5/6/2014 8:01:15 AM
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Development Phase with Fortune Global 100 Nears Successful
Completion; Cash Use and Operating Expenses Reduced Year-Over-Year as
Company Prepares for Volume Production
REDMOND, Wash.–(BUSINESS WIRE)–May 6, 2014–
MicroVision,
Inc. (NASDAQ:MVIS), a leader in innovative ultra-miniature
projection display technology, today announced its operating and
financial results for the first quarter of 2014 and the advancement of
its 2014 business objectives.
MicroVision made strong progress in the first quarter related to its
operating goals for 2014. The goals for the year include:
-
Complete display module 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.
MicroVision’s Fortune Global 100 customer announced in February that it
aims to bring a high resolution, HD image quality display module to
market for use in pico projectors and other devices with projector
functionality. MicroVision is supporting development of the display
module which is based on laser scanning beam methodology and
incorporates MicroVision’s patented PicoP display technology. To date
MicroVision has successfully completed the majority of milestones
defined in the April 2013 development agreement and has received 90
percent of related payments. In the second quarter MicroVision expects
to complete development work and support the Fortune Global 100 customer
in planning and execution for commercialization activities.
MicroVision has continued to build a pipeline of opportunities from OEMs
for consumer products and automotive solutions that incorporate PicoP
display technology. MicroVision is focusing its business development
activities across the full spectrum of companies required to bring
products enabled by PicoP display technology to market. In addition to
direct customers that will manufacture display engines for use in their
own products or for sale to other parties, MicroVision is engaged with a
broad coalition of companies including engine manufacturers, consumer
product OEMs and major retailers to enable the pico projector product
ecosystem.
As part of this effort, MicroVision has produced numerous prototype
end-user consumer products to demonstrate the superior performance of a
pico projector built around PicoP display technology and completed
direct consumer studies to give OEMs and retailers an idea of the types
of products they could offer. PicoP display technology can enable an end
user experience with features and functions such as high definition,
always in focus images and laser brightness that are optimal for the
mobile video consumption that research shows consumers are now making
part of their regular infotainment routine.
According to the Global
Video Index Q4 2013 report from Ooyala, the year-over-year share of
time spent watching videos on tablets and mobile devices has increased
719 percent since fourth quarter 2011, and 160 percent year-over-year
since fourth quarter 2012. The report also revealed that in the fourth
quarter of 2013 more than half of mobile viewers’ time was spent
watching video longer than 30 minutes compared to 35 percent for tablet
viewers.
In the automotive segment, MicroVision continues its collaboration with
a Tier One global supplier and a leading global vehicle OEM. MicroVision
expects to deliver a prototype HUD system to the vehicle OEM in the
second quarter. These programs are in the evaluation and test phases,
critical steps to having new technology adopted in embedded automotive
applications.
MicroVision also announced in March 2014 that it has agreed to supply
customized PicoP display modules to UPS to outfit a distribution
facility in the United States. The PicoP display modules will be part of
a new package guidance application aimed at increasing processing
efficiency in real-time package sorting and routing. MicroVision expects
to deliver the modules to UPS in the third quarter.
The company has been working with world class partners to put in place
the supply chain required for volume production of its key components in
the second half of 2014. The company has dedicated resources toward
ramping the supply chain to fulfill future orders from engine partners
in order to facilitate the company’s go-to-market plan for
commercialization of PicoP display technology.
Financial Update
During the first quarter, MicroVision raised $12.8 million net of
issuance costs in an offering of common stock and warrants for general
corporate purposes. MicroVision has continued its aggressive management
of cash used in operations with a reduction in the quarter of 16 percent
compared to the same period in 2013.
The following financial results are for the three months ended March 31,
2014, compared to the three months ended March 31, 2013.
-
Revenue was $1.2 million, primarily from the Fortune Global 100
development activities, compared to $1.8 million a year ago. -
Operating loss decreased to $3.1 million, compared to $3.6 million for
the same quarter a year ago. -
Net loss was $8.0 million, or $0.23 per share, compared to $3.7
million, or $0.14 per share for the same quarter a year ago. The first
quarter 2014 net loss includes a $5.0 million loss recognized on the
fair value adjustment of our warrant liability that occurred upon the
exchange of the warrants for common stock during the period. Excluding
the loss related to the fair value adjustment of the warrant
liability, the adjusted net loss for the three months ended March 31,
2014 was $3.1 million. -
Cash used in operations was $2.9 million during the quarter ended
March 31, 2014, compared to $3.5 million for the first quarter of 2013.
