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MicroVision & ABB schedule 3Q18 report, more of the same ?2

09:58 18-Oct-18


MicroVision has scheduled its third report to be given after market close one week from today.  The average estimates from 3 analysts still covering the company call for the loss of a penny per share on revenue of $13.8M, with current quarter income of $5.8M.

I haven't had much good to say about MVIS in quite a while.  The company has been burning cash in the high single-digit millions per quarter range.  If something goes wrong with the display licensing revenue recognition, which accounts for the bump this quarter, that would be big trouble.  If not, we'll hear whether or not management has anything convincing to say about moving toward the more advanced product sales in 2019 and beyond, which would be necessary to break the cycle of dilution.

Of slightly more interest is that Bloomberg has published another report that ABB is re-evaluating the spin-off or sale of its grid unit, this time saying that advisers have been engaged.  Reuters has followed up with commentary from sources who say that the deal might finance a bid for General Electric's power conversion unit.  As ever, both possibilities are all about the pricing.  I think a spin-off could make sense, and that ABB got a good deal the last time it bought from GE.  ABB is scheduled to release its third quarter earnings early on October 25th, with average estimates coming to 36 cents of EPS on $9.4b in sales, with income for this quarter rising to $10.1b.  ABB shares are down slightly with the market, and I continue to see them as undervalued, probably due to (temporary?) dollar strength.

Finally, CUI Global has notified us of the third of the three purchase orders for its biomethane-to-grid terminals, valued at $1.7M.  This hasn't moved the languishing stock so far, but I am hopeful for eventual adoption of CUI's technology, particularly in conjunction with biomethane.  Time is of the essence though.