eMagin Corporation (NYSEMKT:EMAN) Gains – Triggers Remain Undiscovered


eMagin Corporation (NYSEMKT:EMAN) stock which had been lying low in the negative quadrant after its 4Q and full year operational announcements on 12th March, saw its market valuation pole vault by a huge 7 percent during trading on 26th March. Market analysts were left flummoxed when they went looking for the triggers which led to the sudden jump in the valuation of the stock. There were no company specific news, updates or developments which can be linked to the sudden jump yesterday in which its trading volumes registered a 30 percent increase over its average trading volume.

4QFY13 Results Revisited

Looking back at the results for the quarter, the firm had announced revenue dip of $2.2 million in the reporting quarter, which was well below the $8.3 million it had reported in 4Q12. This had resulted in net loss of $3.3 million before taxes. This was well below the net income of $1.8 million that the firm had reported in 4Q12.

FY13 Highlights

For the full year operations, eMagin Corporation (NYSEMKT:EMAN) had brought in revenue of $28 million , which was well below the $30.6 million it had reported in Fy12. Sales revenue from its products vertical went up by 2 percentage points; where as its revenue from its contracts and consulting stream saw a huge 62 percent dip for the year, due to continued lack of orders from the federal and state governments of U.S.  Due to these headwinds in the business, the gross profits that the firm reported had come down to $8.4 million as against the $14.9 million it had registered in Fy12.

Turn Around Forecasted

At the time of results announcement, eMagin Corporation (NYSEMKT:EMAN) President, Chief Executive Officer and Director Andrew G. Sculley Jr has been quoted to have said that, “Recent improvements to our manufacturing processes have resulted in greater up time on the new SNU OLED deposition tool and improving yield. As our manufacturing processes continue to improve during 2014, we expect to move essentially all of our commercial production to the SNU.”


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