3/8/2016 8:00:57 AM
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Company expects continued growth in 2016
REDMOND, Wash.–(BUSINESS WIRE)–Mar. 8, 2016–
MicroVision,
Inc. (NASDAQ: MVIS), a leader in innovative ultra-miniature
projection display and imaging technology, today announced its 2015
operating and financial results and an overview of its 2016 business
objectives.
2015 Operating Results
2015 was a year of significant growth for MicroVision. Progress was made
on each of its stated goals for the year:
-
Support its 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 licensees of PicoP display technology.
Below are specific accomplishments related to the 2015 goals.
Support Fortune Global 100 Customer
The company successfully provided manufacturing support services, and
the customer launched its display engine in 2015. MicroVision recognized
$1.5 million in revenue from this effort. In addition, in March 2015
MicroVision signed a multi-year licensing agreement with this customer
that included an $8 million upfront payment to MicroVision.
New OEM/Channel Opportunities
In 2015 multiple products came to market with the display module
manufactured by MicroVision’s Fortune Global 100 customer. Media and
consumer reviews for these products, including the MP-CL1 pico projector
offered around the world by the Fortune Global 100 customer directly,
have been extremely positive and highlight the features and benefits
enabled by MicroVision’s PicoP® scanning technology. Two of the products
were among the top five pico projectors selling on Amazon.
In October Sharp Corporation unveiled RoBoHoN, its innovative mobile
robot phone product, which includes an embedded display engine based on
MicroVision’s PicoP scanning technology. RoBoHoN, an eight-inch tall
walking, talking robot sporting an integrated Android phone system,
generated a significant amount of positive media coverage upon its
introduction. MicroVision and Sharp collaborated on the display engine
that met the small form factor requirements to provide the robot with
the integral functionality of projecting videos and photos on command.
PicoP scanning technology provides the focus-free projected display that
allows RoBoHoN to share content on any surface.
Looking beyond the products that came to market in 2015, a number of
OEMs are in product development with the display module from the Fortune
Global 100 customer. MicroVision expects several of these products to
come to market later in 2016. Throughout the year the company also
nurtured other relationships for future opportunities in emerging
markets such as 3D imaging and augmented reality.
Increase Supply Capacity
Capacity was expanded in 2015 after receiving $14.5 million in purchase
orders for key components. Equipment for the capacity expansion came
online in Q4 2015. A shortage of parts manufactured by a contract
manufacturer impacted the volume of third and fourth quarter shipments.
MicroVision and its contract manufacturer addressed the issue and
production resumed in mid-November.
Achieve Significant Year-Over-Year Growth
MicroVision achieved 164 percent revenue growth in 2015 with more than
$9 million in total revenue for the year. Product and royalty revenue
was $7.2 million more in 2015 than 2014 as a result of the company’s
transition to production and commercialization of its PicoP scanning
technology.
Evolve Technology Platform
In January MicroVision
showcased an array of product concepts and demonstrations for its
customers at CES 2016. Demonstrations covered four application areas the
company has identified for its PicoP scanning technology platform:
projection and display, automotive head up display, 3D imaging and
eyewear.
2015 Financial Results
MicroVision reported the following financial results for the fourth
quarter and year ended December 31, 2015:
-
Annual revenue of $9.2 million in 2015, compared to $3.5 million in
2014. Revenue for the fourth quarter of 2015 was $ 1.8 million,
compared to $0.7 million for the same quarter in 2014. -
Operating loss was $14.6 million for 2015, compared to $13.2 million
in 2014, and $4.3 million for the fourth quarter of 2015 compared to
$3.4 million for the same quarter in 2014. -
Net loss for the year of $14.5 million, or $0.31 per share, compared
to $18.1 million, or $0.44 per share for the prior year and $4.3
million, or $0.09 per share, compared to $3.3 million or $0.08 per
share for the same quarter in 2014. The 2014 net loss includes a $5.0
million non-cash loss on the exchange of warrants in the first quarter. -
Cash used in operations was $5.8 million in 2015, compared to $13.0
million for 2014 reflecting the $8 million up-front license fee
received in early 2015.
As of December 31, 2015, backlog was $11.0 million and cash and cash
equivalents were $7.9 million.
2016 Objectives and Outlook
“Last year was marked by significant progress and growth. In fact, we
are in the best position of our company’s history with two customers in
production with our technology,” said Alexander Tokman, president and
CEO of MicroVision. “We are very optimistic about 2016 both in terms of
revenue growth potential from pico projection and advancing our
technology to address emerging applications such as augmented reality
and 3D sensing and imaging.”
To attain its revenue growth goals MicroVision plans to continue
supporting its Fortune Global 100 customer to secure design wins for
pico projection applications. The company also looks forward to the
commercial availability of Sharp’s innovative mobile robot phone
product, RoBoHoN, that is expected to come to market later this year.
The company also has programs in place that are expected to improve
gross margin through improved efficiency and reduced cost in the
production of its key components.
