MicroVision Announces Second Quarter 2011 Results
Highlights include signing agreement for in-vehicle PicoP head-up display with major car maker and expanding SHOWWX(TM) distribution in Apple channels
REDMOND, Wash.--(BUSINESS WIRE)-- MicroVision, Inc. (NASDAQ: MVIS), the leader in innovative ultra-miniature projection display technology, today announced its operating and financial results for the second quarter of 2011.
During the quarter the company continued to execute on its three key initiatives for 2011: progressing the development of the next-generation high-definition (HD) PicoP(R) display engine with Pioneer Corporation, adding new distribution partners for the SHOWWX family of pico projectors, and significantly reducing its cash used in operations compared to last year. The company also signed a first-of-its-kind agreement with a major automobile manufacturer, offering a clear initial path toward commercialization of its PicoP head-up display technology (PicoHUD(TM)) inside a mass-production car model targeted for introduction in 2014.
"We are realizing the results from the business plan we announced and implemented in late 2010 and early 2011," stated Alexander Tokman, president and CEO of MicroVision. "While we continue to reduce cash used in operations, the team is actively engaged in expanding our distribution network for the SHOWWX product line and closing important business development opportunities."
Highlights included:
-- Signed an agreement with a major automotive manufacturer to incorporate
MicroVision's PicoHUD technology into its test vehicles. MicroVision,
the manufacturer and its Tier 1 integrator have agreed to develop an
advanced HUD prototype that includes the next-generation PicoP display
engine based on direct green lasers. These prototypes are intended for
installation in early test vehicles for specific models already
identified on the manufacturer's production roadmap. It is anticipated
that the first phase will be followed by a series of milestones that may
result in introduction of the HUD into a production vehicle.
-- Expanded support of the Apple ecosystem by adding Softline UK Ltd.
(EMEA) and Synnex K.K. (Japan) to distribute the SHOWWX(TM) line of pico
projector products to Apple customers in Europe, Middle East, Africa and
Japan. The SHOWWX+ is the first laser pico projector to be sold in
Japan.
-- Announced the new SHOWWX+HDMI laser pico projector, offering pure
digital connectivity to a breadth of new tablets, smartphones and
devices offering HDMI video-out. The SHOWWX+HDMI expands compatibility
with more of today's popular devices featuring HDMI video-out
capabilities. In addition to being certified for use with Apple iPhone,
iPad, iPad 2 and iPod touch, SHOWWX+HDMI works with RIM's BlackBerry
Playbook and Windows 7 tablets, a range of compatible Android and
Symbian smartphones, as well as Windows and Apple notebooks, netbooks
and ultra portable HDMI-enabled devices.
-- Delivered initial order of first-generation PicoP display engines to
Walsin Lihwa. Walsin has integrated these engines into its new Pico
Panda product planned for commercial release in China in the second half
of 2011.
-- Continued advancement with Pioneer of the light source module based on
direct blue, green, and red laser diodes and engine subsystems for the
next-generation HD PicoP display engine. The HD PicoP display engine is
expected to have the high performance, small size and attractive price
required for high-volume automotive and consumer applications. It is
expected to serve as the foundation for Pioneer's aftermarket HUD
product planned for introduction in 2012.
Financial Results
The following financial results are for three and six months ended June 30, 2011, compared to the same periods one year earlier.
-- Revenue was $1.2 million for the second quarter of 2011, compared to
$2.1 million for the second quarter of 2010, and $2.3 million for the
first half of 2011, compared to $2.8 million for the first half one year
ago. Backlog was $1.7 million as of June 30, 2011.
-- Operating loss was $9.3 million for the second quarter of 2011, compared
to $11.1 million for the same quarter a year ago, and $18.3 million for
the first half of 2011, compared to $20.6 million for the first of 2010.
-- Net loss was $9.2 million, or $0.09 per share for the second quarter of
2011, compared to $11.1 million, or $0.12 per share for the same quarter
a year ago. Net loss was $18.2 million, or $0.17 per share for the first
half of 2011, compared to $20.2 million, or $0.23 per share for the
first half of 2010.
For the six months ended June 30, 2011, cash used in operations was $15.5 million compared to $22.3 million for the same period in 2010, reflecting a 30% decrease from one year ago. For the second quarter of 2011, cash used in operations was $7.4 million compared to $12.7 million for the same period in 2010, reflecting a 42% decrease from one year ago. The company is aggressively managing its costs and is on target to reduce cash used in operations for the year by approximately 40% compared to 2010.
