA NVLink partners; released the first in a planned series of AI Interconnect white papers. Opened a new Optics and Photonics Design Center in Dallas, Texas — expanding Kopin’s U.S.-based engineering footprint with new optics and photonics lab space, a dedicated design and engineering center, advanced R&D capabilities focused on Neural I/o™ and application-specific optical solutions serving the rapidly growing AI infrastructure market. Management Commentary Michael Murray, Chief Executive Officer of Kopin, said: "The second quarter and the weeks that followed demonstrated the significant momentum building across every one of Kopin’s growth platforms. Subsequent to quarter end, our team delivered three major milestones in our color MicroLED program under the IBAS initiative keeping us firmly on track to transition to domestic MicroLED product manufacturing in mid-2027, and advancing a capability that we believe could enable meaningful revenue for Kopin over the life of programs like SBMC. The U.S. Army is pleased with our progress, and beyond the Army program we are seeing strong international demand for color MicroLED across additional applications such as head-up displays, weapon sights, and helmet systems. "Sentinel FPV™ is converting into exactly the kind of traction we anticipated when we entered the FPV drone market. Subsequent to quarter end, we announced multiple new prototype orders from customers — including several active contenders in the U.S. Government’s Drone Dominance Program — each of which represents the potential for significant volume production, with volume orders expected to begin in late August immediately following the program’s Phase 2 evaluations and awards. Demand for trusted, U.S.-built FPV technology is accelerating, and our Dual Situational Awareness design continues to be a clear differentiator in the field. Demand signals are strengthening from drone customers both inside and outside the Drone Dominance Program, and we are now negotiating several large production orders for 2027 — a clear signal of the significant growth we expect in this market. "Our Neural I/o™ program remains on track, and we expect to demonstrate the platform at CES in January 2027, with a clear path to production anchored by a 1.6-terabit-per-second transceiver solution. Commercial momentum is building quickly with meaningful industry players interested in both our current chipset and our emerging device roadmap. We are engaging U.S. defense and government agencies on domestically manufactured Neural I/o™ solutions, and we are beginning to see early interest from quantum computing and semiconductor customers as well." Erich Manz, Chief Financial Officer of Kopin, added: "The second quarter reflected continued operational discipline, including our fourth consecutive quarter of exemplary on-time-in-full delivery and quality performance. Reflecting the order momentum across the business for 2026 we continue to expect a solid second half, exceeding our prior guidance. As we look ahead, we are increasingly optimistic about our trajectory into 2027, as the growth trends we are seeing in 2026 appear positioned to continue into next year, and we expect to make meaningful progress towards sustainable GAAP profitability in the fourth quarter." Second Quarter 2026 Financial Results Total revenues for the second quarter ended June 27, 2026 increased to $12.7 million, as compared to $8.5 million for the second quarter ended June 28, 2025. The 51% year-over-year increase primarily reflects grant revenue recognized under the Company’s U.S. Government MicroLED award, collaboration revenue from the Company’s development program with Fabric.AI and its strategic AR/thermal clip-on partnership, and higher research and development revenue on the Company’s Phase 2 Off-the-Visor Heads-Up Display program with the U.S. Army. Product revenues for the second quarter increased to $7.6 million, as compared to $7.5 million in the year-ago period. Higher defense revenues from thermal weapon sight applications and liquid crystal displays were largely offset by lower industrial applications revenues. Non-Product revenues were $5.1 million in the second quarter of 2026, as compared to $1.0 million in the second quarter of 2025. The increase was primarily driven by grant revenue recognized in connection with the Company’s government award for the development of ultra-bright, full-color MicroLED displays optimized for ground soldier augmented reality applications; collaboration revenue from the Company’s development program with Fabric.AI to develop and commercialize GPU-to-GPU connectivity technologies, together with its strategic partnership to develop a next-generation clip-on with augmented reality and thermal integration capabilities; and higher research and development revenue on the Company’s Phase 2 Off-the-Visor Heads-Up Display program with the U.S. Army. Cost of product revenues for the second quarter of 2026 was $6.6 million, or 86% of net product revenues, as compared with $7.1 million, or 94% of net product revenues, for the second quarter of 2025. The decrease as a percentage of net product revenues was primarily attributable to product mix. Research and Development expenses for the second quarter of 2026 were $4.5 million, as compared to $1.9 million for the second quarter of 2025. The increase was primarily driven by higher funded research and development costs in connection with the Company’s government award for the development of ultra-bright, full-color MicroLED displays optimized for ground soldier augmented reality applications. Selling, General and Administration expenses were $5.1 million in the second quarter of 2026, as compared to $4.9 million in the second quarter of 2025. The increase was primarily due to higher professional fees and accrued performance-based compensation. Loss from operations for the second quarter of 2026 was $3.5 million, as compared to $5.5 million for the second quarter of 2025. Net income attributable to common stockholders was $0.9 million, or $0.00 per share, as compared to a net loss of $5.2 million, or $(0.03) per share, in the second quarter of 2025. The year-over-year improvement primarily reflects higher total revenues, a $1.9 million increase in other income, net — driven largely by approximately $2.3 million of gains on investments — and a $2.1 million income tax benefit recorded in connection with the expiration of the statute of limitations on an uncertain tax position. As of June 27, 2026, the Company had cash and cash equivalents of $24.3 million, with total cash, restricted cash and marketable securities of $50.3 million, inclusive of $26.0 million of restricted cash, of which $24.2 million collateralizes the supersedeas bond posted in connection with the BlueRadios litigation appeal. Earnings Call and Webcast Management will host an investor conference call at 5:00 PM Eastern time on Monday, August 10, 2026 to discuss the Company’s second quarter 2026 unaudited financial results, provide a corporate update, and conclude with Q&A from telephone participants. To participate, please use the following information: Q2 2026 Earnings Conference CallDate: Monday, August 10, 2026Time: 5:00 PM Eastern timeU.S. Dial-in: 1-877-407-3982International: 1-201-493-6780Webcast: KOPN Q2 FY2026 Earnings Conference Call Please call the conference telephone number 5-10 minutes prior to the start time. A telephonic replay of the conference call will also be available through August 17, 2026. To listen, please call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 13762199. A webcast replay will also be available using the webcast link above. About Kopin Corporation Kopin Corporation (Nasdaq: KOPN) is a leading developer and provider of innovative display and application-specific optical solutions for defense, AI infrastructure, enterprise, professional and consumer products. Kopin's portfolio includes microdisplays, display modules, eyepiece and projection assemblies, and vehicle- and head-mounted display systems built on the Company's liquid crystal, MicroLED and OLED display technologies, along with a range of optics and low-power custom silicon. Building on its patented bi-directional NeuralDisplay™ architecture, Kopin is also developing Neural I/o™ optical interconnects that use programmable MicroLED pixels as ultra-high-speed, low-power optical transceivers for AI data centers. For more information, please visit Kopin's website at www.kopin.com. Follow us on LinkedIn, X and Facebook. Forward-Looking Statements Statements in this press release may be considered "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are subject to the safe harbor created by such sections. Words such as "expects," "believes," "can," "will," "estimates," and variations of such words and similar expressions, and the negatives thereof, are intended to identify such forward-looking statements. We caution readers not to place undue reliance on any such "forward-looking statements," which speak only as of the date made, and advise readers that these forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, estimates, and assumptions by us that are difficult to predict. Various factors, some of which are beyond our control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. All such forward-looking statements, whether written or oral, and whether made by us or on our behalf, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany the forward-looking statements. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release, except as may otherwise be required by the federal securities laws. These forward-looking statements are only predictions, subject to risks and uncertainties, and actual results could differ materially from those discussed. Important factors that could affect performance and cause results to differ materially from management’s expectations are described in Part I, Item 1A. Risk Factors; Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations; and other parts of our Annual Report on Form 10-K, as amended, for the fiscal year ended December 27, 2025, or as updated from time to time in our Securities and Exchange Commission filings. View source version on businesswire.com: https://www.businesswire.com/news/home/20260810461259/en/ Contacts Corporate Contact Kopin CorporationErich Manz, Chief Financial [email protected] 508-870-5959 Investor Relations Contact Lucas A. ZimmermanMZ Group — MZ North [email protected] 949-259-4987 Public Relations Contact Grace HalvorsenLightspeed PR/[email protected]

