Company Launches Marketing Program and Receives First Product Order for Nomad
BOTHELL, Wash., Nov. 2 /PRNewswire/ — Microvision, Inc. (Nasdaq: MVIS) today reported results for the third quarter and nine months ended
September 30, 2000.
For the third quarter 2000, the Company reported a net loss available for
common shareholders of $7.7 million or $.65 per share compared to a net loss
available for common shareholders of $3.9 million or $.41 per share for the
third quarter 1999. For the nine months, the Company reported a net loss
available for common shareholders of $19.7 million or $1.75 per share compared
to net loss available for common shareholders of $12.3 million or $1.62 per
share for the same period in 1999. Revenues increased by $500,000 in the
third quarter 2000 to $2.0 million from $1.5 million in the third quarter
1999. For the nine months ended September 30, 2000 revenues were $5.3 million
compared with $5.2 million in the same period of 1999.
“This quarter marks the achievement of a number of significant corporate
milestones,” stated Rick Rutkowski, Microvision President and CEO. “To
support the commercialization goals for our technology, we continued to invest
in research and product development and are pleased with the excellent
progress and achievement of goals we saw in the quarter. Notable during the
quarter was the company’s expanded marketing activity. We launched a
marketing program for the Nomad wearable display system and received our first
order for the Nomad display from Telesensory. And, Microvision created a
marketing partnership with Command Technology Incorporated to market the Nomad
display into the maintenance, repair and overhaul (MRO) market.
“Microvision continues to derive revenue and gross margin contribution
principally from development contracts awarded by the United States
government,” continued Rutkowski. “We were pleased during the quarter to
report a $600,000 increase to our contract with the U.S. Army to bring the
contract total to $8.4 million. The $500,000 increase in revenues for the
quarter was due to our ongoing contract development work, and we ended the
quarter with a $7.3 million backlog in contract development and product
“We continue to increase our investment in research and development in
pursuit of developing both high-end commercial and mass-market consumer
versions of the retinal scanning display technology. R&D expenses increased
by $2.5 million for the three months and $7.3 million for the nine months
ended September 30, 2000. This increased investment is consistent with the
company’s strategy to aggressively pursue opportunities in multiple high
growth markets. Specific application of these resources included our
preparation for the introduction of Nomad, the continued acceleration of our
activities in consumer-targeted micro-display solutions and bar-code scanning
systems as well as the development of facilities and personnel for Lumera.
“Earlier this week we announced the launch of a majority-owned subsidiary,
Lumera Corporation. Lumera’s focus is on the development and
commercialization of optical component devices based on proprietary
electro-optic polymer materials. The company expects its components to
deliver unprecedented levels of bandwidth with lower operating voltages than
current technology, while also creating the potential for integrated optical
systems on a chip. We believe that Lumera’s unique technology will provide
strategically important building blocks for high-speed optical networks.
Research and development expenses related directly to Lumera were
approximately $530,000 or $0.05 per share during the three months ended
September 30, 2000.
“During our last conference call, we discussed the Imaging Solutions
Group’s plans to develop bar code scan engines using Microvision’s proprietary
technology. This same imaging expertise has allowed us to begin development
of an ultra-high resolution light-scanning camera with a research team at the
University of Montana. The microminiature camera works by scanning a beam of
light across the subject and then reading the reflected light through a small
aperture as a series of individual spots or pixels. This technology aims to
be significantly smaller and many times more powerful than electronic cameras
commonly used with today’s diagnostic endoscopes.
“Subsequent to the end of the quarter, the Cleveland Clinic initiated a
relationship to assist with evaluation of our technology in a clinical for
future applications in computer-assisted surgery. The initial commitment was
approximately $600,000, which will support our efforts to conduct field tests
of prototype display systems with strategic partners.
“Partnerships continue to be a significant part of our strategic plan. In
August we formed a co-marketing and business development relationship with
Command Technology, Inc. This alliance will focus on providing mutual
customers with an advanced mobile computing, visualization, and interactive
information delivery system for maintenance, repair and overhaul of complex
systems in commercial and defense industries.
“We also entered into a multi-year consulting agreement with Avram
Miller, a recognized leader in business and strategy development. Mr. Miller
is working with Microvision in the development of business relationships and
partnering strategies aimed at broadly commercializing next-generation retinal
scanning display technology for applications in next-generation mobile
Internet devices,” concluded Rutkowski.
Investors will have the opportunity to listen to Microvision’s conference
call regarding Third Quarter 2000 Earnings at 8:00 am PT over the Internet
through Investor Broadcast Networks’ Vcall website, located at
http://www.vcall.com. To listen to the live call, please go to the web site
at least fifteen minutes early to register, download, and install any
necessary audio software. For those who cannot listen to the live broadcast,
a replay will be available on the Vcall site shortly after the call.
