2/27/2013 8:00:18 AM
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Company achieves 49 percent year over year revenue growth and 26
percent reduction in cash used in operations
REDMOND, Wash.–(BUSINESS WIRE)–Feb. 27, 2013–
MicroVision,
Inc. (NASDAQ:MVIS), a leader in innovative ultra-miniature
projection display technology, today announced its 2012 operating and
financial results and an overview of its 2013 business objectives.
2012 Notable Operating Achievements
In 2012, MicroVision saw year over year revenue growth of 49 percent and
a 26 percent decrease in cash used in operations. These improved
operating results are related to fulfillment of existing orders and the
transition to and restructuring around the company’s “Image by PicoP®”
ingredient brand licensing model. Transitioning to this business model
whereby MicroVision licenses its patented PicoP® display
technology, sells key components and receives royalties was one of the
company’s three key goals for 2012.
Under this licensing business model, MicroVision had fourth quarter
revenue of $2.7 million primarily from fulfillment of orders to Pioneer
Corporation. High-definition PicoP® Gen2 display engines
based on direct green lasers were brought to market as part of Pioneer’s
Carozzeria Cyber Navi car navigation system, the world’s first
head-up display (HUD) to project augmented reality information in front
of the windshield. With the July 2012 introduction of this product,
MicroVision achieved its second 2012 goal to launch PicoP Gen2 display
technology. The company also continued advancing PicoP display
technology defining a path for higher brightness, lower power
consumption, smaller size, lower cost and advanced features.
MicroVision made significant progress as well in pursuit of its third
goal for 2012 to secure original equipment manufacturer (OEM)
commitments to design products using PicoP display technology. The
company shipped samples for evaluation to more than 50 customers, the
majority of which are in MicroVision’s primary target markets of
consumer electronics (CE) and automotive. Initial shipments began in
late February last year and escalated as the year progressed. The bulk
of the samples were shipped in the second half of 2012.
Delivery of samples for evaluation is the first step in the company’s
design win process which encompasses multiple phases including
evaluation, negotiation, product development and commercialization.
MicroVision has moved to the negotiation phase with its top priority
customers from those that indicated a desire to move forward following
the evaluation phase. The company also continues to engage with other
customers as they evaluate the technology.
“The progress we made in 2012 to advance PicoP display technology,
improve our operating results and transition to our licensing business
model form a solid foundation for further advancement with OEMs in
2013,” said Alexander Tokman, president and CEO of MicroVision. “We are
in discussions with multiple OEMs in our target markets and with ODMs
and suppliers who can enable OEMs to integrate PicoP display technology
into their products.”
2012 Financial Results
MicroVision reported the following financial results for the fourth
quarter and year ended December 31, 2012, compared to the same periods
one year ago.
-
Grew annual revenue to $8.4 million in 2012, compared to $5.6 million
in 2011. Revenue for the fourth quarter of 2012 was $2.7 million,
compared to $1.5 million for the same quarter in 2011. -
Reduced operating loss to $22.9 million for 2012, compared to $36.0
million in 2011, and $4.1 million for the fourth quarter of 2012,
compared to $9.9 million for the same quarter in 2011. The decrease in
operating loss for 2012 was driven by higher margins on shipments to
Pioneer and lower operating cost associated with transitioning to an
ingredient brand licensing strategy. -
Reduced net loss to $22.7 million, or $1.05 per share, compared to
$35.8 million, or $2.57 per share for the prior year and $4.1 million,
or $0.16 per share, compared to $9.8 million, or $.62 per share for
the same quarter a year ago. -
Decreased cash used in operations to $20.6 million in 2012, compared
to $27.9 million for 2011, reflecting a 26% decrease from a year ago.
As of December 31, 2012, backlog was $1.8 million and cash and cash
equivalents were $6.8 million.
2013 Objectives and Outlook
MicroVision’s key goals for 2013 include:
- Secure design wins and enter into licensing agreements.
-
Strengthen the supply chain for key components of PicoP display
technology to offer multiple sources to OEMs as they prepare to bring
their products to market. - Aggressively manage cash used in operations.
The ecosystem for pico projection continues to evolve and 2012 saw
significant forward movement. Studies continue to show that consumer
consumption of video on mobile devices is rapidly increasing. According
to Cisco’s recently published Visual
Networking Index, mobile video will generate over 66 percent of
mobile data traffic by 2017 and have the highest compound annual growth
rate of any mobile application category in Cisco’s forecast. The Harvard
Business Review also recently published an article that broke down
consumer use of mobile devices into what the study deemed seven primary
motivations with the vast majority of the use being dedicated to “me
time” for relaxation and entertainment including viewing of short
videos. The finding that 68% of time engaged in this activity takes
place at home indicates that accessing web-based content from a mobile
device is becoming an intrinsic use case for people, not a convenience
model when away from a desktop.
These trends along with the increasing availability of smartphones with
video-out capabilities and the number of smartphones touting larger
screen size as a selling feature are all factors that could pave the way
for increased demand for pico projection. Achieving the
commercialization milestone for PicoP Gen2 display technology and the
availability of direct green lasers from two sources with additional
suppliers indicating their intentions to enter the market are factors
that strengthen the potential for adoption of PicoP display technology
by OEMs.
Conference Call
The company will host a conference call today to discuss its financial
and operating results for 2012, 2013 business objectives and current
business operations at 8:30 a.m. ET / 5:30 a.m. PT. Participants may
join the conference call by dialing 800-446-1671 (for U.S. participants)
or +1-847-413-3362 (for international participants) ten minutes prior to
the start of the call. The conference call pass code number is 34315398.
