Surely at the time of the 3rd quarter CC the SNUP had just had it's hardware fix. Thus it was only up for production for the last six weeks of Q4 and that included the Christmas period. There seems no need to sandbag anything. At least that is how I remember it without listening to the CC again.
There was some talk in the 2013 Q3 CC about boosting the back end processes and new equipment. Maybe this is causing new startup problems
"we’re gearing up to be able to handle much more in terms of the output and right now we are on two shifts on
the back end and we think we’ve got this arranged, we’re getting in some more equipment, some higher [Audio
Gap] bolstering our capability in the back end. So that we know we have the capability to get out what the front
Mr. Sculley continued, “We are optimistic that we will see a return to revenue growth this year as a result of the improvement in our operations. However, first quarter revenue will be similar to our fourth quarter 2013 revenue as we have temporarily stopped shipment of certain displays to three customers to address a possible bonding problem in a microdisplay that was brought to our attention. We are actively addressing this and hope to resolve the situation quickly.
eMagin is postponing 2014 revenue guidance due to uncertain timing around the resumption of shipments of certain displays to three customers as noted above.
It is always beter for the market knows what the damage is rather than speculating with the worst case scenario.
The direct patterning seams to proceed regarldess of other problems
"Work continues on a color, high brightness, high-resolution avionics display with funding from the US Navy. The Company has already demonstrated the direct patterning technique and is on track to demonstrate a functional direct patterned ultra-high brightness VGA resolution display in the near term. eMagin also expects to demonstrate higher resolution functional direct patterned ultra-high brightness displays by the end of the second quarter. Customer evaluations will begin following these demonstrations. "
They said it is a system that has been running for many years and is not 'rocket science' It is about getting a solution good for all the 3 customers. For the rest of the quarter they will run product for other customers. Only these 3 customers have a problem.
It seems they are working as one big team to solve the problem including the end customer (the government) That is where Sculley was yesterday. Is it ENVGII ?
"all three customers and us are doing a team effort, and that's very unusual, and I must say the end customer is also working with us on a team effort"
"it's just where the circuit board connects to the silicon to plug into the device of the customer"
It was referred to indirectly in the CC. Note the use of the word products plural
"We have numerous customers interested in digital display and
the Company is planning to integrate it into new products that will be announced."
eMagin Corporation (NYSE MKT:EMAN), the leader in the development, design and manufacture of Active Matrix OLED microdisplays for high resolution imaging products, today announced that it has entered into a settlement agreement with Global OLED Technology, LLC relating to two patent license agreements.
Pursuant to the settlement agreement, the parties agreed to terminate the patent license agreements entered into in 1998 and 1999, respectively, between FED Corporation (predecessor to eMagin Corporation) and Eastman Kodak Company (predecessor to Global OLED Technology, LLC), in exchange for mutual releases and the payment by eMagin of a one-time, undisclosed settlement amount, substantially all of which was recorded as an expense by eMagin in the fourth quarter of 2013 as a reasonable good faith estimate. In addition, the parties agreed to dismiss with prejudice the lawsuit commenced by Global OLED Technology, LLC in New York state court in January 2014. The balance of the terms of the settlement agreement remain confidential.
Sure, this always seemed a small problem, but one problem less is nontheless nice.
It was the same for the Q4 results, though I did not notice at the time.
Acually it says 'and mobile display systems' which is more general than displays
It is not entirely clearly how far they are with the deveopment of actual displays. They are certainly looking for partners.
"Fraunhofer Comedd reached the goal to produce Orthogonal Photolithography in a clean room and incorporated it into 200mm wafer micro display.
The guys from Fraunhofer offer the new technology for joint developments of OLED microdisplays and OLED micro-signage applications together with industrial partners."
Well if you did not know that Q1 was going to be about 6m then you have not been paying attention. We were told at the Q1 conference.
"Progress was made toward building a tool for the ultra-high brightness and high resolution directly patterned color OLED devices. A prototype ultra-high resolution high brightness OLED display is expected to be fabricated in the third quarter of 2014. "
This is for 'ultra high Resolution'.
Did they produce the low VGA prototypes as promised in Q4 CC?
Maybe we will be wiser aftter CC.
I suspect because the military displays are predominately still SVGA with a large pixel size of 15. If you compare the area per wafer for a microdisplay for a pixel size of 9.6 or 8.2 you get near the size ratio given
There was an interesting exchange at the end of the CC about being able to reduce the pixel size further. It is not a deposition limit as I had always assumed, but a electonics limit.
The direct patterning, I understand that it enables a brighter and more efficient display, but will it also enable a smaller pixel size eventually?
Yeah, I understand what you mean. The limit to the pixel size is not the direct patterning today. The pixel size has multiple things, how much electronics you can stick underneath the one pixel. You have to have so many transistors and capacitors under each pixel and subpixel, so that’s really a limit today. The direct patterning is probably not a terrible concern to us with the pixel size.
I have not yet seen any speculation about a micro display but this is the sort of stuff being written. (Oculus Rift is not a micro display)
"Instead, this new device rumored will be a virtual reality headset. It'll have an OLED screen that's as good or better than the one found on the Oculus Rift dev kit. No information is known at this time on how it will connect to your phone or tablet, but a wired connection is probable."
And full compliments to Optimist for his excellent report. It is really appreciated that he takes the time and effort each year to visit the ASM and give us his report.
Sentiment: Strong Buy