3/10/2015 8:00:31 AM
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Company sets goal for significant year-over-year growth in 2015 from
commercialization of its patented PicoP® display
technology
REDMOND, Wash.–(BUSINESS WIRE)–Mar. 10, 2015–
MicroVision,
Inc. (NASDAQ: MVIS), a leader in innovative ultra-miniature
projection display technology, today announced its 2014 operating and
financial results and an overview of its 2015 business objectives.
2014 Operating Results
2014 was a year of significant accomplishments for MicroVision. Progress
was made on each of its stated goals for the year, positioning the
company for growth in 2015. The goals for 2014 were to:
-
Complete development with Fortune Global 100 customer, support
customer with commercialization efforts and supply key components -
Build pipeline of consumer and automotive OEM opportunities for
MicroVision’s go-to-market partners that are providing display engines
incorporating PicoP® display technology -
Ramp supply chain for high volume production of MicroVision components
in the second half of 2014.
Below are specific accomplishments related to the 2014 goals.
Fortune Global 100
The company completed the development effort with its Fortune Global 100
customer for a display module incorporating MicroVision PicoP®
display technology. This development effort was a major area of focus
for MicroVision in 2014. Additionally, the Fortune Global 100 customer
contracted with MicroVision in October for $1.5 million in support
services to enable commercialization of the module. In the third and
fourth quarters of 2014 MicroVision received orders totaling nearly $3.8
million for components to support early commercialization activities.
Fulfillment of those orders began in Q4 2014 and continues into 2015.
Recently MicroVision announced it is licensing its PicoP display
technology and will supply components to the Fortune Global 100 customer
for that company’s display modules. The completion of this license
agreement marks the culmination of two years of collaboration between
the two companies and is a milestone achievement in MicroVision’s
transition to its ingredient brand licensing business model.
Pipeline of Opportunities for Partners
Several successes were achieved in building a pipeline of opportunities
for MicroVision’s go-to-market partners, including the market
introduction at CES 2015 of two consumer products incorporating PicoP
display technology. MicroVision targeted key OEMs and major retailers in
the United States and Asia to introduce them to the opportunity pico
projection presents in a world where consumers are progressively turning
to mobile for media consumption.
To engage OEMs and retailers, MicroVision produced market development
tools and executed a series of direct consumer studies to create a
comprehensive design-in “tool kit” and market data that present the
value proposition and demonstrate the advanced capabilities of display
modules incorporating PicoP display technology. Specific market
milestones included:
-
Korean OEM Celluon formally launched two products at CES 2015
incorporating PicoP display technology, PicoPro and PicoAir. The
company has begun selling its products, which have garnered many
favorable reviews. -
Several companies MicroVision worked with throughout 2014 on design-in
of display modules were privately demonstrating products incorporating
PicoP display technology at CES 2015 to their prospective customers
and retail outlets. -
MicroVision announced in 2014 that it is collaborating with a second
electronics brand on the Fortune Global 500 list on an innovative
smartphone product and made significant advancements on display module
development. -
In the automotive segment, MicroVision delivered prototype HUD units
to a major vehicle OEM and a global Tier One supplier. Those customers
are evaluating the PicoP display technology based HUD systems. -
MicroVision delivered custom display modules to a leading global
logistics company for deployment in one of its facilities in the
United States.
Ramping of Supply Chain
The delivery of MicroVision specific components to its engine
manufacturing partners is an integral part of the company’s business
model and revenue stream. MicroVision made solid progress to ramp to
volume production capability in the second half of 2014. The company
established baseline production capacity and began shipments of
components to its Fortune Global 100 customer in Q4.
2014 Financial Results
Following aggressive cash management, MicroVision reduced year-over-year
operating loss by 13% with reduction seen in each quarter in 2014
compared to the same quarter the previous year. The company also began a
transition from development revenue to product and license revenue with
a majority of fourth quarter 2014 revenue coming from products and over
two-thirds of the backlog comprised of component orders expected to be
fulfilled in the first half of 2015.
MicroVision reported the following financial results for the fourth
quarter and year ended December 31, 2014.
-
Annual revenue of $3.5 million in 2014, compared to $5.9 million in
2013. Revenue for the fourth quarter of 2014 was $ 0.7 million,
compared to $1.2 million for the same quarter in 2013. -
Reduced operating loss to $ 13.2 million for 2014, compared to $15.1
million in 2013, and $3.4 million for the fourth quarter of 2014
compared to $3.9 million for the same quarter in 2013. -
Net loss for the year of $18.1 million, or $0.44 per share, compared
to $13.2 million, or $0.47 per share for the prior year and $3.3
million, or $0.08 per share, compared to $2.4 million or $0.08 per
share for the same quarter a year ago. The 2014 net loss includes a
$5.0 million non-cash loss on the exchange of warrants in the first
quarter. -
Maintained cash used in operations at $13.0 million in 2014, compared
to $12.7 million for 2013, reflecting the company’s continued focus on
managing cash use.
As of December 31, 2014, backlog was $5.1 million and cash and cash
equivalents were $8.3 million. This cash balance is exclusive of the
license fee MicroVision is expecting later this month from its recently
announced license agreement.
