RCS - MicroVision, Inc. - MicroVision Announces Third Quarter 2023 Results
09/11/2023 08:15
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RNS Number : 8636S MicroVision, Inc. 08 November 2023
MicroVision Announces Third Quarter 2023 Results
REDMOND, WA / ACCESSWIRE / November 8, 2023 / MicroVision, Inc. (NASDAQ:MVIS),
a leader in MEMS-based solid-state automotive lidar and ADAS solutions, today
announced its third quarter 2023 results.
"We closed the third quarter having made further significant progress toward
our 2023 milestones, in particular our automotive design win goal, with a
focus on programs involving high-volume passenger vehicles and commercial
vehicles. Our advanced negotiations with multiple potential customers,
centered on RFIs and RFQs for North American and EU markets, have been
accelerated due to our product maturity and existing manufacturing
capabilities," said Sumit Sharma, MicroVision's Chief Executive Officer.
"Also, supporting our diversified lidar and software product portfolio, during
the third quarter we secured a path to add to our existing inventory of MOVIA
sensors to promote the expansion of our direct sales pipeline."
"We are adjusting our 2023 revenue guidance to a range of $6.5 - 8.0 million
as some customers have pushed out their demand due to the challenging
macroeconomic environment and other headwinds. As demonstrated in the third
quarter, our MOSAIK software suite has delivered excellent margins, but demand
for this product has moved into next year," continued Sharma. "We've made
tremendous progress this year toward securing customer wins in the near term
and we remain enthusiastic about MicroVision's future."
Key Financial Highlights for Q3 2023
· Revenue for the third quarter of 2023 was $1.0 million, compared
to no revenue in the third quarter of 2022. The revenue in the 2023 third
quarter was predominantly comprised of software sales but also includes the
sale of lidar hardware to various customers.
· Net loss for the third quarter of 2023 was $23.5 million, or
$0.12 per share, which includes $4.7 million of share-based compensation
expense, compared to a net loss for the third quarter of 2022 of $12.9
million, or $0.08 per share, which includes $4.1 million of share-based
compensation expense.
· Gross Profit for the third quarter of 2023 was $0.4 million,
compared to $(45) thousand for the third quarter of 2022. Adjusted Gross
Profit, a non-GAAP measure, for the third quarter of 2023 was $0.8 million,
compared to $(45) thousand for the third quarter of 2022.
· Adjusted EBITDA for the third quarter of 2023 was a $16.9 million
loss, compared to an $8.5 million loss for the third quarter of 2022.
· Cash used in operations in the third quarter of 2023 was $20.4
million, compared to cash used in operations in the third quarter of 2022 of
$9.0 million. This year-over-year increase was primarily driven by an increase
in operating expenses following the January 2023 acquisition.
· The Company ended the third quarter of 2023 with $78.0 million in
cash and cash equivalents including investment securities, compared to $82.7
million at December 31, 2022.
Conference Call and Webcast: Q3 2023 Results
MicroVision will host a conference call and webcast, consisting of prepared
remarks by management, a slide presentation, and a question-and-answer session
at 2:00 PM PT/5:00 PM ET on Wednesday, November 8, 2023 to discuss the
financial results and provide a business update. Analysts and investors may
pose questions to management during the live webcast on November 8, 2023.
The live webcast and slide presentation can be accessed on the Company's
Investor Relations website under the Events tab at
https://ir.microvision.com/events (https://pr.report/hVTfEJtC) . The webcast
will be archived on the website for future viewing.
About MicroVision
With over 350 employees and global presence in Redmond, Detroit, Hamburg, and
Nuremberg, MicroVision is a pioneering company in MEMS-based laser beam
scanning technology that integrates MEMS, lasers, optics, hardware, algorithms
and machine learning software into its proprietary technology to address
existing and emerging markets. The Company's integrated approach uses its
proprietary technology to provide automotive lidar sensors and solutions for
advanced driver-assistance systems (ADAS) and for non-automotive applications
including industrial, smart infrastructure and robotics. The Company has been
leveraging its experience building augmented reality micro-display engines,
interactive display modules, and consumer lidar modules.
For more information, visit the Company's website at www.microvision.com
(https://pr.report/TgFCDpU5) , on Facebook at www.facebook.com/microvisioninc
(https://pr.report/-jwcJhvH) , and LinkedIn at
https://www.linkedin.com/company/microvision/ (https://pr.report/0zLYvPTs) .
MicroVision, MAVIN, MOSAIK, and MOVIA are trademarks of MicroVision, Inc. in
the United States and other countries. All other trademarks are the properties
of their respective owners.
