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MicroVision 3Q18 results -2

17:46 25-Oct-18


The good news from the MicroVision call is that transfer of technology to the company's exclusive display-only licensee is complete and no modifications will be needed.  Consequently, the MicroVision gets to release money earmarked for that effort and increase its revenue estimate for the year.  It also expects to be able to bill a milestone payments by the first quarter of 2019. 

On the other hand, it was revealed that that there are no minimum product quantities for next year.  Furthermore, the Ragentek contract was renegotiated and MicroVision has to write down inventory in order to ship product at reduced price over the coming quarters.

Moving on to speculation, analysts were fairly pointed about asking where money is going and comparing promises to products that are currently being demonstrated.  Management is, of course, firmly of the opinion that its approach will provide a technologically superior solution, and continues to point to unnamed tier-1 partners.  The only thing that it projects producing in the near-term though, is another promotional video. 

For my part, I do think there is a decent chance that the technology that MicroVision is working on is superior in some ways.  However, I think that the time to market and terms of any further dilution over that time are the more important.  Management was unable to provide no concrete detail on any of this.  Further dilution is not immediately imminent, but it's looking more likely.

On 10/25/18 4:28 PM, Esekla wrote:

MicroVisions third quarter results are on the record:

  • breakeven EPS beats by a penny
  • from sales of $11.6M, which misses by $2.2M

The comments confirm that profitability is still nearly a year off, though at least there is some mention of limiting CapEx.  The company burned through well over $7M in the quarter, and at that rate wouldn't make it to profitability, without another capital raise.  The conference call is at 5pm.  I will listen, but may not write further.