11/12/2003 4:03:00 PM
Company announces an order for 2,900 Flic units and delivery of
100 Nomad units to the Stryker Brigade
BOTHELL, Wash.–(BUSINESS WIRE)–Nov. 12, 2003– Microvision, Inc. (Nasdaq:MVIS), a leader in light scanning
technologies, today reported financial results for the third quarter
of 2003. Revenue for the third quarter of 2003 was $2.6 million
compared to $4.2 million for the same period in 2002. The company had
previously reported that it expected the 2003 third quarter to show
some weakness, citing uncertainty regarding the timing of new
contracts some of which were then under negotiation. Revenue for the
nine months ended September 30, 2003 was $10.6 million compared to
$12.7 million for the same period in 2002. Revenue was derived from
ongoing work on development contracts with U.S. military and
commercial customers, sales of the Flic(TM) Laser Bar Code Scanner,
sales of the Nomad(TM) Augmented Vision System, and development
contracts at its subsidiary, Lumera. For the nine months ended
September 30, 2003, revenue from development contracts with U.S.
government agencies was $5.9 million, revenue from commercial
contracts was $4.3 million and revenue from product sales was
$300,000.
For the three months ended September 30, 2003, Microvision
reported a consolidated net loss of $6.9 million or $.39 per share
compared to a net loss of $5.4 million or $.37 per share for the same
period in 2002. For the nine months ended September 30, 2003, the
company reported a consolidated net loss of $21.0 million or $1.22 per
share compared to a net loss of $20.3 million or $1.48 per share for
the same period in 2002. For the nine months ended September 30, 2003,
net cash used in operating activities was $20.5 million compared to
$23.2 million for the same period in 2002.
The company, including Lumera, had $6.2 million in cash, cash
equivalents and investment securities as of September 30, 2003.
Subsequent to the end of the third quarter, the company closed a $22.3
million equity offering.
The company also affirmed its previous revenue guidance,
indicating that it expects revenue for the fourth quarter of 2003 to
be $4.6 million or higher, compared to revenue of $3.2 million in the
fourth quarter of 2002. Full year revenue for 2003 is expected to be
$15.2 million or higher, compared with $15.9 million for 2002. The
company stated that it expects to resume revenue growth in 2004 with
significantly higher revenue from Nomad and Flic sales and contract
development revenue comparable to 2003. Depending on the level and mix
of revenue, the company expects its current cash balance to fund its
operations for at least the next twelve months.
“We achieved a number of important successes in the third quarter,
including building upon the award of a letter of intent from Honda to
purchase 3,800 Nomad units beginning in 2004, the $600,000 order by
the U.S. Army of 100 Nomad units that have recently been delivered, an
order by Volkswagen for delivery of automotive display prototypes, and
breakthroughs for Lumera in the application of its technology for
smart antennae,” said CEO Rick Rutkowski. “We believe that building on
these successes will provide catalysts for future revenue growth,
beginning in the current quarter and continuing through 2004.
“As we have previously noted, our commercial contract bookings for
the fourth quarter are already at a record level. We have announced
$4.0 million in new commercial contract awards, including our largest
award to date with Canon and a $1.0 million Phase I development
contract for a laser print engine. Both of these development contracts
could lead to product introductions as early as 2005.
“We are pleased with our announcement today of the largest order
we have received to date for the Flic bar code scanner. We believe we
will see additional order activity this quarter and next and that the
product is gaining a toehold position in the billion dollar market for
handheld laser bar code scanners.
“We have met all of our milestones to date with Honda and we
continue to work closely with Honda and other customers in the
automotive market as we move toward our anticipated product launch. We
are seeing growing interest by other automotive OEMs and third party
dealer networks as well as in other vertical markets and field trials
are underway with additional trials being scheduled.
“Development work on automotive displays continues to progress
toward the product development phase for a number of potential
applications. We look forward to reporting on some recent successes in
this area soon.
“Potential new bookings for defense-related contracts are
promising for this quarter and for the first half of next year. We are
optimistic that we will receive additional funding for our existing
Virtual Cockpit Program for next year. We also have indications that
we may receive funding for a new program to advance development of
display solutions for helicopter pilots.