A live webcast of the call can be accessed from the investor
page of the company’s web site. 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 888-843-7419 (U.S.) or (International)
+1-630-652-3042, pass code 34315398#.
About MicroVision
MicroVision is the creator of PicoP® display technology, an
ultra-miniature laser projection solution for mobile consumer
electronics, automotive head-up displays and other applications.
MicroVision’s patented display technology helps OEMs break down display
boundaries and offer enhanced visibility to mobile experiences. Nearly
two decades of 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 is also
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 product development and commercial contracting, operating
results, and product commercialization, which includes the risk that no
definitive agreements result from the memorandum of understanding, and
those using words such as “goals,” “could,” “potential,” and “will” 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; 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.
|
MicroVision, Inc. |
||||||||||||||||
| Balance Sheet | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| December 31, | December 31, | |||||||||||||||
|
2012 |
2011 |
|||||||||||||||
| Assets | ||||||||||||||||
| Current Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 6,850 | $ | 13,075 | ||||||||||||
| Accounts receivable, net of allowances | 1,115 | 463 | ||||||||||||||
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
12 | 70 | ||||||||||||||
| Inventory | 497 | 4,254 | ||||||||||||||
| Other current assets | 1,221 | 793 | ||||||||||||||
| Total current assets | 9,695 | 18,655 | ||||||||||||||
| Property and equipment, net | 1,205 | 2,347 | ||||||||||||||
| Restricted cash | 436 | 786 | ||||||||||||||
| Intangible assets | 1,580 | 2,048 | ||||||||||||||
| Other assets | 22 | 34 | ||||||||||||||
| Total assets | $ | 12,938 | $ | 23,870 | ||||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||
| Current Liabilities | ||||||||||||||||
| Accounts payable | $ | 3,035 | $ | 7,341 | ||||||||||||
| Accrued liabilities | 4,007 | 5,113 | ||||||||||||||
| Deferred revenue | 609 | – | ||||||||||||||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
98 | 156 | ||||||||||||||
| Current portion of capital lease obligations | 48 | 39 | ||||||||||||||
| Current portion of long-term debt | 67 | 93 | ||||||||||||||
| Total current liabilities | 7,864 | 12,742 | ||||||||||||||
| Capital lease obligations, net of current portion | 20 | 72 | ||||||||||||||
| Long-term debt, net of current portion | – | 67 | ||||||||||||||
| Deferred rent, net of current portion | – | 187 | ||||||||||||||
| Total liabilities | 7,884 | 13,068 | ||||||||||||||
| Commitments and contingencies | ||||||||||||||||
| Shareholders’ Equity | ||||||||||||||||
| Common stock at par value | 25 | 17 | ||||||||||||||
| Additional paid-in capital | 442,560 | 425,658 | ||||||||||||||
| Accumulated other comprehensive loss | – | (35 | ) | |||||||||||||
| Accumulated deficit | (437,531 | ) | (414,838 | ) | ||||||||||||
| Total shareholders’ equity | 5,054 | 10,802 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 12,938 | $ | 23,870 | ||||||||||||
| MicroVision, Inc. | ||||||||||||||||||||||||||||
| Statement of Operations | ||||||||||||||||||||||||||||
| (In thousands, except earnings per share data) | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
|
Three months ended Dec. 31, |
Twelve months ended Dec. 31, |
|||||||||||||||||||||||||||
|
2012 |
2011 |
2012 |
2011 |
|||||||||||||||||||||||||
| Product revenue | $ | 2,405 | $ | 1,023 | $ | 6,782 | $ | 4,338 | ||||||||||||||||||||
| Contract revenue | 322 | 481 | 1,583 | 1,279 | ||||||||||||||||||||||||
| Total revenue | 2,727 | 1,504 | 8,365 | 5,617 | ||||||||||||||||||||||||
| Cost of product revenue | 1,304 | 3,932 | 6,085 | 11,640 | ||||||||||||||||||||||||
| Cost of contract revenue | 185 | 494 | 839 | 1,425 | ||||||||||||||||||||||||
| Total cost of revenue | 1,489 | 4,426 | 6,924 | 13,065 | ||||||||||||||||||||||||
| Gross margin | 1,238 | (2,922 | ) | 1,441 | (7,448 | ) | ||||||||||||||||||||||
| Research and development expense | 2,871 | 3,833 | 13,135 | 15,279 | ||||||||||||||||||||||||
| Sales, marketing, general and administrative expense | 2,475 | 3,132 | 11,252 | 13,314 | ||||||||||||||||||||||||
| Gain on disposal of fixed assets | (32 | ) | – | (79 | ) | (11 | ) | |||||||||||||||||||||
| Total operating expenses | 5,314 | 6,965 | 24,308 | 28,582 | ||||||||||||||||||||||||
| Loss from operations | (4,076 | ) | (9,887 | ) | (22,867 | ) | (36,030 | ) | ||||||||||||||||||||
| Other income (expense) | 2 | 81 | 174 | 222 | ||||||||||||||||||||||||
| Net loss | $ | (4,074 | ) | $ | (9,806 | ) | $ | (22,693 | ) | $ | (35,808 | ) | ||||||||||||||||
| Net loss per share – basic and diluted | $ | (0.16 | ) | $ | (0.62 | ) | $ | (1.05 | ) | $ | (2.57 | ) | ||||||||||||||||
| Weighted-average shares outstanding – basic and diluted | 25,135 | 15,880 | 21,595 | 13,919 | ||||||||||||||||||||||||
Source: MicroVision, Inc.
MicroVision, Inc.
Dawn Goetter, 425-882-6629 (investors)
or
Edelman
Callie
Bruhn, 503-471-6816 (media/PR)