WESTBOROUGH, Mass., August 07, 2026--(BUSINESS WIRE)--Kopin Corporation (Nasdaq: KOPN) ("Kopin" or the "Company"), a leading provider of application-specific optical systems and high-performance microdisplays for defense, AI-infrastructure, enterprise, industrial, consumer and medical products, today announced it will release select unaudited financial results for the second quarter ended June 27, 2026 after market close on Monday, August 10, 2026. Management will host an investor conference call at 5:00 PM Eastern time on Monday, August 10, 2026 to discuss the Company’s second quarter 2026 unaudited financial results, provide a corporate update, and conclude with Q&A from telephone participants. To participate, please use the following information: Q2 2026 Earnings Conference Call Date: Monday, August 10, 2026Time: 5:00 PM Eastern timeU.S. Dial-in: 1-877-407-3982International: 1-201-493-6780Webcast: KOPN Q2 FY2026 Earnings Conference Call Please call the conference telephone number 5-10 minutes prior to the start time. A telephonic replay of the conference call will also be available through August 17, 2026. To listen, please call 1-844-512-2921 within the United States and Canada or 1-412-317-6671 when calling internationally, using replay pin number 13762199. A webcast replay will also be available using the webcast link above. About Kopin Corporation Kopin Corporation (Nasdaq: KOPN) is a leading developer and provider of innovative display and application-specific optical solutions for defense, AI infrastructure, enterprise, professional and consumer products. Kopin's portfolio includes microdisplays, display modules, eyepiece and projection assemblies, and vehicle- and head-mounted display systems built on the Company's liquid crystal, MicroLED and OLED display technologies, along with a range of optics and low-power custom silicon. Building on its patented bi-directional NeuralDisplay™ architecture, Kopin is also developing Neural I/o™ optical interconnects that use programmable MicroLED pixels as ultra-high-speed, low-power optical transceivers for AI data centers. For more information, please visit Kopin's website at www.kopin.com. Follow us on LinkedIn, X and Facebook. Forward-Looking Statements Statements in this press release may be considered "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are subject to the safe harbor created by such sections. Words such as "expects," "believes," "can," "will," "estimates," and variations of such words and similar expressions, and the negatives thereof, are intended to identify such forward-looking statements. We caution readers not to place undue reliance on any such "forward-looking statements," which speak only as of the date made, and advise readers that these forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, estimates, and assumptions by us that are difficult to predict. Various factors, some of which are beyond our control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. All such forward-looking statements, whether written or oral, and whether made by us or on our behalf, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany the forward-looking statements. Such forward-looking statements include without limitation our expectation that our Form 10-Q will be filed in the coming days. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release, except as may otherwise be required by the federal securities laws. Important factors that could affect performance and cause results to differ materially from management’s expectations are described in Part I, Item 1A. Risk Factors; Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations; and other parts of our Annual Report on Form 10-K, as amended, for the fiscal year ended December 27, 2025, or as updated from time to time in our Securities and Exchange Commission filings. View source version on businesswire.com: https://www.businesswire.com/news/home/20260807548438/en/ Contacts Corporate Contact Kopin CorporationErich Manz, Chief Financial [email protected] 508-870-5959Investor Relations Contact Lucas A. ZimmermanMZ Group – MZ North [email protected] 949-259-4987

Image source: The Motley Fool. Tuesday, May 12, 2026 at 8:30 a.m. ET Chief Executive Officer — Michael Murray Chief Financial Officer — Erich Manz Need a quote from a Motley Fool analyst? Email [email protected] Michael Murray: Thank you, operator, and good morning to everyone, and welcome to our fourth quarter and full year 2025 earnings call. I want to start by saying that 2025 was a truly transformational year for Kopin. We made significant progress on our strategic initiatives, strengthened our balance sheet with $56 million in capital from strategic and institutional investors, advanced our defense programs and established partnerships that we believe will drive meaningful growth for years to come. Like many other firms, our fourth quarter revenues were impacted by the government shutdown and the associated procurement and milestone recognition delays were deeper than anticipated. However, our underlying business fundamentals and long-term growth pipeline remain exceptionally strong. Indeed, due to geopolitical conflicts and tensions, we are already experiencing increased demand and order signals for our products and solutions to feel confident that we can recover quickly from this isolated event, which was outside of our control. Over the past 3 years, we have fundamentally transformed Kopin from a legacy microdisplay company into a strategically positioned, vertically integrated and advanced technology platform company. The first phase of our transformation plan included an assembled new management team, reconstituting our Board of Directors, reorganizing our engineering teams, greatly improving our manufacturing facility and processes resulting in some of the highest and most consistent customer satisfaction, quality control and employee survey scores ever in our company history. Our capital structure is in a far better place than it was even 12 months ago. And now we have the partnerships, the capital and the technological capabilities to invest aggressively in the people, technologies and production capacity needed to significantly accelerate our growth trajectory. Now let me walk you through each of these areas in more detail. When it pertains to strategic partnerships and global expansion, 2025 was a pivotal year for Kopin, as we executed on several transformational strategic initiatives. First, our ONE Kopin initiative integrated 3 separate businesses into one, creating parenting advantages, reduce costs and focus the company on our collective goals. Our fab-light strategy completed its next phase as we expanded our OLED deposition partnerships to U.S. DoD and European-approved suppliers. This has created a significant surge in OLED demand for the company, and we continue to gain share in this market space. We're also executed on time and full initiatives exceptionally well, and our customer scorecards reflect our excellent performance and in turn, we are seeing increased levels of new opportunities to reward our efforts. We also executed on our European expansion with our partnership with Theon International, which we announced in August. This engagement has opened the door to the rapidly expanding and growing European, Southeast Asian and NATO defense markets. Sales with Theon have commenced and we are executing on our aggressive 3-year strategic plan for revenue and technology sharing. Theon reached across Europe, Southeast Asia and NATO markets, gives us immediate access to the defense budgets that are expanding significantly in response to evolving global security threats. We are making good progress on joint development initiatives and expect this partnership to become an increasingly meaningful contributor to our revenue base this year and more significantly next year. Theon International is a critical relationship for Kopin. They develop and manufacture cutting-edge night vision and thermal imaging systems for defense and security applications with a truly global footprint spanning more than 50 countries. Theon started its operations in 1997 and today occupies a leading role in the sector, thanks to its international presence and is one of the fastest-growing companies in Europe. Their production of night vision and thermal imaging systems aligns perfectly with our microdisplay technologies and capabilities. Increased defense budgets across NATO member states and the need for enhanced situational awareness and nighttime operations, border security and counterterrorism missions are primary drivers of significant growth expectations, especially across Europe. Our increased focus in Europe has already started to pay off as we've announced 3 new contracts with 3 new European customers in just the first quarter of 2026 alone, which will grow our European business significantly this year and potentially double next year. As governments worldwide are investing in modernization efforts and advanced night vision technologies, innovations such as thermal imaging, augmented reality data overlays, digital night vision and the use of high-resolution sensors are improving performance, durability and cost effectiveness, thus expanding the range of applications where our joint solutions can compete effectively. Kopin and Theon together are uniquely positioned to capture those opportunities. In addition, our partnerships with Ondas Holdings and unusual machines have positioned us to capitalize on the explosive growth in the U.S. drone market. The U.S. Army has signaled its intent to procure over 1 million drones in the coming years, which is only further accelerated due to the recent geopolitical developments such as the ongoing conflict in Iran. And the first-person drone market is projected to grow from under $300 million to $1.2 billion by 2030, a 31% compound annual growth rate. We continue to advance these partnerships and are encouraged by the pace of the development activity and we have partnered with several of the top drone dominance companies in the industry today. The defense drone market represents a significant opportunity for our display and optical technologies, and we expect to announce several new customer orders this year. I'm going to touch on the defense programs and give you an update there. Our defense programs continue to represent the core of our business and our strength and strongest growth driver. We continue to supply Thermal Weapon Sight programs, which remain core to our revenue and on SBMC, formerly known as IVAS, the $22 billion Army program now under Anduril, continues to progress prime contractor selections and critical technology acquisition areas and wins are expected. Our IBAS-funded color microLED program is positioned and progressing well, and we've continued to support multiple armored vehicles, aircraft HUDs and helmet systems and next-generation weapon sight systems and programs across the Department of War. Again, our first color microLED is being designed with the Army, for the Army for this end application in mind. Soldier Borne Mission Command is also an all-encompassing program that includes software, hardware and networking elements designed to give soldiers the tools that deliver the right information quickly and intuitively as warfare evolves and increases in complexity. The U.S. Army has selected a third prime contractor to provide early demonstrable hardware in 2026 and 2027 and followed by a second phase of demonstrations and production selection awards in 2027. Along with prime contractor selections, we expect wins for critical technology acquisition areas where Kopin fits in to follow a similar path. This represents a generational opportunity for Kopin, and we're actively engaged with the relevant stakeholders to ensure our technology is well positioned for selection. Furthermore, we have negotiated a similar microLED product with Theon and the European market as part of our strategic investment, which opens an additional addressable market