eMagin Shares Fall On Q3 Miss Reflecting Manufacturing Tool Downtime

eMagin Corp EMAN reported a third-quarter FY21 revenue decline of 20.9% year-on-year to $5.8 million, missing the consensus of $7.2 million.
Segments: Product revenue reduced 23.9% Y/Y to $5.3 million due to a decrease in display revenue from unexpected downtime experienced with manufacturing equipment, which delayed specific display shipments into the Q4.
The gross margin contracted 1,300 bps to 10% from decreased shipments of displays, lower manufacturing volumes, and decreases in period costs capitalized into inventory due to equipment issues.
The operating loss widened to $(3.3) million, reflecting the decreased gross profit. The adjusted EBITDA loss widened to $(2.1) million.
EPS loss of $(0.05) missed the consensus loss of $(0.02).
eMagin held $7.3 million in cash and equivalents.
"To address manufacturing throughput and yield issues, we are working with an industrial engineering firm to improve our overall operating effectiveness. In addition, this firm is providing support in our efforts to obtain the AS9100 quality certification during the first quarter of 2022," said eMagin CEO Andrew Sculley.
Price Action: EMAN shares traded lower by 4.36% at $2.41 in the premarket session on the last check Friday.