Kopin Corporation
KOPN
#7205
Rank
$0.53 B
Marketcap
$2.98
Share price
1.02%
Change (1 day)
220.43%
Change (1 year)

Kopin Corporation - 10-Q quarterly report FY


Text size:
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q


QUARTERLY REPORT PURSUANT TO SECTION 13 OR l5(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the quarterly period ended March 30, 1996

Commission file number 0-19882


KOPIN CORPORATION
-----------------
(Exact name of registrant as specified in its charter)



DELAWARE 04-2833935
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

695 MYLES STANDISH BLVD.,TAUNTON, MA 02780-1042
- - ------------------------------------ ----------
(Address of principal executive offices) (Zip Code)



Registrant's telephone number, including area code (508) 824-6696
--------------

Not Applicable
--------------
Former name, former address, and former fiscal year,
if changed since last report


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or l5(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes X No
--- ---


Applicable only to corporate issuers:

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

Class Outstanding as of April 30, 1996
----- --------------------------------

Common Stock, par value $.01 10,918,682


-1-
KOPIN CORPORATION

INDEX
-----



Page No.
-------
[S] [C]
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements


Consolidated Balance Sheets at
March 30, 1996 and December 31, 1995 3


Consolidated Statements of Operations for the
Three months ended March 30, 1996 and April 1, 1995 4


Consolidated Statements of Stockholders' Equity for the
Three months ended March 30, 1996 and April 1, 1995 5


Consolidated Statements of Cash Flows for the
Three months ended March 30, 1996 and April 1, 1995 6


Notes to Consolidated Financial Statements 7


Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 8


PART II - OTHER INFORMATION

Item 4. Submission of Matters to a Vote of Security-Holders 11


Item 6. Exhibits and Reports on Form 8-K 11


SIGNATURES 12


-2-
KOPIN CORPORATION

CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>

March 30, 1996 December 31, 1995
-------------- -----------------
(unaudited)
<S> <C> <C>
ASSETS
- - ------
Current assets:
Cash and equivalents $22,292,085 $24,718,023
Marketable securities 16,346,147 17,278,954
Accounts receivable, net of allowance of $97,600 and $85,600:
Billed 4,010,920 3,147,846
Unbilled 3,986,438 3,438,766
Inventory 7,608,943 6,402,190
Prepaid expenses and other current assets 1,202,795 1,984,612
----------- -----------
Total current assets 55,447,328 56,970,391

Equipment and improvements:
Equipment 18,486,572 19,258,354
Leasehold improvements 835,900 835,900
Furniture and fixtures 420,349 414,707
Equipment under construction 1,099,755 964,446
----------- -----------
20,842,576 21,473,407
Accumulated depreciation and amortization 9,908,967 9,902,444
---------- -----------
10,933,609 11,570,963
Other assets 3,517,716 3,438,334
Intangible assets 3,004,798 4,179,877
----------- -----------
Total assets $72,903,451 $76,159,565
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
- - ------------------------------------
Current liabilities:
Notes payable $ 3,500,000 $ 3,000,000
Accounts payable 9,006,001 7,712,508
Accrued payroll and expenses 2,049,867 808,826
Current portion of long-term obligations 965,369 629,643
Current portion of unearned revenue 92,004 92,004
----------- -----------
Total current liabilities 15,613,241 12,242,981
Deferred rent 397,333 388,833
Unearned revenue, less current portion 57,483 80,484
Long-term obligations, less current portion 2,385,895 1,605,050
Minority interest 1,242,754 -
Stockholders' equity:
Preferred stock, par value $.01 per share: Authorized, 3,000 shares;
none issued and outstanding
Common stock, par value $.01 per share: Authorized, 20,000,000
shares; issued 10,918,682 shares in 1996 and 10,915,019
shares in 1995 109,187 109,150
Additional paid-in capital 88,361,983 88,355,145
Deferred compensation (82,788) (94,482)
Marketable securities valuation 204,195 137,183
Accumulated deficit (35,385,832) (26,664,779)
----------- -----------
Total stockholders' equity 53,206,745 61,842,217
----------- -----------
Total liabilities and stockholders' equity $72,903,451 $76,159,565
----------- -----------
</TABLE>
See notes to consolidated financial statements.


