4/23/2012 8:03:46 AM
<![CDATA[Company signs definitive agreement with Pioneer and positions for its
ingredient brand business and licensing model
REDMOND, Wash., Apr 23, 2012 (BUSINESS WIRE) –MicroVision, Inc. (NASDAQ: MVIS), a leader in innovative ultra-miniature
projection display technology, today announced its operating and
financial results for the first quarter of 2012 and the advancement of
its 2012 business objectives.
The company made important progress on its three key objectives of
securing OEM commitments, launching MicroVision’s HD PicoP(R) Gen2 display
engine technology using direct green lasers (PicoP Gen2) and
transitioning to an “Image by PicoP” ingredient brand model.
The recent completion of definitive agreements with Pioneer Corporation
under which Pioneer agrees to produce PicoP Gen2 display engines for its
own automotive aftermarket products and to pay MicroVision royalties
from sales of these products is a major milestone toward achieving
MicroVision’s 2012 goals. This arrangement allows the companies to
leverage Pioneer’s advanced operational technologies and product
distribution networks to promote adoption of its automotive aftermarket
products and supports MicroVision’s continued transition to an “Image by
PicoP” ingredient brand model, which is expected over time to reduce
working capital requirements.
Pioneer plans to release its first commercial aftermarket head-up
display product later this year. MicroVision plans to sell key
components of the PicoP Gen2 technology to Pioneer for its product
launch. Availability of commercial direct green lasers is expected to
coincide with Pioneer’s product launch.
The company continues to deliver PicoP Gen2 engine design samples to
customers for evaluation to secure additional OEM commitments to design
products with an embedded PicoP display engine. MicroVision received new
orders for PicoP evaluation kits in the first quarter, including from a
tier one automotive supplier and a large industrial customer.
As customers choose to move from design to product commercialization
under the ingredient brand model, MicroVision would license its patented
PicoP Gen2 technology, sell key engine components, and receive royalties
from future product sales. The customers would integrate the components
using their validated supply chains and manufacturing capabilities and
embed the integrated solution into products.
“We believe that licensing our innovative technology and working with
customers during the design phase will provide the fastest, lowest cost
path to commercializing the PicoP Gen2 platform based on direct green
lasers,” said MicroVision President and CEO Alexander Tokman. “This
approach frees our customers to produce engines using their established
supply chains and allows MicroVision to further reduce its operating
costs and reduce the time to reach cash flow break-even.”
The ingredient brand and licensing strategy is possible now because of
the availability of the PicoP Gen2 platform and capabilities it offers,
direct green laser technology, MicroVision’s strong intellectual
property portfolio and the growing market interest in pico projection
applications in several sectors. MicroVision plans to reduce its cash
used in operations by approximately 50% during the second half of 2012
to align to its “Image by PicoP” ingredient brand model.
“We believe we are positioned to achieve our goal of making PicoP Gen2
display engine technology available this year with a licensing and
royalty business model that capitalizes on our investment in our
patented PicoP technology and the associated reduction in operating
expenses,” concluded Tokman.
The following financial results are for the three months ended March 31,
2012, compared to the same period one year earlier.
Revenue was $1.7 million, compared to $1.1 million a year ago,
primarily from the sale of current generation PicoP display engines
and the SHOWWX family of pico projectors.
Operating loss was $9.8 million, compared to $9.0 million for the same
quarter a year ago. The operating loss included approximately $2.2
million in inventory write downs resulting from the company’s reduced
activities in the production and sales of the SHOWWX product line as
PicoP Gen2 availability approaches.
Net loss was $9.8 million, or $0.58 per share, compared to $9.0
million, or $0.70 per share for the same quarter a year ago. Per share
numbers have been adjusted for the reverse stock split which became
effective February 17, 2012.
Cash used in operations was $6.2 million during the quarter ended
March 31, 2012, compared to $8.1 million for the first quarter of 2011.
As of March 31, 2012, backlog was $1.5 million and cash and cash
equivalents were $6.8 million.
