Today, MicroVision 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.
The financial statements for the period can be accessed here.
Certain statements contained in this blog post, 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.