Earnings Release
MicroVision Announces Second Quarter 2017 Results
MicroVision,
Inc. (MVIS), a leader in innovative ultra-miniature
projection display and sensing technology, today announced its financial
and operating results for the second quarter of 2017.
MicroVision made an initial shipment at the end of the second quarter of
display engines to Ragentek, a China-based smartphone manufacturer and
solution company with phones in China, India, Brazil and other
countries. Ragentek placed a $6.7 million order with MicroVision in
March 2017 for a customized display engine, PSE-0403-103, to be embedded
in its VOGA V smartphone which Ragentek revealed on June 28, 2017 at
Mobile World Congress Asia. MicroVision began volume shipments in July.
Due to timing of the June shipment and the customer acceptance window,
revenue for the shipped units was not recognized in the second quarter.
The PSE-0403-103 display engine is part of MicroVision’s engine line of
business, which includes two additional scanning engines, one for
interactive display and the other for 3D LiDAR sensing, that are
scheduled for commercial availability later in 2017 and 2018
respectively. During the second quarter MicroVision continued its
development of the interactive display and 3D LiDAR sensing engines.
In April 2017 MicroVision announced that it has been awarded a
development and supply contract for a laser beam scanning (LBS) system
by a leading technology company that included $14 million in development
fees contingent on completion of milestones and an additional $10
million upfront payment which was received in the second quarter and is
expected to be applied to future component purchases by the customer.
The development work began in April and is expected to span 21 months.
MicroVision also continued work on two additional development contracts
the company signed last year. One of those contracts is for augmented
reality and the other is for an automated driving assistance system
(ADAS). The company expects to complete work on both of those
development contracts in 2017.
The following financial results are for the three months ended June 30,
2017, compared to the three months ended June 30, 2016:
--
Revenue was $1.5 million compared to $4.2 million one year ago.
•
Operating loss was $5.5 million, compared to a loss of $3.5 million
for the same quarter one year ago.
•
Net loss was $5.5 million, or $0.08 per share, compared to a loss of
$3.5 million, or $0.07 per share for the same quarter one year ago.
•
In the second quarter 2017 cash provided by operations was $4.6
million compared to cash used in operations of $4.1 million for the
same period in 2016. Cash provided by operations in the quarter
includes the $10 million upfront payment and $4 million in payments
under the April 2017 development contract.
As of June 30, 2017 backlog was $21.5 million and cash and cash
equivalents were $17.7 million.
Conference Call
The company will host a conference call today to discuss its second
quarter 2017 results and current business operations at 8:30 a.m. ET /
5:30 a.m. PT. Participants may join the conference call by dialing
1-888-771-4371 (for U.S. participants) or + 1-847-585-4405 (for
international participants) ten minutes prior to the start of the call.
The conference call pass code number is 45326578. A live webcast of the
call can be accessed from the company’s web site in the Investor
Events Calendar section on the Investor’s page. A replay of this
call will be available after 8:00 a.m. PT the day of the conference call
through the same link or by calling 1-888-843-7419 (U.S.) or
+1-630-652-3042 (International), pass code 4532 6578#. The phone-in
replay will be available until August 10, 2017.
About MicroVision
MicroVision is the creator of PicoP(R) scanning technology, an
ultra-miniature laser projection and sensing solution based on the laser
beam scanning methodology pioneered by the company. MicroVision’s
platform approach for this advanced display and sensing solution means
that it can be adapted to a wide array of applications and form factors.
It is an advanced solution for a rapidly evolving, always-on world.
MicroVision’s business model and product line offering includes display
and sensing engines, licensing its patented technology and selling
components to licensees for incorporation into their scanning engines.
Extensive research has led MicroVision to become an independently
recognized leader in the development of intellectual property.
MicroVision’s IP portfolio has been recognized by the Patent Board as a
top 50 IP portfolio among global industrial companies and has been
included in the Ocean Tomo 300 Patent Index. The company is based in
Redmond, Wash.
For more information, visit the company’s website at www.microvision.com,
on Facebook at www.facebook.com/MicroVisionInc
or follow MicroVision on Twitter at @MicroVision.
