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 2014 and the advancement of its 2014 business objectives. MicroVision made strong progress in the first quarter related to its operating goals for 2014. The goals for the year include:
- Complete display module development with Fortune Global 100 customer, support customer with commercialization efforts and supply key components
- Build pipeline of consumer and automotive OEM opportunities for MicroVision’s go-to-market partners that are providing display engines incorporating PicoP® display technology
- Ramp supply chain for high volume production of MicroVision components in the second half of 2014.
As part of this effort, MicroVision has produced numerous prototype end-user consumer products to demonstrate the superior performance of a pico projector built around PicoP display technology and completed direct consumer studies to give OEMs and retailers an idea of the types of products they could offer. PicoP display technology can enable an end user experience with features and functions such as high definition, always in focus images and laser brightness that are optimal for the mobile video consumption that research shows consumers are now making part of their regular infotainment routine.According to the Global Video Index Q4 2013 report from Ooyala, the year-over-year share of time spent watching videos on tablets and mobile devices has increased 719 percent since fourth quarter 2011, and 160 percent year-over-year since fourth quarter 2012. The report also revealed that in the fourth quarter of 2013 more than half of mobile viewers’ time was spent watching video longer than 30 minutes compared to 35 percent for tablet viewers. In the automotive segment, MicroVision continues its collaboration with a Tier One global supplier and a leading global vehicle OEM. MicroVision expects to deliver a prototype HUD system to the vehicle OEM in the second quarter. These programs are in the evaluation and test phases, critical steps to having new technology adopted in embedded automotive applications. MicroVision also announced in March 2014 that it has agreed to supply customized PicoP display modules to UPS to outfit a distribution facility in the United States. The PicoP display modules will be part of a new package guidance application aimed at increasing processing efficiency in real-time package sorting and routing. MicroVision expects to deliver the modules to UPS in the third quarter. The company has been working with world class partners to put in place the supply chain required for volume production of its key components in the second half of 2014. The company has dedicated resources toward ramping the supply chain to fulfill future orders from engine partners in order to facilitate the company’s go-to-market plan for commercialization of PicoP display technology.
Financial UpdateDuring the first quarter, MicroVision raised $12.8 million net of issuance costs in an offering of common stock and warrants for general corporate purposes. MicroVision has continued its aggressive management of cash used in operations with a reduction in the quarter of 16 percent compared to the same period in 2013. The following financial results are for the three months ended March 31, 2014, compared to the three months ended March 31, 2013.
- Revenue was $1.2 million, primarily from the Fortune Global 100 development activities, compared to $1.8 million a year ago.
- Operating loss decreased to $3.1 million, compared to $3.6 million for the same quarter a year ago.
- Net loss was $8.0 million, or $0.23 per share, compared to $3.7 million, or $0.14 per share for the same quarter a year ago. The first quarter 2014 net loss includes a $5.0 million loss recognized on the fair value adjustment of our warrant liability that occurred upon the exchange of the warrants for common stock during the period. Excluding the loss related to the fair value adjustment of the warrant liability, the adjusted net loss for the three months ended March 31, 2014 was $3.1 million.
- Cash used in operations was $2.9 million during the quarter ended March 31, 2014, compared to $3.5 million for the first quarter of 2013.
|March 31,||December 31,|
|Cash and cash equivalents||$||15,338||$||5,375|
|Accounts receivable, net of allowances||135||24|
|Other current assets||256||336|
|Total current assets||15,778||5,784|
|Property and equipment, net||924||1,065|
|Intangible assets, net||1,112||1,145|
|Liabilities and Shareholders' Equity|
|Billings in excess of costs and estimated earnings on uncompleted contracts||347||680|
|Current portion of capital lease obligations||5||15|
|Total current liabilities||4,421||9,662|
|Deferred rent, net of current portion||533||481|
|Commitments and contingencies|
|Common stock at par value||43||32|
|Additional paid-in capital||471,997||448,981|
|Total shareholders' equity (deficit)||13,313||(1,696||)|
|Total liabilities and shareholders' equity (deficit)||$||18,267||$||8,447|
|Statement of Operations|
|(In thousands, except earnings per share data)|
|Three months ended March 31,|
|Cost of product revenue||(10||)||664|
|Cost of contract revenue||9||137|
|Total cost of revenue||(1||)||801|
|Research and development expense||2,543||2,252|
|Sales, marketing, general and administrative expense||1,959||2,403|
|Gain on disposal of fixed assets||-||(2||)|
|Gain on sale of previously reserved inventory||(227||)||(5||)|
|Total operating expenses||4,275||4,648|
|Loss from operations||(3,055||)||(3,648||)|
|Loss on warrant exchange||(4,967||)||-|
|Other income (expense)||4||(6||)|
|Net loss per share - basic and diluted||$||(0.23||)||$||(0.14||)|
|Weighted-average shares outstanding - basic and diluted||34,842||25,240|