-3-
KOPIN CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)
<TABLE>
<CAPTION>

Three Months Ended
----------------------------

March 30 April 1
1996 1995
------------- ------------
<S> <C> <C>
Revenue:
Product sales $ 3,043,766 $ 583,576
Research and development 1,729,472 1,975,146
Interest and other income 560,396 445,970
------------- ------------
5,333,634 3,004,692
------------- ------------
Costs and expenses:
Cost of sales 2,707,918 543,958
Research and development 4,710,969 4,111,672
General, administrative and selling 1,943,656 725,861
Interest 124,209 54,531
Other 134,769 68,553
Non-recurring charge 4,990,412 --
------------- ------------
14,611,933 5,504,575
------------- ------------
Loss before minority interest (9,278,299) (2,499,883)
Minority interest in loss of subsidiary 557,246 --
------------- ------------
Net loss ($ 8,721,053) ($2,499,883)
------------- ------------

Net loss per share ($.80) ($.27)
----- -----

Weighted average number of common shares
outstanding 10,915,858 9,298,958
------------- ------------


</TABLE>
See notes to consolidated financial statements.


-4-
KOPIN CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

THREE MONTHS ENDED MARCH 30, 1996 AND APRIL 1, 1995

(UNAUDITED)
<TABLE>
<CAPTION>


Additional
Common Stock Paid-in Deferred Securities
Shares Amount Capital Compensation Valuation Deficit Total
---------- -------- ----------- ------------- ----------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>

Balance, December 31, 1994 9,298,711 $ 92,987 $61,926,736 ($224,670) ($670,000) ($17,673,780) $43,451,273

Exercise of stock options 2,500 25 2,475 -- -- -- 2,500

Amortization of compensation
relating to grant of stock options -- -- -- 32,547 -- -- 32,547

Net unrealized gain on marketable
securities -- -- -- -- 190,000 -- 190,000

Net loss for the three month
period ended April 1, 1995 -- -- -- -- -- (2,499,883) (2,499,883)
---------- -------- ----------- ------------ ---------- ------------ -----------

Balance, April 1, 1995 9,301,211 $ 93,012 $61,929,211 ($192,123) ($480,000) ($20,173,663) $41,176,437
---------- -------- ----------- ------------ ---------- ------------ -----------

Balance, December 31, 1995 10,915,019 $109,150 $88,355,145 ($ 94,482) $137,183 ($26,664,779) $61,842,217

Exercise of stock options 3,663 37 6,838 -- -- -- 6,875

Amortization of compensation
relating to grant of stock options -- -- -- 11,694 -- -- 11,694

Net unrealized gain on marketable
securities -- -- -- -- 67,012 -- 67,012

Net loss for the three month
period ended March 30, 1996 -- -- -- -- -- (8,721,053) (8,721,053)
---------- -------- ----------- ------------ ---------- ------------ -----------

Balance, March 30, 1996 10,918,682 $109,187 $88,361,983 ($ 82,788) $204,195 ($35,385,832) $53,206,745
---------- -------- ----------- ------------ ---------- ------------ -----------
</TABLE>

See notes to consolidated financial statements.


-5-
KOPIN CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended

March 30 April 1
1996 1995
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net loss ($ 8,721,053) ($ 2,499,883)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Depreciation and amortization 902,809 711,153
Amortization of compensation
relating to grant
of stock options 11,694 32,547
Non-recurring charge 4,990,412 -
Decrease in unearned revenue (23,001) (23,001)
Increase in accrued rent 8,500 8,501
Minority interest in loss of subsidiary (557,246) -
Changes in assets and liabilities:
Accounts receivable (1,410,746) (779,920)
Inventory (1,206,753) (345,702)
Prepaid expenses and other
current assets (71,550) 189,007
Intangible assets (1,388,889) (68,909)
Accounts payable and accrued
expenses 1,634,534 1,017,391
----------- -----------
Net cash used in operating
activities (5,831,289) (1,758,816)
----------- -----------

Cash flows from investing activities:
Marketable securities 999,819 983,138
Other assets (79,382) (1,342,007)
Capital expenditures (938,532) (939,171)
----------- -----------
Net cash used in investing
activities (18,095) (1,298,040)
----------- -----------