Headquartered in Bothell, Wash., Microvision, Inc. is the developer of the
proprietary Retinal Scanning Display technology and a world leader in micro
miniature optical scanning technology for display and imaging applications.
The company’s technology has application in a broad range of military,
medical, industrial, professional and consumer information products.
Additional information can be found at the company’s Web site at
As a subsidiary of Microvision, Inc., Lumera is a world leader in the
development of electro-optic devices based on proprietary optical polymers.
The company will deliver superior and unique component solutions to optical
systems suppliers. Lumera will supply standard and custom components to
systems providers in multiple high-growth product categories. Additional
information can be found at the company’s Web site at http://www.lumera.com.
The information set forth in this release includes “forward-looking
statements” within the meaning of Section 21E of the Securities Exchange Act
of 1934, as amended, and is subject to the safe harbor created by those
sections. Certain factors that realistically could cause results to differ
materially from those projected in the company’s forward-looking statements
are set forth in the company’s Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q, as filed with the Securities and Exchange Commission.
Microvision, Inc. Consolidated Statement of Operations Three months ended Nine months ended September 30, September 30, 2000 1999 2000 1999 (unaudited) (unaudited) Contract revenue $1,970,500 $1,465,700 $5,256,000 $5,160,200 Cost of revenue 1,716,900 492,000 4,068,300 3,741,100 Gross margin 253,600 973,700 1,187,700 1,419,100 Research and development expense 5,732,000 3,180,900 13,851,200 6,632,300 Marketing, general and administrative expense 2,671,700 1,398,400 8,010,200 5,528,200 Non-cash compensation expense 481,400 81,500 1,151,000 208,400 Total operating expenses 8,885,100 4,660,800 23,012,400 12,368,900 Loss from operations (8,631,500) (3,687,100)(21,824,700) (10,949,800) Interest income 973,100 448,200 2,268,800 637,100 Interest expense (24,500) (24,100) (132,600) (131,000) Net loss (7,682,900) (3,263,000)(19,688,500) (10,443,700) Less: Preferred dividend -- -- -- (73,400) Noncash beneficial conversion feature of Series B Preferred Stock -- (606,300) -- (1,754,300) Net loss available for common shareholders $(7,682,900) $(3,869,300)$(19,688,500)$(12,271,400) Net loss per share available for common shareholders before non-cash compensation expense $(0.61) $(0.40) $(1.65) $(1.59) Non-cash compensation expense (0.04) (0.01) (0.10) (0.03) Net loss per share available for common shareholders - basic and diluted $(0.65) $(0.41) $(1.75) $(1.62) Weighted-average shares outstanding - basic and diluted 11,827,700 9,535,800 11,275,900 7,576,200 Microvision, Inc. Consolidated Balance Sheet September 30, December 31, 2000 1999 (unaudited) Assets Current Assets Cash and cash equivalents $16,061,200 $2,798,000 Investment securities available-for-sale 33,078,800 29,369,400 Accounts receivable, net 509,400 1,024,500 Costs and estimated earnings in excess of billings on uncompleted contracts 1,734,900 2,000,400 Current restricted investments 2,250,000 650,000 Other current assets 827,800 847,700 Total current assets 54,462,100 36,690,000 Long-term investment, at cost 623,600 623,600 Property and equipment, net 6,287,000 3,054,700 Restricted investments 951,000 1,100,000 Receivables from related parties 400,000 -- Other assets 101,400 150,700 Total assets $62,825,100 $41,619,000 Liabilities, Mandatorily Redeemable Convertible Preferred Stock And Shareholders' Equity Current Liabilities Accounts payable $1,396,100 $1,453,100 Accrued liabilities 3,786,500 2,000,100 Allowance for estimated contract losses 437,000 -- Billings in excess of costs and estimated earnings on uncompleted contracts 160,400 167,000 Current portion of capital lease obligations 363,900 220,800 Current portion of long-term debt 50,600 46,900 Total current liabilities 6,194,500 3,887,900 Capital lease obligations, net of current portion 282,900 279,400 Long-term debt, net of current portion 303,100 341,500 Deferred rent, net of current portion 238,000 214,800 Total liabilities 7,018,500 4,723,600 Commitments and contingencies -- -- Mandatorily redeemable convertible preferred stock -- 1,536,000 Shareholders' Equity Common stock 122,826,500 75,518,300 Deferred compensation (7,407,000) (213,100) Subscriptions receivable from related parties (573,200) (349,100) Accumulated other comprehensive gain (loss) 184,900 (60,600) Accumulated deficit (59,224,600) (39,536,100) Total shareholders' equity 55,806,600 35,359,400 Liabilities, mandatorily redeemable convertible preferred stock and shareholders' equity $62,825,100 $41,619,000