outside of the United States. $15.4 million color microLED award through the IBAS program remains a landmark win representing a $1 billion serviceable available market in the United States alone for Kopin. With similar product negotiated for Theon and the European market, this is an exceptional opportunity for growth. Development is progressing on schedule, and our customer engagement remains strong. We believe our color microLED technology and growing portfolio of devices will be a significant growth driver as we move towards production in the coming years. Given the long-term nature of many of our existing programs and the contract wins throughout 2025, our current pipeline remains exceptionally strong. As a reminder, several of our programs have congressional budget demands through 2030 and several of our contracts are indefinite demand, indefinite quantity, or IDIQ, which allows for even greater revenue than we currently have on order or are forecasting. Increasing geopolitical tensions mean defense spending is unlikely to decrease and the way wars are fought is evolving rapidly. Soldiers in the field are tasked with needing more information sooner to assess threat levels and make the best decisions for themselves and their teams. Our products and technologies can help to make our soldiers and the soldiers of our allies safer, meaning more men and women in uniform make at home. We believe we can begin meaningful accelerated growth over the next several years as the only manufacturer in the world of 4 different types of microdisplays. Our technologies and desire to provide application-specific optical solutions means we can meaningfully capture more orders and demand across some of the fastest-growing segments in defense and other applications. And we are partnered with global players in the field to do so. Now to touch on our technology and operational progress. On the operational front, our investment into automation is delivering meaningful results. Both phases of our optical automation program are now operational, and we're seeing meaningful improvements in the throughput, quality consistency and cost efficiency from that investment. We expect these automation investments to deliver over $1 million in annual operating expense savings as they reach full utilization. Turning to some advanced technology. Our NeuralDisplay technology continues to advance and has proven that a microdisplay is not just a display but a bidirectional sensing system providing and consuming images and data at the same time. NeuralDisplay technology represents a meaningful leap forward in how information is presented to the end user. By leveraging advanced processing and display optimization, NeuralDisplay has the potential to significantly enhance image quality, reduce power consumption and improve the overall user experience for both defense and commercial applications. We are encouraged by the interest we see from customers and expect to provide more substantial updates as we progress through the development milestones for this year. As the only manufacturer in the world producing 4 types of microdisplays being microLED, AMLCD, LCOS and OLED and the inventor of a fifth type, which is NeuralDisplay, we maintain a unique competitive advantage that positions us well across multiple defense and industrial applications. And we continue to see exciting new applications for our microdisplays and sensing technologies which I look forward to providing updates on very, very soon. Now let's look at 2025 year-end review and talk a little bit about 2026 outlook. To summarize, 2025 was a year of significant transformation for the company. We brought in new leadership with our CFO, Erich Manz, added experienced Board members, established the transformative Theon partnership, won the landmark IBAS color microLED program, raised $56 million in capital to remove going concern doubt, funded our growth and invested in automation to improve quality and efficiency. I am more excited and encouraged about our outlook today than I ever have been before or since I joined the company. We are in a completely different company and space today. And I would argue we are far better and more sustainable than we ever have been before. This offers tremendous and significant growth potential for Kopin. I believe we are on the cusp of meaningful changes at Kopin. I'm incredibly proud of the team for navigating an environment which has so much change over a short period of time. There have been a lot of distractions, but our team has kept heads down and focused on the company's mission, direction and potential. Now looking ahead to 2026, we now enter the second phase of our transformation plan. The first phase was fix, focus and grow. Our second phase is accelerate, expand and innovate. Acceleration of our revenue growth within our current customer base and markets and new ones to support long-term sustainable growth and profitability, acceleration of time to market with new technologies, proof of concepts and production, expand our customer reach, solution depth and concentration, expand our geographic reach and partnerships to help us grow and importantly, expand our product portfolios. Innovation is core to our capability at Kopin. And this year, the market will see several new technologies and announcements in new and exciting markets that will accelerate our revenue, expand our customer base and balance our business dependencies. Our priorities are clear: execute on defense programs, grow our Theon partnership revenues and advance our microLED technology towards production and deliver profitable growth. While the government shutdown created an unexpected and longer headwind than expected in Q4 and we expect some degree of continued impact in Q1 2026, we are confident that our strategic positioning and strong pipeline will drive meaningful revenue recovery as government operations normalize. To this end, we are providing a conservative guidance for 2026 of between $52 million to $60 million in revenue for 2026. I will now turn the call over to our CFO, Erich Manz, to review our fourth quarter 2025 financial results in further detail. Erich? Erich Manz: Thank you, Michael. Before I begin, I'd like to note that the financial results we are discussing today are unaudited. And while subject to finalization, we do not expect any material changes. We'll be filing our 10-K for the 2025 fiscal year in the coming days, which will supplement the unaudited financial results outlined below. As Michael mentioned, our fourth quarter results came in softer than expected, driven by the factors he outlined. I would also note that our reported results reflect the deconsolidation of our U.K. entity in the fourth quarter due to technical accounting considerations that were the result of a fourth quarter investment in that entity. The deconsolidation was not a significant factor in the quarter's operating results. And while it does impact comparability, we expect this to be temporary in nature and anticipate reconsolidating the entity in the near term. Importantly, the softness of the quarter does not reflect the change in the underlying direction of the business or in our level of conviction. From my perspective and based on what I've seen since joining the company, is making a meaningful progress in positioning itself for the next phase of growth. We are continuing to build momentum in transitioning the business with a clear focus on strengthening our financial foundation, improving operational execution and aligning our resources around the opportunities we believe will drive sustainable long-term growth. This is my first full quarter as CFO. I've been focused on gaining an understanding of the business, our opportunities and our internal structure to support growth. As we progress into the new year, the focus of my team is strengthening our financial reporting, improving operational visibility and supporting Kopin's strategic growth initiatives. With that context, let me walk through the financial results for the quarter. Total revenues for the fourth quarter ended December 27, 2025, were $8.4 million as compared to $14.6 million for the fourth quarter ended December 28, 2024. The year-over-year decrease in revenues was primarily attributed to the government shutdown and associated procurement delays, which impacted timing of expected program orders, product shipments and contract activity during the quarter. Product revenues for the fourth quarter were $5.6 million as compared to $12.6 million in the year ago period. The decrease was primarily due to government shutdown related delays in product orders and several of our end customers experienced, resulting in lower orders and shipments of products for U.S. defense applications. Standard training and simulation order flow, which can ship within the same quarter was seasonally lower than expected as well. Product order flow has since returned to anticipated levels, while new European product orders have exceeded forecast. Non-product revenues, which are defined as funded R&D, collaborative agreement and grant revenues, were $2.5 million in the fourth quarter of 2025 as compared to $1.7 million in the fourth quarter of 2024. The increase was primarily driven by the IBAS color microLED development program. However, revenue and research awards were lower due to delays. Several of these new contracts have been awarded with several others still expected. Cost of product revenue for the fourth quarter of 2025 was $4.7 million or 83% of net product revenues as compared to $10.7 million or 84% of net product revenues for the fourth quarter of 2024. The decrease in cost of product revenue as a percentage of net product revenues was primarily attributable to changes in product mix. Actions taken throughout the year with regards to quality, cost containment and automation allowed for similar results to the comparative period even with the reduced volume. Research and development expenses for the fourth quarter of 2025 were $3.5 million as compared to $3.2 million for the fourth quarter of 2024. The increase is not material and the company considers it to be within the range of normal quarterly fluctuations. This spending level ensures continued investments in internally funded technology development, including new technology, process improvements and microLED advancements. Selling, general and administrative expenses were $4.5 million in the fourth quarter of 2025 as compared to $3.1 million in the fourth quarter of 2024. The increase was primarily due to higher professional fees and outside services associated with the capital raise and strategic partnership transactions completed during the quarter, partially offset by lower incentive compensation costs. As of December 27, 2025, the company had cash and cash equivalents of $37.8 million. The bonded cash of $23 million is presented as a long-term asset. And as a result of the deconsolidation of Kopin Europe previously mentioned, it was approximately $8 million of cash that will not be shown within the consolidated results. Our cash position has improved primarily driven by the completion of $56 million in private placements from strategic and institutional investors. With that, I'll turn the call back over to Michael