4/26/2006 9:26:00 AM
REDMOND, Wash.–(BUSINESS WIRE)–April 26, 2006–Microvision, Inc.
(NASDAQ: MVIS), a leader in light scanning technologies, today
announced preliminary consolidated financial results for the first
quarter of 2006.
For the first quarter of 2006, Microvision expects to report
revenue of approximately $2.5 million compared to $4.0 million for the
first quarter of the prior year. The expected first quarter revenue is
comprised of approximately $1.8 million of contract revenue and
approximately $700,000 of product revenue. In the first quarter of
2005, the company reported contract revenue of $3.4 million and
product revenue of $600,000. The reduction in contract revenue from
the first quarter of 2005 is due primarily to lower commercial
contract revenue. Product revenue for the first quarter of 2006 was
derived primarily from record shipments of over 9,300 units of the
Flic bar code scanner.
The company expects to report an operating loss for the first
quarter of 2006 of between $6.5 and $7.0 million compared to $5.5
million for the first quarter of 2005 due primarily to lower
commercial contract revenue in the first quarter of 2006. The
operating loss in the first quarter of 2006 is expected to include
approximately $400,000 in expense related to the adoption of FASB
123R, Accounting for Stock Options that the company adopted on January
1, 2006. The company expects to report net income available for common
shareholders of between $200,000 and $700,000 for the first quarter of
2006 compared to a net loss available for common shareholders of $7.2
million for the first quarter of 2005. The improvement was due
primarily to a $7.2 million gain from the sale of 2.55 million shares
of the company’s holdings in Lumera Corporation.
The company ended the quarter with $7.0 million in cash.
“Our first quarter results, although lower than last year, are
generally in line with our expectations,” said Alexander Tokman,
Microvision President and CEO. “As anticipated, Flic had a record
first quarter for unit shipments equaling nearly half of the total
volume shipped for the entire year of 2005, setting the stage for a
strong year for this product. Our government contract revenue was
slightly below our 2006 operating plan while commercial contract
revenue for the quarter was in line with our plan although well below
prior year levels. We continue to advance discussions with potential
development and distribution partners, tracking to our plan to sign a
strategic Tier 1 partner for automotive head-up displays and a
development partner for personal projection displays. We are making
solid progress toward definition and development of our Integrated
Photonics Module (IPM) that is expected to serve as the embedded
platform for a wide range of high volume applications. With our newly
named VP of Research and Development, Sid Madhavan on board as of May
1, we expect to accelerate the IPM development activities. We recently
launched a redesigned web site that more effectively captures our new
IPM focused business strategy and exciting growth opportunities it
offers.
“One of our key financial goals for 2006 is to reduce the net
operating loss by 30%, excluding the impact of the adoption of FASB
123R. We have implemented important steps toward this goal in the
first quarter which included organizational restructuring. With Sid
joining the company and Jeff Wilson promoted to CFO, we now have our
management team firmly in place. Over the last couple of months we
have implemented a number of key initiatives to position our company
for a turnaround.”
About Microvision: www.microvision.com.
Headquartered in Redmond, Wash., Microvision, Inc. is the world
leader in the development of high-resolution displays and imaging
systems based on the company’s proprietary silicon micro-mirror
technology. The company’s technology has applications in a broad range
of industrial, consumer, military and medical applications.
Forward-Looking Statements Disclaimer
Certain statements contained in this release, including expected
results, projections of future revenues, plans for product
development, future development contracts and commercial arrangements,
growth in demand, , future operations, as well as statements
containing words like “expects,” “anticipates,” “target,” “plans,” and
other similar expressions, 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; market acceptance of our technologies
and products; our financial and technical resources relative to those
of our competitors; our ability to keep up with rapid technological
change; our dependence on the defense industry and a limited number of
government development contracts; 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, risks related to Lumera’s business and the market
for its equity and other risk factors identified from time to time in
the company’s SEC reports and other filings, including the Company’s
Annual Report on Form 10-K filed with the SEC. Except as expressly
required by the 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.
CONTACT: Microvision, Inc.
Brian Heagler, 425-415-6794
SOURCE: Microvision, Inc.