eMagin Corporation (EMAN)
Alert Price: $1.25
Float: 58.3M
Technical Analysis (Huge Upside Potential From Here)
Barchart.com Rating: BUY
Company Website | Investor Presentation | Recent News
Members,
The wait is over, and we are excited to bring you our NYSE listed trade idea.
Please turn your immediate attention to eMagin Corporation (EMAN).
eMagin is a US-based manufacturer of OLED micro-displays.
The company has proprietary technology in micro-displays and Direct Pattern Processing that has caught the eye of the US Dept. of Defense.
As a result, the company has won DoD awards for over $39 million. These funds will be used to increase manufacturing capacity
Recognized by DoD as the only domestic manufacturer of OLED microdisplays designated as a cornerstone of the US manufacturing base.
The DoD funds should also help the company further penetrate into the Augmented and Virtual Reality (AR/VR) consumer and commercial markets.
eMagin is a rated a BUY on barchart.com.
About eMagin
The leader in OLED microdisplay technology for the next generation of computing and imaging devices, serving world-class customers in the military, consumer, medical and industrial markets. We invent, engineer and manufacture display technologies of the future in the USA, including our Direct Patterning Technology (dPd) that will transform the way the world consumes information. Since 2001, our microdisplays have been, and continue to be, used in AR/VR, aircraft helmets, heads-up display systems, thermal scopes, night vision goggles, future weapon systems and a variety of other applications. www.emagin.com.
Company Highlights
The only US manufacturer of OLED microdisplays; a technology leader with proprietary and patented direct patterning technology (dPdTM) for ultrahigh brightness in color
Recent US government funding for manufacturing to support improvement in growth, innovation and productivity
Deep applications expertise and broad IP portfolio; aligned with blue-chip customer base and longterm industry trends
Well-established military and aviation market presence benefitting from secular and cyclical tailwinds; leverageable platform for high growth opportunities in consumer and commercial end markets
Uniquely positioned to capitalize on growing addressable markets in military, industrial and consumer for high brightness AR/VR solutions
Highly experienced management team with industry leading technical expertise enabling a substantial runway for value creation
Growth Strategy
Leverage commercial and consumer electronics customer relationships for AR/VR opportunities
Develop partnerships for high volume manufacturing
Grow commercial and industrial presence
Expand military and aviation market share
Deepen penetration of leading-edge dPdTM technology
Increase capacity and production yields; expand manufacturing capability
eMagin’s OLED Technology Advantage
Lowest Power and Highest Brightness
Brightest OLED – monogreen over 28,000 cd/m2; full color 7,500 cd/m2 demonstrated, full color 10,000 cd/m2 targeted this year
Very high contrast – greater than 1,000,000:1
Lower power consumption– longer battery life
More compact form factor
Light-weight solution
Field tested for reliability and performance
Nausea-free operation
Superior performance and a competitive cost at higher volumes
The Future of AR/VR Powered by – EMAN's dPd™
Conventional OLED microdisplays use white OLED with color filters
Color filters absorb ~80% of the useful light; limited brightness and inefficient
Only eMagin has Direct Patterned microdisplay technology for direct emission of red, green and bluelight without color filters
Enables significantly higher brightness; targeting 10,000 cd/m2 at year end and 28,000 cd/m2 by 2023
Higher efficiency, much lower power consumption
eMagin is ahead today in full color OLED microdisplay brightness and will stay ahead
EMAN already has customers in the military, consumer, medical and industrial markets for use in products such as AR/VR (augmented reality/virtual reality), aircraft cockpits, heads-up display systems, thermal scopes, night-vision goggles, future weapon systems, MRI and LASIK systems, and a variety of other applications.
EMAN Sees Revenues Grow In Q2
Revenue of $7.7 million, up 44 % year-over-year and 15% sequentially from Q1
Second Quarter Results
Total revenues for the second quarter of 2020 were $7.7 million, an increase of approximately $2.3 million from revenues of $5.4 million reported in the prior year period, and an increase of $1.0 million from the first quarter of 2020.
