8/6/2009 4:07:00 PM
<![CDATA[Company Strengthens Balance Sheet and Prepares for Launch of SHOW WX Laser Pico Projector
REDMOND, Wash.–(BUSINESS WIRE)–Aug. 6, 2009–
Microvision, Inc. (NASDAQ:MVIS), a global leader in innovative
ultra-miniature projection display and image capture products for
mobility applications, today reported operating and financial results
for the second quarter of 2009.
Operating Results
“We are pleased to have completed two very important milestones during
the second quarter, the completion of a green laser supply agreement
with Corning for our first PicoP® display engine based product, the SHOW
WXTM laser pico projector, and a major investment by
strategic supplier Walsin Lihwa,” stated Alexander Tokman, Microvision’s
President and CEO. “We are also very excited about the recently
announced agreement with OSRAM Opto Semiconductors for the supply of
green lasers which are planned for commercialization in the fourth
quarter of 2009. Securing a second supply source for green lasers, an
integral component of our PicoP display engine, strengthens our
go-to-market strategy and should enable increased product availability
starting early next year.
“We are rapidly approaching the introduction of Microvision’s first
product based on our proprietary PicoP display engine which is scheduled
for later this summer. We are completing the product reliability and
quality testing and we are validating manufacturing processes at our
suppliers. Additionally, we are finalizing supply quantities that will
be available to support our commercial introduction this year and as we
have previously indicated, we estimate that the demand for the SHOW WX
will exceed the initial quantities available in 2009. We are currently
negotiating purchase orders with several global customers interested in
introducing SHOW WX through their channels. We are making every effort
to ensure that customers will be delighted with the SHOW WX experience.
It is an exciting time for Microvision as we prepare to introduce our
new technology and begin taking advantage of the large mobility market
opportunity,” concluded Tokman.
During the second quarter, Microvision continued to supply PicoP
Evaluation Kits (PEKs) to a diverse group of customers in the consumer
electronic and automotive industries. The strong demand for
Microvision’s tiny laser-based PicoP display engine continues as
customers explore embedding the PicoP into a variety of host devices.
The company plans to supply PEKs to selected customers through the end
of this year.
In June, Microvision secured a $15 million strategic investment from
Walsin Lihwa through the sale of common stock and warrants. Walsin Lihwa
is the parent company of Microvision’s MEMS chip manufacturer. Since the
1990’s it has invested in high-tech companies in the areas of electronic
components, optoelectronics, printed circuit boards and semiconductors.
Walsin Lihwa has a history of seeking growth through investments into
companies positioned to take advantage of large, emerging market
opportunities.
Subsequent to the end of the quarter, the company announced a $1 million
subcontract award from Lockheed Martin to support DARPA’s Urban Leader
Tactical Response, Awareness & Visualization (ULTRA-Vis) program, an
advanced technology development initiative to build a soldier worn
system. Under the subcontract Microvision has agreed to develop a
daylight-readable, see-through, low-profile, ergonomic eyewear display
based on its ultra-miniature PicoP display engine and proprietary thin,
clear Substrate Guided Relay (SGR) Optics. This contract is important to
Microvision’s long-term strategic roadmap, as it provides the
opportunity to advance the company’s technology for a variety of
military and commercial full-color eyewear applications.
Financial Results
“We continue to focus most of our resources on the commercialization of
the first PicoP based pico projection product while aggressively
managing operating costs and cash burn,” said Jeff Wilson, CFO of
Microvision. “Cost reduction activities initiated in the first quarter
of 2009 enabled us to maintain an operating loss for the second quarter
of this year consistent with 2008, despite the lower revenue.”
For the six months ended June 30, 2009, the company reported revenue of
$1.9 million compared to $4.2 million for the same period in 2008 and
for the three months ended June 30, 2009, the company reported revenue
of $987,000 compared to $1.6 million for the same period 2008. As of
June 30, 2009, the backlog totaled $854,000 compared to $679,000 at June
30, 2008. The decrease in revenue is primarily attributed to lower
backlog at the beginning of 2009, which is a result of the company’s
strategy to focus most of its resources on commercializing PicoP
products.
The company reported an operating loss for the six months ended June 30,
2009 of $18.6 million compared to $16.4 million for the same period in
2008 and $9.5 million for the quarter ended June 30, 2009 compared to
$9.3 million for the same period in 2008.
The company reported a net loss of $19.3 million, or $0.28 per share,
for the six months ended June 30, 2009 compared to $14.3 million, or
$0.25 per share for the same period in 2008 and $10.4 million, or $0.15
per share, for the quarter ended June 30, 2009 compared to $9.3 million,
or $0.16 per share for the quarter ended June 30, 2008.
Net cash used in operating activities was $16.3 million for the six
months ended June 30, 2009 compared to $14.9 million for the same period
in 2008. Net cash used in operating activities was $7.6 million for the
quarter ended June 30, 2009 compared to $8.8 million for the first
quarter of 2009. The reduction in the quarterly cash burn was primarily
a result of cost reduction efforts the company implemented in the first
quarter of 2009. The company ended the quarter with $26.3 million in
cash, cash equivalents, and investment securities.
Conference Call
Microvision will host a conference call to discuss its second quarter
2009 results and current business operations at 4:30 p.m. ET on August
6, 2009. Participants may join the conference call by dialing
866-356-3377 (for U.S. participants) or 617-597-5392 (for International
participants) ten minutes prior to the start of the conference. The
conference pass-code number is 17364883. Additionally, the call will be
broadcast over the Internet and can be accessed from the company’s web
site at www.microvision.com/investors.
