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eMagin Corp. Message Board

  • maynard997755 maynard997755 May 5, 2013 7:17 PM Flag

    Update #3

    I wrote two updates last year and believe they are still germane to the EMAN story. Overall, the messages touched on the challenges, opportunities, 2014 revenue and eps potential, and the impact of Delays. With the Q1 report due out this week, here is how I view the current situation.

    It was very difficult for the company to achieve the $8.32mil of revenue in Q4, given the second SNU breakdown and the mix of orders. Even so, their ebitda margin was near 20%, a terrific number. With Q1, management has stated that the SNU machine was fully operational as of mid February. That would give six weeks of SNU operation in the balance of the quarter. Also, there was about a $2mil slip from Q4 to Q1, if that number stayed in the quarter, it would be a further positive. Odds are Q1 report will be fine and margins at least as high as they were in Q4, perhaps even higher. Assuming that the SNU has continued to run without further breakdowns since March, Q2 should also be on track to do at least $8.5million. Given the guidance for the year of $34-$38million, and having been burned twice in 2H last year, this should be a very doable number in their mind at this point.

    80% of their unit volume produced is for the SVGA. The SNU is only producing that product at this point. One of the difficulties in the last two years as the company increased its number of products to six, was the inability to produce overruns and have inventory on the shelf. It will be good to find out on the conference call if that problem has now been solved.

    It appears the US military is not cancelling any current procurement orders with their current fiscal situation. Where EMAN may be exposed is a cutback in R&D contract revenue for future programs.

    The new production manager started October 1 last year and has had an impact. On top of understanding what was needed/needs to be done to make this operation capable of high volume (software, planning, equitment, etc.),

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    • Cant necessarily argue with you, but what you state is very general, somewhat obvious and noncontroversial. Please elaborate on how new production mgr has and an impact , it is not visible in the outcome or numbers but may be real....

      • 1 Reply to billboard_us
      • bill .. i know nothing of his background , but just the fact that some of execs are handing a few
        of their hats to someone who can have more narrow focus is a good growth sign ... and the
        addition of the mfg software outfit ... Eman is looking more and more like a manufacturing outfit ...
        other than that ... who of us really has much beyond general info here ... these guys are as
        buttoned down as the Geo Bush admin ...

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