Total revenue consists of both product revenue and contract revenue. Product revenues for the second quarter of 2020 were $6.3 million, an increase of $1.3 million from product revenues of $5.0 million reported in the prior year period. The increase in display revenue for the quarter resulted from increased demand from military customers and higher average selling prices. The increase in product revenue was achieved despite some minor disruptions resulting from the Covid-19 pandemic. Contract revenues were $1.4 million compared to $0.4 million reported in the prior year reflecting the contribution from contract R&D work for the consumer market.
Total gross margin for the second quarter was 26% on gross profit of $2.0 million compared to a gross margin of 4% on gross profit of $0.2 million in the prior year period. The total gross margin of 26% in the second quarter of 2020 reflects favorable margins on contract revenues for the consumer market. Second quarter 2020 product gross margin of 20% compares favorably to 1% in the prior year which was impacted by lower throughput due to manufacturing challenges that had continued from the first quarter of 2019.
Outlook for third quarter
At June 30, 2020, the Company's backlog of open orders was $14.5 million, including $13.2 million shippable within twelve months. This compares to a backlog of orders shippable within twelve months of $11.7 million as of December 31, 2019. As deemed an essential business, the Company continues to ship and produce product and has not experienced any major material supply chain disruptions.
Market Outlook
According to a research report on the global micro-display market by Transparency Market Research, the global micro-display market is expected to reach value of $5.3 billion by 2025 - expanding at a CAGR of 44% between 2019 and 2025.
"Micro-Display Market reports the micro-display market will be driven by OLED technology:
Several industry experts believe OLEDs are set to replace existing technologies in the display ecosystem. As such, a significant number of companies have started investing increasingly in research and development activities related to OLED."
The combination of that kind of growth in the micro-display market, and that experts believe OLEDs are likely to replace existing displays, is a huge opportunity for eMagin.
(AR) Augmented Reality Market is set to exceed USD 50 billion by 2024
AR market is expected to grow at a significant rate, owing to the growing penetration in industrial applications. Industries such as retail, automotive and medical are leveraging the potential of the technology to enhance operational efficiency. The technology helps to cut major costs such as additional manpower.
For instance, Brick and Mortar stores have adopted AR apps to navigate & guide the shopper through the aisles to all the products. These are used to trigger customer imagination and entice to try products which increases the user engagement level. Several organizations including research and development labs are investing immensely in the technology to develop solutions for enterprise and consumer segments. Mobile augmented reality market has witnessed high adoption over the years across applications including gaming, media and marketing.
Technical Analysis
Based on our own technical analysis, we see the potential for a move to $1.80 from here.
Bullish Technical Indicators
Fibonacci golden pocket held strong within a very volatile market.
100MA has now caught up to provide vital.
Stochastic bottomed and in bullish reversal
The Bottom Line
EMAN is a small company with key proprietary, patent-protected, and potentially game-changing dPd technology. The company has recently been awarded $39.1 million in monetary awards from the DoD and has extensive product sales into the military market. The recent DoD awards will enable them to expand their manufacturing capacity, improve throughput and yields. Meantime, the company can parley the DoD funds to advance products into the consumer and commercial AR/VR mass markets, both of which IDC expects to grow rapidly over the next couple of years.
EMAN appears to have a strong, experienced, and technically competent management team that has developed a robust patent portfolio that not only protects the company's intellectual property but could lead to licensing revenue in the near future.
With a strong balance sheet, strong funding commitments from the DoD ($39.1 million spread over three years), strong growth in revenue, an increasing backlog due to existing customer demand, and upcoming new product offerings, EMAN has a solid financial footing and a bright future.By Viewing this Content, you Agree that you Have Read and are in Full Understanding of both our Disclaimer & Privacy Policy(*Remember to use a Stop-Loss Order to protect your gains, as well as limit possible losses.)
