TAUNTON – Microdisplay and transistor maker Kopin Corp. (Nasdaq: KOPN) saw its second-quarter loss shrink to $1.67 million, a 46.89-percent improvement from the year-ago loss of $3.15 million, on revenue that rose 18.15 percent to $25.84 million. The company’s net loss per diluted share narrowed to 2 cents from the 2007 second quarter’s 5-cent loss.

Results for the fiscal period ended June 28 included $1.40 million in one-time charges: a $700,000 impairment “related to the company’s equity investment in a non-marketable security,” whose estimated value Kopin downgraded based on market comparisons; and a $700,000 set-aside – listed among selling, general and administrative expenses – to establish a “reserve against receivables from an affiliated company, KTC,” the company said. Total second-quarter expenses, including those charges, rose 8.38 percent compared with a year ago to $28.28 million.

Kopin’s second-quarter display-segment revenue rose 28 percent to $13.6 million, as increases in sales of military and eyewear products outweighed a steep decline in sales of products for consumer electronic applications, such as viewfinders for camcorders and digital cameras and camcorders. Revenue from the “III-V” integrated-circuit segment rose 9 percent compared with the 2007 second quarter to $12.2 million.

“Our strategic investments to expand manufacturing capacity, enhance manufacturing capability and improve yield produced measurable results in the second quarter, as our gross margin nearly doubled from the same period in 2007,” John C.C. Fan, Kopin’s president and CEO, said yesterday in an after-market statement. Product sales rose 13.5 percent to $24.15 million, while production expenses shrank 0.67 percent to $18.68 million.

“The improved gross margin and increased revenue we delivered in the first half of 2008 also reflect Kopin’s increased focus on higher-value product applications across the CyberDisplay and III-V categories of our business and reduced participation in commodity consumer electronic applications,” Fan said.

For the first six months of 2008, Kopin posted a net loss of $724,018, an 88.78-percent improvement from the year-ago loss of $6.45 million, on revenue that rose 13.76 percent to $55.00 million. The company’s net loss per diluted share narrowed to 1 cent, or one-tenth of the 2007 first half’s 10-cent loss.

“In the second quarter, we continued our investment in military and eyewear products,” the CEO added. “The majority of our R&D expenses were related to qualification efforts associated with the Thermal Weapon Sight Bridge (TWS Bridge) program, Enhanced Night Vision Goggle (ENVG) program or display-development activities which should benefit future military and commercial display programs.” (READ MORE)

In June, Fan noted, “we commenced production of military products in our new Higher Level Assembly (HLA) facility” (READ MORE) And in May, Kopin announced a contract to develop high-efficiency photovoltaic solar cells for the National Aeronautics and Space Administration. (READ MORE)

Kopin Corp. is a maker of lightweight, power-efficient, ultra-small liquid crystal displays (LCDs) and heterojunction bipolar transistors (HBTs) for a variety of applications, under trademarks including CyberDisplay and The NanoSemiconductor Co. For additional information, visit www.kopin.com.