Highlights include $3.5 million engine order, double-digit revenue growth and third consecutive quarter of lower cash used in operations

REDMOND, Wash.--(BUSINESS WIRE)--October 25, 2011--MicroVision, Inc. (NASDAQ:MVIS), the leader in innovative ultra-miniature projection display technology, today announced its operating and financial results for the third quarter of 2011.

MicroVision reported that it is on track to meet its three primary objectives for 2011. The company has been advancing the development of its next-generation high-definition (HD) PicoP display engine, and is on target to moderately increase revenue and reduce cash used in operations by approximately 40% from last year.

"We believe the successful execution of our business strategy to date has increased our opportunities for 2012, and we are excited about what the future holds,” stated Alexander Tokman, president and CEO of MicroVision.

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

For the nine months ended September 30, 2011, cash used in operations declined to $21.8 million compared to $35.0 million for the same period in 2010, reflecting a 38 percent decrease from the first nine months of 2010.

As of September 30, 2011, cash and cash equivalents were $9.4 million, which included $6.3 million raised during the third quarter of 2011 through the company’s equity financing facilities.

The company will host a conference call today to discuss its third 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 866-804-6924 (for U.S. participants) or 857-350-1670 (for international participants) ten minutes prior to the start of the call. The conference call pass code number is 82664705. 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 that 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 operations, third party contracts, product releases, 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)

	September 30,			December 31,
	2011			2010

Assets
Current Assets
Cash and cash equivalents	$	9,369		$	19,413
Investment securities, available-for-sale		8			13
Accounts receivable, net of allowances		877			1,116
Costs and estimated earnings in excess of billings on uncompleted contracts		257			137
Inventory		4,443			6,075
Current restricted investments		-			306
Other current assets		1,120			564
Total current assets		16,074			27,624

Property and equipment, net		2,736			4,169
Restricted investments		1,019			1,189
Intangible assets		2,094			2,233
Other assets		30			18
Total assets	$	21,953		$	35,233


Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable	$	6,301		$	7,665
Accrued liabilities		4,432			4,135
Billings in excess of costs and estimated earnings on uncompleted contracts		50			81
Current portion of capital lease obligations		40			40
Current portion of long-term debt		91			85
Total current liabilities		10,914			12,006

Capital lease obligations, net of current portion		84			114
Long-term debt, net of current portion		91			159
Deferred rent, net of current portion		253			697
Other long-term liabilities		-			424
Total liabilities		11,342			13,400

Commitments and contingencies

Shareholders' Equity
Common stock at par value		118			102
Additional paid-in capital		415,560			400,791
Accumulated other comprehensive loss		(35	)		(30	)
Accumulated deficit		(405,032	)		(379,030	)
Total shareholders' equity		10,611			21,833
Total liabilities and shareholders' equity	$	21,953		$	35,233

Microvision, Inc.

Statement of Operations
(In thousands, except earnings per share data)
(Unaudited)


	Three months ended Sept. 30,						Nine months ended Sept. 30,
	2011			2010			2011			2010


Contract revenue	$	314		$	221		$	798		$	592
Product revenue		1,525			1,080			3,315			3,465
Total revenue		1,839			1,301			4,113			4,057

Cost of contract revenue		237			53			931			202
Cost of product revenue		2,483			4,059			7,708			8,555
Total cost of revenue		2,720			4,112			8,639			8,757

Gross margin		(881	)		(2,811	)		(4,526	)		(4,700	)


Research and development expense		3,641			5,920			11,446			16,961
Sales, marketing, general and administrative expense		3,306			3,555			10,182			11,260
Gain on disposal of fixed assets		(4	)		-			(11	)		-
Total operating expenses		6,943			9,475			21,617			28,221

Loss from operations		(7,824	)		(12,286	)		(26,143	)		(32,921	)

Interest income		9			15			36			94
Interest expense		(9	)		(15	)		(34	)		(48	)
Gain on derivative instruments, net		-			446			-			875
Other income (expense)		34			(10	)		139			(40	)

Net loss	$	(7,790	)	$	(11,850	)	$	(26,002	)	$	(32,040	)

Net loss per share - basic and diluted	$	(0.07	)	$	(0.13	)	$	(0.25	)	$	(0.36	)

Weighted-average shares outstanding - basic and diluted		109,238			89,376			106,061			88,948

CONTACT:
MicroVision, Inc.
(investors)
Tiffany Bradford, 425-882-6629
tiffany_bradford@microvision.com
or
Edelman
(media/PR)
Callie Snyder, 503-471-6816
callie.snyder@edelman.com