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MicroVison 4Q16 results +1

The MicroVision conference call has just concluded and there was nothing of major importance that hasn't been covered before.  The only new development is that the recent AR development project delivered Phase 1, and quickly signed a Phase 2 contract worth about $900K, which is not included in the similarly-sized backlog all of which is related to new products.

MVIS is up 10-15% in the pre-market towards levels seen earlier this month, probably on relief that there are no immediate problems in sight.  Management confirmed prior revenue guidance ($30-60M) through end of 2018, but it's pretty clear that this is contingent on development projects continuing to progress smoothly.  Although management said it expects orders for first engine in near future, it should also be kept in mind that its projects that first quarter revenue may hit an all-time low of just a couple hundred thousand before new engines start to ramp in the second half.  Even so, I am encouraged that fourth quarter margins remained high and per-unit variable costs were the lowest for the year, despite low production volume.

It does seem that management is taking steps to diversify the customer portfolio, and that is crucial, especially with any further Sony revenue on standby.  2017 net margins should come in around 20-25%, and management dodged a question about where the company would manage to hit break-even.  Overall this is a positive report for MicroVision, but its success relies on continued execution.

On 03/06/2017 08:18 AM, Esekla wrote:

MicroVision has announced results for its fourth quarter:

  • a loss of 9 cents per share, misses by a penny
  • on revenue of $2.9M, which beats by $1.8M
The company also seems to be on or slightly ahead of schedule with the introduction of its new scanning engines.  More after the conference call, if appropriate.