11/2/2016 8:00:21 AM
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Company signs development contracts for LiDAR 3D Sensing and
Augmented Reality and outlines its plan to sell new scanning engines,
contributing to revenue in 2017
REDMOND, Wash.–(BUSINESS WIRE)–Nov. 2, 2016–
MicroVision,
Inc. (NASDAQ: MVIS), a leader in innovative ultra-miniature
projection display and sensing technology, today announced its results
for the third quarter of 2016 and its plans to introduce three new
scanning engine products starting in 2017.
The company’s revenue of $11.9 million for the nine months ended
September 30, 2016 was a 61 percent increase over the same period last
year. MicroVision expects to reach the upper half of its guidance for
the full year 2016 with revenue estimated between $14.5 million and $15
million.
In the third quarter the company made significant progress in its
efforts to advance its technology for light detection and ranging
(LiDAR) 3D sensing and augmented reality (AR) applications with the
signing of development agreements with two world leading technology
companies. The combined value of the contracts is nearly $1 million and
both are expected to be completed in 2017. Each engagement will deliver
proof of concept demonstrators, one for LiDAR 3D sensing for advanced
driver assistance systems (ADAS) and autonomous vehicles and the other
for an AR display.
Growth Strategy
MicroVision plans to begin selling laser beam scanning (LBS) engines in
2017 for market opportunities not addressed by current solutions. The
company expects sales of its new LBS engines to add significant revenue
which would be in addition to component sales and royalties from
existing customers. These new MicroVision offerings are targeted to a
wide variety of OEM and ODM customers for multiple applications, and
they consist of:
-
A small form factor, high definition display engine for applications
where form factor and flexibility of product design are required; -
An interactive touch engine that integrates display and 3D sensing to
allow the user to interact with projected images; -
A mid-range LiDAR engine for autonomous industrial products and
robotics.
MicroVision sees multiple benefits from introducing these new LBS
engines. First, the company can address demand for emerging
applications. Second, it would reduce barriers to entry for those OEMs
who want to make products with MicroVision’s technology for these
applications without the long lead times and investments related to
making their own engines. Third, these multiple engines can be built
from the single technology platform of common MEMS and ASICS MicroVision
is already producing. Fourth, it is a complementary offering to display
engines offered by the company’s licensees, and MicroVision plans to
continue supporting its existing customers and vertically integrated
OEMs and ODMs who prefer to license the company’s technology and build
engines with MicroVision components.
Based on early indications of interest from various potential customers,
MicroVision anticipates that demand for these engines could result in
revenue ranging from $30 million to $60 million over the 12 to 18 months
following availability of the first production units. MicroVision
expects significant revenue growth in 2017, and the revenue from these
new products is expected to be weighted to the second half of 2017.
MicroVision plans the following launch schedule for its engines:
-
Small form factor display engine: samples in December 2016 and
production units in early Q2 2017; -
Interactive touch engine: samples in Q2 2017 and production units in
Q3 2017; -
LiDAR 3D sensing engine: samples in second half 2017 and production
units in first half 2018.
Q3 2016 Financial Results
The following financial results are for the three and nine months ended
September 30, 2016, compared to the same periods of 2015:
-
Revenue was $4.0 million for the third quarter of 2016, compared to
$2.4 million for the third quarter a year ago. Revenue for the first
nine months of 2016 was $11.9 million, compared to $7.3 million for
the same period in 2015. -
Operating loss for the third quarter of 2016 was $4.1 million,
compared to $3.5 million for the third quarter a year ago. Operating
loss was $11.1 million for the first nine months of 2016, compared to
$10.3 million for the first nine months of 2015. -
Net loss for the third quarter of 2016 was $4.1 million, or $0.08 per
share, compared to $3.5 million, or $0.07 per share, for the same
quarter a year ago. Net loss was $11.1 million, or $0.22 per share,
for the first nine months of 2016, compared to $10.2 million, or $0.22
per share, for the first nine months of 2015. -
For the third quarter of 2016, cash used in operations was $3.8
million, compared to $3.6 million for the same period in 2015. For the
nine months ended September 30, 2016, cash used in operations was
$10.9 million, compared to cash used in operations of $2.2 million for
the same period in 2015. The 2015 cash use reflects an $8 million
upfront licensing fee received in March 2015.
As of September 30, 2016, backlog was $2.3 million. The company expects
to fulfill approximately $1.4 million of this backlog in the fourth
quarter of 2016 and the remainder in 2017. Cash and cash equivalents at
September 30, 2016 were $5.8 million. Although, as indicated by the
backlog, the company does not currently have commitments that would
generate additional product revenue in the first quarter of 2017,
MicroVision has ongoing discussions with multiple parties aimed at
building its pipeline for licensing, component sales, engine sales and
contract revenue.
