Exhibit 99.1

Microvision Announces First Quarter 2010 Results

Company Reports Record $16.7 Million Backlog for PicoP Based Products

REDMOND, Wash.--(BUSINESS WIRE)--May 10, 2010--Microvision, Inc. (NASDAQ:MVIS), a leader in innovative ultra-miniature projection display technology, today reported operating and financial results for the first quarter of 2010.

Operating Results

“I’m pleased to report we have received purchase orders of over $16.7 million for PicoP® based products, both the accessory pico projector and PicoP display engine, through our distribution channels in Asia, Europe and North America,” stated Alexander Tokman, President and CEO. “We continue to focus on improving our production and supply chain capabilities to meet this strong demand and with the recent addition of a second qualified green laser supplier, we are confident that we can fulfill product deliveries in increased volumes to our distribution partners and continue to accept additional purchase orders.”

Key business and technical milestones achieved during the first quarter:

Also in the first quarter, Microvision’s SHOWWX laser pico projector won several top industry awards for its notable design and performance at the annual Consumer Electronics Show (CES) and Macworld, including:


Microvision’s innovation and strong patent portfolio were recognized by two prestigious global IP organizations:

Financial Results

The following financial results are for the three months ended March 31, 2010, compared to the same period one year earlier.

The company will discuss its operating and financial results and current business operations during its conference call at 4:30 p.m. ET / 1:30 p.m. PT today.


Conference Call

Microvision will host a conference call today at 4:30 p.m. ET / 1:30 p.m. PT. Participants may join the conference call by dialing 866-362-4666 (for U.S. participants) or 617-597-5313 (for International participants) ten minutes prior to the start of the conference. The conference pass-code number is 51645099. Additionally, the call will be broadcast over the Internet and can be accessed from the company's web site at www.microvision.com/investors. The web cast 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® 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 the company’s website (www.microvision.com) and corporate blog (www.microvision.com/displayground).

Forward Looking Statement

Certain statements contained in this release, including those relating to operating results, product development, future distribution and growth and potential product benefits 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: capital market risks, our ability to raise additional capital when needed; market acceptance of our technologies and products; our financial and technical resources relative to those of our competitors; our ability to keep up with rapid technological change; our dependence on the defense industry and a limited number of government development contracts; 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; our customers’ or our failure to perform under open purchase orders; potential product liability claims, and other risk factors identified from time to time in the company's SEC reports and other filings, including the company's Annual Report on Form 10-K filed with the SEC. Except as expressly required by the 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,
  2010     2009  
 
Assets
Current Assets
Cash and cash equivalents $ 33,027 $ 43,025
Investment securities, available-for-sale 2,617 2,710
Accounts receivable, net of allowances 555 913
Costs and estimated earnings in excess of billings on uncompleted contracts 30 70
Inventory 3,607 926
Other current assets   793     751  
Total current assets 40,629 48,395
 
Property and equipment, net 4,467 3,904
Restricted investments 1,189 1,189
Other assets   48     48  
Total assets $ 46,333   $ 53,536  
 
 
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $ 5,811 $ 4,949
Accrued liabilities 5,083 4,190
Billings in excess of costs and estimated earnings on uncompleted contracts 47 55
Liability associated with common stock warrants 447 840
Current portion of capital lease obligations 62 62
Current portion of long-term debt   81     78  
Total current liabilities 11,531 10,174
 
Capital lease obligations, net of current portion 139 157
Long-term debt, net of current portion 222 244
Deferred rent, net of current portion   981     1,070  
Total liabilities   12,873     11,645  
 
Commitments and contingencies - -
 
Shareholders' Equity
Common stock at par value 89 89
Additional paid-in capital 374,083 373,405
Accumulated other comprehensive loss (25 ) (33 )
Accumulated deficit   (340,687 )   (331,570 )
Total shareholders' equity   33,460     41,891  
Total liabilities and shareholders' equity $ 46,333   $ 53,536  

   
Microvision, Inc.
 
Statement of Operations
(In thousands, except earnings per share data)
(Unaudited)
 
 
Three months ended March 31,
  2010     2009  
 
 
Contract revenue $ 298 $ 712
Product revenue   370     239  
Total revenue   668     951  
 
Cost of contract revenue 128 383
Cost of product revenue   1,159     241  
Total cost of revenue   1,287     624  
 
Gross margin   (619 )   327  
 
 
Research and development expense 4,998 5,610
Sales, marketing, general and administrative expense   3,888     3,814  
Total operating expenses   8,886     9,424  
 
Loss from operations (9,505 ) (9,097 )
 
Interest income 29 64
Interest expense (17 ) (11 )
Gain on derivative instruments, net 395 180
Other expense   (19 )   (1 )
 
Net loss $ (9,117 ) $ (8,865 )
 
Net loss per share - basic and diluted $ (0.10 ) $ (0.13 )
 
Weighted-average shares outstanding - basic and diluted   88,693     68,080  

CONTACT:
Microvision, Inc.
Tiffany Bradford, 425-936-6847 (investors)
or
Matt Nichols, 425-882-6657 (media)