for closing remarks. Michael Murray: Thanks, Erich. Before we open up to questions, I want to leave you with this. The government shutdown was an unforeseen and unexpected speed bump, not a roadblock or a trend. Our balance sheet is the strongest it's ever been. Our partnerships with Theon and the U.S. defense contractors are generating real activity, and our defense pipeline is both deep and durable. What sets Kopin apart is straightforward. We are the only company in the world manufacturing 4 types of microdisplays, and we embed to the fifth. And we are the sole-source provider on several programs of record within the Department of War and now NATO. Every product we build, whether it goes into a weapon sight, a helmet-mounted display or an armored vehicle system exists to keep soldiers safer and more effective. Our surgical headsets produce better patient outcomes and our next-generation technology will enable advances in other markets as well. That mission drives every decision we make, and it's why we've aligned ourselves with the government agencies we have, the Pentagon, NATO and Tier 1 defense primes and partners globally who share that commitment. And there's more to come and soon. We believe 2026 will be the year this company begins to demonstrate our full potential of everything we built thus far. And I'm encouraged to say that I'm looking forward to 2026 and 2027 as we pivot this company towards our second phase of our transformation plan. And with that, operator, we'll open the call to questions. Operator: [Operator Instructions] And we'll take our first question today from Jonathan Siegmann with Stifel. Jonathan Siegmann: Can you maybe highlight what your backlog is as of December 31st and the remaining performance obligations. You ended the third quarter with a pretty high. Just wanted to see how that trended given revenues were lower. Michael Murray: Yes. So at the end of the year, backlogs were in the range of, I believe, $37 million, and we're expecting to book very soon several larger orders. We're talking tens of millions of dollars in the next, I'd say, 8 weeks that are deliverable for this year. So we walked into 2026 with a very decent backlog cover and order cover to hit our revenue growth. Jonathan Siegmann: Great. Yes, much improved relative to 12 months ago. And then in September, you had previously expected the microLED program to be -- the development program to be finished this year. Did the delays from Q4 extend that into '27? Or can we still expect that to be actually completed this year? Michael Murray: So we are working towards completion for this year with the milestones that we originally had. Not sure at this point if that will drip into 2027. But from a technical point of view, the milestones that we've achieved and the technical program is well on track. However, we're unsure how the Army will respond to their testing. But from what we can control, our technical milestones are on track and actually a little bit ahead of schedule. Operator: Our next question comes from Jaeson Schmidt with Lake Street. Jaeson Schmidt: Just following up on the SBMC program. Good to see that the milestones are on track. Curious how we should be thinking about potential capacity needs as you get better line of sight to that program ramping? Michael Murray: Fantastic question. Thanks, Jaeson. So part of this program under the Industrial Base Analysis and Sustainment Act, Jaeson, is to build the capacity here in the United States. And one of the milestones that we've reached within this quarter is we have selected certain tooling equipment, and we have purchased that equipment for our production line. We believe that we can service the requirements for SBMC as well as other programs with this production line that we're implementing right now within Kopin. And we have some exciting news coming around how we are going to optimize our throughput of that production line and some other interesting things that we're going to be doing with the facilities here in the United States for that volume specifically. Currently, we do not need any further CapEx to invest, to hit the volumes for SBMC and our new pilot heads-up displays as well as some of the thermal weapon sight displays that we're also targeting as being microLEDs. So there is further IBAS award money that we are expecting to grow our backlog -- or pardon me, our capacity but we are not clear on when that money may or may not come at this point. Jaeson Schmidt: Got you. That's helpful. And then just as a follow-up, regarding the automation initiatives, I know you mentioned $1 million in annualized savings at full utilization. When do you expect that to be achieved? Michael Murray: We're actually starting to see it now, starting to wash through our OpEx, Jaeson, as we speak. And we have some good data that we can share offline to show the cost savings, the scrap savings and the throughput increases that our automation has provided us. Much of this automation is in camera systems for testing devices, whether it be a thermal weapon sight or a display. So we're seeing that OpEx savings right now as we speak, and this will be the first year that we can actually show quarter-over-quarter results on the automation side of things. Operator: Our next question comes from Austin Moeller with Canaccord. Austin Moeller: So I was just going to ask about how you view the commercial market opportunity in the United States for drones now that the FCC has put the DJI ban in place? Michael Murray: [indiscernible] would be the word. Where we fit in, Austin, and thanks for the question, is in the first-person viewers. So we've already been demonstrating our DVAS technology, which is a monocle that swings off of a helmet that you can actually view drone information as well as our dark wave capability, which also allows you to view drone information. So those 2 technologies we're seeing increased demand for because of the drone market. But in the first-person viewer controller market, because of the FTC, we're seeing companies that normally would buy their devices out of China, come to Kopin and ask us please just redesign this with your displays and optics, period, full stop. So we have a number of those activities going on right now. We expect to have some meaningful results to share by Q3, and we have several massive drone companies that are working with us right now. And some of the volumes that they're talking about, Austin, are anywhere between 60,000 to 100,000 first-person viewers, which is 120,000 to 240,000 microdisplays and optics for Kopin that we would put through the facility starting Q3, Q4 of this year. So we're absolutely seeing an increased demand in that area for sure. Austin Moeller: Okay. And how do you think about the $450 billion reconciliation bill that's being talked about for this year to be passed before the midterms. How much do you think might be allocated specifically for microdisplays and optics? I guess how do you think about the timing and cadence of contract award opportunities out of that should it be passed? Michael Murray: We've been very active on Capitol Hill, specifically with our local congressmen and senators. Firstly, for additional monies through the IBAS award office, I've been very vocal that we've requested between $10 million to $50 million of additional IBAS funding for our expansion and we've been, I think, successful. We have not seen what will come out of the budget, obviously, but we expect to see that around September, Austin. Furthermore, we are seeing much more demand for defense systems in Soldier Borne systems, meaning Thermal Weapon Sight, night vision goggles, certainly the next generation of capabilities in that area, and we are squarely focused in that. And the Department of War has clearly stated that Kopin is the partner of choice for that technology. So we're absolutely enthused with what the budget is looking like right now for us, and we are very active on Capitol Hill to make sure that, that industrial base money comes to Kopin, and we can grow that production line that we spoke about earlier to the highest performance as well as throughput. So we're also seeing increased demands and budgeting in Europe as well, which is now we're active in discussions directly with NATO. So we think that's going to prove positive for the company. Operator: Our next question comes from Christian Schwab with Craig-Hallum. Christian Schwab: I'm wondering if you could elaborate a little bit more regarding a few mentions regarding new markets and new technologies. And are these opportunities outside the defense industry? I'm just kind of wondering if you could give any further clarity of what you're hinting at? Or am I reading that wrong? Michael Murray: I am trying not to. I'm very excited about the new technology that we've been developing. We've been very quiet about how we spend our internal research and development, Christian, for a reason. I think the 2 programs that we're going to announce this year will be very shocking to the market. They are new markets. They are new devices and new technology areas for the company. And I was hoping that we would be able to speak about them today and during our demo days in New York City, which is next week, unfortunately, they're not ready yet to talk about, but we will be announcing 2 new products and product lines in 2 new markets this year. Thanks, Christian. I wish I could talk about it more, but we'll have to wait. Operator: At this time, there are no further questions in queue. I will now turn the meeting back to Michael Murray. Michael Murray: Thank you, operator, and thank you to everyone for joining us today. We appreciate your continued support and look forward to updating you on our progress in the months to come. If you have any further questions, please feel free to reach out to our IR firm, MZ Group, who would be happy to answer them and schedule calls if need be. Thank you very much for joining, and we appreciate your support. Thank you. Operator: Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may now disconnect your line at this time, and have a wonderful day. Before you buy stock in Kopin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kopin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Kopin (KOPN) Q4 2025 Earnings Call Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Tuesday, May 12, 2026 at 8:30 a.m. ET Chief Executive Officer — Michael Murray Chief Financial Officer — Erich Manz Need a quote from a Motley Fool analyst? Email [email protected] Michael Murray: Thank you very much, operator, and good morning to everyone, and welcome to our first quarter 2026 earnings call. The first quarter and subsequent weeks marks one of the most exciting stretches in Kopin's history. We continue to grow our defense order book across the United States and Europe. We also advanced our MicroLED technology platforms and announced a strategic collaboration with Fabric.AI that we believe meaningfully expands the long-term opportunity set and sustainable acceleration of revenue growth for Kopin. Today, I'll walk you through 3 areas: first, the Fabric.AI collaboration and the launch of our jointly developed Neural I/o optical interconnect technology for AI infrastructure. Second, our continued