Conference Call
The company will host a conference call today to discuss its third
quarter 2016 results and current business operations at 8:30 a.m. ET /
5:30 a.m. PT. Participants may join the conference call by dialing
1-888-771-4371 (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 43679114. 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 1-888-843-7419 (U.S.) or
(International) +1-630-652-3042, pass code 4367 9114#. The phone-in
replay will be available through November 9, 2016.
About MicroVision
MicroVision is the creator of PicoP® scanning technology, an
ultra-miniature laser projection and sensing solution based on the laser
beam scanning methodology pioneered by the company. MicroVision’s
platform approach for this advanced display and sensing 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 business development agreements, timing of product launches, future
product specifications, customer demand, product development and results
of operations 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® scanning
technology 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 or products, 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, | |||||||||
|
2016 |
2015 |
|||||||||
| Assets | ||||||||||
| Current Assets | ||||||||||
| Cash and cash equivalents | $ | 5,803 | $ | 7,888 | ||||||
| Accounts receivable, net | 1,821 | 1,687 | ||||||||
| Inventory | 1,252 | 862 | ||||||||
| Other current assets | 461 | 638 | ||||||||
| Total current assets | 9,337 | 11,075 | ||||||||
| Property and equipment, net | 1,367 | 1,669 | ||||||||
| Restricted cash | 435 | 435 | ||||||||
| Intangible assets, net | 750 | 845 | ||||||||
| Other assets | 18 | 18 | ||||||||
| Total assets | $ | 11,907 | $ | 14,042 | ||||||
|
Liabilities and Shareholders’ Deficit |
||||||||||
| Current Liabilities | ||||||||||
| Accounts payable | $ | 2,149 | $ | 2,183 | ||||||
| Accrued liabilities | 3,242 | 3,399 | ||||||||
| Deferred revenue | 2,184 | 2,122 | ||||||||
| Total current liabilities | 7,575 | 7,704 | ||||||||
| Deferred revenue, net of current portion | 5,402 | 6,149 | ||||||||
| Deferred rent, net of current portion | 226 | 342 | ||||||||
| Total liabilities | 13,203 | 14,195 | ||||||||
| Commitments and contingencies | ||||||||||
|
Shareholders’ Deficit |
||||||||||
| Common stock at par value | 54 | 47 | ||||||||
| Additional paid-in capital | 493,123 | 483,171 | ||||||||
| Accumulated deficit | (494,473 | ) | (483,371 | ) | ||||||
|
Total shareholders’ deficit |
(1,296 | ) | (153 | ) | ||||||
|
Total liabilities and shareholders’ deficit |
$ | 11,907 | $ | 14,042 | ||||||
| MicroVision, Inc. | ||||||||||||||||||||
| Statement of Operations | ||||||||||||||||||||
| (In thousands, except earnings per share data) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
|
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 |
|||||||||||||||||
| Product revenue | $ | 3,617 | $ | 2,078 | $ | 10,302 | $ | 5,001 | ||||||||||||
| Royalty revenue | 331 | 309 | 1,482 | 777 | ||||||||||||||||
| Contract revenue | 52 | 11 | 72 | 1,564 | ||||||||||||||||
| Total revenue | 4,000 | 2,398 | 11,856 | 7,342 | ||||||||||||||||
| Cost of product revenue | 2,767 | 1,810 | 7,942 | 4,921 | ||||||||||||||||
| Cost of contract revenue | 26 | 3 | 32 | 792 | ||||||||||||||||
| Total cost of revenue | 2,793 | 1,813 | 7,974 | 5,713 | ||||||||||||||||
| Gross margin | 1,207 | 585 | 3,882 | 1,629 | ||||||||||||||||
| Research and development expense | 3,053 | 2,231 | 8,529 | 6,140 | ||||||||||||||||
| Sales, marketing, general and administrative expense | 2,231 | 1,873 | 6,470 | 5,740 | ||||||||||||||||
| Total operating expenses | 5,284 | 4,104 | 14,999 | 11,880 | ||||||||||||||||
| Loss from operations | (4,077 | ) | (3,519 | ) | (11,117 | ) | (10,251 | ) | ||||||||||||
| Other income, net | 7 | 6 | 15 | 7 | ||||||||||||||||
| Net loss | $ | (4,070 | ) | $ | (3,513 | ) | $ | (11,102 | ) | $ | (10,244 | ) | ||||||||
| Net loss per share – basic and diluted | $ | (0.08 | ) | $ | (0.07 | ) | $ | (0.22 | ) | $ | (0.22 | ) | ||||||||
| Weighted-average shares outstanding – basic and diluted | 52,111 | 47,216 | 50,421 | 46,292 | ||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20161102005561/en/
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