RCS - MicroVision, Inc. - MicroVision Q1 2024 Results

MicrovisionAnnouncement

10/05/2024 08:15

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RNS Number : 8835N  MicroVision, Inc.  10 May 2024

MicroVision Q1 2024 Results

MicroVision Announces First Quarter 2024 Results

REDMOND, WA / ACCESSWIRE / May 10, 2024 / MicroVision, Inc. (NASDAQ:MVIS), a
leader in MEMS-based solid-state automotive lidar and ADAS solutions, today
announced its first quarter 2024 results.

Key Business Highlights for Q1 2024

·      Actively engaged in high-volume, top-tier global OEM RFQs for
passenger vehicles.

·      Expanding near-term revenue opportunities through direct sales in
industrial markets.

·      Working to accumulate non-dilutive cash by leveraging
partnerships and licensing opportunities.

·      Increasing cash runway through proactive, disciplined fiscal
management.

"Energized by global OEM feedback that MicroVision offers the best technical
and commercial solutions, we remain confident in our engagement with
automotive OEMs and our prospects in high-volume, top-tier, passenger-vehicle
RFQs," said Sumit Sharma, MicroVision's Chief Executive Officer. "As we
navigate current headwinds in the automotive industry and lidar sector with a
healthy balance of optimism and realism, we are aggressively pursuing
near-term revenue opportunities in industrial markets and with partnership
opportunities, as well as continuing our ethos of fiscal discipline."

"I remain committed to steering MicroVision and firmly establishing it as a
leading automotive OEM supplier of lidar hardware and software solutions,"
continued Sharma.

Key Financial Highlights for Q1 2024

·      Revenue for the first quarter of 2024 was $1.0 million, compared
to $0.8 million for the first quarter of 2023 primarily driven by sales of
MOVIA sensors to a global commercial trucking OEM.

·      Net loss for the first quarter of 2024 was $26.3 million, or
$0.13 per share, which includes $3.7 million of non-cash, share-based
compensation expense, compared to a net loss of $19.0 million, or $0.11 per
share, which includes $2.9 million of non-cash, share-based compensation
expense, for the first quarter of 2023.

·      Adjusted EBITDA for the first quarter of 2024 was a $18.7 million
loss, compared to a $15.7 million loss for the first quarter of 2023.

·      Cash used in operations in the first quarter of 2024 was $20.8
million, compared to cash used in operations in the first quarter of 2023 of
$13.5 million.

·      The Company ended the first quarter of 2024 with $73.1 million in
cash and cash equivalents including investment securities, compared to $73.8
million at December 31, 2023.

Conference Call and Webcast: Q1 2024 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 1:30 PM PT/4:30 PM ET on Thursday, May 9, 2024 to discuss the financial
results and provide a business update. Analysts and investors may pose
questions to management during the live webcast on May 9, 2024.

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/pa29GMXm) . The
webcast will be archived on the website for future viewing.

About MicroVision

With offices in the U.S. and Germany, 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/JEPtD8v9) , on Facebook at www.facebook.com/microvisioninc
(https://pr.report/FzncqKsN) , and LinkedIn
at https://www.linkedin.com/company/microvision/ (https://pr.report/bxADTd5g)
.

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; share-based
compensation; and restructuring charges. 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 customer engagement
and the likelihood of success, opportunities for revenue and cash, expense
reduction, 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

Marketing@MicroVision.com (mailto:Marketing@MicroVision.com)

Microvision, Inc.

Consolidated Balance Sheet

(In thousands)

(Unaudited)

                                                      March 31,             December 31,
                                                      2024                  2023

 Assets
 Current Assets
 Cash and cash equivalents                            $      44,298         $        45,167
 Investment securities, available-for-sale                   28,770                  28,611
 Restricted cash, current                                    71                      3,263
 Accounts receivable, net of allowances                      1,121                   949
 Inventory                                                   3,738                   3,874
 Other current assets                                        4,302                   4,890
 Total current assets                                        82,300                  86,754

 Property and equipment, net                                 8,549                   9,032
 Operating lease right-of-us asset                           13,212                  13,758
 Restricted cash, net of current portion                     1,968                   961
 Intangible assets, net                                      16,662                  17,235
 Other assets                                                1,491                   1,895
 Total assets                                         $      124,182        $        129,635

 Liabilities and Shareholders' Equity
 Current Liabilities
 Accounts payable                                     $      2,161          $        2,271
 Accrued liabilities                                         9,971                   8,640
 Accrued liability for Ibeo business combination             2,969                   6,300
 Contract liabilities                                        213                     300
 Current portion of operating lease liability                2,167                   2,323
 Other current liabilities                                   270                     669
 Total current liabilities                                   17,751                  20,503

 Operating lease liability, net of current portion           12,358                  12,714
 Other long-term liabilities                                 270                     614
 Total liabilities                                           30,379                  33,831

 Commitments and contingencies
 Shareholders' Equity
 Common stock at par value                                   206                     195
 Additional paid-in capital                                  885,119                 860,765
 Accumulated other comprehensive loss                        157                     210
 Accumulated deficit                                         (791,679  )             (765,366  )
 Total shareholders' equity                                  93,803                  95,804
 Total liabilities and shareholders' equity           $      124,182        $        129,635

MicroVision, Inc.