The web cast and information needed to access the telephone replay will
be available through the same link following the conference call.
About Microvision
Microvision provides the PicoP display technology platform designed to
enable next-generation display and imaging products for pico projectors,
vehicle displays, and wearable displays that interface with mobile
devices. The company also manufactures and sells its bar code scanner
product line which features the company’s proprietary MEMS technology.
For more information, visit our website at (www.microvision.com)
and our corporate blog at (www.microvision.com/displayground).
Forward Looking Statement
Certain statements contained in this release, including those relating
to future product introductions, availability and supply of key
components, including green lasers, applications, business partnering
expectations, sales, growth, business prospects and impact of cost
reductions, as well as statements containing words like “expect,”
“estimates,” “plan,” “could” 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; the risk of market acceptance of our technology and
products, our financial and technical resources relative to those of our
competitors; our planned future products dependence on advances in
technology by other companies, our ability to keep up with rapid
technological change; our ability to enforce our intellectual property
rights and protect our proprietary technologies; the timing of
commercial product launches and delays in product development; the
ability to achieve key technical milestones in key products; our ability
to secure needed third party manufacturing and sales resources,
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 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 in
circumstances or any other reason.
| Microvision, Inc. | ||||||||
| Balance Sheet | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| June 30, | December 31, | |||||||
|
2009 |
2008 |
|||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 23,616 | $ | 25,533 | ||||
| Investment securities, available-for-sale | 2,709 | 2,705 | ||||||
| Accounts receivable, net of allowances | 342 | 537 | ||||||
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
451 | 695 | ||||||
| Inventory | 1,016 | 1,525 | ||||||
| Other current assets | 596 | 889 | ||||||
| Total current assets | 28,730 | 31,884 | ||||||
| Property and equipment, net | 3,618 | 3,701 | ||||||
| Restricted investments | 1,332 | 1,332 | ||||||
| Other assets | 53 | 47 | ||||||
| Total assets | $ | 33,733 | $ | 36,964 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 2,315 | $ | 3,487 | ||||
| Accrued liabilities | 3,267 | 3,545 | ||||||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
55 | 62 | ||||||
| Liability associated with common stock warrants | 1,133 | 331 | ||||||
| Current portion of capital lease obligations | 66 | 41 | ||||||
| Current portion of long-term debt | 74 | 71 | ||||||
| Total current liabilities | 6,910 | 7,537 | ||||||
| Capital lease obligations, net of current portion | 187 | 45 | ||||||
| Long-term debt, net of current portion | 284 | 322 | ||||||
| Deferred rent, net of current portion | 1,243 | 1,409 | ||||||
| Total liabilities | 8,624 | 9,313 | ||||||
| Commitments and contingencies | ||||||||
| Common stock at par value | 76 | 68 | ||||||
| Additional paid-in capital | 336,367 | 319,662 | ||||||
| Accumulated other comprehensive loss | (34 | ) | (38 | ) | ||||
| Accumulated deficit | (311,300 | ) | (292,041 | ) | ||||
| Total shareholders’ equity | 25,109 | 27,651 | ||||||
| Total liabilities and shareholders’ equity | $ | 33,733 | $ | 36,964 | ||||
| Microvision, Inc. | ||||||||||||||||
| Statement of Operations | ||||||||||||||||
| (In thousands, except earnings per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
|
2009 |
2008 |
2009 |
2008 |
|||||||||||||
| Contract revenue | $ | 813 | $ | 1,006 | $ | 1,525 | $ | 3,287 | ||||||||
| Product revenue | 174 | 616 | 413 | 905 | ||||||||||||
| Total revenue | 987 | 1,622 | 1,938 | 4,192 | ||||||||||||
| Cost of contract revenue | 527 | 374 | 910 | 1,136 | ||||||||||||
| Cost of product revenue | 543 | 529 | 784 | 868 | ||||||||||||
| Total cost of revenue | 1,070 | 903 | 1,694 | 2,004 | ||||||||||||
| Gross margin | (83 | ) | 719 | 244 | 2,188 | |||||||||||
| Research and development expense | 5,716 | 5,881 | 11,326 | 10,307 | ||||||||||||
| Sales, marketing, general and administrative expense | 3,667 | 4,103 | 7,481 | 8,238 | ||||||||||||
| Total operating expenses | 9,383 | 9,984 | 18,807 | 18,545 | ||||||||||||
| Loss from operations | (9,466 | ) | (9,265 | ) | (18,563 | ) | (16,357 | ) | ||||||||
| Interest income | 79 | 279 | 143 | 691 | ||||||||||||
| Interest expense | (20 | ) | (12 | ) | (31 | ) | (25 | ) | ||||||||
| Gain (loss) on derivative instruments, net | (982 | ) | (254 | ) | (802 | ) | 1,419 | |||||||||
| Other expense | (5 | ) | (14 | ) | (6 | ) | (32 | ) | ||||||||
| Net loss | $ | (10,394 | ) | $ | (9,266 | ) | $ | (19,259 | ) | $ | (14,304 | ) | ||||
| Net loss per share – basic and diluted | $ | (0.15 | ) | $ | (0.16 | ) | $ | (0.28 | ) | $ | (0.25 | ) | ||||
| Weighted-average shares outstanding – basic and diluted | 68,881 | 56,782 | 68,482 | 56,756 | ||||||||||||
Source: Microvision, Inc.
Microvision, Inc.
Tiffany Bradford (investors) 425-936-6847
Matt
Nichols (media) 425-882-6657