Company Expects Stronger Growth in 2001
BOTHELL, Wash., March 13 /PRNewswire/ — Microvision, Inc. (Nasdaq: MVIS) today reported results for the fourth quarter and full year ended December 31, 2000.
During the fourth quarter of 2000 revenues increased by 64% to
$2.9 million from $1.7 million in the fourth quarter 1999. For the year ending
December 31, 2000 revenues increased 17% to $8.1 million compared with
$6.9 million during 1999. The company had a backlog of $4.5 million under
contract as of December 31, 2000.
For the fourth quarter 2000, the Company reported a consolidated net loss
available for common shareholders of $6.9 million or $.58 per share compared
to a net loss available for common shareholders of $4.4 million or $.45 per
share for the fourth quarter 1999. Consolidated results include
Microvision, Inc. and the Company’s subsidiary, Lumera Corp. During the fourth
quarter 2000, Microvision’s loss per share attributable to Lumera was $1.3
million or $0.11 per share.
For the full year, the Company reported a consolidated net loss available
for common shareholders of $26.6 million or $2.33 per share compared to net
loss available for common shareholders of $16.7 million or $2.04 per share for
the same period in 1999. For the full year 2000, the loss attributable to
Lumera Corp. was $2.4 million or $0.21 per share.
“We continue to consolidate our role as an innovator and technology leader
in the electro-optics and photonics industry,” stated Rick Rutkowski,
Microvision’s President and CEO. “During the past year we’ve made remarkable
progress towards turning technology into products and have positioned
ourselves to deliver several products to the market in rapid succession
beginning this year and through 2002. The introduction of the Nomad wearable
display later this year will be followed by commercial launch of Microvision’s
unique barcode products and Lumera’s electro-optic modulators during 2002. We
are encouraged by strong prospects for growth in each of these product
categories, and by continued and growing sponsorship of our technology through
U.S. Government programs.
“During the fourth quarter the Company announced the formation of Lumera,
a subsidiary company focused on the development and commercialization of
optical component devices based on proprietary electro-optic polymer
“During 2000, Microvision provided financing to Lumera in the form of
loans to the subsidiary convertible into equity in Lumera. The company
previously announced plans to complete a private placement financing of
approximately $25 million to fund further development. We have been actively
engaged in discussions with potential investors and have substantially
completed the financing arrangements. We expect to announce completion of the
“Based on our contact with prospective customers for Lumera’s products, we
anticipate strong demand for both 10- gigabit and 40-gigabit solutions, and we
are currently targeting volume commercial production during 2002 with delivery
of prototype devices to customers during the second half of this year.
“Working with potential customers and channel partners to develop
applications and markets for wearable displays continues to be a central part
of our strategic focus.
“During the quarter, the Cleveland Clinic Foundation joined the ranks of
Microvision’s clinical partners to develop a series of applications that will
advance the surgical use of RSD technology. The Cleveland Clinic will conduct
studies focused primarily on image-guided surgery and minimally invasive
procedures over the next year using both the Nomad display and a prototype
full color, head-up system called Spectrum.
“We continue to work with Carl Zeiss and other medical partners to develop
compelling applications for wearable displays in diagnostic and surgical
Aviation and Industrial
“We announced a cooperative agreement with R RAMJET Inc., a leading
aviation-consulting group. We will jointly pursue and develop head-worn
displays for flight crews during emergency smoke-in-cockpit situations. Our
RSD technology delivers bright, daylight readable, high-resolution images that
will not be affected by smoke.
“EUROCONTROL, The European Agency for the Safety of Air Navigation,
purchased a prototype Nomad for test and evaluation. With the ‘see-through’
display, air traffic controllers will be able to view computer-generated
advisories while maintaining visual contact with the terrain and airspace
surrounding the airfield. This in turn will lead to reduced stress and
workload on the controllers. We believe that improved visualization will be
the key in reducing the risk of runway incursion and near collisions.
Milestones For Scanning Technology
“Microvision’s Imaging Solutions Group, formed early during 2000,
successfully demonstrated a highly innovative hand-held laser scanning device
for reading bar-codes that features very low-power operation, small size and
very low cost. We continue to be encouraged by the pace of development and
innovation with this product as well as indications of interest from the
market place. We will target the product to meet needs in both the existing
bar-code scanner market as well as in the emerging market for mobile Internet
and m-commerce solutions with commercial production scheduled to begin next
“The Imaging Solutions Group also announced that they would utilize the
Company’s proprietary silicon micro-mirror technology to develop an ultra-high
resolution light-scanning camera. The development effort seeks to produce a
microminiature confocal camera that can be inserted into very small spaces to
transmit high-resolution, real time, three-dimensional images of objects at
extremely high magnification. The development of the confocal microprobe is
consistent with our strategy of leveraging Microvision’s core microscanning
technology and our core competencies in the design and development of
high-quality optical imaging systems.
“With additional growth expected in defense and aerospace, plus the
introduction of product by the end of the year, revenues in 2001 should
increase by at least 50 percent over revenues in 2000. The majority of the
growth will occur late in the year as products are scheduled for shipment.
“As we move rapidly into prototyping and prepare for production in 2002,
we expect our investment to continue to grow. The continued growth will have
an impact on Microvision, Inc. earnings of approximately a net loss of
$1.00 per share,” concluded Rutkowski.
First Quarter Event
In March 1994, the Company entered into an exclusive license agreement
with the University of Washington to acquire certain imaging technology
separate and distinct from the RSD technology. This imaging technology is
referred to as HALO. The original HALO license agreement required the Company
to make payments to the University upon filing a patent application and the
issuance of a patent as well as to pay royalties on products covered by such
patents. In the first quarter of 2001, the Company will make a final payment
of approximately $900,000 to the University to convert the HALO license
agreement to a fully a paid-up, royalty free exclusive license. Nearly
$800,000 of the payment will be a non-cash stock payment with the remainder
paid in cash.
