Thursday May 13, 6:30 am Eastern Time
Company Press Release
SOURCE: Microvision, Inc.
Microvision Reports Increased Revenue
in First Quarter; Company Expands Collaborative
Partnerships in Aerospace and Defense Industries
SEATTLE, May 13 /PRNewswire/ -- Microvision, Inc. (Nasdaq: MVIS - news, MVISW -
news), developer of the Virtual Retinal Display(TM) (VRD(TM)), today reported results for
the three months ended March 31, 1999.
Revenues for the first quarter of 1999 rose 35% to $2.3 million from $1.7 million in the
comparable period last year. For the quarter, the company reported a net loss of $2.0
million plus a one time non-cash accounting adjustment of $1.1 million associated with the
sale of $5 million of convertible preferred stock in January 1999, compared with a net loss
of $1.2 million for the first quarter of 1998. The net loss for the quarter was $.33 per share
and the effect of the accounting adjustment was $.18 per share for a combined net loss and
adjustment of $.51 per share. The company reported a net loss of $.20 per share for the first
quarter of 1998.
In comparison to the quarter ending March 31, 1998, research and development expenses
increased to $881,800 from $719,500 reflecting the company's continued focus on the
development and acquisition of proprietary technology and the development of new
products. Marketing and general and administrative expenses for the period rose to $1.7
million from $1.2 million as a result of the company's increased investment in the
development of new non-military markets, specifically medical and industrial, and the
required operating infrastructure to support anticipated growth in contract revenue and
product sales.
Rick Rutkowski, President and CEO of Microvision, said, ''I am pleased with our results
this quarter as the momentum we developed in 1998 has carried through to this year. Our
strategic marketing focus on the defense and aerospace markets has had a positive impact on
our product development efforts. Following the successful delivery of a Helmet Mounted
Display (HMD) with unprecedented brightness and resolution to the U.S. Army's Aircrew
Integrated Systems (ACIS) Program Office, Microvision received a $4.2 million follow-on
contract to continue advancing the HMD system. Additionally, recognizing the importance
of Microvision's Virtual Retinal Display (VRD) technology, Boeing Phantom Works, the
advanced research and development organization of the Boeing Company, formed a
partnership with Microvision to develop and test advanced cockpit systems. Announcement
of this collaboration was immediately followed by a contract from the U.S. Army to begin
work on the design of an advanced helmet-mounted display and imaging system to be used
in the Virtual Cockpit Optimization Program (VCOP). We believe these partnerships and
contracts are a direct reflection of Microvision's successful strategy to deliver improved
visualization capabilities for high-value applications.
''In addition to our success in defense & aerospace during the first quarter, we also
continued investing in a dedicated medical and industrial sales and marketing team to
aggressively penetrate these segments. The results of our efforts appear promising. In fact,
we've already begun to attract considerable attention from prospective customers and
believe we will see dramatic growth in these areas in the very near future,'' Rutkowski
noted.
''We achieved important advances in the development of microelectronic mechanical
systems (MEMS) technology. Specifically, we successfully demonstrated the first control of
a MEMS biaxial scanner with a video image, achieved encouraging results in the
measurement of dynamic flatness of the scanner mirrors, and advanced many elements of the
electronics for controlling the MEMS scanners. We also successfully demonstrated retinal
scanning display systems incorporating both green and blue light emitting diodes (LEDs),
developed in collaboration with our newly-announced strategic partner Cree Research.
These developments are important positive contributions to our overall commercial product
development plans.
''We continue to recruit and hire the best talent in the industry. During the quarter, we
expanded our marketing and research and product development groups with the addition of
two world-class leaders. Will McCallister, a 25-year veteran in high-tech marketing with
IBM and AT&T Wireless Services and McCaw Cellular joined to lead our marketing
efforts. Art Minich, who has led the development of many successful display and imaging
products at such companies as Proxima, Eastman Kodak, Textronix and Hewlett Packard
joined our team to lead research and product development initiatives. And, we expanded our
board of directors to ten, with the appointment of Margaret Elardi, a prominent real-estate
developer and philanthropist.
''As a result of our rapid growth in staff and our needs to accommodate lab and production
space, the company recently secured a lease for a new headquarters facility located in
Bothell, WA. This new facility is a key step towards our requirements for commercial
production.
''Microvision completed a $5 million offering of convertible preferred stock in January
1999, and we announced, in early April the completion of a $6 million offering of common
stock to a private investment fund. This second transaction closed on April 1 and is not
reflected in the balance sheet for the quarter ending March 31. These two financings,
combined with the recent equity investment of $4.5 million by Cree Research, have
substantially strengthened the company's financial position,'' concluded Rutkowski.
Microvision, based in Bothell, Washington, is developing and commercializing its VRD
technology, which allows electronically generated images and information to be projected
onto the retina of the viewer's eye. By scanning a low power beam of light to ''paint'' rows
of pixels onto the eye, the VRD creates a high resolution, full-motion image without the
use of electronic screens of any kind. The company's objective is to be a leading provider of
personal display products and imaging technology in a broad range of military, professional
and consumer applications. For additional information, find 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
March 31, December 31,
1999 1998
(unaudited)
Assets
Current Assets
Cash and cash equivalents $3,946,500 $2,269,000
Investment securities
available for sale 507,000 --
Accounts receivable, net 288,600 1,538,800
Costs and estimated
earnings in excess of
billings on
uncompleted contracts 1,134,900 758,500
Other current assets 370,300 282,800
Total current assets 6,247,300 4,849,100
Property & Equipment, net 1,820,400 1,394,100
Other assets 1,170,900 119,000
Total assets $9,238,600 $6,362,200
Liabilities and
Shareholders' Equity
Current Liabilities
Accounts payable $988,200 $1,327,700
Accrued liabilities 1,037,000 1,028,100
Allowance for
estimated contract losses 360,000 228,000
Billings in excess
of costs and estimated
earnings on
uncompleted contracts 515,100 771,500
Current portion of
capital lease obligations 140,600 136,100
Total liabilities 3,040,900 3,491,400
Capital lease obligations,
net of current portion 245,400 281,800
Commitments and contingencies -- --
Shareholders' Equity
Preferred stock 4,770,000 --
Common stock 27,571,500 25,742,600
Deferred compensation (165,700) (238,700)
Subscriptions receivable (244,500) (78,900)
Unrealized holding
gain on
investment securities 7,000 --
Accumulated deficit (25,986,000) (22,836,000)
Total shareholders'
equity 5,952,300 2,589,000
Total liabilities
and shareholders'
equity $9,238,600 $6,362,200
MICROVISION, INC.
Income Statement
Three months ended March 31,
1999 1998
(unaudited)
Contract revenue $2,301,600 $1,708,200
Cost of revenue 1,709,600 1,139,800
Gross margin 592,000 568,400
Research and development
expense 881,800 719,500
Marketing, general and
administrative expense 1,721,700 1,168,800
Total expenses 2,603,500 1,888,300
Loss from operations (2,011,500) (1,319,900)
Interest income 46,400 107,400
Interest expense (36,900) (4,000)
Net loss (2,002,000) (1,216,500)
Less accounting adjustment:
Non-cash beneficial
conversion feature
of Series B
Preferred Stock (1,148,000) --
Net loss available
for common shareholders $(3,150,000) $(1,216,500)
Basic and diluted
earnings per share:
Net loss $(0.33) $(0.20)
Less:
Accounting adjustment (0.18) --
Net loss per
share available for
common shareholders $(0.51) $(0.20)
Weighted average
shares outstanding 6,119,000 5,945,000
SOURCE: Microvision, Inc. |
