10/22/2009 4:03:00 PM
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Commercial Product Launch and Beginning of Shipments of SHOWWX,
World’s First Laser Pico Projector, Highlight Quarter
REDMOND, Wash.–(BUSINESS WIRE)–Oct. 22, 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 third quarter of 2009.
Operating Results
“The third quarter of 2009 was a very rewarding and in many ways
historical quarter for Microvision as we reached three important
corporate milestones for commercialization of our PicoP® technology”
said Alexander Tokman, Microvision’s President and CEO. “We launched our
first PicoP technology based product, SHOWWXTM the world’s
first laser pico projector; received our first purchase order to
distribute the SHOWWX; and secured our first global OEM to private label
the accessory product. We began shipping SHOWWX laser pico projectors in
September and our plan is to increase volume each month to meet customer
demand.”
Microvision’s Asian distribution partner, Mint Technology, through its
parent company Mint Wireless Limited (ASX: MNW), issued a press release
on October 22 (see
Mint press release) revealing that the global OEM that will private
label Microvision’s laser pico projector is Uniden Corporation of Japan.
Microvision had previously announced on a no-name basis the purchase
order from Mint Technology (see
September 30 Microvision press release) and the purchase order for
Uniden to private label Microvision’s PicoP display engine-based
accessory laser pico projector (see
October 8 Microvision press release).
Other notable results and acknowledgements for the third quarter
included:
- Certifying the SHOWWX Laser Pico Projector as a Made for iPod® product
-
Signing a long-term agreement with OSRAM Opto Semiconductors GmbH for
supply of green and blue lasers to further strengthen supply chain
capabilities. -
Receiving $1.0 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. 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. Under the
subcontract Microvision is developing 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. -
Identified for the first time by the Patent Board™ as one of the “Top
50 Movers” in the Electronics and Instruments industry. The Patent
Board is a leading business-based patent advisor to Fortune 500
companies, emerging technology companies, law firms, investment banks,
governments and universities. The Patent Board utilizes proprietary
data, tools, analytics and technology to leverage patent-based
Intellectual Property as an asset class. -
Identified by a Pacific Northwest business publication as one of
“Washington’s Top 100 Companies to Work For in 2009”
Financial Results
For the nine months ended September 30, 2009, the company reported
revenue of $2.9 million compared to $5.1 million for the same period in
2008 and for the three months ended September 30, 2009, the company
reported revenue of $ 924,000 compared to $894,000 for the same period
2008. As of September 30, 2009, the backlog totaled $2.0 million
compared to $647,000 at September 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 nine months ended
September 30, 2009 of $27.9 million compared to $25.3 million for the
same period in 2008 and $9.3 million, for the quarter ended September
30, 2009 compared to $9.0 million for the same period in 2008.
The company reported a net loss of $30.8 million, or $0.43 per share,
for the nine months ended September 30, 2009 compared to $22.7 million,
or $0.38 per share for the same period in 2008 and $11.5 million, or
$0.15 per share, for the quarter ended September 30, 2009 compared to
$8.4 million, or $0.13 per share for the quarter ended September 30,
2008. The net loss for the three and nine months ended September 30,
2009 included a non cash loss on derivative instruments of $2.2 million
and $3.0 million, respectively, compared to a gain of $585,000 and $2.0
million for the same periods in 2008. The loss on derivative instruments
is due to the change in the value of the warrants to purchase the
company’s common stock that were issued in connection with the company’s
financing transactions.
Net cash used in operating activities was $23.4 million for the nine
months ended September 30, 2009 compared to $22.3 million for the same
period in 2008. Net cash used in operating activities was $7.1 million
for the quarter ended September 30, 2009 compared to $7.6 million for
the second 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 net cash burn for the third quarter was
partially offset by the receipt of $1.5 million for the exercise of
investor warrants, and $300,000 for other investing and financing
activities resulting in a net cash usage of $5.9 million for the third
quarter of 2009. The company ended the quarter with $20.5 million in
cash, cash equivalents, and investment securities.
Conference Call
Microvision will host a conference call to discuss its third quarter
2009 results and current business operations at 4:30 p.m. ET on October
22, 2009. Participants may join the conference call by dialing (800)
299-0148 (for U.S. participants) or (617) 801-9711 (for International
participants) ten minutes prior to the start of the conference. The
conference pass-code number is 46236246. 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’s projection display engine uses highly efficient
laser light sources which can create vivid images with high contrast and
brightness. For more information, visit our website (www.microvision.com)
and corporate blog (www.microvision.com/displayground).
