8/5/2010 4:04:00 PM
<![CDATA[Quarterly Revenue Grows to $2.1 Million and Backlog to $20.1 Million
REDMOND, Wash., Aug 05, 2010 (BUSINESS WIRE) — Microvision, Inc. (NASDAQ: MVIS), a leader in innovative ultra-miniature projection display technology, today reported its operating and financial results for the second quarter of 2010.
“I’m pleased to report that our ongoing investment to improve our production and supply chain capabilities resulted in a more stable and predictable flow of finished product in the second quarter,” stated Alexander Tokman, President and CEO. “We continue to see an increase in our green laser supply and smooth conversion of raw materials into finished goods. This strengthening of capacity will become increasingly important in the second half of 2010 as we plan to deliver larger volumes of PicoP(R)-based products to our customers to meet their strong demand.
“Our backlog grew to a record $20.1 million and includes a $3.4 million follow-on order from our initial OEM display engine customer. The demand for our PicoP-based products remains strong from both existing and new customers who are excited about the unique capabilities of our PicoP projection solution. In connection with our capacity increase during the second quarter, we have increased our global distribution points and continue to qualify additional distribution partners. Customer response to the SHOWWX(TM) laser pico projector has been very positive.
“Our future success will depend on our ability to anticipate consumer needs and rapidly innovate to bring new products to market leveraging the unique capabilities of our PicoP technology. With this in mind, we recently unveiled a 15-lumen, 720p HD-ready pico projector prototype. We have received a very enthusiastic response to the high resolution, brighter images from this prototype and believe that advancing our PicoP technology platform will continue to position us as a premier provider of customer-focused projection solutions,” concluded Mr. Tokman.
The following financial results are for the three and six months ended June 30, 2010, respectively, compared to the same period one year earlier.
Management will discuss the company’s operating and financial results and current business operations in more detail during its conference call at 4:30 p.m. ET / 1:30 p.m. PT today.
Microvision will host a conference call today at 4:30 p.m. ET / 1:30 p.m. PT. Participants may join the conference call by dialing 1-866-788-0545 (for U.S. participants) or 1-857-350-1683 (for international participants) ten minutes prior to the start of the call. The conference call pass-code number is 27717076. Additionally, the call will be broadcast over the Internet and can be accessed from the company’s web site at http://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 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 the company’s website (http://www.microvision.com) and corporate blog (http://www.microvision.com/displayground).
Certain statements contained in this release, including those relating to future delivery, business success, operating results, product development, and potential product benefits, in addition to statements containing “plan, “believe” and similar words, 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: capital market risks, our ability to raise additional capital when needed; market acceptance of our technologies and products; our financial and technical resources relative to those of our competitors; our ability to keep up with rapid technological change; our dependence on the defense industry and a limited number of government development contracts; 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; our customers’ or our failure to perform under open purchase orders; potential product liability claims; and other risk factors identified from time to time in the company’s SEC reports and other filings, 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.
|June 30,||December 31,|
|Cash and cash equivalents||$||19,636||$||43,025|
|Investment securities, available-for-sale||2,613||2,710|
|Accounts receivable, net of allowances||1,505||913|
|Costs and estimated earnings in excess of billings on uncompleted contracts||7||70|
|Current restricted investments||305||–|
|Other current assets||736||751|
|Total current assets||31,402||48,395|
|Property and equipment, net||4,912||3,904|
|Liabilities and Shareholders’ Equity|
|Billings in excess of costs and estimated earnings on uncompleted contracts||47||55|
|Liability associated with common stock warrants||349||840|
|Current portion of capital lease obligations||51||62|
|Current portion of long-term debt||81||78|
|Total current liabilities||12,219||10,174|
|Capital lease obligations, net of current portion||132||157|
|Long-term debt, net of current portion||203||244|
|Deferred rent, net of current portion||887||1,070|
|Commitments and contingencies||–||–|
|Common stock at par value||89||89|
|Additional paid-in capital||375,810||373,405|
|Accumulated other comprehensive loss||(30||)||(33||)|
|Total shareholders’ equity||24,109||41,891|
|Total liabilities and shareholders’ equity||$||37,550||$||53,536|
|Statement of Operations|
|(In thousands, except earnings per share data)|
|Three months ended June 30,||Six months ended June 30,|
|Cost of contract revenue||21||527||149||910|
|Cost of product revenue||3,337||543||4,496||784|
|Total cost of revenue||3,358||1,070||4,645||1,694|
|Research and development expense||6,043||5,716||11,041||11,326|
|Sales, marketing, general and administrative expense||3,817||3,667||7,705||7,481|
|Total operating expenses||9,860||9,383||18,746||18,807|
|Loss from operations||(11,130||)||(9,466||)||(20,635||)||(18,563||)|
|Gain (loss) on derivative instruments, net||34||(982||)||429||(802||)|
|Net loss per share – basic and diluted||$||(0.12||)||$||(0.15||)||$||(0.23||)||$||(0.28||)|
|Weighted-average shares outstanding – basic and diluted||88,767||68,881||88,730||68,482|
SOURCE: Microvision, Inc.
Tiffany Bradford, 425-936-6847 (investors)
Matt Nichols, 425-882-6657 (media)