Alert Price: $1.25
Float: 58.3M
Technical Analysis (Huge Upside Potential From Here)
Barchart.com Rating: BUY
Company Website | Investor Presentation | Recent News
Members,
The wait is over, and we are excited to bring you our NYSE listed trade idea.
Please turn your immediate attention to eMagin Corporation (EMAN).
eMagin is a US-based manufacturer of OLED micro-displays.
The company has proprietary technology in micro-displays and Direct Pattern Processing that has caught the eye of the US Dept. of Defense.
As a result, the company has won DoD awards for over $39 million. These funds will be used to increase manufacturing capacity
Recognized by DoD as the only domestic manufacturer of OLED microdisplays designated as a cornerstone of the US manufacturing base.
The DoD funds should also help the company further penetrate into the Augmented and Virtual Reality (AR/VR) consumer and commercial markets.
eMagin is a rated a BUY on barchart.com.
About eMagin
The leader in OLED microdisplay technology for the next generation of computing and imaging devices, serving world-class customers in the military, consumer, medical and industrial markets. We invent, engineer and manufacture display technologies of the future in the USA, including our Direct Patterning Technology (dPd) that will transform the way the world consumes information. Since 2001, our microdisplays have been, and continue to be, used in AR/VR, aircraft helmets, heads-up display systems, thermal scopes, night vision goggles, future weapon systems and a variety of other applications. www.emagin.com.
Company Highlights
The only US manufacturer of OLED microdisplays; a technology leader with proprietary and patented direct patterning technology (dPdTM) for ultrahigh brightness in color
Recent US government funding for manufacturing to support improvement in growth, innovation and productivity
Deep applications expertise and broad IP portfolio; aligned with blue-chip customer base and longterm industry trends
Well-established military and aviation market presence benefitting from secular and cyclical tailwinds; leverageable platform for high growth opportunities in consumer and commercial end markets
Uniquely positioned to capitalize on growing addressable markets in military, industrial and consumer for high brightness AR/VR solutions
Highly experienced management team with industry leading technical expertise enabling a substantial runway for value creation
Growth Strategy
Leverage commercial and consumer electronics customer relationships for AR/VR opportunities
Develop partnerships for high volume manufacturing
Grow commercial and industrial presence
Expand military and aviation market share
Deepen penetration of leading-edge dPdTM technology
Increase capacity and production yields; expand manufacturing capability
eMagin’s OLED Technology Advantage
Lowest Power and Highest Brightness
Brightest OLED – monogreen over 28,000 cd/m2; full color 7,500 cd/m2 demonstrated, full color 10,000 cd/m2 targeted this year
Very high contrast – greater than 1,000,000:1
Lower power consumption– longer battery life
More compact form factor
Light-weight solution
Field tested for reliability and performance
Nausea-free operation
Superior performance and a competitive cost at higher volumes
The Future of AR/VR Powered by – EMAN's dPd™
Conventional OLED microdisplays use white OLED with color filters
Color filters absorb ~80% of the useful light; limited brightness and inefficient
Only eMagin has Direct Patterned microdisplay technology for direct emission of red, green and bluelight without color filters
Enables significantly higher brightness; targeting 10,000 cd/m2 at year end and 28,000 cd/m2 by 2023
Higher efficiency, much lower power consumption
eMagin is ahead today in full color OLED microdisplay brightness and will stay ahead
EMAN already has customers in the military, consumer, medical and industrial markets for use in products such as AR/VR (augmented reality/virtual reality), aircraft cockpits, heads-up display systems, thermal scopes, night-vision goggles, future weapon systems, MRI and LASIK systems, and a variety of other applications.
EMAN Sees Revenues Grow In Q2
Revenue of $7.7 million, up 44 % year-over-year and 15% sequentially from Q1
Second Quarter Results
Total revenues for the second quarter of 2020 were $7.7 million, an increase of approximately $2.3 million from revenues of $5.4 million reported in the prior year period, and an increase of $1.0 million from the first quarter of 2020.