momentum across all global defense markets, including new orders our entry into first-person viewer drone technologies and the major thermal imaging follow-on contract awarded subsequent to quarter end; and third, our strategic investments, including bringing OLED microdisplay manufacturing in-house at our Westborough headquarter facility here in the United States and how we're positioning the defense business for the long-term exponential and sustainable revenue growth at higher profit margins. First, let me start with the most consequential announcement we have made this year. Recently, we announced a strategic collaboration with Fabric.AI, an AI infrastructure development company, building the advanced core capabilities for AI factories that power large-scale artificial intelligence workloads. Together, Kopin and Fabric.AI are joining development of a new product family we call Neural I/o that is designed to dramatically increase bandwidth speeds, decrease power consumption and importantly, lower overall operational costs of currently operating data centers and new data centers alike. Neural I/o is built on Kopin's proprietary MicroLED technology and our patented bidirectional neural display architecture. What we have done is repurpose programmable MicroLED pixels as ultra-high-speed optical transceivers, devices that move data at extremely high bandwidth using photons of light instead of electrons traveling through copper wires. This matters for one simple reason. Today, data center equipment and GPUs relies on dense copper interconnections to talk to each other. And those copper interconnections are now the binding constraint on AI data center performance and power consumption. AI factories are running into the limits of what copper can do, both in terms of bandwidth and in terms of the energy required to push data and cool the systems. Neural I/o is designed to break through those limits. By using each MicroLED pixel as a high-speed optical transmitter, we are designing chip-to-chip, board-to-board and rack-to-rack communications that target the same functional outcome as copper while consuming a fraction of the power. To use the words of Matt Kimball, principal analyst at Moor Insights and Strategy, well, the ability to enable connectivity that delivers the full throughput of an accelerator without taxing the power budget has been a persistent challenge in the industry. And Kopin and Fabric.AI's Neural I/o built on MicroLED technology presents a unique and compelling value proposition. Moreover, this marks a completely new era in data transmission, bandwidth and designing of electronic systems and [indiscernible]. Several recent articles estimate that the AI infrastructure optical transceiver market is expected to reach between $69 billion to $90 billion by 2030. Of that total spending, the United States Department of Defense and Government Systems is the second largest consumer of this technology behind the traditional hyperscaler markets. This is why Kopin and Fabric.AI decided to focus on each of these individual markets separately. This relationship was forged with a clear intent of relentless focus on addressing this massive market in the right ways with the right people to promote exponential and profitable growth with the proper resources required. Kopin will support the absolute and clear requirements of the United States Government and Department of War for U.S. production of AI chips and chipsets. With our U.S.-based MicroLED production line, we are installing as part of our Industrial Base Analysis and Sustainment Act Award, or IBAS award, this custom design production line will support the Neural I/o family of chipsets for the United States Department of War and government customers. Fabric.AI chipsets and our new color MicroLED products for programs like soldier-borne mission command and many others will also be produced on this production line, and I will expand on that more later. Under our agreement with Fabric.AI and in addition to the $15 million initial purchase order to fund the demonstrable chipset, which we expect to be completed by the end of 2026, Kopin owns 19.9% of Fabric.AI and Kopin is their exclusive manufacturer of Neural I/o chipsets. The collaboration combines our deep expertise in MicroLED materials, process development, yield optimization and manufacturing with Fabric.AI's system-level design and go-to-market focus on hyperscaler AI infrastructure. We believe this is a true technology partnership. Kopin brings the enabling hardware. And together, we are building an infrastructure layer that AI data centers will require to scale for years to come. In addition to our 19.9% equity stake in Fabric.AI, Kopin's shareholders have direct exposure to the upside of this opportunity beyond the manufacturing economics. Fabric.AI has raised the required capital to fund this development and staff the business appropriately as Kopin completes the Neural I/o prototypes. We will share more on the development road map and customer engagements as it advances in later calls. Infrastructure is being deployed at an unprecedented pace and the bottlenecks created by traditional copper interconnects are precisely the kind of problem our technology is well suited to solving. We believe this collaboration dramatically expands Kopin's market opportunity and positions us as a strategic enabler in the next wave of AI acceleration, and it fits very well within our core skill sets and capabilities leading MicroLED development and manufacturing here in the United States. While there are competitors attempting to develop their own solutions like Kopin, most are start-ups and have never produced this technology previously. Others are established firms in the copper or fiber optic transceiver markets, which have not produced this technology previously either which provides Kopin a significant market advantage from a timing, yield and quality perspective since we are actively producing this technology today. Now turning to defense. Our first quarter and the period since reflects continued strong order momentum across our core programs and meaningful expansion into new ones. Let me walk through the highlights chronologically. In January, our strategic partnership with Theon International produced its first order on DarkWAVE platform, a $1 million development order to bring the 960p OLED DarkWAVE module to production readiness. This is a significant opportunity and milestone because DarkWAVE enables users of traditional monochrome night vision goggles to upgrade them as a retrofit with full color, augmented reality, enabled symbology and full motion digital interface and interlacing feeds, including drone imagery. Our DarkWAVE module is the foundation of Theon's upcoming DARK-I eye product. With more than 2 million estimated NVGs in use globally and a global NVG market projected to grow from $8.6 billion in 2025 to $12.9 billion in 2030, DarkWAVE targets a very large aftermarket opportunity. And because the system is ITAR-free, it opens up a new global market for both companies. In February, we announced 2 new European helmet-mounted display orders. First, a $2 million microdisplay production order from a Tier 1 European defense contractor for a rotary-wing helmet-mounted display system; and second, a $3.6 million purchase order from an advanced avionic helmet-mounted display system to be integrated into a rotary-wing military aircraft from yet another European defense customer. Together, these awards bring our pilot helmet-mounted display order book above $10 million and underscore the strength of our display solutions across both U.S. and European defense aviation. Indeed, our European business plan and focus is starting to provide new customers and applications, which will only increase our order book, provide more global business independence and stability while increasing our European facility absorption rates. In March, we were awarded a Phase 1 SBIR contract from the United States government to advance new full color yet smaller format MicroLED display technology, purpose designed for soldier-borne and weapon sight applications. This is the second MicroLED-focused U.S. Army award we received in the past 6 months, and it builds directly on the existing $15.4 million IBAS contract awarded in September of 2025, which is focused on developing domestic production capabilities for our MicroLED displays. The MicroLED architecture under development is engineered to deliver the brightness, ruggedness and power efficiency required for next-generation weapon sights, helmet-mounted visual information systems and other precise targeting devices, the kind of capability that scales across multiple defense programs. In April, we announced our entry into the first-person viewer drone market with the launch of our Sentinel FPV product. Drone pilots need high-resolution headsets connected to the cameras on the drones to control it as if they were in "the pilot seat" of the drone. We received an initial $3.2 million order with potential delivery of up to 40,000 goggles by the end of 2028. What makes Sentinel unique is something we call Dual Situational Awareness or Dual SA. Like traditional FPV goggles that fully block out the operator's peripheral view, Sentinel is engineered to deliver high-definition drone imagery while preserving the user's peripheral awareness of their surroundings. No other FPV goggle on the market provides this level of hands-free integration awareness. In field trials, drone pilots love the demonstrated dramatic improvements in survivability, mission effectiveness, pilot dexterity and safety that Sentinel provides. We believe this technology has potential to redefine what a tactical FPV system looks like. and we're actively engaged with additional drone and FPV companies to integrate Sentinel into their platforms. Further, this technology is built in the United States, which is mandated by the FTC and the Department of War. Also, subsequent to quarter end, we announced a $21.5 million follow-on production contract from a major U.S. prime to manufacture custom thermal-imaging eyepieces and assemblies for a manportable thermal weapon system. This award expands our growing backlog and reinforces Kopin's role as a trusted U.S.-based supplier of mission-critical vision systems for the war fighter. With more than 400,000 mission-critical solutions delivered across multiple generations of defense programs, this contract is a strong vote of confidence in our manufacturing capability and our ability to deliver American-made technology that performs in the harshest of environments. Taken together, the orders we've announced over the last several months, DarkWAVE with Theon, the European HMD awards, the SBIR for Soldier-Borne MicroLED, Sentinel FPV and the $21 million thermal-imaging follow-on award reflects both the durability of recurring order rates of our existing defense business and the confidence of our government, North American and new European prime contractor customers have in the new product lines we are bringing to market. As a reminder, many of our defense programs have congressional budget demands through 2030 and several of our contracts are sole sourced indefinite demand and indefinite delivery or IDIQ, which provides additional upside flexibility above what is currently on order, recurring revenue and forecastability and sustainability for several years. Now I want to spend a few minutes in the third area, as I mentioned at the top of the call on our strategic investments and what they tell you about how we are deploying our cash. After quarter end, we announced the purchase of a state-of-the-art OLED Deposition System and related equipment to establish full-scale OLED microdisplay production at our Westborough headquartered facility. For the past several years, Kopin has operated under a fabless OLED production model, leveraging external partners. The reason we are bringing this capability in-house now is straightforward. We are experiencing a substantial quantifiable and qualified surge in customer demand for fully U.S.