eMagin Corp. (EMAN) stock prices were down 6.03% at the end of the trading day on July 13th, 2021, bringing the price per share down to USD$2.96. Subsequent premarket fluctuations have seen the stock recover by 2.36%, bringing it up to USD$3.03.
Revenue Breakdown
The first quarter of 2021 saw the company report total revenues, which consists of both product revenue and contract revenue, in the amount of USD$6.8 million, up from the USD$6.7 million reported in the prior year quarter. Product revenue for the quarter were reported at USD$6.1 million, USD$0.5 million improvement from the numbers reported for Q1 2020. This increase was largely driven by the increase in display revenues, which, in turn, were derived from higher sales to medical and veterinary customers. Contract revenues were down to USD$0.7 million from the USD$1.1 million reported in the prior year quarter, reflecting the completion of various government contracts in the 2020 quarter.
Gross Margin and Profit
Total gross margin for the quarter was reported at 25%, with a gross profit of USD$1.7 million. This is comparable to the 21% gross margin and USD$1.4 million in gross profits for the 2020 quarter. The year-over-year improvements were largely driven by improvements in yields, higher product revenues, and the impact of a change in overhead allocation. The gains were partially offset by lower contract revenues for the 2020 quarter.
Net Loss Reports
Net loss for the 2021 quarter was reported at USD$7.4 million, representing a net loss of USD$0.10 per share, up from the USD$1.4 million in the prior year quarter, representing a net loss of USD$0.03 per share. This year-over-year difference is largely attributable to USD$7.2 million non-cash loss related to the change in fair value of a warranty liability for the current period.
Solid Liquidity Position
The company reported a solid liquidity position of USD$10.7 million in cash and cash equivalents as of March 31st 2021. Further consolidating the healthy financial position is the availability of USD$8.3 million in working capital. The first quarter of 2021 saw the company repay USD$1.7 million as per its asset-based lending facility, as well as realized proceeds from the exercise of warrants in the amount of USD$5.1 million.
Future Outlook for EMAN
Armed with a solid liquidity position and the success of its quarterly financial report, EMAN is poised to capitalize on the continued growth it expects for the upcoming quarters. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal to extrapolate the company’s recent success, resulting in significant and sustained increases in shareholder value.