Total revenue consists of both product revenue and contract revenue. Product revenues for the second quarter of 2020 were $6.3 million, an increase of $1.3 million from product revenues of $5.0 million reported in the prior year period. The increase in display revenue for the quarter resulted from increased demand from military customers and higher average selling prices. The increase in product revenue was achieved despite some minor disruptions resulting from the Covid-19 pandemic. Contract revenues were $1.4 million compared to $0.4 million reported in the prior year reflecting the contribution from contract R&D work for the consumer market.
Total gross margin for the second quarter was 26% on gross profit of $2.0 million compared to a gross margin of 4% on gross profit of $0.2 million in the prior year period. The total gross margin of 26% in the second quarter of 2020 reflects favorable margins on contract revenues for the consumer market. Second quarter 2020 product gross margin of 20% compares favorably to 1% in the prior year which was impacted by lower throughput due to manufacturing challenges that had continued from the first quarter of 2019.
Outlook for third quarter
At June 30, 2020, the Company's backlog of open orders was $14.5 million, including $13.2 million shippable within twelve months. This compares to a backlog of orders shippable within twelve months of $11.7 million as of December 31, 2019. As deemed an essential business, the Company continues to ship and produce product and has not experienced any major material supply chain disruptions.
Market Outlook
According to a research report on the global micro-display market by Transparency Market Research, the global micro-display market is expected to reach value of $5.3 billion by 2025 - expanding at a CAGR of 44% between 2019 and 2025.
"Micro-Display Market reports the micro-display market will be driven by OLED technology:
Several industry experts believe OLEDs are set to replace existing technologies in the display ecosystem. As such, a significant number of companies have started investing increasingly in research and development activities related to OLED."
The combination of that kind of growth in the micro-display market, and that experts believe OLEDs are likely to replace existing displays, is a huge opportunity for eMagin.
(AR) Augmented Reality Market is set to exceed USD 50 billion by 2024
AR market is expected to grow at a significant rate, owing to the growing penetration in industrial applications. Industries such as retail, automotive and medical are leveraging the potential of the technology to enhance operational efficiency. The technology helps to cut major costs such as additional manpower.
For instance, Brick and Mortar stores have adopted AR apps to navigate & guide the shopper through the aisles to all the products. These are used to trigger customer imagination and entice to try products which increases the user engagement level. Several organizations including research and development labs are investing immensely in the technology to develop solutions for enterprise and consumer segments. Mobile augmented reality market has witnessed high adoption over the years across applications including gaming, media and marketing.
Technical Analysis
Based on our own technical analysis, we see the potential for a move to $1.80 from here.
Bullish Technical Indicators
Fibonacci golden pocket held strong within a very volatile market.
100MA has now caught up to provide vital.
Stochastic bottomed and in bullish reversal
The Bottom Line
EMAN is a small company with key proprietary, patent-protected, and potentially game-changing dPd technology. The company has recently been awarded $39.1 million in monetary awards from the DoD and has extensive product sales into the military market. The recent DoD awards will enable them to expand their manufacturing capacity, improve throughput and yields. Meantime, the company can parley the DoD funds to advance products into the consumer and commercial AR/VR mass markets, both of which IDC expects to grow rapidly over the next couple of years.
EMAN appears to have a strong, experienced, and technically competent management team that has developed a robust patent portfolio that not only protects the company's intellectual property but could lead to licensing revenue in the near future.
With a strong balance sheet, strong funding commitments from the DoD ($39.1 million spread over three years), strong growth in revenue, an increasing backlog due to existing customer demand, and upcoming new product offerings, EMAN has a solid financial footing and a bright future.By Viewing this Content, you Agree that you Have Read and are in Full Understanding of both our Disclaimer & Privacy Policy(*Remember to use a Stop-Loss Order to protect your gains, as well as limit possible losses.)