-built OLED microdisplays, particularly for FPV systems like Sentinel, thermal weapon sights and other soldier-borne mission-critical defense applications. Bringing OLED manufacturing capability in-house gives us greater speed, flexibility and cost efficiency to respond to that demand. We will continue to leverage our established Asian manufacturing partners for consumer and medical applications that do not have a domestic production requirement, and we will continue to use our European OLED deposition partner for NATO-aligned defense programs as well. The U.S. OLED capability is additive, specifically to support the U.S. defense market. I want to be very clear about the message this investment is intended to send, which is that we are comfortable with our cash position and our facility footprint to deliver this increased demand. The capital we raised in 2025 was raised with this level of growth and investment in mind. The OLED deposition decision is exactly the kind of investment that strengthens our defense business going forward. It expands sovereign supply chain options for our defense customers. It improves our control over quality, lead times and pricing, and it complements our existing U.S. manufacturing capabilities for AMLCD, FLCoS, MicroLED and now OLED. Kopin remains the only company in the United States manufacturing 4 types of microdisplays, optics and soon photonics for the U.S. defense customers who are increasingly demanding and in some cases, must, by law, purchase from trusted domestic producers for critical components. Clearly, Kopin is answering that call. Turning to the operations side. Our investments in automation continue to deliver meaningful improvements in throughput, quality, consistency and cost efficiencies. Both phases of our optical automation program are now operational, and we expect these investments to deliver about $1 million in annual operating expense savings and add to overall production capacity as they reach full utilization. From an advanced technology perspective, our neural display technology continues to advance, and as noted earlier, has now extended beyond defense and industrial display applications into AI infrastructure through our collaboration with Fabric.AI and our Neural I/o initiatives. The neural display platform leverages advanced processing and AI-enabled backplane and offers display optimization to enhance image quality, reduce power consumption and improves overall user experience across the markets we serve. This display technology has several of the largest consumer companies interested in it for AI-enabled smart glasses. And we are now working to create a partnership to deliver neural display as a MicroLED device rather than an OLED device, which is the current demonstrable device as it stands today. Furthermore, as I mentioned earlier, Neural I/o transceiver is not just a single-chip strategy. It will be a family of devices focused on application-specific solutions within the AI GPU, CPU and memory architecture of an existing data center and new data centers alike. These new chipsets will be developed with several of the largest semiconductor and AI infrastructure companies in the world, several of whom are actively engaged with Kopin to work on these solutions. And one of the only manufacturers in the world capable of producing 4 types of microdisplays and now AI interconnection chipset solutions within the United States, Kopin maintains a unique competitive advantage that enables us to deliver the right technology for the customer-specific application in defense, industrial, medical and now AI infrastructure applications. So to summarize, the first quarter of 2026, together with the events we've announced subsequent to quarter end, represent a meaningful inflection point for Kopin. We extend our MicroLED and neural display platforms into AI infrastructure through our Fabric.AI collaboration. We have launched several new products and received initial orders with DarkWAVE to bring full color to the enormous monochrome night vision goggle market and with Sentinel FPV for the massively expanding global drone goggle market as well. These new activities speak to the disciplined productivity of our internal research and development spending as these new technologies are attracting new customers and new market segments for Kopin. These new platforms enable Kopin to sell these products to multiple customers globally and are not just a custom product for just a single customer, making our forward-looking recurring revenue more balanced and forecastable. Within the quarter, we grew our defense backlog with a $21.5 million thermal-imaging follow-on order, a $3.2 million initial Sentinel FPV order, over $5 million of new European HMD awards, a Phase 1 SBIR for soldier-borne MicroLEDs and the first DarkWAVE order from Theon. We invested in our strategic priorities by committing to bringing full-scale OLED microdisplay manufacturing in-house in Westborough, and we did all of this while maintaining a strong balance sheet. Consequently, we reiterate our 2026 revenue guidance range of $52 million to $60 million, which we believe remains appropriate and conservative given the order momentum we are seeing across both our existing defense business and our newer growth programs. As more programs and awards are converted into shippable orders and as our newer programs ramp, we expect to provide further updates throughout the year. I'll now turn the call over to our CFO, Erich Manz, to review our first quarter 2026 financial results in further detail. Erich? Erich Manz: Thank you, Michael, and good morning, everyone. As Michael, outlined in the first quarter subsequent events represent a meaningful shift in Kopin's trajectory. From my perspective as CFO, what is particularly compelling is how clearly we are seeing our strategic investments begin to translate into tangible commercial momentum across both our core defense programs and our emerging opportunities in AI infrastructure. The combination of expanding defense orders, entry into new product categories like Sentinel FPV and the strategic collaboration with Fabric.AI gives us increasing confidence that we are building a more durable, diversified and scalable revenue base. Just as importantly, we are doing so while maintaining a disciplined approach to capital deployment and a strong balance sheet. An important financial implication of this momentum is how it positions us to better utilize our existing manufacturing footprint. As volumes increase across multiple programs, we expect to more effectively absorb fixed costs with our facilities that have historically weighed on our cost structures. In other words, improved factory utilization and a broader mix of production programs should translate into better overhead absorption, margin expansion and a more efficient operating model over time. The investments we've made, whether in MicroLED innovation, automation, bringing OLED manufacturing in-house are not theoretical. They are directly aligned with identified demand signals from our customers and are designed to enhance throughput, improve cost efficiency, strengthen our control over both quality and delivery and minimize risk. In short, we believe the progress you are seeing is new, not just incremental. It reflects a fundamental step forward in the company's growth profile, cost structure and operating leverage. With that context, I'll now walk through the first quarter 2026 financial results in more detail. Total revenue for the first quarter ended March 28, 2026, were $10.6 million as compared to $10.5 million for the first quarter ended March 29, 2025. The slight year-over-year increase reflects new award and collaboration revenue contributions from the company's $15.4 million government MicroLED award and strategic AR/thermal clip-on partnership, which more than offset the decline in product revenues. Product revenues for the first quarter were $5.4 million as compared to $9.2 million in the year ago period. The year-over-year decrease was primarily due to lower period shipments of products for thermal weapon sight applications and liquid crystal displays. Nonproduct revenues were $5.1 million (sic) [ $5.2 million ] in the first quarter of 2026 as compared to $1.3 million in the first quarter of 2025. The increase was primarily driven by award revenue recognized in connection with the company's government award for the development of ultra bright full color MicroLED displays optimized for ground soldier augmented reality applications, together with collaboration revenue from a strategic partnership to develop a next-generation clip-on with augmented reality and thermal integration capabilities. Cost of product revenues for the first quarter of 2026 were $5.6 million or 103% of net product revenues as compared to $7.6 million or 83% of net product revenues for the first quarter of 2025. The increase as a percentage of net product revenues was primarily attributable to reduced production efficiency on a lower revenue base. Research and development expenses for the first quarter of 2026 were $4.9 million as compared to $2.1 million for the first quarter of 2025. The R&D expense increase was primarily due to the aforementioned government award for the development of ultrabright full-color MicroLED display optimized for ground soldier augmented reality applications, offset by increases in process improvements. Selling, general and administrative expenses were $6 million for the first quarter of 2026 as compared to $4.7 million in the first quarter of 2025. The increase was primarily due to increases in professional fees and accrued performance-based compensation. As of March 28, 2026, the customer had -- the company had cash and cash equivalents of $34 million, total cash, restricted and marketable securities of $59.5 million, inclusive of $25.3 million of restricted cash bonded against the BlueRadios litigation appeal. Following the deconsolidation of Kopin Europe in October of 2025, the company's reported cash position is wholly domestic and the company's analysis supports that its current liquidity is sufficient to fund operations through at least the end of the second quarter of 2027 and beyond. On a final note, there will be another filing of more administrative nature today unrelated to earnings. This is to move from an S-1 registration to a Form S-3 registration. To be clear to the investors, there is no offering with this. It's