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MicroVision 2Q17 report +2
The MicroVision conference call is wrapping up.
Revenue from April contract has achieved early milestones,
resulting in $4M an additional payments. This together with the
$10M up-front payment are being recognized under the
percentage-of-completion method, so operating cash in is and
should continue to be much better than the headline number
indicate. Management continues to expect it will represent a high
profile commercial win and significant revenue in 2019.
Management still expects to complete work on AR and ADAS projects and to complete most shipments to Ragentek this year. Management hopes there will be follow-on orders next year, but that will obviously depend on initial consumer reactions. No new orders are expected from Sony.
Perhaps the most important info from the Q&A was commentary on the relationship with STMicro. Of course management characterized it has going very well, but also said that the companies are collaborating on a development road-map together. I think that STMicro's existing relationships in the automotive segment, in particular, could wind up being significant. It may be a while before the market begins to reflect the potential here, but the prospects do seem to be improving dramatically.
On to the NRG Yield call...
MicroVision has announced its second quarter results:
- an EPS loss of 8 cents per share beats by a penny
- on revenue of $1.5M, which beats by $693K
As of June 30, 2017 the company had a $21.5M backlog, with $17.7M in cash and equivalents on the balance sheet. Component shipments to Ragentek for the Voya V phone began in July and should start showing up next quarter. The current quarter revenue appears to be mostly from the amortization of the development contract with a leading technology company that was announced in April. The development contracts for AR and ADAS (advanced driver assistance system) should be contributing to a lesser extent.
The conference call is just about to begin. I'll report again if there are any further important details.