Microvision, Inc. (NASDAQ:MVIS) announced its results for the third quarter of 2016 and its plans to introduce three new scanning engine products starting in 2017.
The company’s revenue of $11.9 million for the nine months ended September 30, 2016 was a 61 percent increase over the same period last year. MicroVision expects to reach the upper half of its guidance for the full year 2016 with revenue estimated between$14.5 million and $15 million.
In the third quarter the company made significant progress in its efforts to advance its technology for light detection and ranging (LiDAR) 3D sensing and augmented reality (AR) applications with the signing of development agreements with two world leading technology companies. The combined value of the contracts is nearly $1 million and both are expected to be completed in 2017. Each engagement will deliver proof of concept demonstrators, one for LiDAR 3D sensing for advanced driver assistance systems (ADAS) and autonomous vehicles and the other for an AR display.
MicroVision plans to begin selling laser beam scanning (LBS) engines in 2017 for market opportunities not addressed by current solutions. The company expects sales of its new LBS engines to add significant revenue which would be in addition to component sales and royalties from existing customers. These new MicroVision offerings are targeted to a wide variety of OEM and ODM customers for multiple applications, and they consist of:
- A small form factor, high definition display engine for applications where form factor and flexibility of product design are required;
- An interactive touch engine that integrates display and 3D sensing to allow the user to interact with projected images;
- A mid-range LiDAR engine for autonomous industrial products and robotics.
MicroVision sees multiple benefits from introducing these new LBS engines. First, the company can address demand for emerging applications. Second, it would reduce barriers to entry for those OEMs who want to make products with MicroVision’s technology for these applications without the long lead times and investments related to making their own engines. Third, these multiple engines can be built from the single technology platform of common MEMS and ASICS MicroVision is already producing. Fourth, it is a complementary offering to display engines offered by the company’s licensees, and MicroVision plans to continue supporting its existing customers and vertically integrated OEMs and ODMs who prefer to license the company’s technology and build engines withMicroVision components.
Based on early indications of interest from various potential customers, MicroVision anticipates that demand for these engines could result in revenue ranging from $30 million to $60 million over the 12 to 18 months following availability of the first production units.MicroVision expects significant revenue growth in 2017, and the revenue from these new products is expected to be weighted to the second half of 2017. MicroVision plans the following launch schedule for its engines:
- Small form factor display engine: samples in December 2016 and production units in early Q2 2017;
- Interactive touch engine: samples in Q2 2017 and production units in Q3 2017;
- LiDAR 3D sensing engine: samples in second half 2017 and production units in first half 2018.
Q3 2016 Financial Results
The following financial results are for the three and nine months ended September 30, 2016, compared to the same periods of 2015:
- Revenue was $4.0 million for the third quarter of 2016, compared to $2.4 million for the third quarter a year ago. Revenue for the first nine months of 2016 was $11.9 million, compared to $7.3 million for the same period in 2015.
- Operating loss for the third quarter of 2016 was $4.1 million, compared to $3.5 million for the third quarter a year ago. Operating loss was $11.1 million for the first nine months of 2016, compared to $10.3 million for the first nine months of 2015.
- Net loss for the third quarter of 2016 was $4.1 million, or $0.08 per share, compared to $3.5 million, or $0.07 per share, for the same quarter a year ago. Net loss was $11.1 million, or $0.22 per share, for the first nine months of 2016, compared to $10.2 million, or $0.22 per share, for the first nine months of 2015.
- For the third quarter of 2016, cash used in operations was $3.8 million, compared to $3.6 million for the same period in 2015. For the nine months ended September 30, 2016, cash used in operations was $10.9 million, compared to cash used in operations of$2.2 million for the same period in 2015. The 2015 cash use reflects an $8 million upfront licensing fee received in March 2015.
As of September 30, 2016, backlog was $2.3 million. The company expects to fulfill approximately $1.4 million of this backlog in the fourth quarter of 2016 and the remainder in 2017. Cash and cash equivalents at September 30, 2016 were $5.8 million. Although, as indicated by the backlog, the company does not currently have commitments that would generate additional product revenue in the first quarter of 2017, MicroVision has ongoing discussions with multiple parties aimed at building its pipeline for licensing, component sales, engine sales and contract revenue. (Original Source)
Shares of Microvision closed yesterday at $0.94, down $0.08 or -7.83%. MVIS has a 1-year high of $3.08 and a 1-year low of $0.89. The stock’s 50-day moving average is $1.31 and its 200-day moving average is $1.66.
On the ratings front, Aegis Capital Corp. analyst Michael Rindos initiated coverage with a Buy rating on MVIS and a price target of $2.90, in a report issued on August 8. The current price target represents a potential upside of 209% from where the stock is currently trading. According to TipRanks.com, Rindos has a yearly average return of 5.3%, a 38% success rate, and is ranked #1695 out of 4173 analysts.
MicroVision, Inc. is the creator of PicoP scanning technology, an ultra-miniature laser projection and sensing solution based on the laser beam scanning methodology pioneered by the company. MicroVision’s platform approach for this advanced display and sensing solution means that it can be adapted to a wide array of applications and form factors.