Microvision Reports Third Quarter Results.Business Editors & Technology Writers BOTHELL, Wash.--(BUSINESS WIRE)--Nov. 8, 2001 Company sets stage for first shipments of Nomad(TM) Personal Display System, milestones include delivering prototypes for U.S. military, automotive customers and pre-production version of bar code product; $1.6 million government contract for Lumera Microvision The Microvision was a hand-held game console released by the Milton Bradley Company in 1979. The Microvision was designed by Jay Smith, the engineer who would later design the Vectrex gaming console. , Inc. (Nasdaq:MVIS MVIS Microvision Inc (Redmond, Washington) ), a leader in light scanning technologies, today reported results for the third quarter of 2001. Quarterly results For the three months ended September September: see month. 30, 2001, Microvision reported a consolidated net loss of $8.2 million or $.68 per share compared to a net loss of $7.7 million or $.65 per share for the same period in 2000. Revenue for the third quarter of 2001 was $2.4 million compared to $2.0 million for the same period in 2000. For the nine months ended September 30, 2001, the company reported a consolidated net loss of $27.0 million or $2.25 per share compared to a net loss of $19.7 million or $1.75 per share for the same period in 2000. Revenue for the nine months ended September 30, 2001 was $6.5 million compared to $5.3 million for the same period in 2000. Consolidated results include Microvision, Inc. and the company's subsidiary, Lumera Corporation. For the three months and nine months ended September 30, 2001, the portion of the consolidated loss attributable to Lumera was $300,000 or $.03 per share and $2.9 million or $.24 per share, respectively, compared to $500,000 or $.05 per share and $700,000 or $.06 per share for the three and nine months ended September 30, 2000, respectively. The company, including Lumera, ended the third quarter with $33.9 million in cash, cash equivalents and investment securities and a contract backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of $7.3 million. Not included in the cash balance as of September 30, 2001 is the $11.0 million financing that was raised by Microvision in October October: see month. of 2001. "We are very pleased with our achievements during the quarter, and we are equally enthusiastic about the outlook going forward," said Microvision President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Rick Rutkowski. "We are anticipating a very strong fourth quarter with revenue in the range of $4 to $4.5 million. This growth will come primarily from performance on existing and new contracts. We are anticipating only a small amount of revenue related to shipments of the Nomad(TM) Personal Display System for the quarter with increased product revenue during the first quarter of next year. "During the quarter we also achieved a number of important technical milestones associated with the release of both the Nomad system and our personal bar code scanner A device specialized for reading bar codes and converting them into either the ASCII or EBCDIC digital character code. Pen scanners, also known as wand scanners, were the first type of bar code scanner developed in the 1970s. product, Flic(TM). "We have recently demonstrated a fully functional pre-production version of the Nomad system and are preparing to ship the first production units before the end of this year. The Nomad system is producing a truly outstanding high-contrast, high-resolution high-res·o·lu·tion adj. 1. Relating to an image that has fine detail. 2. a. Of or relating to an output device that produces images that contain a large number of dots per unit of area and are therefore sharp and (SVGA (Super VGA) A screen resolution of 800x600 pixels. Third-party vendors extended IBM's VGA display standard and were the first to use the term. SVGA has also referred to 1,024x768 resolutions. See PC display modes. ) image. This is a major milestone for the company as it marks the first demonstration of a production-ready MEMS-based display. We continue to see many high-value applications for the Nomad system in the areas of maintenance and surgical navigation and we have recently seen growing interest in the security, surveillance and public safety marketplace. In July July: see month. , flight tests showed that the Nomad system dramatically improved pilot situational awareness Situation awareness or situational awareness [1] (SA) is the mental representation and understanding of objects, events, people, system states, interactions, environmental conditions, and other situation-specific factors affecting human performance in and safety by improving "head-up" time by 50 percent. We have also demonstrated pre-production versions of Flic and will be demonstrating the product to several potential customers beginning next week. We are encouraged by a growing level of interest in both products. "During the quarter we also achieved major milestones in our work for the U.S. military. We delivered two display systems to the U.S. Army. The first of these was a helmet-mounted display for the Aircrew Integrated Helmet helmet Public health A personal protective device of hardened plastic worn on the head to ↓ severity of injuries in the event of an accident. See Pro cap helmet. System program. Our display exceeded all aspects of the specification. This is particularly gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. since ours is the first and only technology to meet this demanding specification, which was first created nearly 15 years ago. We followed this with another first in delivering the first prototype of the Virtual Cockpit This article is about the flight deck of an aircraft. For other uses, see Cockpit (disambiguation). A cockpit is the area usually nearer the front of a piloted aircraft from which a pilot controls the aircraft. full-color helmet. The program, which teams Microvision with Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. , is designed to enable Army helicopters with a "virtual" cockpit whereby various types of targeting, navigational or terrain overlays appear on the pilot's helmet display. "Concurrent Technologies and the Office of Naval Research The U.S. Office of Naval Research (ONR), headquartered in Arlington, Virginia (Ballston), is the office within the U.S. Department of the Navy that coordinates, executes, and promotes the