Needham Growth Conference 2019

Transcription

1 Needham Growth Conference 2019

2 FORWARD LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of These statements relate to our expected future financial and operating performance, growth in the markets in which our products are sold, our market share for our products, and our significant customers. We may use words such as expects, anticipates, intends, plans, believes, could, seeks, estimates, and variations of such words and similar expressions in identifying forward-looking statements. In addition, any statements which refer to expectations, projections, our stock value multiple, the value of head-worn computing and or our products, or other characterizations of future events or circumstances are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements, whether as a result of new information, future events or otherwise. We refer you to the documents the Company files from time to time with Securities and Exchange Commission, and specifically the Risk Factors section of the Company s Form 10-K for the period ended December 30, We do not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 2

3 MOBILE VR, AR AND WEARABLE HEADSET TECHNOLOGY : KOPIN s 30 Year Quest Electronic Viewfinder Golden-i Headset Computer Solos Smart Glasses Mono SXGA 0.97 Video Eyewear Kopin Transmissive Display Funding for microdisplays Forte Virtual Reality Mono QVGA 0.24 Color VGA 0.44 Night Vision Goggle Thermal Weapon Sights Lightning OLED 2018 Golden-I Infinity Electronic Viewfinder Shipped over 35M Displays 3

4 KOPIN TODAY - INTELLECTUAL PROPERTY PORTFOLIO More than 300 patents and pending Most of the patents are related to wearables Licensed IP to some companies Royalties Component sales Equity stake 4

5 KOPIN TODAY- WEARABLE PRODUCT PORTFOLIO Ultra-small Displays Modules with Innovative Optics Speech Enhancement System Reference Designs 5

6 KOPIN TODAY- CUSTOMER PORTFOLIO Consumer Goertek Oriscape SOLOS Military Elbit DRS Lockhead Martin Raytheon Rockwell Collins Enterprise Fujitsu Google Lenovo New Vision RealWear Scott Safety Vuzix 6

7 RECENT HIGHLIGHTS Endopodium to Develop High Resolution Wearable Displays for Medical and Surgical Applications: develop and commercialize next generation of head mounted display system (HMD) designed for advanced medical and surgical applications TrainingPeaks: Kopin teaming up with TrainingPeaks LLC., to support TrainingPeaks' Structured Workouts. Agreement with JUTZE Intelligence Technology Co., Ltd. (JUTZE) : Kopin subsidiary Forth Dimension Displays to provide displays for JUTZE Mirage series of 3D SPI (Solder Paste Inspection) equipment. Agreement with Skully Technologies: SKULLY will incorporated Kopin s WQVGA Microdisplay and A230 driver IC in the SKULLY FENIX AR motorcycle helmet. 5,000 Units Shipment to Tier One Customer: The shipment of 5,000 display modules to a Tier One US internet company for its soon-to-launch next generation augmented reality (AR) smart glasses Kopin s Golden-i Infinity Wearable Evaluation Program Commences: Approximately 100 Organizations Have Signed up to Pilot Test the Unique Smart Glass Platform that combines Kopin s industry leading display and Whisper voice extraction technologies to provide a smart screen that clips on to safety glasses, bump caps or hardhat. 7

8 REVENUE DRIVERS - MILITARY OPPORTUNITIES F35 Strike Fighter Program In Production All the information pilots need to complete their missions airspeed, heading, altitude, targeting information and warnings is projected on the helmet s visor, rather than on a traditional Heads-up Display. Potential $100M revenue opportunity over the next 10 years U.S. Army FWS Program FWS Individual (FWS-I) Selected by one of two prime contractors to provide the eyepiece assemblies for the next generation of thermal sights In Production FWS Crew Served (FWS-CS) Engineering and Development Contract awarded in 2016, Prototype Testing into 2019, then Deployment schedules - Development FWS Program is Potential $100M revenue opportunity over the next 10 years Armored Vehicle In Development First design win in armored vehicles. A Kopin FDD NVIS Win. Rollout $40M to $80M revenue opportunity over the next 10 years In development through 2020, then volume production 8

9 REVENUE DRIVERS - INDUSTRIAL Industrial: Vuzix, Realwear, Lenovo New Vision, Others Safety: Scotts Safety Firemen Helmets (In discussions with European & Chinese Helmet Manufacturers) 3-D metrology Golden-I Infinity Industrial Headset Customers Kopin shipped approximately 30,000 units in 2018 and 2019 projects to over 100,000 units 9

