MicroVision Announces First Quarter 2020 Results

REDMOND, Wash., May 07, 2020 (GLOBE NEWSWIRE) -- MicroVision, Inc. (NASDAQ:MVIS), a leader in innovative ultra-miniature projection display and sensing technology, today announced its first quarter 2020 results.

Revenue for the first quarter of 2020 was $1.5 million, compared to $1.9 million for the first quarter of 2019. MicroVision's net loss for the first quarter of 2020 was $4.9 million, or $0.04 per share, compared to a net loss of $8.1 million, or $0.08 per share for the first quarter of 2019.

“We are committed to finding strategic alternatives that maximize the value of the Company for our stakeholders.  With the help of our financial advisor, Craig-Hallum Capital Group LLC, we have approached a global list of targeted companies and are diligently exploring all options including the sale of one or more of our module product verticals and related technology or a potential sale of the Company,” said Sumit Sharma, MicroVision's Chief Executive Officer.

“During the first quarter we took many steps to manage costs and create a runway that we expect will give us time to complete a strategic transaction.  We transferred responsibility for component production to our April 2017 customer and sold production assets, which lowered our costs and working capital requirements.  In addition, we initiated a 60% reduction to our workforce and curtailed non-essential expenses,” said Sharma.

Financial Results Conference Call

The Company will host a conference call to discuss its first quarter 2020 results at 2:00 p.m. Pacific Time on Thursday, May 7, 2020. Interested parties can access the call from MicroVision’s website on the Investor Relations Events Calendar page at https://microvision.gcs-web.com/investor-event-calendar  or dialing 877-876-9174 (for U.S. participants) or 785-424-1670 (for participants outside of the U.S.) ten minutes prior and request to be connected to the MicroVision First Quarter Financial and Operating Results Conference Call.

The conference call will be available for rebroadcast from the Investor Relations section of MicroVision’s website on the Investor Relations Events Calendar page.

About MicroVision

MicroVision is the creator of PicoP® scanning technology, an ultra-miniature sensing and projection solution based on the laser beam scanning methodology pioneered by the Company. MicroVision’s platform approach for this sensing and display solution means that its technology can be adapted to a wide array of applications and form factors. We combine our hardware, software, and algorithms to unlock value for our customers by providing them a differentiated advanced solution for a rapidly evolving, always-on world.

MicroVision has a substantial portfolio of patents relating to laser beam scanning projection and sensing.  MicroVision’s industry leading technology is a result of its extensive research and development. The Company is based in Redmond, Washington.

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 strategic alternatives, sale of our product verticals or technology, sale or merger of the Company, managing costs, completing a transaction, the Company’s future products and product applications and those including words like “expect” and “exploring” are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected in our forward-looking statements include the risk that the Company may not succeed in finding licensing or other strategic solutions, including a potential sale of the Company, with acceptable timing, benefits or costs, the Company may be unable to evidence compliance with Nasdaq criteria within the period of time that was granted by the Nasdaq panel, our ability to operate with limited cash or to raise additional capital when needed; market acceptance of our technologies and products; and for products incorporating our technologies; the failure of our commercial partners to perform as expected under our agreements, including from the impact of the COVID-19 (coronavirus); our ability to identify parties interested in paying any amounts or amounts we deem desirable for the purchase or license of intellectual property 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 and develop partnership opportunities; 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; our ability to maintain our listing on the Nasdaq Stock Market, 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. These factors are not intended to represent a complete list of the general or specific factors that may affect us.  It should be recognized that other factors, including general economic factors and business strategies, may be significant, now or in the future, and the factors set forth in this release may affect us to a greater extent than indicated. 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)
    March 31,   December 31,
      2020       2019  
Current Assets        
Cash and cash equivalents   $ 2,325     $ 5,837  
Accounts receivable, net     552       1,079  
Inventory     -       192  
Other current assets       413         729  
Total current assets     3,290       7,837  
Property and equipment, net     1,733       1,849  
Operating lease right-of-use asset     1,221       1,308  
Restricted cash     435       435  
Intangible assets, net     207       221  
Other assets       18         186  
Total assets   $ 6,904     $ 11,836  
Liabilities and Shareholders' Equity (Deficit)        
Current Liabilities        
Accounts payable   $ 2,113     $ 1,871  
Accrued liabilities     837       2,045  
Deferred revenue     15       21  
Contract liabilities     9,271       9,755  
Other current liabilities     42       83  
Current portion of operating lease liability     661       656  
Current portion of finance lease obligations       23         25  
Total current liabilities     12,962       14,456  
Operating lease liability, net of current portion     1,211       1,348  
Finance lease obligations, net of current portion       5         9  
Total liabilities       14,178         15,813  
Commitments and contingencies        
Shareholders' Equity (Deficit)        
Common stock at par value     131       126  
Additional paid-in capital     570,128       568,496  
Accumulated deficit       (577,533 )       (572,599 )
Total shareholders' equity (deficit)       (7,274 )       (3,977 )
Total liabilities and shareholders' equity (deficit)   $ 6,904     $ 11,836  

MicroVision, Inc.
Statement of Operations
(In thousands, except earnings per share data)
    Three months ended March 31,
      2020       2019  
Product revenue   $ 1,247     $ 199  
License and royalty revenue     212       -  
Contract revenue       10         1,652  
Total revenue       1,469         1,851  
Cost of product revenue     1,395       288  
Cost of contract revenue       4         955  
Total cost of revenue       1,399         1,243  
Gross margin       70         608  
Research and development expense     3,683       5,973  
Sales, marketing, general and administrative expense     1,771       2,699  
Gain on disposal of fixed assets       (450 )       -  
Total operating expenses       5,004         8,672  
Loss from operations     (4,934 )     (8,064 )
Other expense, net       -         (4 )
Net  income (loss)   $ (4,934 )   $ (8,068 )
Net income (loss) per share - basic and diluted   $ (0.04 )   $ (0.08 )
Weighted-average shares outstanding - basic and diluted   127,214       101,971  

Investor Relations Contact

David H. Allen
Darrow Associates, Inc.

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Source: MicroVision, Inc.