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eMagin 2Q20 results +3

09:44 13-Aug-20


The eMagin conference call has just concluded.  The EPS miss was largely due to lower volume due to equipment breakage and delay in repair due to the pandemic.  That also figured into costs for safety measures, but otherwise the business is deemed essential and functioning normally, as the broken equipment is back on line.  Management expects improved sales this quarter, and new private sector development contracts are also intriguing.  Upgrades of production equipment should continue through remainder of the year, with commercial production penciled in for 2023. 

Pending post-election budget decisions, I continue to think eMagin looks like a very good high risk investment for explosive returns.  I note that even in the event of a Democratic sweep, American production may remain a priority, and eMagin is benefiting from that.

On 8/13/20 9:00 AM, Esekla wrote:
eMagin has published its second quarter results:
  • a loss of 5 cents per share misses by 4 cents
  • from $7.7M of revenue, which beats by $200K
I'm inclined to overlook the loss in light of the government support and shares are seeing an initial pre-market bounce consistent with the short squeeze conditions that I've documented.  The rebate rate is now at 23%.  Management also issued a press release on two new patent awards.  That's nice, but it concludes with the following statement:
We recently also achieved internal success with dPd OLED performance and throughput. This has implications for our business model as well because dPd is a technology that can be applied broadly to the sub-pixel structures of other OLED microdisplay companies. Therefore, we expect that dPd technology will move to the forefront of the OLED microdisplay industry and help shape its destiny.
eMagin's shippable orders over the next year have increased by $1.3M and its production yields should improve significantly.  This potentially sets the stage for the Get Rich part of GRoDT.  The conference call is beginning shortly and I will listen before switching off to the Golar calls.  I will only comment further if I hear something instructive.