WESTBOROUGH, Mass. – Kopin Corporation (NASDAQ:), a developer of optical and display technologies, faces a significant financial setback following Monday’s jury verdict in the U.S. District Court for the District of Colorado .
The verdict favored the plaintiff, BlueRadios, Inc., awarding it approximately $5.1 million in damages. Additionally, the jury recommended $19.7 million in disgorgement and exemplary damages against Kopin Corporation. The Court will consider these recommendations before issuing a final ruling.
Kopin Corporation CEO Michael Murray expressed the company’s disappointment with the verdict, saying, “We are very disappointed with the outcome and do not believe the findings were justified by the facts presented.” He indicated that the company is evaluating its options, including potentially appealing any ruling issued by the Court.
The BlueRadios, Inc. v. Kopin Corporation, Inc. lawsuit culminated in a substantial financial claim against Kopin, known for its critical components and subassemblies used in defense, industrial and consumer products. Kopin’s technology portfolio includes ultra-small active matrix liquid crystal displays (AMLCD), liquid crystal displays on silicon (LCOS), organic light-emitting diode (OLED) displays, various optics and low-power ASICs.
Kopin’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 30, 2023, detail risks and uncertainties that could affect their business and financial results.
The information is based on a press release from Kopin Corporation.
Insights on InvestingPro
In light of the recent jury verdict against Kopin Corporation, InvestingPro’s financial metrics offer a snapshot of the company’s current market position. Kopin’s market capitalization stands at a modest $150.28 million, reflecting the company’s size in the technology sector. Notably, the company’s price-to-earnings (P/E) ratio is negative at -7.02, indicating that it is not currently generating net profit. With an adjusted negative P/E ratio for the trailing twelve months as of Q4 2023 at -8.5, this reaffirms the challenges the company faces in achieving profitability.
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Additionally, Kopin’s revenues have seen a decline, with a change of -14.78% over the trailing twelve months as of Q4 2023, and a more pronounced decline in quarterly revenue growth of -29.6% in Q4 quarter of 2023. This data is critical as it highlights the financial picture and headwinds Kopin is encountering, which could be exacerbated by the recent legal ruling.
Among InvestingPro’s recommendations, it’s worth noting that Kopin holds more cash than debt on its balance sheet, which could provide some financial flexibility in managing awarded damages. Additionally, the Relative Strength Index (RSI) suggests that the stock is in oversold territory, which could be of interest to potential investors looking for a turnaround opportunity. However, analysts have revised down their earnings for the coming period and do not expect the company to be profitable this year. This information is crucial for investors seeking to understand the potential risks and opportunities associated with Kopin’s stock.
For those interested in a deeper analysis of Kopin Corporation’s financials and market outlook, InvestingPro offers additional insights. With a total of 11 InvestingPro recommendations available, individuals can gain a more complete understanding of the company’s position. To access this information, please consider using the coupon code PRONEWS24 to get an additional 10% discount on the annual or biennial Pro and Pro+ subscription.
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