11/12/2013 8:00:40 AM
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Company Supports Fortune Global 100 Electronics Brand in Display
Engine Development; Reduces Cash Used in Operations by 41 Percent in the
First Nine Months
REDMOND, Wash.–(BUSINESS WIRE)–Nov. 12, 2013–
MicroVision,
Inc. (NASDAQ: MVIS), a leader in innovative ultra-miniature
projection display technology, today announced its operating and
financial results for the third quarter of 2013 and the advancement of
its 2013 business objectives.
The company is aggressively pursuing its goals of securing design wins,
facilitating the commercialization of its patented PicoP®
display technology with its partners and managing cash used in
operations and has made progress on multiple fronts. For the nine months
ended September 30, 2013, cash used in operations was down 41 percent
compared to the same period the previous year.
In early September MicroVision announced
that it is supplying scanned engine system (SES) prototypes to a global
tier-1 automotive supplier (Tier-1) for reliability testing and
characterization. This milestone with the Tier-1 marked a significant
achievement in the ongoing design win process. MicroVision also
successfully continued development activities with a Fortune Global 100
electronics company under the agreement
announced in April. Together the companies are making significant
strides to meet the Fortune Global 100 brand’s unique requirements for a
pico projection engine based on PicoP display technology. The Fortune
Global 100 brand has noted that it is very impressed with the
capabilities of the technology, the image quality and performance that
it expects to achieve with the custom display engine as well as the
support from the MicroVision team. MicroVision and the electronics brand
are engaged in commercial negotiations for licensing and component
supply agreements with the expectation that such agreements would
constitute the next stage of engagement.
The pico projection market is still in the early stages of adoption and
the eco-system supporting its emergence has continued to strengthen.
Mobile video consumption growth and increasing information technology
integration in vehicles are potential demand generators for enhanced
displays with pico projectors. According to Ooyala’s 2013
Q2 Global Video Index Report, consumers are increasingly watching
video of longer durations on smartphones and tablets. In fact, the share
of video viewing on phones increased 41 percent and tablet video viewing
increased 59 percent in the first half of 2013, and tablet audiences
spent more than half of their viewing time watching premium long-form
content. IHS, an analyst firm covering the growth of information
technology in vehicles, reported
in September that there was a global average of $330 worth of
semiconductors per vehicle in 2012, a 65 percent increase from 2002.
MicroVision has developed its patented PicoP display technology with a
robust set of features to address the requirements of both of these
markets for enhanced viewing experiences. With its ability to create a
large, high definition image that is always in focus from a tiny engine
with outstanding brightness to power efficiency (i.e. lumen to watt
efficiency), PicoP display technology offers a compelling solution for
bringing enhanced visibility to the world of mobility.
Financial Results
The following financial results are for the three and nine months ended
September 30, 2013, compared to the same periods one year earlier.
-
Revenue was $964,000 for the third quarter of 2013, compared to $2.6
million for the third quarter of 2012, primarily from performance
under the development agreement announced in April. Revenue for the
first nine months of 2013 was $4.6 million, compared to $5.6 million
for the first nine months of 2012. -
Operating loss for the third quarter of 2013 was $4.1 million,
compared to $4.0 million for the third quarter a year ago. Operating
loss was $11.2 million for the first nine months of 2013, compared to
$18.8 million for the first nine months of 2012. -
Net loss for the third quarter of 2013 was $3.7 million, or $0.13 per
share, compared to $3.8 million, or $0.15 per share, for the same
quarter a year ago. Net loss was $10.8 million, or $0.40 per share,
for the first nine months of 2013 compared to $18.6 million, or $0.91
per share, for the first nine months of 2012. -
For the third quarter of 2013, cash used in operations was $3.7
million compared to $3.9 million for the same period in 2012. For the
nine months ended September 30, 2013, cash used in operations was $9.9
million compared to $17.0 million for the same period in 2012.
As of September 30, 2013, backlog was $3.2 million and cash and cash
equivalents were $8.3 million.
Conference Call
The company will host a conference call today to discuss its third
quarter 2013 results and current business operations at 8:30 a.m. ET /
5:30 a.m. PT. Participants may join the conference call by dialing
800-708-4539 (for U.S. participants) or +1-847-619-6396 (for
international participants) ten minutes prior to the start of the call.
The conference call pass code number is 35995869. 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 3599 5869#.
