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new pick - Microvision +8

11:08 05-Mar-15

The claim that the Yoga 2 uses Microvision technology is incorrect.  It uses a TI DLP projector.

I apologize for the error.

Microvision (MVIS) has announced a new licensing agreement with a Fortune Global 100 company.  This follows an earlier development agreement, and use of Microvision's pico projector in Lenovo's Yoga 2 Pro tablet.  What's interesting here is that I'm pretty sure Lenovo is NOT on the Fortune 100 Global list, so this deal is with someone else.  Regardless, the $8M upfront license payment more than doubles Microvision revenue, and there are royalties to boot.  So while the stock is up sharply this morning, I suspect the market may not have fully grasped the magnitude here.

At a glance, this looks similar to Universal Display's 2011 agreement with Samsung, which was truly a game changer.  It also represents a level of indirect competition for UDC in that it is an alternate display technology.  I doubt pico projectors will ever compete in terms of quality, but it could crimp the long-term growth in tablet sizes and thus mobile market for UDC.

Microvision is set to announce earnings on March 10, so perhaps more details on the bottom line financial impact of this deal will be available then

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