MicroVision Announces Preliminary Third Quarter 2024 Results and Business Update

Rhea-AI Summary

MicroVision (NASDAQ:MVIS) announced preliminary Q3 2024 results, highlighting engagement with top-tier automotive OEMs and potential industrial customers. The company expects revenue of $0.15 - $0.2 million, down from $1.0 million in Q3 2023 due to a customer postponing orders. Cash and equivalents stand at $43.0 million as of September 30, 2024.

MicroVision reaffirmed its 2024 revenue guidance of $8-$10 million and an annual cash burn rate of $55-$60 million. The company reported improved cash burn and productivity in Q3, positioning it to leverage near-term sales opportunities. CEO Sumit Sharma expressed optimism about potential revenue growth from heavy equipment customers starting in 2025, while pursuing higher volume automotive opportunities.

Positive

• Engaged in seven high-volume RFQs for passenger vehicles with top-tier global automotive OEMs
• Potential revenue ramp from multiple heavy equipment customers starting in 2025
• Improved cash burn and productivity in Q3 2024
• Reaffirmed 2024 revenue guidance of $8-$10 million
• Access to additional $153 million in capital through ATM facility and convertible note facility

Negative

• Q3 2024 revenue expected to be $0.15 - $0.2 million, down from $1.0 million in Q3 2023
• One customer pushed orders out of Q3 2024, impacting revenue
• Cash used in operations in Q3 2024 was approximately $14 million

Insights

Financial Analyst

MicroVision's Q3 2024 preliminary results show mixed signals. The $0.15-$0.2 million revenue is significantly lower than the $1.0 million in Q3 2023, primarily due to a customer postponing orders. However, the company maintains its full-year 2024 revenue guidance of $8-10 million, suggesting potential revenue acceleration in Q4.

Positively, cash burn has improved, with Q3 2024 operations using approximately $14 million, down from $20 million in Q3 2023. This aligns with their annual cash burn target of $55-60 million. The company's cash position of $43 million as of September 30, 2024, combined with the recent $45 million financing, provides a runway to pursue growth opportunities.

The engagement in seven high-volume RFQs for passenger vehicles and potential industrial customer partnerships indicate future revenue potential. However, investors should note the lack of current substantial revenue and the company's reliance on future deals to achieve profitability.

Tech Industry Analyst

MicroVision's focus on MEMS-based solid-state automotive lidar and ADAS solutions positions it in a growing market. The company's engagement with top-tier global automotive OEMs and potential industrial customers in the heavy equipment sector demonstrates market interest in their technology.

The mention of "pre-RFQ collaboration and development work" suggests MicroVision is involved in early-stage product development with potential customers, which could lead to long-term partnerships. However, the "near-term automotive industry headwinds" mentioned by CEO Sumit Sharma indicate challenges in the immediate future.

The potential revenue ramp from heavy equipment customers starting in 2025 is promising, but investors should be cautious about the timeline and execution risks. The company's ability to secure higher volume automotive opportunities will be important for long-term success in this competitive and rapidly evolving tech sector.

REDMOND, WA / ACCESSWIRE / October 15, 2024 / MicroVision, Inc. (NASDAQ:MVIS), a leader in MEMS-based solid-state automotive lidar and ADAS solutions, today announced its preliminary unaudited third quarter 2024 results.

Key Business Highlights for the Third Quarter of 2024

• Actively engaged with top-tier global automotive OEMs, with seven high-volume RFQs for passenger vehicles and custom development opportunities.

• Actively engaged with multiple potential leading industrial customers for the opportunity to provide an integrated lidar hardware and software solution in the heavy equipment vertical.

• Sequential improvement in cash burn and productivity in the third quarter of 2024 positioned the Company well to leverage near-term hardware and software sales to industrial customers.

"We are pleased with our continued engagement in RFQs with automotive OEMs and are also energized by the uptick in interest in pre-RFQ collaboration and development work. Despite near-term automotive industry headwinds, we have worked hard to position MicroVision to capitalize on its end markets in the industrial and automotive sectors," said Sumit Sharma, MicroVision's Chief Executive Officer. "With a potential ramp in revenues from multiple heavy equipment customers starting in 2025, we expect to be on a sustainable path for multiple years ahead as we work to secure higher volume automotive opportunities."

Continued Sharma, "With lower cash burn in Q3, we are realizing benefits of increased productivity to extend our financial runway and execute near-term revenue opportunities."

Key Financial Highlights for the Third Quarter of 2024

MicroVision expects to report the following key highlights:

• Revenue for the third quarter of 2024 - $0.15 - $0.2 million, compared to $1.0 million for the third quarter of 2023 due to one customer pushing its orders out of the third quarter of 2024.