The company will host a conference call today to discuss its first
quarter 2012 results and current business operations at 8:30 a.m. ET /
5:30 a.m. PT. Participants may join the conference call by dialing
800-884-5695 (for U.S. participants) or 617-786-2960 (for international
participants) ten minutes prior to the start of the call. The conference
call pass code number is 39344925. The call will also be broadcast over
the Internet and can be accessed from the company’s web site at www.microvision.com/investors.
The webcast and information needed to access the telephone replay will
be available through the same link approximately one hour after the
conference call concludes.
MicroVision provides the PicoP(R) display technology platform designed to
enable next-generation display and imaging products for consumer
devices, vehicle displays and wearable displays. The company’s PicoP
projection display technology uses highly efficient laser light sources
which can create vivid images with high contrast and brightness.
MicroVision is an independently recognized leader in the development of
intellectual property. MicroVision has been recognized by IEEE as a top
20 IP portfolio among all global electronics companies, and the top U.S.
Company in the rankings. MicroVision’s intellectual property portfolio
has also been recognized by the Patent Board, in association with the
Wall Street Journal as a top 50 IP portfolio among all global industrial
companies. The Patent Board has developed more than 50 indicators that
track global patent activity relating to companies’ innovation,
technology, and science strengths. MicroVision’s intellectual property
portfolio is further recognized by having been added to the Ocean Tomo
300 Patent Index. The Index is priced and published by the NYSE Euronext
(NYSE: OTPAT). The index is objectively based on the value of
intellectual property compared to competitors.
For more information, visit us on:
MicroVision and PicoP are trademarks of MicroVision Inc. in the
United States and other countries. All other trademarks are the
properties of their respective owners.
Certain statements contained in this release, including those relating
to future product development and operating results and those using
words such as “anticipate,” “expected,” “would,” “designed,” “target”
and “plan” 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; commercial partners may not perform under
agreements as anticipated, we may be unsuccessful in identifying parties
interested in paying any amounts or amounts we deem desirable for the
purchase or license of IP assets, our or our customers failure to
perform under open purchase orders; our financial and technical
resources relative to those of our competitors; 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; 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 the company’s Annual Report on Form
10-K filed with the SEC. Except as expressly required by 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.
|March 31,||December 31,|
|Cash and cash equivalents||$||6,808||$||13,075|
|Investment securities, available-for-sale||13||8|
|Accounts receivable, net of allowances||389||463|
Costs and estimated earnings in excess of billings on uncompleted
|Other current assets||925||785|
|Total current assets||9,317||18,655|
|Property and equipment, net||1,984||2,347|
|Liabilities and Shareholders’ Equity|
Billings in excess of costs and estimated earnings on uncompleted
|Current portion of capital lease obligations||41||39|
|Current portion of long-term debt||95||93|
|Total current liabilities||12,175||12,742|
|Capital lease obligations, net of current portion||60||72|
|Long-term debt, net of current portion||42||67|
|Deferred rent, net of current portion||119||187|
|Commitments and contingencies|
|Common stock at par value||17||17|
|Additional paid-in capital||426,031||425,658|
|Accumulated other comprehensive loss||(30||)||(35||)|
|Total shareholders’ equity||1,377||10,802|
|Total liabilities and shareholders’ equity||$||13,773||$||23,870|
|Statement of Operations|
|(In thousands, except earnings per share data)|
|Three months ended March 31,|
|Cost of product revenue||4,175||2,240|
|Cost of contract revenue||155||299|
|Total cost of revenue||4,330||2,539|
|Research and development expense||3,940||4,327|
|Sales, marketing, general and administrative expense||3,288||3,299|
|Gain on disposal of fixed assets||–||(7||)|
|Total operating expenses||7,228||7,619|
|Loss from operations||(9,828||)||(9,039||)|
|Net loss per share – basic and diluted||$||(0.58||)||$||(0.70||)|
|Weighted-average shares outstanding – basic and diluted||17,027||12,837|
SOURCE: MicroVision, Inc.
Tiffany Bradford, 425-882-6629