4/30/2015 7:45:26 AM
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Company starts 2015 with strong momentum
REDMOND, Wash.–(BUSINESS WIRE)–Apr. 30, 2015–
MicroVision,
Inc. (NASDAQ: MVIS), a leader in innovative ultra-miniature
projection display and imaging technology, today announced its financial
and operating results for the first quarter of 2015.
MicroVision started the year with strong momentum from several
significant business events. In March, MicroVision announced that it has
licensed its technology to a Fortune Global 100 electronics company. The
multi-year non-exclusive license agreement included an $8 million
upfront payment that was received in March. MicroVision will also be
entitled to royalties on display modules sold by its customer. In
addition, MicroVision announced that it received $14.5 million in new
component orders from this customer to be fulfilled starting in the
second half of 2015, continuing into 2016. The components are expected
to be incorporated into display modules developed by the Fortune Global
100 customer.
Earlier in the quarter, Korean OEM Celluon introduced two new pico
projector products at the 2015 International Consumer Electronics Show
that incorporate MicroVision’s proprietary PicoP® display
technology. The first product began selling in February and the second
in early April. Both products have been garnering positive reviews
across the market.
Financial Update
In the first quarter 2015, approximately 98 percent of revenue was
attributable to the sale of key components and royalties compared to the
previous year when the majority of revenue was from development
activity. Product revenue in the first quarter is from orders received
in the second half of 2014. Revenue from the previously announced $8
million upfront payment will be recognized over the expected life of the
agreement, and a pro-rated amount is reported this quarter as royalty
revenue.
The following financial results are for the three months ended March 31,
2015, compared to the three months ended March 31, 2014.
-
Revenue was $0.9 million, primarily from fulfillment of component
orders, compared to $1.2 million a year ago, which was primarily
development revenue. -
Operating loss was $4.0 million, compared to $3.1 million for the same
quarter a year ago. -
Net loss was $4.0 million, or $0.09 per share, compared to $8.0
million, or $0.23 per share for the same quarter a year ago. The first
quarter 2014 net loss included a $5.0 million non-cash loss on the
exchange of warrants. -
In the first quarter, positive cash flow from operations was $5.1
million and includes the $8 million upfront payment. In the first
quarter 2014, cash used in operations was $2.9 million.
As of March 31, 2015, backlog was $18.7 million and cash and cash
equivalents were $16.7 million. The cash balance includes funds received
during the quarter of approximately $2.3 million from the exercise of
previously issued warrants and $1.0 million from the sale of stock
through an At-the-Market (ATM) equity facility MicroVision established
last June, which is now completed.
Conference Call
The company will host a conference call today to discuss its first
quarter 2015 results and current business operations at 8:30 a.m. ET /
5:30 a.m. PT. Participants may join the conference call by dialing
1-800-446-1671 (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 39527274. 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 888-843-7419 (U.S.) or
(International) +1-630-652-3042, pass code 3952 7274#. The phone-in
replay will be available until May 7, 2015.
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.
MicroVision’s laser beam scanning technology platform is also well
suited to imaging and sensing applications. 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, royalty payments and product deliveries,
potential applications and features of MicroVision technology, and those
containing words such as “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, 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) | |||||||||||
| March 31, | December 31, | ||||||||||
|
2015 |
2014 |
||||||||||
| Assets | |||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $ | 16,685 | $ | 8,349 | |||||||
| Accounts receivable, net | 478 | 669 | |||||||||
| Inventory | 432 | 116 | |||||||||
| Other current assets | 541 | 491 | |||||||||
| Total current assets | 18,136 | 9,625 | |||||||||
| Property and equipment, net | 1,025 | 894 | |||||||||
| Restricted cash | 435 | 435 | |||||||||
| Intangible assets, net | 941 | 973 | |||||||||
| Other assets | 18 | 18 | |||||||||
| Total assets | $ | 20,555 | $ | 11,945 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current Liabilities | |||||||||||
| Accounts payable | $ | 2,152 | $ | 1,626 | |||||||
| Accrued liabilities | 2,948 | 2,729 | |||||||||
| Deferred revenue | 1,224 | – | |||||||||
| Billings on uncompleted contracts in excess of related costs | 409 | 230 | |||||||||
| Total current liabilities | 6,733 | 4,585 | |||||||||
| Deferred revenue, net of current portion | 6,902 | – | |||||||||
| Deferred rent, net of current portion | 453 | 488 | |||||||||
| 14,088 | 5,073 | ||||||||||
| Commitments and contingencies | |||||||||||
| Shareholders’ Equity | |||||||||||
| Common stock at par value | 46 | 45 | |||||||||
| Additional paid-in capital | 479,212 | 475,656 | |||||||||
| Accumulated deficit | (472,791 | ) | (468,829 | ) | |||||||
| Total shareholders’ equity | 6,467 | 6,872 | |||||||||
| Total liabilities and shareholders’ equity | $ | 20,555 | $ | 11,945 | |||||||
| MicroVision, Inc. | |||||||||||
| Statement of Operations | |||||||||||
| (In thousands, except earnings per share data) | |||||||||||
| (Unaudited) | |||||||||||
|
Three months ended March 31, |
|||||||||||
|
2015 |
2014 |
||||||||||
| Product revenue | $ | 741 | $ | 1 | |||||||
| Royalty revenue | 144 | 8 | |||||||||
| Contract revenue | 16 | 17 | |||||||||
| Development revenue | – | 1,193 | |||||||||
| Total revenue | 901 | 1,219 | |||||||||
| Cost of product revenue | 1,037 | (10 | ) | ||||||||
| Cost of contract revenue | 7 | 9 | |||||||||
| Total cost of revenue | 1,044 | (1 | ) | ||||||||
| Gross margin | (143 | ) | 1,220 | ||||||||
| Research and development expense | 1,898 | 2,543 | |||||||||
| Sales, marketing, general and administrative expense | 1,921 | 1,959 | |||||||||
| Gain on sale of previously reserved inventory | – | (227 | ) | ||||||||
| Total operating expenses | 3,819 | 4,275 | |||||||||
| Loss from operations | (3,962 | ) | (3,055 | ) | |||||||
| Loss on warrant exchange | – | (4,967 | ) | ||||||||
| Other income (expense) | – | 4 | |||||||||
| Net loss | $ | (3,962 | ) | $ | (8,018 | ) | |||||
| Net loss per share – basic and diluted | $ | (0.09 | ) | $ | (0.23 | ) | |||||
| Weighted-average shares outstanding – basic and diluted | 44,963 | 34,842 | |||||||||
Source: MicroVision, Inc.
MicroVision, Inc.
Investors:
Dawn Goetter, 425-882-6629
ir@microvision.com
or
Media:
Nicole
Cobuzio, 732-212-0823 ext. 102
nicolec@lotus823.com