“Lumera also continues to make steady progress in its development.
The company has achieved the technological breakthroughs necessary to
enable it to develop a smart antenna for high volume applications such
as Wi-Fi and is now focused on obtaining one or more development
partners that will also serve as a launch customer.
“Both Microvision and Lumera have strengthened their board and
management teams, respectively. Microvision has added Slade Gorton, a
three term former U.S. Senator to its board of directors and Lumera
has added Dr. Robert J. Petcavich as its first Chief Technology
Officer. During his 23 years of business experience, Dr. Petcavich
founded, planned, financed, and operated four technology-based
start-up companies, including a biochip company engaged in the
development of micro electromechanical systems (MEMS), an advanced
materials company, an artificial intelligence company, and a medical
transcription company.
“Contract bookings and billings in both defense and commercial
arena are looking very solid for this quarter and the first half of
next year and we expect the momentum that is now underway in the
fourth quarter to continue in 2004. Our outlook for 2004 revenue
targets sequential growth driven by product sales, specifically by
strong revenue growth associated with sales of the Nomad display to
American Honda and others. We also believe that Flic sales will
continue to strengthen and contribute to revenue in 2004. If we
execute on the opportunities we see before us, we believe that we
could have our largest revenue growth ever in 2004.”
Conference Call
Microvision will host a conference call to discuss its third
quarter 2003 financial results at 1:30 p.m. PT today. Participants may
join the conference call by dialing (800) 901-5217 (for U.S.
participants) ten minutes prior to the start of the conference.
International participants can dial (617) 786-2964. The conference
passcode is 96598902. Additionally, the call will be broadcast over
the Internet and can be accessed from the company’s web site at
www.microvision.com. A telephone replay of the call will be available
through 6:30 p.m. PT November 19, 2003 and can be accessed by dialing
888-286-8010 (for U.S. participants) or 617-801-6888 (for
international participants). The conference passcode for the replay is
40212052.
(Table to follow)
About Microvision: www.microvision.com
Headquartered in Bothell, Wash., Microvision, Inc. is a world
leader in the development of high resolution displays and imaging
systems based on the company’s proprietary silicon micromirror
technology. The company’s technology has applications in a broad range
of military, medical, industrial, professional and consumer products.
Microvision has been working with Canon, BMW, the Electronics
Research Lab of Volkswagen of America, and others to develop a number
of display and image capture product applications based on its
proprietary scanned beam technology.
About Lumera www.lumera.com
Lumera, a majority owned subsidiary of Microvision, Inc., is
developing and commercializing a new class of electro-optic materials
and devices that utilize proprietary polymer compounds and processing
technologies. These new devices and materials are expected to
dramatically improve performance and reduce costs of electro-optic
components for telecommunications, phased array antenna systems,
optical computing, optical signal processing and optical
interconnects. The properties of these materials are also expected to
enable new applications in other technologies such as organic light
emitting diode displays, low k dielectrics and coating materials.
Lumera expects to be able to sell and license its technology in a
variety of forms, including custom polymer materials, coated wafers,
and discrete and integrated component devices, both packaged and
unpackaged. Additional information can be found at Lumera’s web site
at http://www.lumera.com.
Forward-Looking Statements Disclaimer
Certain statements contained in this release, including
projections of revenues, expenses and losses, plans for product
development, sales, customers and channel partners, reductions in
sales cycle, signing of contracts, future operations and shipping of
products, as well as statements containing words like “believe,”
“anticipate,” “estimate,” “intend,” “will,” “seek,” “look forward,”
“expect,” 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: market acceptance of our technologies and products; our
financial and technical resources relative to those of our
competitors; our ability to obtain financing, 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 and to develop partnership opportunities;
the timing of commercial product launches; the ability to achieve key
technical milestones in key products; dependency on advances by third
parties in certain technology used by us and other risk factors
identified from time to time in the company’s SEC reports, including
in its Prospectuses filed pursuant to Rule 424(b) on November 3, 2003,
its Annual Report on 10K for the year ended December 31, 2002 and its
Quarterly Reports on Form 10-Q.
