eMagin announced its preliminary revenues for the fourth quarter of 2022 and 2022 year-end sales backlog.
The Company’s product revenue for the fourth quarter is expected to be in the range of $7.6 million to $7.8 million, representing a 9% to 11% increase from the fourth quarter of 2021, and a 9% to 11% sequential increase from the third quarter of 2022. The Company’s contract revenue for the fourth quarter is expected to be approximately $0.5 million, compared with $0.2 million in the fourth quarter of 2021. Total revenue for the fourth quarter is expected to be in the range of $8.1 million to $8.3 million, compared with total revenue of $7.2 million for the fourth quarter of 2021.
“We expect to end the year with a positive fourth-quarter book-to-bill ratio on strong fourth-quarter bookings that exceeded $7.8 million, positioning us well for the year ahead,” said eMagin CEO Andrew G. Sculley. “Highlights included a $1.6 million order for a military aviation program and a $1.0 million order from an eye care customer. These orders contributed to a total year-end backlog of open orders of $16.7 million, 89% of which is shippable during 2023.”
“Our fourth-quarter growth reflects a continuation of our upward trend in manufacturing yields, production throughput, and overall operating effectiveness,” said eMagin CFO Mark Koch. “Moreover, Q4 2022 was the fifth consecutive quarter in which eMagin achieved year-over-year growth in product revenues and achieved quarterly product revenue levels exceeding $7 million.”
As of December 31, 2022, the Company’s backlog of open orders scheduled for delivery over the next 12 months was approximately $14.8 million, an increase of 7% from the 2021 year-end backlog of $13.8 million. As of December 31, 2022, the Company had cash of approximately $4.2 million, compared with cash of $3.9 million as of September 30, 2022 and $5.7 million as of December 31, 2021. The Company’s revolving credit loan balance was approximately $0.9 million on December 31, 2022, compared with $0.7 million on September 30, 2022 and $2.0 million as of December 31, 2021.
As previously announced, the Company has placed orders for all of the advanced OLED manufacturing equipment provided under its $34 million in Defense Production Act Title III funding and $5 million in IBAS funding grants. The Company has already integrated several major pieces of equipment into its production line and anticipates delivery of an advanced, production-capable, dPd organic deposition tool that is expected to improve yield and throughput of this proprietary technology in the second quarter of 2023.