As of June 30, 2011, cash and cash equivalents were $9.3 million, which includes $2.4 million raised during the second quarter of 2011 through the company's 2010 equity financing facility.
During the quarter the company secured a new equity financing facility under which it may sell up to $40 million dollars or approximately 21 million shares of its common stock over two years.
Conference Call
The company will host a conference call today to discuss its second quarter 2011 results and current business operations at 8:30 a.m. ET / 5:30 a.m. PT. Participants may join the conference call by dialing 800-561-2601 (for U.S. participants) or 617-614-3518 (for international participants) ten minutes prior to the start of the call. The conference call pass code number is 56894455. A live webcast can be accessed from the company's web site at www.microvision.com/investors. 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 pico projectors, vehicle displays and wearable displays that interface with mobile devices. The company's projection display engine uses highly efficient laser light sources which can create vivid images with high contrast and brightness. For more information, visit us on:
Our company website: microvision.com
Our corporate blog: microvision.com/displayground
Twitter: twitter.com/microvision
Facebook: facebook.com/MicrovisionInc
YouTube: youtube.com/mvisvideo
MicroVision, SHOWWX, SHOWWX+ 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 integration of PicoHUD technology into production car models or HUD products, future product development and operating results and those using words such as "anticipate", "intend," "expect," "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; 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)
June 30, December 31,
2011 2010
Assets
Current Assets
Cash and cash equivalents $ 9,339 $ 19,413
Investment securities, available-for-sale 9 13
Accounts receivable, net of allowances 684 1,116
Costs and estimated earnings in excess of 132 137
billings on uncompleted contracts
Inventory 5,042 6,075
Current restricted investments 306 306
Other current assets 978 564
Total current assets 16,490 27,624
Property and equipment, net 3,380 4,169
Restricted investments 1,019 1,189
Intangible assets 2,140 2,233
Other assets 30 18
Total assets $ 23,059 $ 35,233
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $ 6,785 $ 7,665
Accrued liabilities 4,026 4,135
Billings in excess of costs and estimated 47 81
earnings on uncompleted contracts
Current portion of capital lease obligations 35 40
Current portion of long-term debt 89 85
Total current liabilities 10,982 12,006
Capital lease obligations, net of current portion 94 114
Long-term debt, net of current portion 114 159
Deferred rent, net of current portion 497 697
Other long-term liabilities - 424
Total liabilities 11,687 13,400
Commitments and contingencies - -
Shareholders' Equity
Common stock at par value 108 102
Additional paid-in capital 408,540 400,791
Accumulated other comprehensive loss (34 ) (30 )
Accumulated deficit (397,242 ) (379,030 )
Total shareholders' equity 11,372 21,833
Total liabilities and shareholders' equity $ 23,059 $ 35,233
Microvision, Inc.
Statement of Operations
(In thousands, except earnings per share data)
(Unaudited)
Three months ended June 30, Six months ended June 30,
2011 2010 2011 2010
Contract revenue $ 251 $ 73 $ 484 $ 371
Product revenue 904 2,015 1,790 2,385
Total revenue 1,155 2,088 2,274 2,756
Cost of contract 395 21 694 149
revenue
Cost of product 2,985 3,337 5,225 4,496
revenue
Total cost of 3,380 3,358 5,919 4,645
revenue
Gross margin (2,225 ) (1,270 ) (3,645 ) (1,889 )
Research and 3,478 6,043 7,805 11,041
development expense
Sales, marketing,
general and 3,577 3,817 6,876 7,705
administrative
expense
Gain on disposal of - - (7 ) -
fixed assets
Total operating 7,055 9,860 14,674 18,746
expenses
Loss from operations (9,280 ) (11,130 ) (18,319 ) (20,635 )
Interest income 12 50 27 79
Interest expense (12 ) (16 ) (25 ) (33 )
Gain on derivative - 34 - 429
instruments, net
Other income 105 (11 ) 105 (30 )
(expense)
Net loss $ (9,175 ) $ (11,073 ) $ (18,212 ) $ (20,190 )
Net loss per share - $ (0.09 ) $ (0.12 ) $ (0.17 ) $ (0.23 )
basic and diluted
Weighted-average
shares outstanding - 106,176 88,767 104,446 88,730
basic and diluted
Source: MicroVision, Inc.
Released July 21, 2011