Exhibit 99.1 Microvision Reports 2003 Third Quarter Revenue of $2.6 Million; Affirms Q4 Revenue Guidance of at Least $4.6 Million BOTHELL, Wash.--(BUSINESS WIRE)--Nov. 12, 2003-- Company announces an order for 2,900 Flic units and delivery of 100 Nomad units to the Stryker Brigade Microvision, Inc. (Nasdaq:MVIS), a leader in light scanning technologies, today reported financial results for the third quarter of 2003. Revenue for the third quarter of 2003 was $2.6 million compared to $4.2 million for the same period in 2002. The company had previously reported that it expected the 2003 third quarter to show some weakness, citing uncertainty regarding the timing of new contracts some of which were then under negotiation. Revenue for the nine months ended September 30, 2003 was $10.6 million compared to $12.7 million for the same period in 2002. Revenue was derived from ongoing work on development contracts with U.S. military and commercial customers, sales of the Flic(TM) Laser Bar Code Scanner, sales of the Nomad(TM) Augmented Vision System, and development contracts at its subsidiary, Lumera. For the nine months ended September 30, 2003, revenue from development contracts with U.S. government agencies was $5.9 million, revenue from commercial contracts was $4.3 million and revenue from product sales was $300,000. For the three months ended September 30, 2003, Microvision reported a consolidated net loss of $6.9 million or $.39 per share compared to a net loss of $5.4 million or $.37 per share for the same period in 2002. For the nine months ended September 30, 2003, the company reported a consolidated net loss of $21.0 million or $1.22 per share compared to a net loss of $20.3 million or $1.48 per share for the same period in 2002. For the nine months ended September 30, 2003, net cash used in operating activities was $20.5 million compared to $23.2 million for the same period in 2002. The company, including Lumera, had $6.2 million in cash, cash equivalents and investment securities as of September 30, 2003. Subsequent to the end of the third quarter, the company closed a $22.3 million equity offering. The company also affirmed its previous revenue guidance, indicating that it expects revenue for the fourth quarter of 2003 to be $4.6 million or higher, compared to revenue of $3.2 million in the fourth quarter of 2002. Full year revenue for 2003 is expected to be $15.2 million or higher, compared with $15.9 million for 2002. The company stated that it expects to resume revenue growth in 2004 with significantly higher revenue from Nomad and Flic sales and contract development revenue comparable to 2003. Depending on the level and mix of revenue, the company expects its current cash balance to fund its operations for at least the next twelve months. "We achieved a number of important successes in the third quarter, including building upon the award of a letter of intent from Honda to purchase 3,800 Nomad units beginning in 2004, the $600,000 order by the U.S. Army of 100 Nomad units that have recently been delivered, an order by Volkswagen for delivery of automotive display prototypes, and breakthroughs for Lumera in the application of its technology for smart antennae," said CEO Rick Rutkowski. "We believe that building on these successes will provide catalysts for future revenue growth, beginning in the current quarter and continuing through 2004. "As we have previously noted, our commercial contract bookings for the fourth quarter are already at a record level. We have announced $4.0 million in new commercial contract awards, including our largest award to date with Canon and a $1.0 million Phase I development contract for a laser print engine. Both of these development contracts could lead to product introductions as early as 2005. "We are pleased with our announcement today of the largest order we have received to date for the Flic bar code scanner. We believe we will see additional order activity this quarter and next and that the product is gaining a toehold position in the billion dollar market for handheld laser bar code scanners. "We have met all of our milestones to date with Honda and we continue to work closely with Honda and other customers in the automotive market as we move toward our anticipated product launch. We are seeing growing interest by other automotive OEMs and third party dealer networks as well as in other vertical markets and field trials are underway with additional trials being scheduled. "Development work on automotive displays continues to progress toward the product development phase for a number of potential applications. We look forward to reporting on some