• $43.0 million in cash & cash equivalents including investment securities as of September 30, 2024.

• After giving effect to the net proceeds from the first $45.0 million tranche of the financing transaction, we expect to have approximately $81.0 million in cash and cash equivalents and access to $153 million of additional capital, including $123 million under our existing ATM, or at-the-market, facility and $30 million from the remaining commitment pursuant to the convertible note facility.

• No cash was raised in the third quarter of 2024 from the sale of equity through existing $150 million ATM facility.

• Cash used in operations in the third quarter of 2024 was approximately $14 million, compared to cash used in operations in the third quarter of 2023 of $20 million.

• Re-affirming revenue guidance in the range of $8-$10 million for the full fiscal year 2024 subject to customers' approvals.

• Re-affirming annual cash burn rate, including research & development and selling, general & administrative expenses, to be between $55-$60 million run-rate per year consistent with our preliminary third quarter 2024 financial performance.

The Company expects to report third quarter 2024 results in November 2024.

The information in this press release is preliminary and subject to completion. This preliminary financial information is the responsibility of management and has been prepared in good faith on a consistent basis with prior periods. However, the Company has not completed its financial closing procedures for the period ended September 30, 2024, and its actual results could be materially different from this preliminary financial information. As a result, prospective investors should exercise caution in relying on this information and should not draw any inferences from this information regarding the Company's financial information that is not provided. This preliminary financial information should not be viewed as a substitute for full financial statements prepared in accordance with United States generally accepted accounting principles.

About MicroVision

With offices in the U.S. and Germany, MicroVision is a pioneering company in MEMS-based laser beam scanning technology that integrates MEMS, lasers, optics, hardware, algorithms and machine learning software into its proprietary technology to address existing and emerging markets. The Company's integrated approach uses its proprietary technology to provide automotive lidar sensors and solutions for advanced driver-assistance systems (ADAS) and for non-automotive applications including industrial, smart infrastructure and robotics. The Company has been leveraging its experience building augmented reality micro-display engines, interactive display modules, and consumer lidar modules.

For more information, visit the Company's website at www.microvision.com, on Facebook at www.facebook.com/microvisioninc, and LinkedIn at https://www.linkedin.com/company/microvision/.

MicroVision, MAVIN, MOSAIK, and MOVIA are trademarks of MicroVision, Inc. in the United States and other countries. All other trademarks are the properties of their respective owners.

Forward-Looking Statements

Certain statements contained in this release, including preliminary financial information for the third quarter of 2024; full fiscal year 2024 financial guidance; customer engagement and the likelihood of success; opportunities for revenue and cash; expense reduction; market position; product portfolio and manufacturing capabilities; capital-raising opportunities; and expected revenue, expenses and cash usage are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include the risk its ability to operate with limited cash or to raise additional capital when needed; market acceptance of its technologies and products or for products incorporating its technologies; the failure of its commercial partners to perform as expected under its agreements; its financial and technical resources relative to those of its competitors; its ability to keep up with rapid technological change; government regulation of its technologies; its ability to enforce its intellectual property rights and protect its proprietary technologies; the ability to obtain customers and develop partnership opportunities; the timing of commercial product launches and delays in product development; the ability to achieve key technical milestones in key products; dependence on third parties to develop, manufacture, sell and market its products; potential product liability claims; its ability to maintain its listing on The Nasdaq Stock Market, and other risk factors identified from time to time in the Company's SEC reports, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the SEC. These factors are not intended to represent a complete list of the general or specific factors that may affect the Company. It should be recognized that other factors, including general economic factors and business strategies, may be significant, now or in the future, and the factors set forth in this release may affect the Company to a greater extent than indicated. Except as expressly required by federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changes in circumstances or any other reason.

Investor Relations Contact
Jeff Christensen
Darrow Associates Investor Relations
MVIS@darrowir.com

Media Contact
Marketing@MicroVision.com

SOURCE: MicroVision, Inc.

View the original press release on accesswire.com

FAQ

What is MicroVision's expected revenue for Q3 2024?

MicroVision expects revenue for Q3 2024 to be between $0.15 - $0.2 million.

How much cash does MicroVision (MVIS) have as of September 30, 2024?

MicroVision reported $43.0 million in cash and cash equivalents, including investment securities, as of September 30, 2024.

What is MicroVision's (MVIS) revenue guidance for the full fiscal year 2024?

MicroVision reaffirmed its revenue guidance in the range of $8-$10 million for the full fiscal year 2024, subject to customers' approvals.

How many high-volume RFQs is MicroVision (MVIS) engaged in for passenger vehicles?

MicroVision is actively engaged in seven high-volume RFQs for passenger vehicles with top-tier global automotive OEMs.