To all: Well, here is the 3rd qtr report: I see some disturbing things I will question at the end: JDN
Related QuotesMVIS
MVISW
8 13/16
3 1/4
+0
+0
delayed 20 mins - disclaimerMonday November 16, 7:58 am Eastern Time
Company Press Release
SOURCE: Microvision, Inc.
Microvision Reports Increased Revenues for Third Quarter
SEATTLE, Nov. 16 /PRNewswire/ -- Microvision, Inc. (Nasdaq: MVIS - news, MVISW - news) today reported results for the third quarter and nine months ended September 30, 1998.
Revenue for the third quarter of 1998 more than doubled to $1.8 million from $750,000 for the same quarter in 1997. For the quarter, the company reported a net loss of $1.6 million, or $0.27 per share, compared to a net loss of $1.2 million, or $0.20 per share for the third quarter of 1997.
For the first nine months of 1998, revenue advanced significantly to $5.6 million from $853,000 for the same period in 1997. For the nine-month period, the company reported a net loss of $5.0 million, or $0.84 per share, compared to a net loss of $3.5 million, or $0.61 per share, for the comparable period in 1997.
''Results for the quarter and for the nine months are in line with our expectation and reflect strong performance in our development contracts. This aggressive growth in contract revenue has accelerated product development across a broad front and supports the company's goal of rapidly achieving high-quality products and establishing early demand for those products,'' stated Rick Rutkowski, Microvision, President and Chief Executive Officer.
''The first nine months of 1998 have been some of the most productive in the company's history. We have grown revenue dramatically over the comparable periods for the year prior while keeping our operating losses under control. Operating and net losses narrowed substantially in the third quarter from the second quarter of 1998, a trend that we expect to continue during subsequent periods as we anticipate increased profit contribution as a result of strong revenue growth.
''We have established Microvision's role as a leader in several key application areas for personal displays,'' added Mr. Rutkowski. ''We have built an organization that can boast some of the world's finest talent in optics and imaging. We have advanced our technology rapidly and cost effectively, and we have seen our patent portfolio grow significantly as a result. We have successfully captured significant mind share within the aerospace and defense markets, entered into our first medical contract, and produced our first demonstration of wearable display products for the industrial and commercial markets. Furthermore, we have succeeded in securing funding for the development of several products with outstanding market potential and in identifying and creating early customer demand for these same products. In the process we have established strong relationships with key customers for advanced display systems who continue to be enthusiastic about the unique advantages of our technology.''
Highlights:
Market Expansion and Product Deliveries. In October, the company announced its first contract in the medical market with the Wallace Kettering Neuroscience Institute in Dayton, Ohio. The company is developing a full-color, high resolution head-worn display system for use as a navigational tool in ''image-guided'' microsurgery. Delivery of the product prototype is expected in mid-1999.
Additionally, subsequent to the end of the quarter, the company embarked on development of its first lightweight wearable and completely portable (battery-operated) personal display product under a contract with the United States Navy. Microvision's wearable display will uniquely achieve the high brightness levels required to meet the Navy's strict requirement for bright daylight ''see-through'' readability. Delivery of the product prototype is planned in December 1998.
The company also announced the delivery of a full-color, high resolution (SVGA) wide field-of-view helmet mounted display to Saab AB and Ericsson Saab Avionics AB as part of an ongoing work program with the Swedish aerospace company for evaluation in their aircraft simulators.
Rapid Product Development from Research Investments: The company announced that it had successfully demonstrated a MEMS-based (microelectromechanical system) optical scanner that represents a breakthrough for a wide variety of next-generation display and imaging products. The patented device is important because it enables a high degree of display system miniaturization -- a key requirement for lightweight, portable personal display systems. Produced through the use of highly automated batch fabrication techniques, the company's MEMS scanner represents the first low-cost micro-optical scanner that is needed to enable products for high volume markets. The display and image capture market potential for the MEMS device includes products such as bar-code scanners, digital cameras, video-based cellular phones and personal head-worn displays for video gaming applications.
Additionally, the company demonstrated a laser projection television display. This application leverages Microvision's core display and imaging technology to enable numerous applications beyond their core retinal scanning and image capture product initiatives.
Increased Patent Position: The company continued to expand its patent portfolio with the addition of eight new patent applications. The new patent applications are a result of the company's ongoing investment in research associated with scanning micro-display and imaging systems. Microvision now holds exclusive rights to 11 issued patents and 35 pending U.S. patent applications. The company also holds exclusive rights to a number of non-U.S. patent applications.