technically reregistering shares from the PIPE last fall. And with that, I'll turn the call back over to Michael for closing remarks. Michael Murray: Thank you, Erich. Before we open up for questions, I want to leave you with this. Our progress in 2026 year-to-date represents a meaningful step forward in Kopin's strategic evolution, the second phase of our transformation plan. We extended our core MicroLED and neural display platform into AI infrastructure through our collaboration with Fabric.AI. We grew our defense order book across the U.S. and Europe and entered into the high-growth FPV drone market. We grew our defense order book and clearly have differentiated products like Sentinel FPV. We invested behind our defense business with a major commitment to U.S. OLED microdisplay manufacturing, and we did so while maintaining a strong balance sheet. What sets Kopin apart is very straightforward. We are the only company in the world manufacturing 4 types of microdisplays, the inventors of the bidirectional AI-enabled microdisplay, and we are the sole source provider on several Department of War programs of record that have many years of sustained production ahead of us, and our technology platform is now being deployed across some of the fastest-growing market segments in defense and soon AI infrastructure. We believe 2026 is the year this company begins to demonstrate the full potential of everything we have built, and we are just getting started. And with that, operator, I'll open the call for some questions. Operator: [Operator Instructions] We take the first question from the line of Jaeson Schmidt from Lake Street Capital Markets. Jaeson Schmidt: Michael, just a clarification on the guidance. I know you reiterated the full year outlook. Does that include the Fabric.AI order? Michael Murray: It does. Yes. We're being very conservative on the forecast, Jaeson. We want to make sure that we're able to support the current order book as well as the new AI infrastructure chipset. So that's a very conservative forecast for this year. Jaeson Schmidt: Got you. And then just as a follow-up, going off your comments on the surge in OLED demand. Just curious if you could update us what you're seeing from the F-35 pilot helmet segment. Michael Murray: Sure. So I can't go into too much detail. As folks are aware, Kopin has a customer in a fixed wing application that we've been supporting with our LCD technology. Our LCD business this year is increasing somewhat marginally. However, our OLED development, we expect to be in low rate initial production by the end of this year, maybe into Q or the first half of next year in OLED specifically, Jaeson. So we're expecting to see new OLED orders for that platform, I'd say, by the end of this year. The forecast that we've seen is larger than expected, and I can't go into too much more detail than that. Operator: We take the next question from the line of Jon Siegmann from Stifel. Jonathan Siegmann: Really appreciate all the great news, a lot of positive developments. Just a follow-up on the guide, just to make sure we understand it correctly. It seem like all the defense developments really covered what you had in mind when you previously spoke to us and then Fabric.AI seemed incremental to it. Just is there any -- are you anticipating any delays this year on anything that you previously expected? Or just any kind of negative things that's now embedded in the guide? Michael Murray: No, I think we're being uber conservative. We want to make sure that we're able to achieve our forecast and overcome the forecast that we've given. And I think there's definite upside in the forecast that we've given. But nothing negative. We don't see any pullbacks. I think we're probably a little gun-shy from the government shutdowns in Q3 and Q4 of last year. So we want to make sure that we overcome the forecast that we put out this year. Jonathan Siegmann: Okay. Appreciate that. And then on the CapEx, excited to see you deploying some of that your comments, you're confident that you have the capacity to support that. Can you talk a little bit about just what we're going to expect this year in terms of total CapEx and any kind of timing for these investments? Michael Murray: Great question. So the OLED deposition line that we're going to install in Westborough has the benefit of being able to use the back-end processing machinery that we already have or will be installing as part of our IBAS award. So the overall CapEx is far less than I would say most people think for this OLED deposition line. But we think the CapEx that we're going to spend this year is roughly around $5 million over the course of the year and about the same roughly for next year. Operator: We take the next question from the line of Christian Schwab from Craig-Hallum Capital Group. Christian Schwab: Great. On the -- Michael, on the first-person view, the Sentinel first-person view, the opportunity there seems, in particular, quite massive here in the United States. I think the government has already approved 1 million -- I think these are the rough numbers, 1 million drone units with roughly 1/3 of them supposed to be first-person view in the next potential budget from the government takes that to $3 million with roughly the same type of percentage of units for first-person view. So given your strength there with peripheral awareness and the complexity of the goggles that were under the assumption that you made for that kind of suggests that the price of something like that would probably approach roughly $1,000. Is that in the ballpark, meaning that if you ship 40,000 of them, the order you have in hand with the drone dominance awards already approved is a massive tailwind for the company. Am I thinking about that correctly? Michael Murray: Indeed, you are. Christian, I would have not spent the money to put in an OLED deposition line if we didn't see tremendous demand from very real customers that we vetted and are participating in these conversations with the Department of War. And I think your assumptions are correct. The numbers that we're seeing as congressional line items of record are 1 million drones in the budget this year and 1/3 of those will be first-person view, 3 million in 2027, '28 time frame, 1/3 of those will be first-person viewers. And out of the drone dominance competition, we can confidently say that we're in several of them with our Sentinel product, either selling displays or selling a display with an optic or selling a full Sentinel device. So we have 3 different ways that we can claim revenue in first-person view drones. But for the audience, I think I was corrected by one of our teammates here and how I was thinking about drones. And the words are very sharp, so I apologize for that. But the words are this Drones are the new bullets and first-person viewers are the gun. And that stuck with me, and that shaped my thinking around the volume potential here in the United States for first-person viewer goggles for the displays and optics that are required with them and the fact that they have to be, by law, built here in the United States and they cannot use Chinese materials, even glass or OLED materials itself. So that provides Kopin with a very unique opportunity for growth. And our customers that know now that we have our own OLED deposition machine coming and will be operational around this time next year, producing panels for them are very excited that Kopin will be in this market and definitely driving efficiencies and price and full integrated application-specific solutions for them. So very exciting times for us. Christian Schwab: Thank you for the explanation point on that clarity. My second question comes back to MicroLEDs use for short-range data center links to replace copper. Obviously, massive efficiency and higher speeds than copper, cooling needs, energy costs, et cetera, et cetera. Some of the competitors who are also engaging in this technology have significantly greater scale. Can you kind of walk us through -- I think you kind of hinted at it with quality, yield and technology and expertise of manufacturing. But can you kind of walk us through your history of producing MicroLEDs for critical technology and very complex cases that they're used currently in the defense industry that gives you confidence that you'll be able to ramp this successfully and kind of show -- I think you hinted that working with a couple of large U.S.-based semiconductor companies already engaged with you, your confidence of proving this out. Michael Murray: Yes. So I'll start with Kopin has MicroLEDs in production today. And they're very difficult, Christian, to manufacture. I think if you were to ask the companies that have either acquired start-ups or have tried to build MicroLEDs before that aren't focused on it or specializing in it. It is very difficult technology to make. As an example, in our 2K x 2K monochrome device, there are 16 million individual subpixels that we have to get perfect to be able to deliver that device. That is a tremendous amount of engineering and capability. And to be able to manufacture that at scale is something that Kopin has worked very diligently on for years. And I think our competitors are figuring out that it's not just throwing a bunch of LEDs onto a backplane. It is very difficult technology to build. And they're struggling with it, and we see them struggling with it. Many of them have approached Kopin to help. So we know how to build this technology. We build it today. It is in production, flying in an aircraft today. And we invented the bidirectional microdisplay 2 years ago. In fact, we demonstrated it actively. We can demonstrate neural display, which is a bidirectional display today. We demonstrate our MicroLED that has 1.8 million foot-lamberts of brightness, which is about 6.8-ish million nits of brightness, which is basically the level of a laser, and we produce that and demonstrate it today. So we have all the pieces. And more importantly, the Department of War is funding Kopin to build a high-rate MicroLED production line right here in the United States, and that production line will be capable of millions of units. So we're in a very good position to be early in this market. to lead this market. And we have great relationships and funding now to deliver that technology very early. And I think it's going to be a huge revenue driver for us this year of at least $15 million. Next year, at least $25 million is what we're seeing right now, potentially up to $50 million of revenue. And the year after that, I think this chipset could be larger than our entire defense business. That's my personal opinion. So very large opportunity set for us where we have a unique skill set to deliver it, and we're here in the United States focused on the #2 consumer of AI infrastructure, which is the Department of War and the U.S. government. Operator: We take the next question from the line of Josh Sullivan from JonesTrading. Joshua Sullivan: Just a follow-up on the commercial interconnect opportunity here. What do you see as the big gating factors for large-scale adoption? Or what are we going to see publicly over the next 12 to 18 months? You just gave out some guidance figures there or some target figures, I'll