2015 Objectives and Outlook
“2015 is expected to be a transformational year for MicroVision. We
expect to achieve significant year-over-year growth by focusing
attention on making our customers successful whether providing high
quality components or assisting them with their go-to-market efforts,”
said Alexander Tokman, president and CEO of MicroVision.
MicroVision’s key goals for 2015 build on the momentum from 2014 and
include:
-
Support the Fortune Global 100 customer with display module
commercialization -
Develop new OEM/channel opportunities for display engine manufacturing
partners that are incorporating PicoP display technology - Increase supply capacity for key components
-
Achieve significant year-over-year growth through component sales and
licensing of PicoP display technology -
Evolve technology platform to offer enhanced features and capabilities
for a compelling roadmap for licensees of PicoP display technology.
Conference Call
The company will host a conference call today to discuss its financial
and operating results for 2014, 2015 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 39067048.
A live webcast of the call can be accessed from the company’s web site
in the Investor
Events Calendar section on the Investors 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 888-843-7419 (U.S.) or
(International) +1-630-652-3042, pass code 39067048#.
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 operating results, fulfillment of orders, component sales,
pipeline development, ramping of supply chain, performance of contract
parties under agreements, potential customer agreements, arrangements
and sales, potential demand for MicroVision technology and potential
applications and features of MicroVision technology, and those
containing words such as “objectives,” “would,” “could,” “goals,”
“focus” and “expects,” 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, our ability to conclude
agreements with potential customers, 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.
| MicroVision, Inc. | ||||||||
| Balance Sheet | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| December 31, | December 31, | |||||||
| 2014 | 2013 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 8,349 | $ | 5,375 | ||||
| Accounts receivable, net | 669 | 24 | ||||||
| Inventory | 116 | 49 | ||||||
| Other current assets | 491 | 336 | ||||||
| Total current assets | 9,625 | 5,784 | ||||||
| Property and equipment, net | 894 | 1,065 | ||||||
| Restricted cash | 435 | 435 | ||||||
| Intangible assets, net | 973 | 1,145 | ||||||
| Other assets | 18 | 18 | ||||||
| Total assets | $ | 11,945 | $ | 8,447 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 1,626 | $ | 1,610 | ||||
| Accrued liabilities | 2,729 | 2,470 | ||||||
| Billings on uncompleted contracts in excess of related costs | 230 | 680 | ||||||
| Warrant liability | – | 4,902 | ||||||
| Total current liabilities | 4,585 | 9,662 | ||||||
| Deferred rent, net of current portion | 488 | 481 | ||||||
| Total liabilities | 5,073 | 10,143 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ Equity (Deficit) | ||||||||
| Common stock at par value | 45 | 32 | ||||||
| Additional paid-in capital | 475,656 | 448,981 | ||||||
| Accumulated deficit | (468,829 | ) | (450,709 | ) | ||||
| Total shareholders’ equity (deficit) | 6,872 | (1,696 | ) | |||||
| Total liabilities and shareholders’ equity (deficit) | $ | 11,945 | $ | 8,447 | ||||
| MicroVision, Inc. | |||||||||||||||||
| Statement of Operations | |||||||||||||||||
| (In thousands, except earnings per share data) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three months ended December 31, |
Twelve months ended December 31, |
||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||||
| Development revenue | $ | – | $ | 1,069 | $ | 1,691 | $ | 2,909 | |||||||||
| Product revenue | 348 | 29 | 392 | 2,341 | |||||||||||||
| Contract revenue | 339 | 119 | 1,402 | 602 | |||||||||||||
| Total revenue | 687 | 1,217 | 3,485 | 5,852 | |||||||||||||
| Cost of product revenue | 200 | 9 | 228 | 1,518 | |||||||||||||
| Cost of contract revenue | 309 | 44 | 816 | 283 | |||||||||||||
| Total cost of revenue | 509 | 53 | 1,044 | 1,801 | |||||||||||||
| Gross margin | 178 | 1,164 | 2,441 | 4,051 | |||||||||||||
| Research and development expense | 1,919 | 3,060 | 9,067 | 10,544 | |||||||||||||
| Sales, marketing, general and administrative expense | 1,618 | 2,156 | 7,005 | 8,757 | |||||||||||||
| Gain on sale of previously reserved inventory | (8 | ) | (156 | ) | (463 | ) | (156 | ) | |||||||||
| Total operating expenses | 3,529 | 5,060 | 15,609 | 19,145 | |||||||||||||
| Loss from operations | (3,351 | ) | (3,896 | ) | (13,168 | ) | (15,094 | ) | |||||||||
| Gain (loss) on warrant exchange | – | 1,485 | (4,967 | ) | 1,900 | ||||||||||||
| Other income (expense) | 5 | (10 | ) | 15 | 16 | ||||||||||||
| Net loss | $ | (3,346 | ) | $ | (2,421 | ) | $ | (18,120 | ) | $ | (13,178 | ) | |||||
| Net loss per share – basic and diluted | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.44 | ) | $ | (0.47 | ) | |||||
| Weighted-average shares outstanding – basic and diluted | 44,548 | 31,841 | 41,599 | 28,025 | |||||||||||||
Source: MicroVision, Inc.
MicroVision
Dawn Goetter, ir@microvision.com,
425-882-6629 (investors)
Nicole Cobuzio, nicolec@lotus823.com, 732-212-0823
ext. 102 (media)