MicroVision and PicoP are trademarks of MicroVision, Inc. in the
United States and other countries. All other trademarks are the
properties of their respective owners.
Forward-Looking Statements
Certain statements contained in this release, including those relating
to future payments, performance and timing of development work under
development agreements, shipment of products pursuant to purchase
orders, availability of future products and product applications, and
those containing words such as "expects" or "scheduled" are
forward-looking statements that involve a number of risks and
uncertainties. Factors that could cause actual results to differ
materially from those projected in the company’s forward-looking
statements include the following: our ability to raise additional
capital when needed; products incorporating our PicoP display engine may
not achieve market acceptance, commercial partners may not perform under
agreements as anticipated, we may be unsuccessful in identifying parties
interested in paying any amounts or amounts we deem desirable for the
purchase or license of IP assets, our or our customers failure to
perform under open purchase orders; our financial and technical
resources relative to those of our competitors; our ability to keep up
with rapid technological change; government regulation of our
technologies; our ability to enforce our intellectual property rights
and protect our proprietary technologies; the ability to obtain
additional contract awards; the timing of commercial product launches
and delays in product development; the ability to achieve key technical
milestones in key products; dependence on third parties to develop,
manufacture, sell and market our products; potential product liability
claims; and other risk factors identified from time to time in the
company’s SEC reports, including the company’s Annual Report on Form
10-K filed with the SEC. Except as expressly required by federal
securities laws, we undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information,
future events, changes in circumstances or any other reason.
Cash and cash equivalents
$
17,744
$
15,139
Accounts receivable, net
805
245
Other current assets
4,233
731
Total current assets
25,459
17,348
Property and equipment, net
3,299
1,537
Intangible assets, net
660
718
Total assets
$
29,911
$
20,106
Liabilities and Shareholders’ Equity
Accounts payable
$
1,852
$
2,195
Accrued liabilities
4,706
3,704
Billings on uncompleted contracts in excess of related costs
3,667
168
Other current liabilities
10,070
178
Total current liabilities
21,294
7,244
Deferred revenue, net of current portion
4,654
5,150
Deferred rent, net of current portion
102
185
Other long-term liabilities
36
53
Total liabilities
26,086
12,632
Commitments and contingencies
Common stock at par value
72
68
Additional paid-in capital
514,737
507,249
Accumulated deficit
(510,984 )
(499,843 )
Total shareholders’ equity
3,825
7,474
Total liabilities and shareholders’ equity
$
29,911
$
20,106
(In thousands, except earnings per share data)
Three months ended June 30,
Six months ended June 30,
Product revenue
$
-
$
3,530
$
-
$
6,685
Royalty revenue
346
609
881
1,151
Contract revenue
1,107
16
1,364
20
Total revenue
1,453
4,155
2,245
7,856
Cost of product revenue
135
2,587
348
5,175
Cost of contract revenue
810
5
1,135
6
Total cost of revenue
945
2,592
1,483
5,181
Gross margin
508
1,563
762
2,675
Research and development expense
3,672
2,879
6,990
5,476
Sales, marketing, general and administrative expense
2,325
2,171
4,905
4,239
Total operating expenses
5,997
5,050
11,895
9,715
Loss from operations
(5,489 )
(3,487 )
(11,133 )
(7,040 )
Other expenses, net
(5 )
11
(8 )
8
Net loss
$ (5,494 )
$ (3,476 )
$ (11,141 )
$ (7,032 )
Net loss per share - basic and diluted
$
(0.08 )
$
(0.07 )
$
(0.16 )
$
(0.14 )
Weighted-average shares outstanding - basic and diluted
69,373
51,567
68,747
49,566
http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170803005400r1&sid=cmtx6&distro=nx&
View source version on businesswire.com: http://www.businesswire.com/news/home/20170803005400/en/
SOURCE: MicroVision, Inc.">
<Property FormalName="PrimaryTwitterHandle" Value="@MicroVision
Dawn Goetter, 425-882-6629 (investors)
Nicole Cobuzio, 732-212-0823 ext. 102 (media)