Microvision, Inc.
Consolidated Balance Sheet
(In thousands)
(Unaudited)
September December
30, 31,
2003 2002
--------- ---------
Assets
Current Assets
Cash and cash equivalents $ 4,149 $ 9,872
Investment securities, available-for-sale 2,069 5,304
Accounts receivable, net 1,362 1,315
Costs and estimated earnings in excess of
billings on uncompleted contracts 936 1,073
Inventory, net 612 747
Other current assets 1,805 2,348
--------- ---------
Total current assets 10,933 20,659
Property and equipment, net 6,057 7,672
Restricted investments 1,269 1,356
Receivables from related parties, net 1,823 2,043
Other assets 374 537
--------- ---------
Total assets $ 20,456 $ 32,267
========= =========
Liabilities, Minority Interests and
Shareholders' Equity
Current Liabilities
Accounts payable $ 1,314 $ 1,462
Accrued liabilities 5,527 4,309
Current portion of research liability 1,652 -
Billings in excess of costs and estimated
earnings on uncompleted contracts 51 230
Current portion of capital lease obligations 73 84
Current portion of long-term debt 68 63
--------- ---------
Total current liabilities 8,685 6,148
Research liability, net of current portion - 1,025
Capital lease obligations, net of current
portion 45 94
Long-term debt, net of current portion 117 169
Deferred rent, net of current portion 128 192
Other long-term liabilities 4 -
--------- ---------
Total liabilities 8,979 7,628
--------- ---------
Commitments and Contingencies - -
Minority Interests 2,852 7,223
--------- ---------
Shareholders' Equity
Common stock and paid-in capital 158,804 147,058
Deferred compensation (990) (1,490)
Subscriptions receivable from related
parties (166) (166)
Accumulated other comprehensive income 37 121
Accumulated deficit (149,060) (128,107)
--------- ---------
Total shareholders' equity 8,625 17,416
--------- ---------
Total liabilities, minority interests and
shareholders' equity $ 20,456 $ 32,267
========= =========
Microvision, Inc.
Consolidated Statement of Operations
(In thousands, except earnings per share data)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
-------------------------------------
2003 2002 2003 2002
------- ------- -------- --------
Revenue $ 2,565 $ 4,186 $ 10,613 $ 12,724
Cost of revenue 1,499 1,919 5,109 5,925
------- ------- -------- --------
Gross margin 1,066 2,267 5,504 6,799
------- ------- -------- --------
Research and development expense 5,524 5,433 18,403 18,762
Marketing, general and
administrative expense 3,615 3,904 12,286 12,786
Non-cash compensation expense 544 450 1,461 1,363
------- ------- -------- --------
Total operating expenses 9,683 9,787 32,150 32,911
------- ------- -------- --------
Loss from operations (8,617) (7,520) (26,646) (26,112)
Interest income 76 235 290 854
Interest expense (11) (16) (35) (45)
Gain on disposal of fixed
assets, net 64 - 33 -
Realized gain on sale of
investment securities - - 39 -
Loss due to impairment of long-
term investment - - - (624)
------- ------- -------- --------
Loss before minority interests (8,488) (7,301) (26,319) (25,927)
Minority interests in loss of
consolidated subsidiary 1,623 1,900 5,366 5,652
------- ------- -------- --------
Net loss $(6,865) $(5,401) $(20,953) $(20,275)
======= ======= ======== ========
Net loss per share before non-
cash compensation expense $ (0.36) $ (0.34) $ (1.13) $ (1.38)
Non-cash compensation expense (0.03) (0.03) (0.09) (0.10)
------- ------- -------- --------
Net loss per share - basic and
diluted $ (0.39) $ (0.37) $ (1.22) $ (1.48)
======= ======= ======== ========
Weighted-average shares
outstanding -
basic and diluted 17,799 14,512 17,188 13,700
======= ======= ======== ========
CONTACT: Microvision
Brian Heagler (investors), 425-415-6794
or
Matt Nichols (media), 425-415-6657
SOURCE: Microvision, Inc.