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MVIS 1Q15 notes ?3

09:30 30-Apr-15

I've just finished listening to the Microvision earnings call, and I'm mostly happy with what I heard. The company reported an EPS loss of $0.09 on revenue of revenue of $0.9M. While these results may disappoint investors who were hoping for a big jump this quarter, the reasons for them seem good:

• Microvision will recognize the $8M upfront payment from Sony as $250K per quarter over the 8 year lifetime of the agreement. Nonetheless, the company was cash flow positive due to this payment, and now has $16.7M cash on hand.
• The company recognizes revenue from products with a one quarter lag, thus the $4M operating loss is due to increased shipments which should be recognized last quarter.
• Production ramp is underway, and volume shipments should increase in the second half.
  

The lack of guidance on gross margin doesn't bother me.  I expect that for a development stage company, but I would have liked to see guidance on CapEx. It's possible I missed it during the call, and I will go back over the audio and/or transcript later, but I wanted to get this out close to market open.

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