Cash flows from financing activities:
Net proceeds from issuance of
subsidiary common stock 1,800,000 -
Proceeds from notes payable 500,000 2,000,000
Proceeds from long-term obligations 1,285,862 -
Principal payment on long-term
obligations (169,291) (148,634)
Proceeds from exercise of stock
options 6,875 2,500
----------- -----------
Net cash provided by financing
activities 3,423,446 1,853,866
----------- -----------

Net decrease in cash and equivalents (2,425,938) (1,202,990)
Cash and equivalents, beginning of
period 24,718,023 1,887,271
----------- -----------
Cash and equivalents, end of period $22,292,085 $ 684,281
----------- -----------

Non-cash investing and financing
transactions:
Marketable securities valuation $ 67,012 $ 190,000

Supplementary information -Interest
paid in cash $ 103,401 $ 39,226
</TABLE>
See notes to consolidated financial statements.

-6-
KOPIN CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



1. BASIS OF PRESENTATION
---------------------

The financial statements for the three month periods ended March 30, 1996 and
April 1, 1995 are unaudited and include all adjustments which, in the opinion of
management, are necessary to present fairly the results of operations for the
periods then ended. All such adjustments are of a normal recurring nature. These
financial statements should be read in conjunction with the financial statements
and notes thereto included in the Company's Annual Report on Form 10-K filed
with the Securities and Exchange Commission (File No. 0-19882) for the year
ended December 31, 1995.

The results of the Company's operations for any interim period are not
necessarily indicative of the results of the Company's operations for any other
interim period or for a full fiscal year.

The consolidated financial statements include the accounts of the Company and
its wholly-owned and majority-owned subsidiaries. All intercompany transactions
and balances have been eliminated. In 1994, the Company made equity investments
in Forte Technologies, Inc. In May 1995, the Company obtained a controlling
interest in Forte and has consolidated the financial statements of Forte with
those of the Company since that date.

2. NET LOSS PER SHARE
------------------

Net loss per share is computed using the weighted average number of common
shares outstanding during the period. Common share equivalents have not been
included because the effect would be anti-dilutive.

3. INVESTMENT IN FORTE TECHNOLOGIES, INC. AND MINORITY INTEREST
------------------------------------------------------------

In October 1994, Kopin acquired a 31% equity interest in Forte Technologies,
Inc., a developer and manufacturer of virtual reality head-mounted systems.
During 1995, Kopin made a series of additional equity investments in and loans
to Forte which resulted in an aggregate equity investment totaling $4,750,000
and loans outstanding of $1,750,000 at December 31, 1995.

In January 1996, Kopin converted a $1,000,000 loan outstanding to Forte as part
of a $2,800,000 private equity offering of Forte common stock. Net proceeds to
the Company totaled $1,800,000 from minority investors. Additionally, in
January 1996, Kopin guaranteed an aggregate of $1,000,000 of equipment and
working capital loans obtained by Forte from a senior lender and agreed to
subordinate its remaining $750,000 loan to Forte to the equipment and working
capital loans. At March 30, 1996, Kopin held a 59% equity ownership in Forte.

4. NOTE PAYABLE AND LONG-TERM OBLIGATIONS
--------------------------------------

In March 1995, the Company entered into a $2,000,000 demand note agreement with
a bank which bears interest at 1/2% above prime, or 8.75% at March 30, 1996.

During the three months ended March 30, 1996, the Company entered into two
separate equipment financing agreements totaling approximately $1,286,000 as
well as a $500,000 demand note agreement.

5. NON-RECURRING CHARGE
--------------------

On January 1, 1996, the Company adopted SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of." This
Statement establishes accounting standards for the carrying value of long-lived
and certain identifiable intangible assets. In January 1996, the Company
incurred a non-recurring charge of $4,990,412 which included a write-down
associated with the initial adoption of SFAS No. 121, the expensing of purchased
technology, and the write-off of certain previously deferred expenses.