recent successes in this area soon. "Potential new bookings for defense-related contracts are promising for this quarter and for the first half of next year. We are optimistic that we will receive additional funding for our existing Virtual Cockpit Program for next year. We also have indications that we may receive funding for a new program to advance development of display solutions for helicopter pilots. "Lumera also continues to make steady progress in its development. The company has achieved the technological breakthroughs necessary to enable it to develop a smart antenna for high volume applications such as Wi-Fi and is now focused on obtaining one or more development partners that will also serve as a launch customer. "Both Microvision and Lumera have strengthened their board and management teams, respectively. Microvision has added Slade Gorton, a three term former U.S. Senator to its board of directors and Lumera has added Dr. Robert J. Petcavich as its first Chief Technology Officer. During his 23 years of business experience, Dr. Petcavich founded, planned, financed, and operated four technology-based start-up companies, including a biochip company engaged in the development of micro electromechanical systems (MEMS), an advanced materials company, an artificial intelligence company, and a medical transcription company. "Contract bookings and billings in both defense and commercial arena are looking very solid for this quarter and the first half of next year and we expect the momentum that is now underway in the fourth quarter to continue in 2004. Our outlook for 2004 revenue targets sequential growth driven by product sales, specifically by strong revenue growth associated with sales of the Nomad display to American Honda and others. We also believe that Flic sales will continue to strengthen and contribute to revenue in 2004. If we execute on the opportunities we see before us, we believe that we could have our largest revenue growth ever in 2004." Conference Call Microvision will host a conference call to discuss its third quarter 2003 financial results at 1:30 p.m. PT today. Participants may join the conference call by dialing (800) 901-5217 (for U.S. participants) ten minutes prior to the start of the conference. International participants can dial (617) 786-2964. The conference passcode is 96598902. Additionally, the call will be broadcast over the Internet and can be accessed from the company's web site at www.microvision.com. A telephone replay of the call will be available through 6:30 p.m. PT November 19, 2003 and can be accessed by dialing 888-286-8010 (for U.S. participants) or 617-801-6888 (for international participants). The conference passcode for the replay is 40212052. (Table to follow) About Microvision: www.microvision.com Headquartered in Bothell, Wash., Microvision, Inc. is a world leader in the development of high resolution displays and imaging systems based on the company's proprietary silicon micromirror technology. The company's technology has applications in a broad range of military, medical, industrial, professional and consumer products. Microvision has been working with Canon, BMW, the Electronics Research Lab of Volkswagen of America, and others to develop a number of display and image capture product applications based on its proprietary scanned beam technology. About Lumera www.lumera.com Lumera, a majority owned subsidiary of Microvision, Inc., is developing and commercializing a new class of electro-optic materials and devices that utilize proprietary polymer compounds and processing technologies. These new devices and materials are expected to dramatically improve performance and reduce costs of electro-optic components for telecommunications, phased array antenna systems, optical computing, optical signal processing and optical interconnects. The properties of these materials are also expected to enable new applications in other technologies such as organic light emitting diode displays, low k dielectrics and coating materials. Lumera expects to be able to sell and license its technology in a variety of forms, including custom polymer materials, coated wafers, and discrete and integrated component devices, both packaged and unpackaged. Additional information can be found at Lumera's web site at http://www.lumera.com. Forward-Looking Statements Disclaimer Certain statements contained in this release, including projections of revenues, expenses and losses, plans for product development, sales, customers and channel partners, reductions in sales cycle, signing of contracts, future operations and shipping of products, as well as statements