MicroVision Announces First Quarter 2012 Results
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. (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.
Financial Results
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.
Conference Call
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 microvision.com. 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.
About MicroVision
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 . The
index is objectively based on the value of intellectual property compared to
competitors.
For more information, visit us on: Website: microvision.com Blog:
microvision.com Twitter:
twitter.com Facebook:
facebook.com YouTube: youtube.com
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.
Forward-Looking Statements
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.
MicroVision, Inc.
Balance Sheet
(In thousands)
(Unaudited)
March 31,December 31,
20122011
------------------------------------
Assets
Current Assets
Cash and cash equivalents$6,808$13,075
Investment securities, available-for-sale138
Accounts receivable, net of allowances389463
Costs and estimated earnings in excess of billings on uncompleted6370
contracts
Inventory1,1194,254
Other current assets925785
----------------
Total current assets9,31718,655
Property and equipment, net1,9842,347
Restricted investments436786
Intangible assets2,0022,048
Other assets3434
----------------
Total assets$13,773$23,870
=== ============ ========
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable$6,406$7,341
Accrued liabilities5,0315,113
Billings in excess of costs and estimated earnings on uncompleted602156
contracts
Current portion of capital lease obligations4139
Current portion of long-term debt9593
----------------
Total current liabilities12,17512,742
Capital lease obligations, net of current portion6072
Long-term debt, net of current portion4267
Deferred rent, net of current portion119187
----------------
Total liabilities12,39613,068
----------------
Commitments and contingencies
Shareholders' Equity
Common stock at par value1717
Additional paid-in capital426,031425,658
Accumulated other comprehensive loss(30)(35)
Accumulated deficit(424,641)(414,838)
-------- ----------- ----
Total shareholders' equity1,37710,802
----------------
Total liabilities and shareholders' equity$13,773$23,870
=== ============ ========
MicroVision, Inc.
Statement of Operations
(In thousands, except earnings per share data)
(Unaudited)
Three months ended March 31,
------------------------------------
20122011
----------------------------------
Product revenue$1,529$886
Contract revenue201233
------------
Total revenue1,7301,119
------------
Cost of product revenue4,1752,240
Cost of contract revenue155299
------------
Total cost of revenue4,3302,539
------------
Gross margin(2,600)(1,420)
------ ---------- ----
Research and development expense3,9404,327
Sales, marketing, general and administrative expense3,2883,299
Gain on disposal of fixed assets-(7)
------------ ----
Total operating expenses7,2287,619
------------
Loss from operations(9,828)(9,039)
Interest income1015
Interest expense(9)(13)
Other income24-
------------
Net loss$ (9,803)$ (9,037)
==== ====== ======== ====== ====
Net loss per share - basic and diluted$(0.58)$(0.70)
==== ====== ======== ====== ====
Weighted-average shares outstanding - basic and diluted17,02712,837
============
SOURCE: MicroVision, Inc.
Investors:
MicroVision, Inc.
Tiffany Bradford, 425-882-6629
or
Media/PR
Edelman
Callie Snyder, 503-471-6816 |