10 WHY DO CUSTOMERS CHOOSE KOPIN WE SOLVE PROBLEMS LIKE THIS DVO stays on weapon Retains boresight Maintain fixed reticle Generic Display Engine GPS & Compass Friend/FOE Target ID + = Wind & Range 875m Active Target reticle Rapid Targeting > First shot accuracy Retrofit Revised Optics High Resolution DVO always available Visual and Sensor Fusion SWIR, Thermal, I2 10

11 AUGMENTED & VIRTUAL REALITY DISPLAY MODULES Comprehensive line of modules for all HMD needs: Consumer & Enterprise applications Augmented Reality Transmissive AMLCDs for AR AMLCD - Augmented Reality diagonal QVGA QXGA Backlights: Super-high brightness to Compete with the Sun, low power for inside and outside use Optics: Compact designs -- everyone wants small and good looking device even in enterprise use Driver ASICs: small size, low power Virtual Reality 2k by 2K OLED (Lightning ) for VR 1.0 diagonal 2048 x 2048 resolution (4 million pixels) 120 Hz with low power consumption, Pantile optics (< 30 mm thick) allows much smaller and thinner mobile VR systems OLED -Virtual Reality 11

12 KOPIN LCD (CYBERDISPLAY) FOR AR Si IC LCD CyberDisplay Virtual Image Lens Cyber Display LCD High Brightness for Out Door Applications 12

13 KOPIN OLED (LIGHTNING) FOR VR CES Innovation Award in January 2017 OLED on silicon architecture provides the highest resolution, fastest speed, and lowest power Kopin has a unique, patented architecture (10 patents pending) Fabless manufacturing model for rapid volume ramp 13

14 KOPIN OLED FOR VR 3X pixels versus existing Mobile VR OLEDs for natural, smooth images without the screen door effect 14

15 120 Hz frame rate = No Motion Blur 120 Hz Frame Rate To Help Avoid Motion Artifacts That Can Cause Dizziness or Nausea 60 Hz VR = Motion Blur Artifact 15

16 LIGHTNING 2K OLED Kopin Debuts Lightning OLED Microdisplay With 2k x 2k Resolution for Mobile VR New High-Speed 4 Million Pixel Display Wins CES Innovation Award for Mobile Virtual Reality. Kopin, one that s not only interesting but potentially extremely pertinent to next generation VR hardware. The Technology That May Drive The Next Generation of Phones and Mobile Devices the most advanced display I saw came from Kopin, which showed a 1-inch OLED panel with a 2048 by 2048 resolution and a 120 Hz frame rate Seeing is believing here, and I quite literally could not see anything resembling aliasing on the display even with a 10x loupe to try and look more closely at the display and a fast 120 Hz frame rate - firsts for the VR industry and will raise the bar on performance Latency is also an astoundingly low 10 microseconds 16

17 VR AND AR OPTICAL MODULES Distance to Eye (MM) 100 Virtual Reality 80 Field of View PANCAKE PANTILE 60 PRISM 40 PEARL 20 PUPIL Augmented Reality and Virtual Reality Matching Display and Optics 17 17

18 KOPIN WHISPER CHIP: A DIFFERENT APPROACH TO AUDIO Specifically designed for Wearables No distortion to voice signal natural voice Adaptive voice detection listening adjusts to environmental noise level Lowest power less than 12 mw Only 16MHz clock frequency Replaces CODEC All digital Configurable for your device Digital MEMS Mic 4 PDM 2 PWM to external audio 2 I2S SPI to host I2C UART GPIO Digital microphone in (up to 4) Main clock Clock Manager ARM Cortex-M0 BUS DSP Co-Processor Digital speaker out (2) PLL ROM RAM Compact size (4x4 mm) 18

19 VOICE INTERFACE: Kopin has developed the Whisper Chip that provides up to almost 2X improvement in human-to-machine (H2M) automatic speech recognition (ASR) rates. 19

20 BALANCE SHEET HIGHLIGHTS ($ in millions) September 29, 2018 Cash and marketable securities $46.2 A/R and inventory 7.6 Contract assets and unbilled AR 1.9 Other current assets 1.2 PP&E 5.0 Goodwill & intangibles 2.0 Other assets 7.7 Total assets $71.6 Current liabilities $10.1 Other 2.3 Equity 59.2 Total liabilities and equity $

21 SUMMARY A FOCUS ON WEARABLES Technology Customers/partners leverage our portfolio of key technologies developed over 30 year history LCOS displays (transmissive and reflective) OLED 2K x 2K display, 720P Optics Ergonomics Software Electronics Packaging Speech Enhancement We understand the complete wearable headset system requirements Customers Demonstrate that the breadth of our knowledge and increase our critical component offerings enabling our partners to develop tailored solutions and reduce their time to market Innovation Continue to enhance our IP portfolio on key technologies and concept system designs 21