3/6/2003 6:03:00 AM
BOTHELL, Wash., Mar 6, 2003 (BUSINESS WIRE) — Microvision, Inc. (Nasdaq:MVIS),
a leader in light scanning technologies, today clarified that based on its
current operating plan, the $12.5 million equity offering completed yesterday
raised sufficient cash to fund the company’s operations at least through the end
of 2003.
The company reported that it has already received more than $12.1 million of the
proceeds from yesterday’s offering and fully expects to receive the balance
today. The company estimates that, under its current plan it would need to
secure approximately $3 to $4 million in additional capital to fund its
operations through the first quarter of 2004. The company currently plans to
seek additional independent financing for its Lumera subsidiary, in order to
fulfill part of this requirement. The company said it also has the option to
limit or reschedule certain planned expenditures in order to extend cash
balances if needed.
“We believe that $12.5 million was the appropriate amount of capital to raise at
this time, given a variety of factors, including current market conditions and
our anticipation of continued positive developments in our business, some of
which may further reduce our capital requirements,” said Microvision CEO, Rick
Rutkowski. “Last week we reported record 2002 financial results, including a 48%
increase in revenue, a 92% increase in gross profit and a 22% reduction in our
net loss. These are encouraging trends as we pursue the objectives of continued
growth toward profitability. We continue to view both our near term and long
term outlook as very positive and we remain enthusiastic about our prospects in
2003 and beyond.
“While there are always risks in any plan, we believe there are specific
opportunities for upside. Our results in 2002 and early 2003 include a number of
contract awards with significant partners, such as Canon, NCR, Johnson &
Johnson, BMW and the U.S. military, among others. We are pursuing additional
development contracts for this year and next that could potentially reduce
future capital requirements and accelerate profitability beyond our current
plan. We are also exploring a range of potential financing alternatives
including strategic investments by one or more prospective partners. We believe
it is in the interest of our shareholders to evaluate and pursue such
opportunities before raising additional capital in the financial markets.
However, having raised substantial capital since September of 2001, and having
just completed a significant offering amidst very challenging market conditions,
we also remain confident in our ability to access the capital markets if and as
needed for future financings. We are pleased that existing investors chose to
participate in this recent financing, we welcome new investors and we remain
committed to working to deliver value for every one of our shareholders.”
About Microvision: www.mvis.com
Headquartered in Bothell, WA, Microvision Inc. is the developer of the patented
retinal scanning display technology and a world leader in micro miniature
optical scanning technology for display and imaging applications. The company’s
technology has applications in a broad range of military, medical, industrial,
professional and consumer information products. Nomad is a trademark of
Microvision, Inc.
Forward-Looking Statements Disclaimer
Certain statements contained in this release, including estimates of sufficiency
of funds, plans to seek additional financing, anticipation of continued positive
developments, business prospects, opportunities for upside, future capital
requirements, acceleration of profitability, ability to access capital, future
success, and product applications, as well as statements containing words like
“estimates,” “anticipates,” “plans,” “believes,” “expects,” “will” 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 and other risk factors identified
from time to time in the company’s SEC reports, including our most recently
filed Registration Statement on Form S-3. 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 circumstances or any other reason.
CONTACT:
Microvision, Inc.
Brian Heagler (investors), 425/415-6794
Matt Nichols (media), 425/415-6657
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