In the run up to the semiconductor and equipment maker eMagin Corporation (NYSEMKT:EMAN) announcement of its fourth quarter and full year operations on 11th March after market close, the stock of this Bellevue based firm has seen its market valuation go down by close to 12.8 percent on 7th March. The trigger for this extensive lack of confidence exhibited by the investor community in this $56 million market capped firm was the release of preliminary revenue numbers for its 4Q and full year 2013 operations on 5th March.
4Q Dogged By Disruptions
The maker of high definition display products reported that it will be topping its annual income at $6.1 million for the full year. It also set expectations for a lower than expected revenue from its 4Q operations on the back of disruption that its production facilities suffered in the duration of the reporting quarter, due to unscheduled downtime owing to equipment break down. The firm’s operations were also plagued by low yield in production coupled with lower realized price for its products, due to stagnation in demand for its products. It also reported that the Federal government shut down last year had led to its revenue stream from its contract business vertical shrinking to lower than expected levels.
CEO Explains Challenging Operational Environment
Setting the tone for the 4Q earnings call on 11th March, eMagin Corporation (NYSEMKT:EMAN) President, Chief Executive Officer, Director Andrew G. Sculley, has been quoted to have said that, “2013 was a very challenging year for us. 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.”