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MicroVision 4Q17 report -2
Fluff! That's what we got from the new CEO on the MicroVision call. To be fair, I'm not sure what else he could have offered. The only real detail was that profitability is expected sometime in 2019, when product revenue from the $24M contract signed in April is expected to commence. That work has also delayed the interactive projector and LiDAR projects more than anticipated and they are now expected a year from now. Most of the time was spent talking about moving the company from an R&D company to solutions provider. It was highlighted that this won't be about selling off-the-shelf products. The phrases "A.I." and "machine learning" were repeated frequently; that's new, but it was tough to see how it's relevant. Eventually the Q&A made it clear that the CEO was describing aspects of product discussions with customers, rather than MicroVision's own work. The lack of operational detail in the interchanges wound up sounding at odds with the pronunciations of new discipline and focus. The impression might be worse than it seems. There's nothing to say that better operations won't come, the discussion merely shows what an early stage work is still at.I was more interested in the better detail that came from the CFO. There is $17M of cash and equivalents on the balance sheet, which leads me to believe that capital will need to be raised in the first half. This is all the more true because there is still some more engineering hiring to be done. The most important detail was that the S3 retraction and S1 delay were due to filing problems with the SEC on "say on pay" documents. That's not great, but it's far better than complete lack of demand. Thus, it's still possible that big names that are talking with MicroVision will make a public investment creating positive effect for MVIS shareholders. If not, the stock is already priced for all but the worst outcomes, such as warrants and a reverse split. We'll see what the actual terms wind up being.
MicroVision has reported on its fourth quarter:
- a loss of of 10 cents per share misses by 3 cents
- on $2.6M of revenue, which is in-line with the pre-announcement
Clues about how the company will raise funds are important, but I will attend to them after the UDC call.