Highlights include signing agreement for in-vehicle PicoP head-up display with major car maker and expanding SHOWWX™ distribution in Apple channels

REDMOND, Wash.--(BUSINESS WIRE)--July 21, 2011--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® 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™) 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.”

The following financial results are for three and six months ended June 30, 2011, compared to the same periods one year earlier.

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.

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.

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 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 billings on uncompleted contracts		132			137
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 earnings on uncompleted contracts		47			81
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 revenue		395			21			694			149
Cost of product revenue		2,985			3,337			5,225			4,496
Total cost of revenue		3,380			3,358			5,919			4,645

Gross margin		(2,225	)		(1,270	)		(3,645	)		(1,889	)


Research and development expense		3,478			6,043			7,805			11,041
Sales, marketing, general and administrative expense		3,577			3,817			6,876			7,705
Gain on disposal of fixed assets		-			-			(7	)		-
Total operating expenses		7,055			9,860			14,674			18,746

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 instruments, net		-			34			-			429
Other income (expense)		105			(11	)		105			(30	)

Net loss	$	(9,175	)	$	(11,073	)	$	(18,212	)	$	(20,190	)

Net loss per share - basic and diluted	$	(0.09	)	$	(0.12	)	$	(0.17	)	$	(0.23	)

Weighted-average shares outstanding - basic and diluted		106,176			88,767			104,446			88,730

CONTACT:
Investors:
MicroVision, Inc.
Tiffany Bradford, 425-882-6629
or
Media/PR:
Edelman
Callie Snyder, 503-997-3440