Non-GAAP information
To supplement MicroVision's condensed financial statements presented in
accordance with GAAP, the Company presents investors with the non-GAAP
financial measures "adjusted EBITDA" and "adjusted Gross Profit." Adjusted
EBITDA consists of GAAP net income (loss) excluding the impact of the
following: interest income and interest expense; income tax expense;
depreciation and amortization; bargain purchase gain; and share-based
compensation. Adjusted Gross Profit is calculated as GAAP gross profit before
share-based compensation expense and the amortization of acquired intangibles
included in cost of revenue.
MicroVision believes that the presentation of adjusted EBITDA and adjusted
Gross Profit provides important supplemental information to management and
investors regarding financial and business trends, provides consistency and
comparability with MicroVision's past financial reports, and facilitates
comparisons with other companies in the Company's industry, many of which use
similar non-GAAP financial measures to supplement their GAAP results.
Internally, management uses these non-GAAP measures when evaluating operating
performance because the exclusion of the items described above provides an
additional useful measure of the Company's operating results and facilitates
comparisons of the Company's core operating performance against prior periods
and its business objectives. Externally, the Company believes that adjusted
EBITDA and adjusted Gross Profit are useful to investors in their assessment
of MicroVision's operating performance and the valuation of the Company.
Adjusted EBITDA and adjusted Gross Profit are not calculated in accordance
with GAAP, and should be considered supplemental to, and not as a substitute
for, or superior to, financial measures calculated in accordance with GAAP.
Non-GAAP financial measures have limitations in that they do not reflect all
of the costs associated with the operations of MicroVision's business as
determined in accordance with GAAP. The Company expects to continue to incur
expenses similar to the non-GAAP adjustments described above, and exclusion of
these items from its non-GAAP financial measures should not be construed as an
inference that these costs are unusual or infrequent.
The Company compensates for limitations of the adjusted EBITDA measure by
prominently disclosing GAAP net income (loss), which the Company believes is
the most directly comparable GAAP measure, and providing investors with a
reconciliation from GAAP net income (loss) to adjusted EBITDA.
Similarly for Adjusted Gross Profit, the Company compensates for limitations
of the measure by prominently disclosing GAAP gross profit which is the
difference between Revenue and Cost of revenue, which the Company believes is
the most directly comparable GAAP measure, and providing investors with a
reconciliation by backing out share-based compensation expense and the
amortization of acquired intangibles included in cost of revenue.
Forward-Looking Statements
Certain statements contained in this release, including the likelihood of
customer design wins, benefits of the acquisition, market position, product
portfolio, product and manufacturing capabilities, and expected revenue,
expenses and cash usage are forward-looking statements that involve a number
of risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Factors that could
cause actual results to differ materially from those projected in such
forward-looking statements include the risk its ability to operate with
limited cash or to raise additional capital when needed; market acceptance of
its technologies and products or for products incorporating its technologies;
the failure of its commercial partners to perform as expected under its
agreements; its financial and technical resources relative to those of its
competitors; its ability to keep up with rapid technological change;
government regulation of its technologies; its ability to enforce its
intellectual property rights and protect its proprietary technologies; the
ability to obtain customers and develop partnership opportunities; 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 its products; potential
product liability claims; its ability to maintain its listing on The Nasdaq
Stock Market, 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,
Quarterly Reports on Form 10-Q and other reports filed with the SEC. These
factors are not intended to represent a complete list of the general or
specific factors that may affect the Company. It should be recognized that
other factors, including general economic factors and business strategies, may
be significant, now or in the future, and the factors set forth in this
release may affect the Company to a greater extent than indicated. Except as
expressly required by federal securities laws, the Company undertakes 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.
Investor Relations Contact
Jeff Christensen
Darrow Associates Investor Relations
MVIS@darrowir.com (mailto:MVIS@darrowir.com)
Media Contact
Robyn Komachi
Marketing@MicroVision.com (mailto:Marketing@MicroVision.com)
MicroVision, Inc.
