Microvision, Inc. (NASDAQ:MVIS), a leader in innovative ultra-miniature projection display and imaging technology, today announced its 2015 operating and financial results and an overview of its 2016 business objectives.
2015 Operating Results
2015 was a year of significant growth for MicroVision. Progress was made on each of its stated goals for the year:
- Support its Fortune Global 100 customer with display module commercialization
- Develop new OEM/channel opportunities for display engine manufacturing partners that are incorporating PicoP® display technology
- Increase supply capacity for key components
- Achieve significant year-over-year growth through component sales and licensing of PicoP display technology
- Evolve technology platform to offer enhanced features and capabilities for licensees of PicoP display technology.
Below are specific accomplishments related to the 2015 goals.
Support Fortune Global 100 Customer
The company successfully provided manufacturing support services, and the customer launched its display engine in 2015.MicroVision recognized $1.5 million in revenue from this effort. In addition, in March 2015 MicroVision signed a multi-year licensing agreement with this customer that included an $8 million upfront payment to MicroVision.
New OEM/Channel Opportunities
In 2015 multiple products came to market with the display module manufactured by MicroVision’s Fortune Global 100 customer. Media and consumer reviews for these products, including the MP-CL1 pico projector offered around the world by the Fortune Global 100 customer directly, have been extremely positive and highlight the features and benefits enabled by MicroVision’s PicoP® scanning technology. Two of the products were among the top five pico projectors selling on Amazon.
In October Sharp Corporation unveiled RoBoHoN, its innovative mobile robot phone product, which includes an embedded display engine based on MicroVision’s PicoP scanning technology. RoBoHoN, an eight-inch tall walking, talking robot sporting an integrated Android phone system, generated a significant amount of positive media coverage upon its introduction. MicroVision and Sharp collaborated on the display engine that met the small form factor requirements to provide the robot with the integral functionality of projecting videos and photos on command. PicoP scanning technology provides the focus-free projected display that allows RoBoHoN to share content on any surface.
Looking beyond the products that came to market in 2015, a number of OEMs are in product development with the display module from the Fortune Global 100 customer. MicroVision expects several of these products to come to market later in 2016. Throughout the year the company also nurtured other relationships for future opportunities in emerging markets such as 3D imaging and augmented reality.
Increase Supply Capacity
Capacity was expanded in 2015 after receiving $14.5 million in purchase orders for key components. Equipment for the capacity expansion came online in Q4 2015. A shortage of parts manufactured by a contract manufacturer impacted the volume of third and fourth quarter shipments. MicroVision and its contract manufacturer addressed the issue and production resumed in mid-November.
Achieve Significant Year-Over-Year Growth
MicroVision achieved 164 percent revenue growth in 2015 with more than $9 million in total revenue for the year. Product and royalty revenue was $7.2 million more in 2015 than 2014 as a result of the company’s transition to production and commercialization of its PicoP scanning technology.
Evolve Technology Platform
In January MicroVision showcased an array of product concepts and demonstrations for its customers at CES 2016. Demonstrations covered four application areas the company has identified for its PicoP scanning technology platform: projection and display, automotive head up display, 3D imaging and eyewear.
2015 Financial Results
MicroVision reported the following financial results for the fourth quarter and year ended December 31, 2015:
- Annual revenue of $9.2 million in 2015, compared to $3.5 million in 2014. Revenue for the fourth quarter of 2015 was $ 1.8 million, compared to $0.7 million for the same quarter in 2014.
- Operating loss was $14.6 million for 2015, compared to $13.2 million in 2014, and $4.3 million for the fourth quarter of 2015 compared to $3.4 million for the same quarter in 2014.
- Net loss for the year of $14.5 million, or $0.31 per share, compared to $18.1 million, or $0.44 per share for the prior year and$4.3 million, or $0.09 per share, compared to $3.3 million or $0.08 per share for the same quarter in 2014. The 2014 net loss includes a $5.0 million non-cash loss on the exchange of warrants in the first quarter.
- Cash used in operations was $5.8 million in 2015, compared to $13.0 million for 2014 reflecting the $8 million up-front license fee received in early 2015.
As of December 31, 2015, backlog was $11.0 million and cash and cash equivalents were $7.9 million.
2016 Objectives and Outlook
“Last year was marked by significant progress and growth. In fact, we are in the best position of our company’s history with two customers in production with our technology,” said Alexander Tokman, president and CEO of MicroVision. “We are very optimistic about 2016 both in terms of revenue growth potential from pico projection and advancing our technology to address emerging applications such as augmented reality and 3D sensing and imaging.”
To attain its revenue growth goals MicroVision plans to continue supporting its Fortune Global 100 customer to secure design wins for pico projection applications. The company also looks forward to the commercial availability of Sharp’s innovative mobile robot phone product, RoBoHoN, that is expected to come to market later this year. The company also has programs in place that are expected to improve gross margin through improved efficiency and reduced cost in the production of its key components.
Looking to new markets for growth beyond 2016, MicroVision is investing in internal development of its PicoP scanning technology for new “beyond projection” applications. The company believes emerging products for augmented reality and 3D sensing and imaging can benefit from the unique ability of its technology to integrate projection and sensing capabilities in a single, tiny module. (Original Source)
Shares of Microvision are down nearly 3.5% in pre-market trading. MVIS has a 1-year high of $4.23 and a 1-year low of $2.20. The stock’s 50-day moving average is $2.77 and its 200-day moving average is $2.85.
On the ratings front, H.C. Wainwright analyst Kevin Dede initiated coverage with a Buy rating on MVIS and a price target of $3.50, in a report issued on December 17. The current price target implies an upside of 22.8% from current levels. According to TipRanks.com, Dede has a total average return of -8.1%, a 39.3% success rate, and is ranked #3249 out of 3698 analysts.
Microvision Inc is engaged in developing its proprietary PicoP display technology. Its technology can be used to create high-resolution miniature laser display and imaging engines.