OLED-TV Display/Monitor Technology News

Magin Corporation (OTCBB:EMAN), the leader in OLED and personal imaging technologies, has issued financial results for its fiscal year and fourth quarter ending December 31, 2007. The results show record revenues with year-over-year results improving by 115% for the full year of 2007.

Financial Summary

-- Revenue for the three and twelve months ending December 31, 2007, of $ 4.6 million and $17.6 million increased 81% and 115%, respectively, from $2.6 million and $8.2 million for the quarter and year ending December 31, 2006. The growth in revenue was directly attributable to increased sales of our microdisplays to military, industrial, and dual-use OEMs, with military OEM growth of 100% driving results.

-- Cost of goods increased 46% to $3.5 million for the quarter ended December 31, 2007 from $2.4 million in 2006. For the full year the cost of goods were $12.6 million in 2007 as compared to $11.4 million in 2006.

-- Gross margins were a record $1.1 million in the fourth quarter and $4.9 million for the full year, compared to gross margins of positive $138,000 and negative ($3.2) million for the same periods the prior year. These improvements reflect the impact of increased sales volumes and low variable production costs in our cost of sales.

-- Operating expenses for 2007 were $2.0 million for the fourth quarter and $9.5 million for the full year compared to $3.1 million and $13.3 million for the same periods in 2006.

-- Net loss for the three months ending December 31, 2007 was ($1.2 million) compared to ($1.5 million) in 2006. For the full year 2007 net loss was ($18.5 million) compared to a net loss of ($15.3 million) during 2006. Approximately $10.7 million of the loss in 2007 was related to the exchange of the 8% senior secured convertible notes and related warrants for the 6% senior secured convertible notes and warrants.

Loss per share for the three and 12 months ending December 31, 2007, were $(0.09) and $(1.59) compared to the same periods ending December 30, 2006, of $(0.15) and $(1.52) per share. For the 12 months ending December 31, 2007, ($0.92) per share related to charges for the restructuring of approximately $6 million of senior secured convertible notes and related warrants mentioned above

Selected Highlights

-- eMagin ranked 15th on Deloitte's Washington State Technology Fast 50 listing of the fastest growing technology, media, telecommunications, and life sciences companies in the state. On Deloitte's national list eMagin was listed as the 459th fastest growing firm nation wide.

-- eMagin won several major government R&D programs totally about $6 million to enhance its technology and assist in the development of new high resolution display designs. These programs should initiate during 2008 and are additive to about $4 million in programs already underway.

-- At the Society for Information Display Conference, eMagin demonstrated its new prototype SVGA-3DS microdisplay, which offers both analog and digital signal processing in a compact display (0.44-inch) with greater power efficiency. The world's finest pixel pitch (11.1 microns) OLED device would eliminate the need for extra circuitry and components while allowing for a smaller display module design with increased functionality, with no increase in power consumption.