science and technology programs of the U.S. awarded Microvision a $1.5 million subcontract sub·con·tract n. A contract that assigns some of the obligations of a prior contract to another party. intr. & tr.v. sub·con·tract·ed, sub·con·tract·ing, sub·con·tracts to develop a lightweight wearable display system for delivering wireless tactical information to combat troops. This sponsored development work complements our ongoing internal development of commercial products in this category. "We also recently delivered two unique prototype projection display systems to leading automotive manufacturers. We were able to respond very quickly to achieve the very challenging performance specifications, because the systems utilize the same basic scan engine architecture as the Nomad product. "Microvision and Walsin Lihwa entered a cooperative agreement to develop low-cost manufacturing capabilities for the future mass production of key components of Microvision's microdisplay A microminiaturized display, typically with a screen size less than two inches diagonal. They are used in rear-projection TVs and their data projector counterparts, in head mounted displays (HMDs) and in the viewfinders of digital cameras. engine. The MEMS (MicroElectroMechanical Systems) Tiny mechanical devices that are built onto semiconductor chips and are measured in micrometers. In the research labs since the 1980s, MEMS devices began to materialize as commercial products in the mid-1990s. based display engine is aimed at consumer and other high volume specialty applications like digital cameras, gaming systems and mobile Internet devices See MID and mobile Internet. ." Lumera In September Microvision's subsidiary company, Lumera, a developer of optical networking Communications between computers, telephones and other electronic devices using light. An optical network is far more reliable and has far greater potential transmission capacity than networking in the electrical domain. See optical fiber. components, named Tom Mino Mi·ño See Minho. , an executive with more than 30 years of management experience in the semiconductor and optical component business, as its first CEO. Lumera also announced that it had been awarded a $1.6 million government contract to design new electro-optic Refers to the effects electricity has on optical materials such as a change in refraction or birefringence. The term was coined before "optoelectronic," but both terms are often used synonymously. See refraction, birefringent, photonics, optoelectronic and integrated optics. polymer materials appropriate for the fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. of a wideband In communications, transmission rates from 64 Kbps to 2 Mbps. Contrast with narrowband and broadband. optical modulator An optical modulator is a device in which a signal-controlled element is used to modulate a beam of light. See:
Other Events In addition to Tom Mino, Microvision announced a number of important management appointments. In July, the company brought on Bill Syndes as chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. and Dr. V.G. Veeraraghavan as vice president of research and development. More recently, the company announced that QUALCOMM (QUALCOMM Incorporated, San Diego, CA, www.qualcomm.com) A wireless communications and software company founded in 1985 by Dr. Irwin Jacobs. Originally involved in satellite tracking and fleet management, QUALCOMM has become widely known for its CDMA technology used in cellphones and co-founder Andrew Viterbi Andrew James Viterbi, Ph.D. (born March 9, 1935) is an Italian-American electrical engineer and businessman. Viterbi was born in Bergamo, Italy to Jewish parents and emigrated with them in 1939 to the United States as a refugee. joined the company as a special advisor to the executive management team and board of directors. Conference Call Microvision's will host a conference call to discuss its third quarter financial results at 8:00 a.m. PT today. Participants may join the conference call by dialing 800/997-8642 ten minutes prior to the start of the conference. Additionally, the conference will be broadcast over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and can be accessed from the company's web site at www.mvis.com. A telephone replay of the call will be available through 9:00 p.m. ET November November: see month. 15, 2001 and can be accessed by dialing 800/428-6051. The confirmation code is 214045. About Microvision Headquartered in Bothell, Wash., Microvision, Inc. is the developer of the proprietary Retinal Scanning Noun 1. retinal scanning - biometric identification by scanning the retina of the eye; "identification by retinal scanning is complicated by eye movements" Display technology and a world leader in micro miniature optical scanning technology for display and imaging applications. The company's technology has applications in a broad range of military, medical, industrial, professional and consumer information products. Additional information can be found at the company's Web site at http://www.mvis.com. About Lumera As a subsidiary of Microvision, Inc., Lumera is a world leader in the development of electro-optic devices based on proprietary optical polymers. The company plans to deliver superior and unique component solutions to optical systems suppliers. Lumera plans to supply standard and custom components to systems providers in multiple high-growth product categories. Additional information can be found at Lumera's Web site at http://www.lumera.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Disclaimer (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the Certain statements contained in this release, including projections of revenues, income, expenses, and loss, plans for product development, future operations, and financing needs or plans, as well as statements containing words like "believe," "anticipate," "estimate," "intend," "seek," "expect," and other similar expressions, 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: market acceptance of our technologies and products; 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; the ability to achieve key technical milestones in key products; and other risk factors identified from time to time in the company's SEC reports, including in its Annual Report on 10-K for the year ended December 31, 2000 and its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. .