6. RECENT PRONOUNCEMENTS
---------------------

In October 1995, the Financial Accounting Standards Board issued SFAS No. 123,
"Accounting for Stock-Based Compensation," which was effective for the Company
beginning January 1, 1996. SFAS No. 123 requires expanded disclosures of stock-
based compensation arrangements with employees and encourages (but does not
require) compensation costs to be measured based upon the fair value of the
equity instrument awarded. Companies are permitted; however, to continue to
apply APB Opinion No. 25, which recognizes compensation cost based on the
intrinsic value of the equity instrument awarded. The Company will continue to
apply APB Opinion No. 25 to its stock based compensation awards to employees and
will disclose the required pro forma effect on net income and earnings per share
in the Company's year ended December 31, 1996 financial statements.


-7-
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------

Kopin Corporation and its subsidiaries ("the Company") are engaged in the
development, manufacture and sale of flat panel display devices and products,
and custom wafer-engineered electronic materials for commercial and consumer
markets. To date, the Company's revenue has been derived primarily from
development contracts with commercial companies and agencies of the federal
government, as well as from sales of its custom wafer-engineered materials and
flat panel display devices and products.

RESULTS OF OPERATIONS

The Company's research and development and product sale revenue was
$4,773,238 for the three months ended March 30, 1996, an increase of 86.5% from
$2,558,722 during the corresponding period in 1995. Research and development
revenue decreased to $1,729,472 for the three months ended March 30, 1996, from
$1,975,146 during the corresponding period in 1995, a decrease of 12.4%. The
change in 1996 research and development revenue was primarily attributable to a
decrease in contract revenue from agencies of the federal government. The
Company's product sales increased 421.6% to $3,043,766 for the three months
ended March 30, 1996, from $583,576 during the corresponding period in 1995. The
sales increase was primarily due to initial sales of the Company's head-mounted
display products as well as an increase in unit sales of the Company's wafer-
engineered materials. The increase in unit sales of the Company's wafer-
engineered materials is primarily due to the increase in use of these materials
in various wireless telecommunications products.

Interest and other income was $560,396 for the three months ended March 30,
1996 compared to $445,970 during the corresponding period in 1995. The increase
in 1996 was primarily due to higher cash balances during the period.

The Company's total operating expenses were $14,611,933 for the three
months ended March 30, 1996, an increase of 165.5% from $5,504,575 in 1995. Of
this increase, $4,990,412 was a non-recurring charge for the write-down of
certain intangible and long-lived assets in connection with the Company's
adoption of the provisions of Statement of Financial Accounting Standards No.
121, the expensing of purchased technology, and the write-off of certain
previously deferred expenses. In addition, research and development charges of
$500,000 for subcontractor development work were expensed. The remainder of the
increase was primarily due to increased costs incurred for internal development
programs, manufacture and sale of wafer-engineered materials and display
products, personnel increases and increased sales and marketing costs for the
Company's head-mounted display products. Cost of sales, which is comprised of
materials, labor and manufacturing overhead, was $2,707,918 for the three months
ended March 30, 1996, or 89.0% of product sales, compared to $543,958, or 93.2%
of product sales during the corresponding period in 1995. Reducing cost of sales
as a percentage of sales for the Company's products is dependent on achieving
manufacturing economies of scale in order to manufacture at a lower per unit
basis.

Research and development expenses include expenses incurred in support of
internal development programs and programs funded by agencies of the federal
government. Total research and development expenses for the three months ended
March 30, 1996, were $4,710,969 compared to $4,111,672 during the corresponding
period in 1995, an increase of 14.6%. The increase in research and development
expenses in 1996 was primarily due to increased activity in the Company's
internal development programs for electronic imaging devices and display
products, wafer-engineered materials and head-mounted display systems, including
increases in circuit design costs, staffing, purchases of materials and
laboratory supplies, and fabrication and packaging of the Company's SMART SLIDE
imaging devices, as well as an increase of approximately $400,000 related to
research and development charges for subcontractor work. These increases were
partially offset by a reduction in research and development expenses incurred in
support of programs funded by agencies of the federal government. Expense
related to the Company's internal development programs was $2,346,000 for the
three months ended March 30, 1996, compared to $1,971,000 during the
corresponding period in 1995.

