MicroVision Announces First Quarter 2011 Results
REDMOND, Wash.--(BUSINESS WIRE)-- MicroVision, Inc. (NASDAQ:MVIS), a leader in innovative ultra-miniature projection display technology, today announced its operating and financial results for the first quarter of 2011.
"During the quarter we made solid progress on our three primary objectives for this year," stated Alexander Tokman, president and CEO. "The direct green PicoP engine development has been progressing and has not been disrupted by the recent disaster in Japan. Our ground work implemented in late 2010 on enhancing product distribution channels, introducing a new product, and simplifying operations has already paid dividends through increased revenue and lower cash usage than the fourth quarter of 2010."
Notable business developments during the quarter include:
-- Continued advancement of the next-generation direct green laser PicoP(R) display engine despite the recent events in Japan. Both MicroVision and Pioneer have been devoting substantial resources to the joint development of key components of MicroVision's next-generation direct green laser PicoP engine. Commercial launch of a direct green PicoP display engine is planned for the first half of next year. -- Product revenue more than doubled from the fourth quarter of 2010 from increased sales of the SHOWWX(TM) line of pico projectors. -- Decreased cash used in operations by 28% compared to the fourth quarter of last year. This reduction is in line with the company's target of reducing 2011 cash used in operations by 40% from 2010. The company anticipates cash used in operations will continue to decrease during the remainder of 2011 as the impact of changes made early in the first quarter take full effect. -- The company opened a research and development center at Singapore's Nanyang Technological University to further innovation and as a cost-effective means for expanding its global research and development initiatives. The company chose NTU because of the breadth of science and technology expertise found at NTU and its centralized location in Asia.
The following financial results are for the three months ended March 31, 2011, compared to the same period one year earlier.
-- Revenue was $1.1 million, compared to $668,000 a year ago, primarily from increased sales of the company's accessory laser pico projectors. -- Operating loss was $9.0 million, compared to $9.5 million for the same quarter a year ago. -- Net loss was $9.0 million, or $0.09 per share, compared to $9.1 million, or $0.10 per share for the same quarter a year ago.
Backlog was $1.5 million as of March 31, 2011. The OEM customer who in 2010 placed orders of $11.9 million for the PicoP display engine has delayed its product launch to the second half of 2011. This has introduced additional uncertainty about the commercialization ramp of the customer's high-end media player. Consequently, MicroVision has removed these orders from its backlog until more information regarding the timing and quantity of engine deliveries can be established.
Cash used in operations was $8.1 million during the quarter ended March 31, 2011, compared to $11.2 million for the fourth quarter of 2010. Cash and cash equivalents were $14.5 million as of March 31, 2011, which includes $3.1 million in cash raised during the first quarter through the company's 2010 equity financing facility.
The company will host a conference call today to discuss its first 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 866-362-4829 (for U.S. participants) or 617-597-5346 (for international participants) ten minutes prior to the start of the call. The conference call pass code number is 76869564. The call will also be broadcast over the Internet and 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.
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: www.microvision.com
Our corporate blog: www.microvision.com/displayground
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.
Certain statements contained in this release, including those relating to future product development and operating results and those using words such as "anticipate," "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) March 31, December 31, 2011 2010 Assets Current Assets Cash and cash equivalents $ 14,469 $ 19,413 Investment securities, available-for-sale 12 13 Accounts receivable, net of allowances 880 1,116 Costs and estimated earnings in excess of billings 123 137 on uncompleted contracts Inventory 5,423 6,075 Current restricted investments 306 306 Other current assets 477 564 Total current assets 21,690 27,624 Property and equipment, net 3,843 4,169 Restricted investments 1,019 1,189 Intangible assets 2,186 2,233 Other assets 30 18 Total assets $ 28,768 $ 35,233 Liabilities and Shareholders' Equity Current Liabilities Accounts payable $ 6,808 $ 7,665 Accrued liabilities 4,305 4,135 Billings in excess of costs and estimated earnings 47 81 on uncompleted contracts Current portion of capital lease obligations 37 40 Current portion of long-term debt 87 85 Total current liabilities 11,284 12,006 Capital lease obligations, net of current portion 105 114 Long-term debt, net of current portion 137 159 Deferred rent, net of current portion 600 697 Other long-term liabilities 330 424 Total liabilities 12,456 13,400 Commitments and contingencies - - Shareholders' Equity Common stock at par value 105 102 Additional paid-in capital 404,305 400,791 Accumulated other comprehensive loss (31 ) (30 ) Accumulated deficit (388,067 ) (379,030 ) Total shareholders' equity 16,312 21,833 Total liabilities and shareholders' equity $ 28,768 $ 35,233
Microvision, Inc. Statement of Operations (In thousands, except earnings per share data) (Unaudited) Three months ended March 31, 2011 2010 Contract revenue $ 233 $ 298 Product revenue 886 370 Total revenue 1,119 668 Cost of contract revenue 299 128 Cost of product revenue 2,240 1,159 Total cost of revenue 2,539 1,287 Gross margin (1,420 ) (619 ) Research and development expense 4,327 4,998 Sales, marketing, general and administrative 3,299 3,888 expense Gain on disposal of fixed assets (7 ) - Total operating expenses 7,619 8,886 Loss from operations (9,039 ) (9,505 ) Interest income 15 29 Interest expense (13 ) (17 ) Gain on derivative instruments, net - 395 Other expense - (19 ) Net loss $ (9,037 ) $ (9,117 ) Net loss per share - basic and diluted $ (0.09 ) $ (0.10 ) Weighted-average shares outstanding - basic and 102,697 88,693 diluted
Source: MicroVision, Inc.
Released May 5, 2011