Consolidated Balance Sheet
(In thousands)
(Unaudited)
September 30, December 31,
2023
2022
Assets
Current Assets
Cash and cash equivalents $ 49,366 $ 20,536
Investment securities, available-for-sale 28,677 62,173
Restricted cash, current 3,263 -
Accounts receivable, net 740 -
Inventory 3,616 1,861
Advance to IBEO - 4,132
Other current assets 5,765 2,306
Total current assets 91,427 91,008
Property and equipment, net 9,461 6,830
Operating lease right-of-use asset 14,223 14,579
Restricted cash 961 1,418
Intangible assets, net 17,766 75
Other assets 2,110 1,086
Total assets $ 135,948 $ 114,996
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $ 2,294 $ 2,061
Accrued liabilities 7,204 2,058
Accrued liability for Ibeo business combination 6,118 -
Contract liabilities 4,958 4,601
Current portion of operating lease liability 2,432 1,846
Current portion of finance lease obligations 2 21
Other current liabilities 1,058 839
Total current liabilities 24,066 11,426
Operating lease liability, net of current portion 13,027 13,829
Other long-term liabilities 597 -
Total liabilities 37,690 25,255
Commitments and contingencies
Shareholders' Equity
Common stock at par value 190 171
Additional paid-in capital 843,975 772,221
Subscriptions receivable (323 ) -
Accumulated other comprehensive loss 45 (127 )
Accumulated deficit (745,629 ) (682,524 )
Total shareholders' equity 98,258 89,741
Total liabilities and shareholders' equity $ 135,948 $ 114,996
Consolidated Statement of Operations
(In thousands, except earnings per share data)
(Unaudited)
Three months ended September 30, Nine months ended September 30,
2023 2022 2023 2022
Revenue $ 1,047 $ - $ 2,158 $ 664
Cost of revenue 625 45 1,870 67
Gross profit 422 (45 ) 288 597
Research and development expense 15,584 7,535 42,127 22,828
Sales, marketing, general and administrative expense 8,743 5,522 27,172 17,664
Gain on disposal of fixed assets (10 ) - (25 ) -
Total operating expenses 24,317 13,057 69,274 40,492
Loss from operations (23,895 ) (13,102 ) (68,986 ) (39,895 )
Bargain purchase gain - - 1,706 -
Other income, net 637 251 4,846 279
Net loss before taxes $ (23,258 ) $ (12,851 ) $ (62,434 ) $ (39,616 )
Income tax expense (211 ) - (671 ) -
Net income (loss) $ (23,469 ) $ (12,851 ) $ (63,105 ) $ (39,616 )
Net income (loss) per share - basic and diluted $ (0.12 ) $ (0.08 ) $ (0.35 ) $ (0.24 )
Weighted-average shares outstanding - basic and diluted 188,306 165,687 180,156 165,167
MicroVision, Inc.
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Nine months ended September 30,
2023 2022
Cash flows from operating activities
Net loss $ (63,105 ) $ (39,616 )
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization 6,288 1,425
Bargain purchase gain (1,706 ) -
Gain on disposal of fixed assets (25 ) -
Impairment of property and equipment 12 60
Inventory write-downs 61 60
Share-based compensation expense 11,506 11,935
Net accretion of premium on short-term investments (986 ) 290
Change in
Accounts receivable (740 ) -
Inventory (619 ) (42 )
Other current and non-current assets (3,214 ) (662 )
Accounts payable 896 (2,160 )
Accrued liabilities 4,321 418
Contract liabilities and other current liabilities (1,405 ) (386 )
Operating lease liabilities (1,813 ) (938 )
Other long-term liabilities 17 -
Net cash used in operating activities (50,512 ) (29,616 )
Cash flows from investing activities
Sales of investment securities 61,700 34,700
Purchases of investment securities (27,101 ) (63,726 )
Cash paid for Ibeo business combination (11,233 ) -
Purchases of property and equipment (1,981 ) (2,017 )
Net cash provided by (used in) investing activities 21,385 (31,043 )
Cash flows from financing activities
Principal payments under finance leases (19 ) (20 )
Principal payments under long-term debt - (392 )
Proceeds from stock option exercises 175 727
Net proceeds from issuance of common stock 60,607 -
Net cash provided by financing activities 60,763 315
Change in cash, cash equivalents, and restricted cash 31,636 (60,344 )
Cash, cash equivalents and restricted cash at beginning of period 21,954 83,739
Cash, cash equivalents and restricted cash at end of period $ 53,590 $ 23,395
The following table provides a reconciliation of the cash, cash equivalents,
and restricted cash balances as of
September 30, 2023 and December 31, 2022:
September 30, December 31,
2023
2022
Cash and cash equivalents $ 49,366 $ 20,536
Restricted cash 4,224 1,418
Cash, cash equivalents and restricted cash 53,590 21,954
MicroVision, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(In thousands, except earnings per share data)
(Unaudited)
Three months ended September 30, Nine months ended September 30,
2023 2022 2023 2022
Reconciliation of Non-GAAP Gross Profit:
Gross Profit $ 422 $ (45 ) $ 288 $ 597
Share-based compensation expense - - - -
Amortization of acquired intangibles 387 - 1,032 -
Adjusted Gross Profit $ 809 $ (45 ) $ 1,320 $ 597
Reconciliation of Non-GAAP Loss:
GAAP Net loss $ (23,469 ) $ (12,851 ) $ (63,105 ) $ (39,616 )
Add Interest (net) (509 ) (262 ) (1,725 ) (400 )
Add Income taxes 211 - 671 -
Add Depreciation & amortization 2,137 524 6,288 1,425
Add Bargain purchase gain - - (1,706 ) -
Add Share-based compensation expense 4,691 4,081 11,506 11,935
Adjusted EBITDA $ (16,939 ) $ (8,508 ) $ (48,071 ) $ (26,656 )
SOURCE: MicroVision, Inc.
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