General, administrative and selling expenses consist of the expenses
incurred by the Company's business development and sales personnel, marketing
expenses, and administrative and general corporate expenses. General,
administrative and selling expenses were $1,943,656 for the three months ended
March 30, 1996, an increase of 167.8% from $725,861 during the corresponding
period in 1995. The increase in general, administrative and selling expenses in
1996 was primarily due to increases in display product marketing costs,
advertising and trade show costs, as well as increased personnel and related
costs. In addition, general and administrative expenses include non-cash charges
for compensation expense of $11,694 for the three months ended March 30, 1996,
relating to the issuance of certain stock options. The

-8-
Company expects to incur additional increases in general, administrative and
selling expenses in the future as it commercializes its imaging devices and
display products.

During 1995, the Company adopted SFAS No. 107, "Disclosure About Fair Value
of Financial Instruments," effective January 1, 1995, as required. The effect of
this adoption had no material impact on the Company's financial statements.

On January 1, 1996 , the Company adopted SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of." This
Statement establishes accounting standards for the carrying value of long-lived
and certain identifiable intangible assets. In January 1996, the Company
incurred a non-recurring charge of $4,990,412 which included a write-down
associated with the initial adoption of SFAS No.121, the expensing of purchased
technology, and the write-off of certain previously deferred expenses.

In October 1995, the Financial Accounting Standards Board issued SFAS No.
123, "Accounting for Stock-Based Compensation," which was effective for the
Company beginning January 1, 1996. SFAS No.123 requires expanded disclosures of
stock-based compensation arrangements with employees and encourages(but does not
require) compensation costs to be measured based upon the fair value of the
equity instrument awarded. Companies are permitted; however, to continue to
apply APB Opinion No. 25, which recognizes compensation cost based on the
intrinsic value of the equity instrument awarded. The Company will continue to
apply APB Opinion No. 25 to its stock based compensation awards to employees and
will disclose the required pro forma effect on net income and earnings per share
in the Company's year ended December 31, 1996 financial statements.

LIQUIDITY AND CAPITAL RESOURCES

The Company has financed its operations primarily though private placements
of its equity securities, the initial public offering of its common stock in
April 1992, another public offering in March 1993, research and development
revenue, and sales of its custom wafer-engineered materials and flat panel
display devices and products. The Company has an unused line of credit of
$500,000 at March 30, 1996. The Company periodically enters into loan agreements
to finance equipment purchases and other activities. As of March 30, 1996, sales
of equity securities have raised approximately $92,500,000, including
$13,300,000 of net proceeds from the Company's initial public offering,
$26,500,000 of net proceeds from the Company's March 1993 public offering,
$3,300,000 from a private stock sale in November 1992, $4,375,000 from the
exercise of a 625,000 share stock warrant in December 1993, and $30,437,000 from
private stock sales to Telecom Holding Co., Ltd. and United Microelectronics
Corporation and its affiliate in the fourth quarter of 1995.

As of March 30, 1996, the Company had cash and equivalents and marketable
securities of $38,638,232 and working capital of $39,834,087 compared to
$41,996,977 and $44,727,410 as of December 31, 1995. The decrease in cash and
equivalents and marketable securities is primarily due to $5,831,289 of cash
used in operations and $938,532 for capital expenditures. These decreases were
partially offset by borrowings of $1,785,862 and $1,800,000 in equity financing
raised by one of the Company's subsidiaries from certain of its minority
stockholders. The Company also has approximately $2,300,000 of marketable
securities held in escrow as equipment financing collateral which is shown in
other assets.

Revenue from long-term contracts is recognized on the percentage-of-
completion method of accounting as work is performed, based upon the ratio that
incurred costs or hours bear to estimated total completion costs or hours.
Amounts received under long-term contracts are recognized as revenue is earned,
and amounts earned on contracts in progress in excess of billings are classified
as unbilled receivables. Unbilled receivables are billed based on dates
stipulated in the related agreement or in periodic installments based upon the
Company's invoicing cycle.

The Company periodically enters into various long-term debt arrangements in
connection with acquisition of certain capital equipment. During the three
months ended March 30, 1996, the Company entered into two separate equipment
financing agreements totaling $1,285,862. As of March 30, 1996, total long-term
debt obligations totaled $3,351,264, of which $965,369 is payable in 1996.
Additionally, in January 1996, the Company entered into a $500,000 demand note
agreement.