Investors will have the opportunity to listen to Microvision’s conference
call regarding fourth quarter and year-end 2000 earnings at 8:00 a.m. PT over
the Internet through The First News website, located at
http://www.thefirstnews.com . To listen to the live call, go to the web site
at least fifteen minutes early to register, download, and install any
necessary audio software. For those who cannot listen to the live broadcast, a
replay will be available on The First News site shortly after the call.
Headquartered in Bothell, Wash., Microvision, Inc. is the developer of the
proprietary retinal scanning display technology and a world leader in micro
miniature optical scanning technology for display and imaging applications.
The company’s technology has application in a broad range of military,
medical, industrial, professional and consumer information products.
Additional information can be found at the Company’s Web site at
As a subsidiary of Microvision, Inc., Lumera is a world leader in the
development of electro-optic devices based on proprietary optical polymers.
The company will deliver superior and unique component solutions to optical
systems suppliers. Lumera will supply standard and custom components to
systems providers in multiple high-growth product categories. Additional
information can be found at the company’s Web site at http://www.lumera.com.
The information set forth in this release includes “forward-looking
statements” within the meaning of Section 21E of the Securities Exchange Act
of 1934, as amended, and is subject to the safe harbor created by those
sections. Such forward-looking statements involve known and unknown risks,
uncertainties, and other factors that may cause actual results to differ
materially from future results expressed or implied in such statements.
Certain factors that realistically could cause results to differ materially
from those projected in the company’s forward-looking statements are set forth
in the company’s Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q, as filed with the Securities and Exchange Commission. The Company
disclaims any obligation to update any such factors or to publicly announce
the results of any revision to any of the forward-looking statements contained
in this news release.
Microvision, Inc. Consolidated Balance Sheet December 31, December 31, 2000 1999 (unaudited) Assets Current Assets Cash and cash equivalents $7,307,400 $2,798,000 Investment securities, available-for-sale 33,410,000 29,369,400 Accounts receivable, net 1,032,500 1,024,500 Costs and estimated earnings in excess of billings on uncompleted contracts 2,116,400 2,000,400 Current restricted investments 1,125,000 650,000 Other current assets 975,600 847,700 Total current assets 45,966,900 36,690,000 Long-term investment, at cost 623,600 623,600 Property and equipment, net 7,515,900 3,054,700 Restricted investments 951,000 1,100,000 Receivables from related parties 999,900 -- Other assets 113,900 150,700 Total assets $56,171,200 $41,619,000 Liabilities, Mandatorily Redeemable Convertible Preferred Stock and Shareholders' Equity Current Liabilities Accounts payable $1,974,500 $1,453,100 Accrued liabilities 2,359,000 2,000,100 Allowance for estimated contract losses 295,000 -- Billings in excess of costs and estimated earnings on uncompleted contracts 418,600 167,000 Current portion of capital lease obligations 316,500 220,800 Current portion of long-term debt 51,900 46,900 Total current liabilities 5,415,500 3,887,900 Capital lease obligations, net of current portion 182,300 279,400 Long-term debt, net of current portion 289,600 341,500 Deferred rent, net of current portion 242,100 214,800 Total liabilities 6,129,500 4,723,600 Commitments and contingencies -- -- Mandatorily redeemable convertible preferred stock -- 1,536,000 Shareholders' Equity Common stock 120,506,100 75,518,300 Deferred compensation (4,378,200) (213,100) Subscriptions receivable from related parties (403,200) (349,100) Accumulated other comprehensive gain (loss) 454,200 (60,600) Accumulated deficit (66,137,200) (39,536,100) Total shareholders' equity 50,041,700 35,359,400 Total Liabilities, mandatorily redeemable convertible preferred stock and shareholders' equity $56,171,200 $41,619,000 Microvision, Inc. Consolidated Statement of Operations Three months ended Year ended December 31, December 31, 2000 1999 2000 1999 (unaudited) (unaudited) Revenue $2,864,600 $1,742,500 $8,120,600 $6,902,700 Cost of revenue 2,007,500 1,202,400 6,075,800 4,943,500 Gross margin 857,100 540,100 2,044,800 1,959,200 Research and development expense 5,669,200 3,566,700 19,520,400 10,199,000 Marketing, general and administrative expense 2,465,200 1,676,900 10,475,400 7,205,200 Non-cash compensation expense 440,800 55,700 1,591,800 264,000 Total operating expenses 8,575,200 5,299,300 31,587,600 17,668,200 Loss from operations (7,718,100) (4,759,200) (29,542,800) (15,709,000) Interest income 836,500 526,100 3,105,300 1,163,200 Interest expense (31,000) (41,200) (163,600) (172,200) Net loss (6,912,600) (4,274,300) (26,601,100) (14,718,000) Less: Preferred dividend -- (154,400) -- (227,800) Noncash beneficial conversion feature of Series B Preferred Stock -- -- -- (1,754,300) Net loss available for common shareholders $(6,912,600) $(4,428,700) $(26,601,100) $(16,700,100) Net loss per share available for common shareholders before non-cash compensation expense $(0.55) $(0.44) $(2.19) $(2.01) Non-cash compensation expense (0.03) (0.01) (0.14) (0.03) Net loss per share available for common shareholders -- basic and diluted $(0.58) $(0.45) $(2.33) $(2.04) Weighted-average shares outstanding -- basic and diluted 11,854,700 9,945,800 11,420,600 8,168,600