Forward Looking Statement
Certain statements contained in this release, including those relating
to availability and supply of key components, including green lasers,
ramp of production, applications, business partnering expectations,
sales, growth, business prospects and impact of cost reductions, as well
as statements containing words like “expect,” “plan,” 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) | ||||||||
| September 30, | December 31, | |||||||
|
2009 |
2008 |
|||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 17,759 | $ | 25,533 | ||||
| Investment securities, available-for-sale | 2,716 | 2,705 | ||||||
| Accounts receivable, net of allowances | 545 | 537 | ||||||
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
242 | 695 | ||||||
| Inventory | 642 | 1,525 | ||||||
| Other current assets | 568 | 889 | ||||||
| Total current assets | 22,472 | 31,884 | ||||||
| Property and equipment, net | 3,895 | 3,701 | ||||||
| Restricted investments | 1,332 | 1,332 | ||||||
| Other assets | 53 | 47 | ||||||
| Total assets | $ | 27,752 | $ | 36,964 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 3,390 | $ | 3,487 | ||||
| Accrued liabilities | 3,289 | 3,545 | ||||||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
47 | 62 | ||||||
| Liability associated with common stock warrants | 3,379 | 331 | ||||||
| Current portion of capital lease obligations | 71 | 41 | ||||||
| Current portion of long-term debt | 76 | 71 | ||||||
| Total current liabilities | 10,252 | 7,537 | ||||||
| Capital lease obligations, net of current portion | 165 | 45 | ||||||
| Long-term debt, net of current portion | 264 | 322 | ||||||
| Deferred rent, net of current portion | 1,156 | 1,409 | ||||||
| Total liabilities | 11,837 | 9,313 | ||||||
| Commitments and contingencies | – | – | ||||||
| Shareholders’ Equity | ||||||||
| Common stock at par value | 77 | 68 | ||||||
| Additional paid-in capital | 338,690 | 319,662 | ||||||
| Accumulated other comprehensive loss | (27 | ) | (38 | ) | ||||
| Accumulated deficit | (322,825 | ) | (292,041 | ) | ||||
| Total shareholders’ equity | 15,915 | 27,651 | ||||||
| Total liabilities and shareholders’ equity | $ | 27,752 | $ | 36,964 | ||||
| Microvision, Inc. | ||||||||||||||||
| Statement of Operations | ||||||||||||||||
| (In thousands, except earnings per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
|
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||||
|
2009 |
2008 |
2009 |
2008 |
|||||||||||||
| Contract revenue | $ | 817 | $ | 480 | $ | 2,342 | $ | 3,767 | ||||||||
| Product revenue | 107 | 414 | 520 | 1,319 | ||||||||||||
| Total revenue | 924 | 894 | 2,862 | 5,086 | ||||||||||||
| Cost of contract revenue | 379 | 253 | 1,289 | 1,389 | ||||||||||||
| Cost of product revenue | 720 | 356 | 1,504 | 1,224 | ||||||||||||
| Total cost of revenue | 1,099 | 609 | 2,793 | 2,613 | ||||||||||||
| Gross margin | (175 | ) | 285 | 69 | 2,473 | |||||||||||
| Research and development expense | 5,839 | 5,804 | 17,165 | 16,111 | ||||||||||||
| Sales, marketing, general and administrative expense | 3,283 | 3,456 | 10,764 | 11,694 | ||||||||||||
| Total operating expenses | 9,122 | 9,260 | 27,929 | 27,805 | ||||||||||||
| Loss from operations | (9,297 | ) | (8,975 | ) | (27,860 | ) | (25,332 | ) | ||||||||
| Interest income | 45 | 271 | 188 | 962 | ||||||||||||
| Interest expense | (19 | ) | (11 | ) | (50 | ) | (36 | ) | ||||||||
| Impairment of investment securities, available-for-sale | – | (300 | ) | – | (300 | ) | ||||||||||
| Gain (loss) on derivative instruments, net | (2,246 | ) | 585 | (3,048 | ) | 2,004 | ||||||||||
| Other expense | (8 | ) | (13 | ) | (14 | ) | (45 | ) | ||||||||
| Net loss | $ | (11,525 | ) | $ | (8,443 | ) | $ | (30,784 | ) | $ | (22,747 | ) | ||||
| Net loss per share – basic and diluted | $ | (0.15 | ) | $ | (0.13 | ) | $ | (0.43 | ) | $ | (0.38 | ) | ||||
| Weighted-average shares outstanding – basic and diluted | 76,265 | 64,879 | 71,105 | 59,483 | ||||||||||||
Source: Microvision, Inc.
Microvision, Inc.
Matt Nichols (media), 425-882-6657
Jeff
Wilson (investors), 425-936-6847