Microvision(TM) Reports Results for 1999
Company Highlights Technology Advances, Product Development and Market
Opportunities for 2000
BOTHELL, Wash., March 20 /PRNewswire/ -- Microvision, Inc. (Nasdaq: MVIS) today
reported fourth quarter 1999 and full year results for the year ended December
31, 1999.
Revenues for the quarter increased by 17% over 1998 to $1,742,500. Revenues for
the year ended December 31, 1999 were $6,902,700 compared to $7,074,100 for the
year ended December 31, 1998. For the quarter, the company reported a net loss
of $.43 per share plus a preferred stock dividend of $.02 per share for a combined
net loss available for common shareholders of $.45 per share. For the year ended
December 31, 1999, the company reported a net loss of $1.80 per share plus preferred
stock dividends and charges of $.03 per share and $.21 per share respectively,
for a combined net loss available for common shareholders of $2.04 per share.
The non-cash preferred stock charge is attributable to the sale of convertible
preferred stock during the year.
Gross margin for the fourth quarter was $540,100 compared to a negative gross
margin of $472,000 in the comparable period of the prior year while gross margin
for the year ended December 31, 1999 increased almost 200% to $1,959,200 from $657,200
for the year ended December 31, 1998.
"While revenues from development contracts were flat year to year, we achieved
substantial gains in gross profitability, and net losses were in line with expectations,"
said Rick Rutkowski, Microvision president and chief executive officer.
"We made outstanding progress during the fourth quarter and overall during 1999,
to further enhance our position as a leader in display and micro-optical imaging
technology," Rutkowski continued. "We substantially increased our investment in
research and development from $3.3 million in 1998 to $10.2 million during 1999,
reflecting our continued focus on the development and acquisition of proprietary
enabling technology and on the development of new products. As a result, we have
consolidated a strong leadership position in optical MEMS (micro electromechanical
systems) and continue to add to a growing portfolio of intellectual property (IP)
in the area of optical and micro-optical displays and imaging systems. The company
ended the year with a strong patent position totaling 21 issued patents and 48
patents pending and continues to rapidly advance its IP position.
"The increase in marketing and general and administrative expenses from $4.9
million to $7.4 million reflects the company's increased investment in the development
of multiple markets including 'non-military' markets (medical, industrial, commercial,
consumer) for its retinal scanning display technology, and investments in the required
operating infrastructure to support anticipated growth in both contract revenue
and product sales. The company moved its operations to a new 65,000 sq. ft. facility
in April of 1999, and created partnering relationships with industry leaders such
as Boeing, Rockwell, Polaroid, Carl Zeiss and Cree, Inc. in order to lay the groundwork
for a variety of future products. The company's shipment to the Wallace Kettering
Neuroscience Institute of a wearable display for surgical navigation, and an agreement
with world famous heart surgeon Michael DeBakey and the Baylor College of Medicine
to pursue clinical trials, continues to attract the attention of the national and
international news media. Microvision's first wearable display product was demonstrated
in prototype and "beta" form during the year and the company received its first
purchase order for beta units from a medical instruments company. Additional beta
units are currently in production and product demonstrations for a variety of applications
are being met with very favorable reactions.
"During the year, through a series of private placements and the exercise of
the company's publicly traded warrants and other outstanding options, the company
raised nearly $50 million in capital and ended 1999 with more than $32 million
in working capital. With this financial strength, continued technical and marketing
momentum and strong additions to our operating and executive staff, we are looking
forward to an exciting and rewarding 2000."
Management will discuss these results at Microvision's quarterly conference call,
which will be broadcast through Investor Broadcast Network's Vcall website starting
at 8:00 a.m. Pacific Time on Monday March 20 at 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 can't listen
to the live broadcast, a replay will be available shortly after the call.
About Microvision
Headquartered in Bothell, WA, Microvision, Inc. is the developer of the patented
retinal scanning display technology that uses a rapidly scanned beam of light to
project images on the eye's retina, allowing the viewer to see large, full-motion
images without the need for a conventional display screen. Microvision's objective
is to be a leading provider of personal display products and imaging technology
in a broad range of military, medical, industrial, professional and consumer applications.
The company was founded in 1993. Additional information can be found at the company's
website at mvis.com.
Forward-Looking Statement
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.
Balance Sheet
December 31,
1999 1998
Assets
Current Assets
Cash and cash equivalents $2,798,000 $2,269,000
Investment securities
available-for-sale 29,136,400 --
Accounts receivable, net 1,024,500 1,538,800
Costs and estimated earnings in
excess of billings on
uncompleted contracts 2,000,400 758,500
Other current assets 1,730,700 282,800
Total current assets 36,690,000 4,849,100
Long-term investment, at cost 623,600 --
Property and equipment, net 3,054,700 1,394,100
Other assets 1,250,700 119,000
Total assets $41,619,000 $6,362,200
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $1,453,100 $1,327,700
Accrued liabilities 2,000,100 1,028,100
Allowance for
estimated contract losses -- 228,000
Billings in excess of costs and
estimated earnings on
uncompleted contracts 167,000 771,500
Current portion of capital
lease obligations 220,800 136,100
Current portion of long term debt 46,900 --
Total current liabilities 3,887,900 3,491,400
Capital lease obligations,
net of current portion 279,400 281,800
Long term debt, net of current portion 341,500 --
Deferred rent, net of current portion 214,800 --
Total liabilities 4,723,600 3,773,200
Commitments and contingencies
Mandatorily redeemable
convertible preferred stock 1,536,000 --
Shareholders' Equity
Common stock 75,518,300 25,742,600
Deferred compensation (213,100) (238,700)
Subscriptions receivable
from related parties (349,100) (78,900)
Accumulated other comprehensive loss (60,600) --
Accumulated deficit (39,536,100) (22,836,000)
Total shareholders' equity 35,359,400 2,589,000
Total liabilities
and shareholders' equity $41,619,000 $6,362,200
Microvision, Inc.
Statement of Operations
Three months ended, Year ended,
December 31 December 31
1999 1998 1999 1998
Contract revenue $1,742,500 $1,491,200 $6,902,700 $7,074,100
Cost of revenue 1,202,400 1,963,200 4,943,500 6,416,900
Gross margin 540,100 (472,000) 1,959,200 657,200
Research and
development expense 3,569,600 444,000 10,232,700 3,305,600
Marketing, general
and administrative
expense 1,729,700 1,414,000 7,435,500 4,904,600
Total expenses 5,299,300 1,858,000 17,668,200 8,210,200
Loss from operations (4,759,200) (2,330,000) (15,709,000) (7,553,000)
Interest income 526,100 50,000 1,163,200 307,100
Interest expense (41,200) (57,300) (172,200) (81,600)
Net loss (4,274,300) (2,337,300) (14,718,000) (7,327,500)
Less: Preferred dividend (154,400) -- (227,800) --
Non-cash beneficial
conversion feature
of Series B
Preferred Stock9745 03/20/2000 07:00 EST |
