eMagin Corp., a company focused on the manufacture of Active Matrix OLED microdisplays for high resolution imaging products, announced that preliminary revenue for the fourth quarter ended December 31, 2013, was approximately $6.1 million.
In a release on February 5, the Company noted that while demand for eMagin's microdisplays remains strong, there was a shortfall in anticipated product revenue for the fourth quarter of 2013 resulting from previously announced equipment downtime, low yield, and lower average sales prices. As well, contract revenue in the period continued to be impacted by fewer government R&D contracts as a result of the U.S. government sequestration.
Andrew G. Sculley, President and CEO, commented, "2013 was a very challenging year for us. While we have advanced our technology leadership position and continue to make investments to improve our processes, display production and yield, we have yet to meet our goals, as certain of our defense customers have imposed more exacting standards than we have experienced in the past. We are working diligently to meet their requirements and achieve our yield improvement objectives. In the fourth quarter, we changed our manufacturing leadership and strengthened our team to help us further improve. In addition, we have stepped up our efforts to increase yield with the purchase of new equipment and increasing the resources for our yield enhancement team. Going forward, we will continue to strengthen our manufacturing processes until we reach acceptable yield levels. As a result of these actions, we anticipate a return to revenue growth in 2014."
The Company is scheduled to report full fourth quarter results and give 2014 revenue guidance on March 11.
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