containing words like "believe," "anticipate," "estimate," "intend," "will," "seek," "look forward," "expect," and other similar expressions, 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: market acceptance of our technologies and products; our financial and technical resources relative to those of our competitors; our ability to obtain financing, 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 to develop partnership opportunities; the timing of commercial product launches; the ability to achieve key technical milestones in key products; dependency on advances by third parties in certain technology used by us and other risk factors identified from time to time in the company's SEC reports, including in its Prospectuses filed pursuant to Rule 424(b) on November 3, 2003, its Annual Report on 10K for the year ended December 31, 2002 and its Quarterly Reports on Form 10-Q. Microvision, Inc. Consolidated Balance Sheet (In thousands) (Unaudited) September December 30, 31, 2003 2002 --------- --------- Assets Current Assets Cash and cash equivalents $ 4,149 $ 9,872 Investment securities, available-for-sale 2,069 5,304 Accounts receivable, net 1,362 1,315 Costs and estimated earnings in excess of billings on uncompleted contracts 936 1,073 Inventory, net 612 747 Other current assets 1,805 2,348 --------- --------- Total current assets 10,933 20,659 Property and equipment, net 6,057 7,672 Restricted investments 1,269 1,356 Receivables from related parties, net 1,823 2,043 Other assets 374 537 --------- --------- Total assets $ 20,456 $ 32,267 ========= ========= Liabilities, Minority Interests and Shareholders' Equity Current Liabilities Accounts payable $ 1,314 $ 1,462 Accrued liabilities 5,527 4,309 Current portion of research liability 1,652 - Billings in excess of costs and estimated earnings on uncompleted contracts 51 230 Current portion of capital lease obligations 73 84 Current portion of long-term debt 68 63 --------- --------- Total current liabilities 8,685 6,148 Research liability, net of current portion - 1,025 Capital lease obligations, net of current portion 45 94 Long-term debt, net of current portion 117 169 Deferred rent, net of current portion 128 192 Other long-term liabilities 4 - --------- --------- Total liabilities 8,979 7,628 --------- --------- Commitments and Contingencies - - Minority Interests 2,852 7,223 --------- --------- Shareholders' Equity Common stock and paid-in capital 158,804 147,058 Deferred compensation (990) (1,490) Subscriptions receivable from related parties (166) (166) Accumulated other comprehensive income 37 121 Accumulated deficit (149,060) (128,107) --------- --------- Total shareholders' equity 8,625 17,416 --------- --------- Total liabilities, minority interests and shareholders' equity $ 20,456 $ 32,267 ========= ========= Microvision, Inc. Consolidated Statement of Operations (In thousands, except earnings per share data) (Unaudited) Three months ended Nine months ended September 30, September 30, ------------------------------------- 2003 2002 2003 2002 ------- ------- -------- -------- Revenue $ 2,565 $ 4,186 $ 10,613 $ 12,724 Cost of revenue 1,499 1,919 5,109 5,925 ------- ------- -------- -------- Gross margin 1,066 2,267 5,504 6,799 ------- ------- -------- -------- Research and development expense 5,524 5,433 18,403 18,762 Marketing, general and administrative expense 3,615 3,904 12,286 12,786 Non-cash compensation expense 544 450 1,461 1,363 ------- ------- -------- -------- Total operating expenses 9,683 9,787 32,150 32,911 ------- ------- -------- -------- Loss from operations (8,617) (7,520) (26,646) (26,112) Interest income 76 235 290 854 Interest expense (11) (16) (35) (45) Gain on disposal of fixed assets, net 64 - 33 - Realized gain on sale of investment securities - - 39 - Loss due to impairment of long- term investment - - - (624) ------- ------- -------- -------- Loss before minority interests (8,488) (7,301) (26,319) (25,927) Minority interests in loss of consolidated subsidiary 1,623 1,900 5,366 5,652 ------- ------- -------- -------- Net loss $(6,865) $(5,401) $(20,953) $(20,275) ======= ======= ======== ======== Net loss per share before non- cash compensation expense $ (0.36) $ (0.34) $ (1.13) $ (1.38) Non-cash compensation expense (0.03) (0.03) (0.09) (0.10) ------- ------- -------- -------- Net loss per share - basic and diluted $ (0.39) $ (0.37) $ (1.22) $ (1.48) ======= ======= ======== ======== Weighted-average shares outstanding - basic and diluted 17,799 14,512 17,188 13,700 ======= ======= ======== ======== CONTACT: Microvision Brian Heagler (investors), 425-415-6794 or Matt Nichols (media), 425-415-6657