Kopin Corp (NASDAQ:KOPN) shares are trading higher on Tuesday on the heels of the company’s first-quarter earnings report. Here’s what you need to know.

• Kopin stock is trending. Where are KOPN shares going?

Revenue Beat And Strategic Announcements

Kopin posted quarterly revenue of $10.6 million, topping the $10.25 million consensus estimate by 3.47%. Sales were essentially flat year-over-year, rising 0.59% from $10.54 million. Additionally, the company announced its Fabric.AI collaboration for Neural I/O optical interconnect technology supported by a $15 million development order and a 19.9% equity stake.

The company also highlighted a $21.5 million follow‑on thermal imaging contract and its entry into the FPV drone market with a $3.2 million initial order.

Non‑product revenue surged to $5.1 million from $1.3 million last year, a 292% increase. This jump came from government funding tied to the development of ultra‑bright, full‑color MicroLED displays for soldier‑focused augmented reality, along with collaboration revenue from a strategic partnership.

Research and development expenses climbed to $4.9 million from $2.1 million, a 133% increase. The rise was driven by higher funded R&D tied to the MicroLED government award, partially offset by lower internal spending. Selling, general and administrative expenses increased to $6.0 million from $4.7 million, up 28%. Higher professional fees and performance‑based compensation contributed to the increase.

Despite the well-received revenue results, product revenue fell to $5.4 million from $9.2 million a year ago, a 41% decline. The drop was tied to weaker shipments of thermal weapon sight components and liquid crystal displays.

KOPN Shares Are Volatile

Optimistic commentary surrounding AI-related demand on the company’s conference call appears to have sparked a buying frenzy in early trading. The stock traded up to $6.45 on Tuesday before pulling back.

KOPN Price Action: Kopin shares were up 1.61% at $5.06 at the time of publication on Tuesday, according to Benzinga Pro.

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