-9-
In October 1993, the Company entered into a five-year lease for a 74,000
square foot manufacturing facility. This facility, which includes 7,000 square
feet of environmentally controlled clean rooms, is being used for expansion of
the Company's manufacturing capabilities for production of wafer-engineered
materials and electronic imaging devices. The Company will make lease payments
of approximately $4.0 million over the five-year term.

The Company expects to expend approximately $8,000,000 over the next 36
months on equipment primarily related to development and manufacturing of
electronic imaging devices and display products and wafer-engineered electronic
materials. Of this amount, the Company expects to use approximately $3,000,000
in 1996, $3,000,000 in 1997, and $2,000,000 in 1998 for capital equipment and
expansion of the Company's manufacturing capabilities. Of these amounts,
approximately $6,000,000 is expected to be used for expansion of manufacturing
equipment required for development and manufacturing of electronic imaging
devices and display products, and wafer-engineered materials, and the balance is
expected to be used for the acquisition of laboratory and testing equipment and
general facility upgrades. The Company also expects to use approximately
$3,000,000 for development of advanced display circuit designs for its
electronic imaging devices.

The Company expects to incur significant additional research and
development and other costs, including costs related to the development and
commercialization of its electronic imaging devices and display products. The
Company's future capital requirements will depend on many factors, including the
establishment of collaborative arrangements, the cost of manufacturing
facilities, commercialization activities and arrangements, continued scientific
progress in its imaging device and display product development programs, the
magnitude of these programs, the costs involved in filing, prosecuting and
enforcing patent claims, and competing technological and market developments.

In October 1994, the Company made an equity investment of $1,000,000 in
Forte Technologies, Inc., a developer and manufacturer of virtual reality head-
mounted systems. Subsequently, the Company has made a series of additional
equity investments in Forte totaling $4,750,000, increasing its equity ownership
to 59% at March 30, 1996. From time to time, Kopin may make equity investments
in other companies, including Forte, engaged in certain aspects of the flat
panel display and electronics industries as part of its business strategy.

The Company believes that its present cash and equivalents and marketable
securities will be adequate to finance its anticipated operating and capital
requirements and to meet liquidity needs through at least fiscal 1997.

FUTURE OPERATING RESULTS

Certain of the statements contained in this Form 10-Q, including
Management's Discussion and Analysis of Financial Condition and Results of
Operations, are forward-looking statements that involve risks and uncertainties.
In addition to the risks and uncertainties set forth in this Form 10-Q, other
factors that could cause actual results to differ materially include the
following: general economic and business conditions and growth in the flat panel
display industry, the impact of competitive products and pricing, availability
of third party components, availability of integrated circuit fabrication
facilities, cost and yields associated with production of the Company's
SMARTSLIDE imaging devices, and the risk factors listed from time to time in the
Company's periodic reports filed with the Securities and Exchange Commission,
including but not limited to the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 1995.

-10-
PART II. OTHER INFORMATION

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS

On February 15, 1996, the Company held a Special Meeting of Stockholders to
consider and vote upon the following proposal:

(1) A proposal to ratify the amendment to the Company's Certificate of
Incorporation to increase the authorized shares of common stock from 15,000,000
to 20,000,000 shares. The results with respect to the voting on the proposal
were:

7,073,384 votes for; 179,137 votes against; and 298,367 abstentions

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

10.50 Securities Purchase Agreement, by and between the Company and Unitek
Semiconductor, Inc. dated January 26, 1996.

10.51 Chattel Leasing Promissory Note, by and between the Company and
BancBoston Leasing dated January 29, 1996.

10.52 Securities Purchase Agreement, by and between the Company and Forte
Technologies, Inc. dated February 8,1996.

27 Financial Data Schedule

(b) Reports on Form 8-K

none


-11-
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


KOPIN CORPORATION
(Registrant)



Date: May 14, 1996 By: /s/ John C.C. Fan
________________________________________________
John C.C. Fan
President, Chief Executive Officer and Chairman
of the Board of Directors (Principal Executive
Officer)


Date: May 14, 1996 By: /s/ Paul J. Mitchell
________________________________________________
Paul J. Mitchell
Treasurer and Chief Financial Officer (Principal
Financial and Accounting Officer)





-12-