Looking to new markets for growth beyond 2016, MicroVision is investing
in internal development of its PicoP scanning technology for new “beyond
projection” applications. The company believes emerging products for
augmented reality and 3D sensing and imaging can benefit from the unique
ability of its technology to integrate projection and sensing
capabilities in a single, tiny module.
Conference Call
The company will host a conference call today to discuss its financial
and operating results for 2015, 2016 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 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 41934562. A live webcast of the call can be accessed from the
company’s web site in the Investor
Events Calendar section of 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 1 (888) 843-7419 (U.S.) or
+1-630-652-3042 (international), pass code 4193 4562#. The call-in
replay will be available through March 15, 2016.
About MicroVision
MicroVision is the creator of PicoP® scanning technology, an
ultra-miniature laser projection and imaging solution based on the laser
beam scanning methodology pioneered by the company. MicroVision’s
platform approach for this advanced display and imaging 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.
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 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 “optimistic,” “potential,” “plans,”
“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, | |||||||
|
2015 |
2014 |
|||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 7,888 | $ | 8,349 | ||||
| Accounts receivable, net | 1,687 | 669 | ||||||
| Inventory | 862 | 116 | ||||||
| Other current assets | 638 | 491 | ||||||
| Total current assets | 11,075 | 9,625 | ||||||
| Property and equipment, net | 1,669 | 894 | ||||||
| Restricted cash | 435 | 435 | ||||||
| Intangible assets, net | 845 | 973 | ||||||
| Other assets | 18 | 18 | ||||||
| Total assets | $ | 14,042 | $ | 11,945 | ||||
| Liabilities and Shareholders’ Equity (Deficit) | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 2,183 | $ | 1,626 | ||||
| Accrued liabilities | 3,399 | 2,729 | ||||||
| Deferred revenue | 2,122 | – | ||||||
| Billings on uncompleted contracts in excess of related costs | – | 230 | ||||||
| Total current liabilities | 7,704 | 4,585 | ||||||
| Deferred revenue, net of current portion | 6,149 | – | ||||||
| Deferred rent, net of current portion | 342 | 488 | ||||||
| Total liabilities | 14,195 | 5,073 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ Equity (Deficit) | ||||||||
| Common stock at par value | 47 | 45 | ||||||
| Additional paid-in capital | 483,171 | 475,656 | ||||||
| Accumulated deficit | (483,371 | ) | (468,829 | ) | ||||
| Total shareholders’ equity (deficit) | (153 | ) | 6,872 | |||||
| Total liabilities and shareholders’ equity (deficit) | $ | 14,042 | $ | 11,945 | ||||
| MicroVision, Inc. | ||||||||||||||||
| Statement of Operations | ||||||||||||||||
| (In thousands, except earnings per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
|
Three months ended December 31, |
Twelve months ended December 31, |
|||||||||||||||
|
2015 |
2014 |
2015 |
2014 |
|||||||||||||
| Product revenue | $ | 1,451 | $ | 334 | $ | 6,452 | $ | 352 | ||||||||
| Royalty revenue | 388 | 14 | 1,165 | 40 | ||||||||||||
| Contract revenue | 7 | 339 | 1,571 | 1,402 | ||||||||||||
| Development revenue | – | – | – | 1,691 | ||||||||||||
| Total revenue | 1,846 | 687 | 9,188 | 3,485 | ||||||||||||
| Cost of product revenue | 1,463 | 200 | 6,384 | 228 | ||||||||||||
| Cost of contract revenue | 4 | 309 | 796 | 816 | ||||||||||||
| Total cost of revenue | 1,467 | 509 | 7,180 | 1,044 | ||||||||||||
| Gross margin | 379 | 178 | 2,008 | 2,441 | ||||||||||||
| Research and development expense | 2,540 | 1,919 | 8,680 | 9,067 | ||||||||||||
| Sales, marketing, general and administrative expense | 2,139 | 1,618 | 7,879 | 7,005 | ||||||||||||
| Gain on sale of previously reserved inventory | – | (8 | ) | (1 | ) | (463 | ) | |||||||||
| Total operating expenses | 4,679 | 3,529 | 16,558 | 15,609 | ||||||||||||
| Loss from operations | (4,300 | ) | (3,351 | ) | (14,550 | ) | (13,168 | ) | ||||||||
| Loss on warrant exchange | – | – | – | (4,967 | ) | |||||||||||
| Other income, net | 2 | 5 | 8 | 15 | ||||||||||||
| Net loss | $ | (4,298 | ) | $ | (3,346 | ) | $ | (14,542 | ) | $ | (18,120 | ) | ||||
| Net loss per share – basic and diluted | $ | (0.09 | ) | $ | (0.08 | ) | $ | (0.31 | ) | $ | (0.44 | ) | ||||
| Weighted-average shares outstanding – basic and diluted | 47,276 | 44,548 | 46,540 | 41,599 | ||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160308005543/en/
Source: MicroVision, Inc.
MicroVision, Inc.
Dawn Goetter, 425-882-6629 (investors)
ir@microvision.com
or
Nicole
Cobuzio, 732-212-0823 ext. 102 (media)
nicolec@lotus823.com