Vuzix Enters into an Agreement to Develop a Customized Head Mounted Waveguide-Based Display System for Assisted Medical Cancer Surgeries

Rhea-AI Summary

Vuzix Corporation (NASDAQ: VUZI) has partnered with a new medical organization in the USA to create a customized head-mounted display for assisting in cancer surgeries. The initial phase of the project includes an upfront payment and development milestones, anticipated to generate low six-figure revenue by the end of 2020. There may be additional non-recurring engineering revenues in subsequent phases, potentially leading to a volume OEM production order. This marks Vuzix's third development agreement in 2020, showcasing its capabilities in waveguide optics technology.

Positive

• New partnership for a head-mounted display in cancer surgery expected to generate low six-figure revenues.
• Potential for additional non-recurring engineering revenues in future project phases.
• Demonstrates Vuzix's capability in waveguide optics, enhancing its market position.

Negative

• None.

ROCHESTER, N.Y., Oct. 6, 2020 /PRNewswire/ -- Vuzix® Corporation (NASDAQ: VUZI), ("Vuzix" or, the "Company"), a leading supplier of Smart Glasses and Augmented Reality (AR) technology and products, is pleased to announce that the Company has entered into an agreement with a new medical partner located in the USA, to build a customized head mounted display system for assisted medical cancer surgery.  Under the terms of the first phase of the project, Vuzix and this customer have agreed upon an upfront payment and phase-gated development milestones and payments. Phase 1 is expected to generate revenues in the low six-figure range and be completed by the end of 2020, with potentially greater non-recurring engineering (NRE) revenues, if awarded by the customer, in subsequent phases before an accepted final product design could be expected to lead to a volume OEM production order.

"We are excited to enter into this partnership and believe it represents a strong vote of confidence in our capabilities and recognition of our leading position within the waveguide optics technology space.  Additionally, this development agreement, our third signed just this year,  demonstrates how Vuzix is able to leverage our industry leading optics technology and partner with a broad range of industry leaders, this one in the medical arena," said Paul Travers, President and Chief Executive Officer at Vuzix.

About Vuzix Corporation

Vuzix is a leading supplier of Smart-Glasses and Augmented Reality (AR) technologies and products for the consumer and enterprise markets. The Company's products include personal display and wearable computing devices that offer users a portable high-quality viewing experience, provide solutions for mobility, wearable displays and augmented reality. Vuzix holds 166 patents and patents pending and numerous IP licenses in the Video Eyewear field. The Company has won Consumer Electronics Show (or CES) awards for innovation for the years 2005 to 2020 and several wireless technology innovation awards among others. Founded in 1997, Vuzix is a public company (NASDAQ: VUZI) with offices in Rochester, NY, Oxford, UK, and Tokyo, Japan.  For more information, visit Vuzix website,  Twitter and Facebook pages.

Forward-Looking Statements Disclaimer

Certain statements contained in this news release are "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Forward looking statements contained in this release relate to our relationship with the referenced medical customer, the expected success of Phase 1, probability of future phases and eventual volume production of this solution, and among other things the Company's leadership in the Smart Glasses and AR display industry. They are generally identified by words such as "believes," "may," "expects," "anticipates," "should" and similar expressions. Readers should not place undue reliance on such forward-looking statements, which are based upon the Company's beliefs and assumptions as of the date of this release. The Company's actual results could differ materially due to risk factors and other items described in more detail in the "Risk Factors" section of the Company's Annual Reports and MD&A filed with the United States Securities and Exchange Commission and applicable Canadian securities regulators (copies of which may be obtained at www.sedar.com or www.sec.gov). Subsequent events and developments may cause these forward-looking statements to change. The Company specifically disclaims any obligation or intention to update or revise these forward-looking statements as a result of changed events or circumstances that occur after the date of this release, except as required by applicable law.

Media and Investor Relations Contact:

Ed McGregor, Director of Investor Relations, Vuzix Corporation ed_mcgregor@vuzix.com Tel: (585) 359-5985

Vuzix Corporation, 25 Hendrix Road, Suite A, West Henrietta, NY 14586 USA,
Investor Information – IR@vuzix.com www.vuzix.com

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SOURCE Vuzix Corporation

FAQ

What new partnership has Vuzix Corporation formed?

Vuzix has entered into an agreement with a medical partner in the USA to develop a customized head-mounted display for assisted medical cancer surgery.

What is the expected revenue from Vuzix's new project?

The first phase of the project is expected to generate revenues in the low six-figure range.

When is the development phase of Vuzix's new project expected to be completed?

Phase 1 of the project is expected to be completed by the end of 2020.

Is there potential for future revenues from Vuzix's new medical partnership?

Yes, there is potential for greater non-recurring engineering revenues in subsequent phases if awarded by the customer.

How many development agreements has Vuzix signed in 2020?

Vuzix has signed three development agreements in 2020.