call them. But curious what we're going to see publicly kind of from the technology front that shows us that the market is indeed walking towards large-scale adoption. Michael Murray: Great question, Josh, and welcome to the call and the team. Firstly, you're seeing significant investment from the largest GPU manufacturers in the world. I think it's fair to say NVIDIA has spent over $6 billion in this optical interconnect space over the last few months. We're seeing other GPU, CPU memory companies invest in the same into many start-up companies that are out there. And M&A is prevalent right now in this space. I think what we're going to see is demonstrable systems this year, at least from Kopin and Fabric.AI that will demonstrate the capability of moving photons faster, quicker, cheaper at lower power consumption and lower overall costs than that of copper or fiber optics. And for us, more specifically, where we fit isn't everywhere. It's very much focused on chip-to-chip board-to-board and rack to rack. That's where MicroLEDs, I think, will find their home because of our ability to transmit data over certain lengths. So I think you're going to see the market start to segment between those areas of chip-to-chip, board-to-board and rack-to-rack. I think the differentiating factor is rack-to-rack and then rack to external racks or floors where fiber optics are going to be used more predominantly. And then from a copper interconnect perspective, I think that market is going to start to shrink very rapidly as these new technologies get adopted next year and certainly into 2028. Joshua Sullivan: Got it. And then just given DOWs investment in your high rate production line, how quickly does the defense and intelligence market move and are there any funding line items that we can point to in the budget or elsewhere that might show that we're seeing some advancement as well? Michael Murray: You bet. So right now, Kopin is actively working with multiple 4-letter agencies to align funding. As an example, NIST has a BAA funding line with multiple billions of dollars listed on it. Also, the CHIPS Act also has many billions of dollars available for AI infrastructure available. And we are actively working with those funding agencies and funding lines as we sit here today. Joshua Sullivan: And then just one last one on the retrofit opportunity. How do you -- am I clear on that? And then just how does that maybe play out? Michael Murray: Great question. So either by luck or by intelligence, I'm not sure which one, Kopin's MicroLED product is programmable. So one of the things that I started when I joined Kopin is software-defined everything. And if we're able to use a programmable MicroLED to interface to the brownfield, meaning already existing AI infrastructure, meaning an H100 or an older CPU as an example, and we're able to interface to those CPUs or GPU boards either in a board-to-board configuration as an example or rack-to-rack configuration, we can program our chip to talk to the brownfield, the existing equipment and then our receiver side will be talking through programmability to the new chip, potentially an H200 or B300 or whatever it might be, and that programmability sets us apart as well. And we're doing so because a lot of the customers that we talk to do not want to rip and replace their entire system. A, it works; b, it's very difficult to change; and c, it's already paid for. So we want to be very flexible, but we can always move to more of an ASIC platform to remove the cost of programmability, but I don't think that's the right thing to do right now. I think getting programmable MicroLEDs called Neural I/o to our customers and in our customers' hands will further the adoption rate and allow that adoption rate to increase more exponentially if it's programmable. Operator: [Operator Instructions] We take the next question from the line of Austin Moeller from Canaccord Genuity. Austin Moeller: So just my first question here. If we think about the market opportunity for Neural I/o optical transceivers and data centers, do you expect to yield the highest margins within the U.S. domestic market, particularly for DOW or intelligence community data centers? Or are you also looking overseas to data centers in like Europe and the Middle East where you could potentially enter those markets? And do you think you'd have favorable margins there? Michael Murray: Great question. So yes, in the United States, I think Kopin is very unique in our focus. And going back to a question that I get asked all the time, why Fabric.AI? And Austin, Fabric is there to focus on the hyperscaler markets and staff appropriately with the people that know that market and understand that market. While Kopin understands the defense, Department of War and the government market specific to 4-letter agencies, et cetera, we know how to talk to those folks. We sell to those folks today, and we're actively engaged in that market. And I think we're a very unique supplier in this case since the Department of War is paying for this production line in the first place, they get the benefit of not only paying for that production line, but as we utilize it with Neural I/o, it brings down our costs and increases our absorption rate of that production line for our color MicroLED program, which the government wins twice in that case. So yes, I think there's better margins in the United States government and defense industry for this technology. In terms of European and Southeast Asia and NATO, quite frankly, we haven't reached a partnership yet. We're not engaged in those conversations yet, and we are working to have some partnership discussions with folks that are in that market and can support us in those areas, but we're not there yet. Austin Moeller: Okay. And if I shift over to talk about Sentinel FPV, -- if we think about the opportunity within like drone dominance, the $54.6 billion for drone autonomous working group and then U.S. domestic headsets for like commercial drone applications, are there any drones that the headsets would not be compatible with like fiber optic drones versus ones that are wireless and use computer vision? Michael Murray: If it has a camera on it and is controlled, we can use Sentinel FPV. The question becomes is, do you need to use a headset versus a panel? And if it's for the smaller drone sets, the individual strikers, as an example, what we're seeing is that the war fighter wants to be able to have that first-person viewer on their helmet and be able to remove it or at least look through it and have that dual situational awareness that we talked about and the ability to flip up that headset so they can fight. So in terms of the soldier-worn, soldier-born type of system, I think we have a great product in Sentinel, and it would be used for the vast majority of those drones. The specific to the 1 million to 3 million drones, we think 1/3 of those will be using first-person viewers that are either helmet-mounted or glass mounted on the face. Operator: Ladies and gentlemen, as there are no further questions, I will now hand the conference over to Michael Murray for his closing comments. Michael Murray: Wonderful, operator. Thank you very much, and thank you to everyone joining us today. We appreciate your continued support and look forward to updating you on our progress in the months to come. If you have any further questions, please feel free to reach out to our IR firm, MZ Group, who would be happy to answer them and/or set a call with management for a follow-up. Thank you all very much. Have a great day. Operator: Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may now disconnect your lines at this time, and have a wonderful day. Before you buy stock in Kopin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kopin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is transitioning Kopin into its second phase of transformation, expanding from a defense-centric microdisplay provider to an AI infrastructure enabler. The strategic collaboration with Fabric.AI repurposes proprietary MicroLED pixels as high-speed optical transceivers to address copper-based bandwidth bottlenecks in data centers. Performance in the defense sector is driven by a shift toward 'software-defined' hardware and the launch of the Sentinel FPV goggle, targeting the rapidly expanding drone market. The decision to bring OLED manufacturing in-house to Westborough is a direct response to a qualified surge in demand for fully U.S.-built displays for mission-critical applications. Operational improvements are being realized through automation programs that are expected to deliver approximately $1 million in annual operating expense savings. Kopin is leveraging its position as the only U.S. company manufacturing four types of microdisplays to capture sovereign supply chain requirements mandated by the Department of War. Management reiterated 2026 revenue guidance of $52 million to $60 million, describing the range as conservative given potential upside from the new AI infrastructure chipset. The Neural I/o chipset development with Fabric.AI is expected to produce a demonstrable prototype by the end of 2026, funded by an initial $15 million purchase order. Capital expenditure is projected at approximately $5 million for the remainder of 2026 and a similar amount for 2027 to establish the domestic OLED deposition line. Low-rate initial production for OLED-based fixed-wing pilot helmets is anticipated to begin by late 2026 or the first half of 2027. The company expects improved factory utilization and overhead absorption as newer programs like Sentinel FPV and DarkWAVE ramp toward full production volumes. Kopin acquired a 19.9% equity stake in Fabric.AI, providing shareholders direct exposure to the AI optical transceiver market beyond manufacturing economics. The company is utilizing a $15.4 million IBAS contract to fund domestic MicroLED production lines, which will also support the Neural I/o family of chipsets. Management noted that while they are comfortable with current liquidity through at least Q2 2027, they remain 'gun-shy' regarding potential government shutdowns that impacted previous quarters. A Form S-3 was filed to reregister shares from a previous PIPE transaction, which management clarified is an administrative move and not a new offering. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the U.S. government has budget line items for 1 million drones this year, with roughly 1/3 expected to require first-person view (FPV) capabilities. Kopin's Sentinel product is positioned to capture this demand because it meets legal requirements for U.S.-sourced materials and domestic manufacturing. The chipset is expected to drive at least $15 million in revenue this year, potentially growing to $25 million to $50 million next year. Management believes this product line could eventually become larger than the company's entire current defense business. Management stated that MicroLED technology is extremely difficult to manufacture, noting that competitors are struggling with yields that Kopin has already mastered. Kopin's devices are already in production and flying in aircraft, providing a 'timing, yield, and quality' advantage over startups and established copper-interconnect firms.