Consolidated Statement of Operations

(In thousands, except earnings per share data)

(Unaudited)

                                                            Three months ended March 31,
                                                            2024                          2023

 Revenue                                                    $      956                    $      782

 Cost of revenue                                                   1,277                         544

 Gross profit                                                      (321     )                    238

 Research and development expense                                  17,311                        12,692
 Sales, marketing, general and administrative expense              9,078                         8,737
 Total operating expenses                                          26,389                        21,429

 Loss from operations                                              (26,710  )                    (21,191  )

 Bargain purchase gain                                             -                             1,706
 Other income, net                                                 631                           639

 Net loss before taxes                                      $      (26,079  )             $      (18,846  )

 Income tax expense                                                (234     )                    (181     )

 Net income (loss)                                          $      (26,313  )             $      (19,027  )

 Net income (loss) per share - basic and diluted            $      (0.13    )             $      (0.11    )

 Weighted-average shares outstanding - basic and diluted           196,748                       174,703

Microvision, Inc.

Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)

                                                                                  Three months ended March 31,
                                                                                  2024                            2023

 Cash flows from operating activities
 Net loss                                                                         $      (26,313    )             $      (19,027       )
 Adjustments to reconcile net loss to
 net cash used in operations
 Depreciation and amortization                                                           1,800                           2,524
 Impairment of property and equipment                                                    13                              -
 Bargain purchase gain                                                                   -                               (1,706        )
 Share-based compensation expense                                                        3,743                           2,949
 Inventory write-down                                                                    9                               29
 Net accretion of premium on short-term investments                                      (288       )                    (396          )
 Change in:
 Accounts receivable                                                                     (172       )                    (506          )
 Contract assets                                                                         -                               (192          )
 Inventory                                                                               102                             (87           )
 Other current and non-current assets                                                    992                             647
 Accounts payable                                                                        (527       )                    1,629
 Accrued liabilities                                                                     1,331                           2,017
 Contract liabilities and other current liabilities                                      (480       )                    (711          )
 Operating lease liabilities                                                             (639       )                    (669          )
 Other long-term liabilities                                                             (330       )                    17
 Net cash used in operating activities                                                   (20,759    )                    (13,482       )

 Cash flows from investing activities
 Sales of investment securities                                                          7,900                           22,000
 Purchases of investment securities                                                      (7,805     )                    (3,898        )
 Purchases of property and equipment                                                     (114       )                    (615          )
 Cash paid for Ibeo business combination                                                 (3,263     )                    (11,233       )
 Net cash provided by (used in) investing activities                                     (3,282     )                    6,254

 Cash flows from financing activities
 Principal payments under finance leases                                                 -                               (6            )
 Proceeds from stock option exercises                                                    62                              -
 Net proceeds from issuance of common stock                                              20,956                          12,691
 Net cash provided by financing activities                                               21,018                          12,685

 Effect of exchange rate changes on cash and cash equivalents                            (31        )                    -

 Net increase (decrease) in cash and cash equivalents                                    (3,054     )                    5,457
 Cash, cash equivalents and restricted cash at beginning of period                       49,391                          21,954

 Cash, cash equivalents and restricted cash at end of period                      $      46,337                   $      27,411

 The following table provides a reconciliation of the cash, cash equivalents,
 and restricted cash balances as of
 March 31, 2024 and December 31, 2023:

                                                                                         March 31,                       December 31,
                                                                                         2024                            2023
 Cash and cash equivalents                                                        $      44,298                   $      45,167
 Restricted cash                                                                         2,039                           4,224
 Cash, cash equivalents and restricted cash                                              46,337                          49,391

MicroVision, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(In thousands, except earnings per share data)

(Unaudited)

                                             Three months ended March 31,
                                             2024                          2023

 Reconciliation of Non-GAAP Gross Profit:
 Gross Profit                                $      (321     )             $      238
 Share-based compensation expense                   -                             -
 Amortization of acquired intangibles               387                           255
 Adjusted Gross Profit                       $      66                     $      493

 Reconciliation of Non-GAAP Loss:
 GAAP Net loss                               $      (26,313  )             $      (19,027  )
 Other Income/Expense,net                           (631     )                    (639     )
 Income taxes                                       234                           181
 Depreciation & amortization                        1,800                         2,524
 Bargain purchase gain                              -                             (1,706   )
 Share-based compensation expense                   3,743                         2,949
 Restructuring costs                                2,474                         -
 Adjusted EBITDA                             $      (18,693  )             $      (15,718  )

SOURCE: MicroVision, Inc.

 

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