World's leading talent joins Company: Subsequent to the end of the quarter, the company announced the addition of Admiral William Owens and Doug Trumbull to its board of directors, increasing the total membership to nine. Owens is currently the vice chairman of Teledesic, the world's first global satellite communications initiative founded by Microsoft Chairman Bill Gates and telecommunications pioneer Craig McCaw, and is a former Vice Chairman of the Joint Chiefs of Staff. Trumbull is one of the world's leading innovators in visual effects. With a career in the entertainment business spanning over 30 years, he is currently the president and CEO of Entertainment Design Workshop of Sheffield, Mass.
Consistent with the company's practice of hiring world-class talent in the areas of advanced displays, the company announced the arrival of Abraham Gross, Ph.D., as principal engineer. Gross was formerly the chief scientist for the world's largest developer of machine vision systems, Orbotech. John Dunfield, Ph.D., also recently joined the company as senior research engineer. Dunfield is the inventor on more than 40 patents. Dunfield is leading Microvision's MEMS product development initiative.
About Microvision
Founded in 1993 and headquartered in Seattle, Microvision, Inc. is the developer of the patented Virtual Retinal Display™ (VRD™) technology that uses patterns of light to create 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. 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-KSB and Quarterly Reports on Form 10-QSB, as filed with the Securities and Exchange Commission.
For more information on Microvision via fax, at no cost, dial 1-800-PRO-INFO, ticker symbol MVIS.
MICROVISION, INC.
Balance Sheet
September 30, December 31,
1998 1997
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $3,935,000 $ 5,049,200
Investment securities
available-for-sale 800,000 3,792,000
Accounts receivable, net 1,336,100 150,000
Costs and estimated earnings in excess
of billings on uncompleted contracts 364,800 843,800
Other current assets 155,500 113,100
Total current assets 6,591,400 9,948,100
Property and equipment, net 1,365,100 772,700
Other assets 110,300 20,000
$8,066,800 $10,740,800
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $1,148,300 $768,200
Accrued liabilities 1,320,400 715,900
Billings in excess of costs and
estimated earnings on uncompleted
contracts 476,600 --
Current portion of capital
lease obligations 95,200 22,700
Total current liabilities 3,040,500 1,506,800
Capital lease obligations,
net of current portion 222,400 69,600
Shareholders' Equity
Common stock 25,504,800 25,375,300
Deferred compensation (202,200) (701,200)
Unrealized holding loss on
investment securities -- (1,200)
Accumulated deficit (20,498,700) (15,508,500)
Total shareholders' equity 4,803,900 9,164,400
$8,066,800 $10,740,800
MICROVISION, INC.
Statement of Operations
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
Contract revenue $ 1,818,800 $ 750,300 $ 5,582,900 $852,500
Research and
development expense 2,529,500 1,362,600 7,315,300 2,946,000
Marketing, general
and administrative
expense 976,000 702,900 3,490,600 2,110,100
Total expenses 3,505,500 2,065,500 10,805,900 5,056,100
Loss from
operations (1,686,700) (1,315,200) (5,223,000) (4,203,600)
Other income -- -- -- 222,500
Interest income 67,600 143,600 257,100 476,700
Interest expense (11,400) (400) (24,300) (1,700)
Net loss $(1,630,500) $(1,172,000) $(4,990,200) $(3,506,100)
Net loss per share $(0.27) $(0.20) $(0.84) $(0.61)
Weighted average shares
outstanding 6,016,400 5,791,700 5,975,400 5,784,300
Net loss per share
assuming dilution $(0.27) $(0.20) $(0.84) $(0.61)
Weighted average shares outstanding
assuming dilution 6,016,400 5,791,700 5,975,400 5,784,300
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After only a cursory review, I have the following questions and comments if anyone can answer would appreciate it.
1, In the Press Release Verbage Company talks about having secured financing to develop new products. THIS IS NEWS why was it not discussed earlier at Annual Meeting or Press Release. Anyone know anything about it? What has the company given up??
2, On the balance sheet cash and marketable securities has dropped significantly in the last 9 months. At this rate seems to me they are going to dry up in 3-6 months without more money being pumped in. Oh yes, if you are going to look to increase in trade receivables make sure that you also not DECREASE in unbilled work in progress.
3. On the Operating Statement I note that STILL research and development substantially EXCEED contract revenue. Seems to me they are developing these products for less than they are able to extract contract revenues from vendors. This is true on both 9 mos and 3 mos statements. How can they continue at this rate for very long. The revenue potential for developed products seems far beyond the ability of the company to survive to get to that point.
4, Finally, I note that the company suddenly, after a dry spell, is issuing positive press releases about the future? Is that to keep people from reviewing the present? I am enthralled with this potential technology but am concerned about whether THIS company will be the one to supply it or if it is how much it will have to give up to get itself to that position. JDN |