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 contract benefits and negotiations, strategy, expected market
interest and growth, and future product and technology development and
sales, 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: we may be unable to successfully perform our obligations
under the agreement, our contract party may not perform its obligations
under the agreement, 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 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) | |||||||||||
| September 30, | December 31, | ||||||||||
|
2013 |
2012 |
||||||||||
| Assets | |||||||||||
| Current Assets | |||||||||||
| Cash and cash equivalents | $ | 8,321 | $ | 6,850 | |||||||
| Accounts receivable, net of allowances | 137 | 1,115 | |||||||||
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
12 | 12 | |||||||||
| Inventory | 28 | 497 | |||||||||
| Other current assets | 420 | 1,221 | |||||||||
| Total current assets | 8,918 | 9,695 | |||||||||
| Property and equipment, net | 1,182 | 1,205 | |||||||||
| Restricted investments | 435 | 436 | |||||||||
| Intangible assets | 1,462 | 1,580 | |||||||||
| Other assets | 18 | 22 | |||||||||
| Total assets | $ | 12,015 | $ | 12,938 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Current Liabilities | |||||||||||
| Accounts payable | $ | 1,809 | $ | 3,035 | |||||||
| Accrued liabilities | 3,014 | 4,007 | |||||||||
| Deferred revenue | – | 609 | |||||||||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
209 | 98 | |||||||||
| Warrant liability | 6,716 | – | |||||||||
| Current portion of capital lease obligations | 29 | 48 | |||||||||
| Current portion of long-term debt | – | 67 | |||||||||
| Total current liabilities | 11,777 | 7,864 | |||||||||
| Capital lease obligations, net of current portion | – | 20 | |||||||||
| Deferred rent, net of current portion | 428 | – | |||||||||
| Total liabilities | 12,205 | 7,884 | |||||||||
| Commitments and contingencies | |||||||||||
| Shareholders’ (Deficit) Equity | |||||||||||
| Common stock at par value | 32 | 25 | |||||||||
| Additional paid-in capital | 448,066 | 442,560 | |||||||||
| Accumulated deficit | (448,288 | ) | (437,531 | ) | |||||||
| Total shareholders’ (deficit) equity | (190 | ) | 5,054 | ||||||||
| Total liabilities and shareholders’ (deficit) equity | $ | 12,015 | $ | 12,938 | |||||||
| MicroVision, Inc. | |||||||||||||||||||||
| Statement of Operations | |||||||||||||||||||||
| (In thousands, except earnings per share data) | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||
|
2013 |
2012 |
2013 |
2012 |
||||||||||||||||||
| Product revenue | $ | 176 | $ | 2,098 | $ | 2,312 | $ | 4,377 | |||||||||||||
| Contract revenue | 128 | 515 | 483 | 1,261 | |||||||||||||||||
| Development revenue | 660 | – | 1,840 | – | |||||||||||||||||
| Total revenue | 964 | 2,613 | 4,635 | 5,638 | |||||||||||||||||
| Cost of product revenue | 8 | 887 | 1,509 | 4,781 | |||||||||||||||||
| Cost of contract revenue | 76 | 251 | 239 | 654 | |||||||||||||||||
| Total cost of revenue | 84 | 1,138 | 1,748 | 5,435 | |||||||||||||||||
| Gross margin | 880 | 1,475 | 2,887 | 203 | |||||||||||||||||
| Research and development expense | 2,893 | 3,097 | 7,484 | 10,264 | |||||||||||||||||
| Sales, marketing, general and administrative expense | 2,132 | 2,425 | 6,636 | 8,777 | |||||||||||||||||
| Gain on disposal of fixed assets | (33 | ) | (46 | ) | (35 | ) | (47 | ) | |||||||||||||
| Total operating expenses | 4,992 | 5,476 | 14,085 | 18,994 | |||||||||||||||||
| Loss from operations | (4,112 | ) | (4,001 | ) | (11,198 | ) | (18,791 | ) | |||||||||||||
| Change in warrant liability | 397 | – | 397 | – | |||||||||||||||||
| Other income (expense) | 48 | 156 | 44 | 172 | |||||||||||||||||
| Net loss | $ | (3,667 | ) | $ | (3,845 | ) | $ | (10,757 | ) | $ | (18,619 | ) | |||||||||
| Net loss per share – basic and diluted | $ | (0.13 | ) | $ | (0.15 | ) | $ | (0.40 | ) | $ | (0.91 | ) | |||||||||
| Weighted-average shares outstanding – basic and diluted | 28,448 | 24,974 | 26,739 | 20,406 | |||||||||||||||||
Source: MicroVision, Inc.
MicroVision, Inc.
Dawn Goetter, 425-882-6629 (investors)
or
Edelman
Joani
Jones, 503-471-6863 (media/PR)