As of March 31, 2014, backlog was $ 1.6 million and cash and cash
equivalents were $15.3 million.
Conference Call
The company will host a conference call today to discuss its first
quarter 2014 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 37176414. 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 37176414#. The phone in
replay will be available for one week.
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 growth, future product and technology development and sales, and
those containing words such as “goals,” “aims,” “expects,” and ”can” 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, | |||||||
|
2014 |
2013 |
|||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 15,338 | $ | 5,375 | ||||
| Accounts receivable, net of allowances | 135 | 24 | ||||||
| Inventory | 49 | 49 | ||||||
| Other current assets | 256 | 336 | ||||||
| Total current assets | 15,778 | 5,784 | ||||||
| Property and equipment, net | 924 | 1,065 | ||||||
| Restricted cash | 435 | 435 | ||||||
| Intangible assets, net | 1,112 | 1,145 | ||||||
| Other assets | 18 | 18 | ||||||
| Total assets | $ | 18,267 | $ | 8,447 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 1,369 | $ | 1,610 | ||||
| Accrued liabilities | 2,700 | 2,455 | ||||||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
347 | 680 | ||||||
| Warrant liability | – | 4,902 | ||||||
| Current portion of capital lease obligations | 5 | 15 | ||||||
| Total current liabilities | 4,421 | 9,662 | ||||||
| Deferred rent, net of current portion | 533 | 481 | ||||||
| Total liabilities | 4,954 | 10,143 | ||||||
| Commitments and contingencies | ||||||||
| Common stock at par value | 43 | 32 | ||||||
| Additional paid-in capital | 471,997 | 448,981 | ||||||
| Accumulated deficit | (458,727 | ) | (450,709 | ) | ||||
| Total shareholders’ equity (deficit) | 13,313 | (1,696 | ) | |||||
| Total liabilities and shareholders’ equity (deficit) | $ | 18,267 | $ | 8,447 | ||||
| MicroVision, Inc. | ||||||||
| Statement of Operations | ||||||||
| (In thousands, except earnings per share data) | ||||||||
| (Unaudited) | ||||||||
|
Three months ended March 31, |
||||||||
|
2014 |
2013 |
|||||||
| Development revenue | $ | 1,193 | $ | 300 | ||||
| Product revenue | 9 | 1,219 | ||||||
| Contract revenue | 17 | 282 | ||||||
| Total revenue | 1,219 | 1,801 | ||||||
| Cost of product revenue | (10 | ) | 664 | |||||
| Cost of contract revenue | 9 | 137 | ||||||
| Total cost of revenue | (1 | ) | 801 | |||||
| Gross margin | 1,220 | 1,000 | ||||||
| Research and development expense | 2,543 | 2,252 | ||||||
| Sales, marketing, general and administrative expense | 1,959 | 2,403 | ||||||
| Gain on disposal of fixed assets | – | (2 | ) | |||||
| Gain on sale of previously reserved inventory | (227 | ) | (5 | ) | ||||
| Total operating expenses | 4,275 | 4,648 | ||||||
| Loss from operations | (3,055 | ) | (3,648 | ) | ||||
| Loss on warrant exchange | (4,967 | ) | – | |||||
| Other income (expense) | 4 | (6 | ) | |||||
| Net loss | $ | (8,018 | ) | $ | (3,654 | ) | ||
| Net loss per share – basic and diluted | $ | (0.23 | ) | $ | (0.14 | ) | ||
| Weighted-average shares outstanding – basic and diluted | 34,842 | 25,240 | ||||||
Source: MicroVision, Inc.
MicroVision, Inc.
Dawn Goetter, 425-882-6629 (investors)
ir@microvision.com
or
For
MicroVision, Inc.
Robert Brown, 424-248-0512 (media/PR)
robert@bohle.com