REDMOND, Wash.--(BUSINESS WIRE)--May 5, 2011--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.”

The following financial results are for the three months ended March 31, 2011, compared to the same period one year earlier.

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® 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:

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 on uncompleted contracts		123			137
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 on uncompleted contracts		47			81
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 expense		3,299			3,888
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 diluted		102,697			88,693

CONTACT:
Investors:
MicroVision, Inc.
Tiffany Bradford, 425-882-6629
or
Media/PR:
Edelman
Callie Snyder, 503-471-6816