Microvision, Inc.
Consolidated Balance Sheet
(In thousands)
September 30, December 31,
2001 2000
----------------------------
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $11,991 $7,307
Investment securities, available-for-sale 21,883 33,410
Accounts receivable, net 884 1,033
Costs and estimated earnings in excess
of billings on uncompleted contracts 1,271 2,116
Current restricted investments -- 1,125
Other current assets 2,729 976
----------------------------
Total current assets 38,758 45,967
Long-term investment, at cost 624 624
Property and equipment, net 8,949 7,516
Restricted investments 903 951
Receivables from related parties 2,277 1,000
Other assets 1,585 114
----------------------------
Total assets $53,096 $56,172
============================
Liabilities, Minority Interest and
Shareholders' Equity
Current Liabilities
Accounts payable $1,616 $1,974
Accrued liabilities 4,980 2,359
Allowance for estimated contract losses 155 295
Billings in excess of costs and estimated
earnings on uncompleted contracts 60 419
Current portion of capital lease
obligations 198 317
Current portion of long-term debt 56 52
----------------------------
Total current liabilities 7,065 5,416
Capital lease obligations, net of
current portion 100 182
Long-term debt, net of current portion 247 290
Deferred rent, net of current portion 255 242
----------------------------
Total liabilities 7,667 6,130
----------------------------
Commitments and Contingencies -- --
Minority Interest 15,952 --
----------------------------
Shareholders' Equity
Common stock 125,378 120,506
Deferred compensation (3,014) (4,378)
Subscriptions receivable from related
parties (323) (403)
Accumulated other comprehensive income 557 454
Accumulated deficit (93,121) (66,137)
----------------------------
Total shareholders' equity 29,477 50,042
----------------------------
Total liabilities, minority interest
and shareholders' equity $53,096 $56,172
============================
Microvision, Inc.
Consolidated Statement of Operations
(In thousands, except earnings per share data)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2001 2000 2001 2000
-----------------------------------------------
Revenue $2,402 $1,971 $6,511 $5,256
Cost of revenue 1,338 1,717 3,981 4,068
-----------------------------------------------
Gross margin 1,064 254 2,530 1,188
-----------------------------------------------
Research and
development expense 8,479 5,732 24,489 13,851
Marketing, general and
administrative expense 3,816 2,672 10,820 8,010
Non-cash compensation
expense 551 481 1,869 1,151
-----------------------------------------------
Total operating
expenses 12,846 8,885 37,178 23,012
-----------------------------------------------
Loss from operations (11,782) (8,631) (34,648) (21,824)
Interest income 553 973 1,982 2,269
Interest expense (25) (25) (70) (133)
Realized gain on sale
of investment securities 295 -- 295 --
-----------------------------------------------
Loss before minority
interests (10,959) (7,683) (32,441) (19,688)
Minority interests in
loss of consolidated
subsidiary 2,761 -- 5,457 --
-----------------------------------------------
Net loss $(8,198) $(7,683) $(26,984) $(19,688)
===============================================
Net loss per share
before non-cash
compensation expense $(0.63) $(0.61) $(2.09) $(1.65)
Non-cash compensation
expense (0.05) (0.04) (0.16) (0.10)
-----------------------------------------------
Net loss per share -
basic and diluted $(0.68) $(0.65) $(2.25) $(1.75)
===============================================
Weighted-average shares
outstanding - basic
and diluted 12,010 11,828 11,967 11,276
===============================================
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