Vuzix Reports 4Q and Full Year Results
Vuzix Corporation (NASDAQ: VUZI) reported a 27% year-over-year increase in smart glasses revenue for 2021, contributing to total revenues of $13.2 million, up 14% from 2020. Despite growth, the company faced net losses of $40.4 million, compared to $18 million in 2020. Operating expenses surged, particularly in R&D and general administration, leading to a net cash operating loss of $20 million. Vuzix anticipates continued growth driven by increasing enterprise adoption of AR technologies and is considering a $25 million share buyback program to address perceived undervaluation.
- Smart glasses revenue increased 27% year-over-year.
- Total revenues rose 14% for the full year 2021.
- Successful expansion of AR enterprise-focused sales channels.
- Net loss for 2021 reached $40.4 million, increasing from $18 million the previous year.
- Operating expenses increased significantly, particularly general and administrative costs, which rose 225%.
Smart glasses revenue increased
ROCHESTER, N.Y., March 1, 2022 /PRNewswire/ -- Vuzix® Corporation (NASDAQ: VUZI) ("Vuzix" or the "Company"), a leading supplier of Smart Glasses and Augmented Reality (AR) technologies and products, today reported its fourth quarter and full year financial results for the year ended December 31, 2021.
"We reported solid growth in smart glasses revenue in 2021, but more importantly, it was year of significant advancement for us in terms of both industry adoption and company development," said Paul Travers, President and CEO. "The mainstream adoption of AR has been projected for years and in 2021 we finally started to see a definitive shift toward enterprise adoption as evidenced by the receipt of repeat orders as well as traction from additional market segments that commenced smart glasses purchases. Our smart glasses revenue growth last year was driven by use cases that spanned healthcare, industry 4.0 and, in the latter half of the year, the logistics and supply chain verticals. We also witnessed the expanding global awareness of what the Metaverse is and what it can bring to enterprise productivity, which will only help to accelerate adoption going forward."
"At the same time, Vuzix took many actions to ready the company for its next chapter of growth supported by clear evidence of broader adoption across key market segments. With two new products recently announced, we have rounded out one of the industry's broadest and most competitive product lineups. We successfully launched our global sales channel program, which drove the expansion of AR enterprise-focused resellers putting our products in front of new customers. Lastly, we solidified our balance sheet, which in turn allowed us to make critical investments in staff, core technology, and infrastructure as we expand our capabilities and global footprint to meet demand," concluded Mr. Travers.
The following table compares condensed elements of the Company's summarized Consolidated Statements of Operations data for the fourth quarters and years ended December 31, 2021 and 2020, respectively. Readers should refer to our Form 10-K for the year ended December 31, 2021 for additional information as well as disclosure of important risk factors:
Three Months Ended | Twelve Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Sales: | ||||||||||||||||
Sales of Products | $ | 3,127 | $ | 3,688 | $ | 12,785 | $ | 10,081 | ||||||||
Sales of Engineering Services | 187 | 546 | 380 | 1,500 | ||||||||||||
Total Sales | 3,314 | 4,233 | 13,165 | 11,581 | ||||||||||||
Cost of Products and Eng. Services | 3,106 | 3,531 | 10,714 | 9,654 | ||||||||||||
Gross (Loss) Profit | 209 | 703 | 2,451 | 1,928 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Research and Development | 3,624 | 1,874 | 11,675 | 7,568 | ||||||||||||
Selling and Marketing | 1,951 | 1,154 | 6,119 | 4,040 | ||||||||||||
General and Administrative | 10,937 | 1,942 | 22,503 | 6,915 | ||||||||||||
Depreciation and Amortization | 417 | 535 | 1,870 | 2,458 | ||||||||||||
Loss on Fixed Asset Disposal | 100 | - | 184 | - | ||||||||||||
Impairment of Patents and Trademarks | 14 | - | 80 | 74 | ||||||||||||
Total Operating Expenses | 17,043 | 5,505 | 42,431 | 21,055 | ||||||||||||
Loss from Operations | (16,834) | (4,802) | (39,980) | (19,127) | ||||||||||||
Total Other Income (Expense) | (178) | 1,211 | (397) | 1,175 | ||||||||||||
Net Loss | $ | (17,013) | $ | (3,591) | $ | (40,377) | $ | (17,952) | ||||||||
Loss per Share after accrued but not paid | $ | (0.27) | $ | (0.09) | $ | (0.66) | $ | (0.53) | ||||||||
Full Year 2021 Financial Results
For the full year ended December 31, 2021, total revenues were
There was an overall gross profit of
The gross profit increase before obsolescence reserves was primarily due to a combination of higher sales of smart glasses and higher gross margins realized on smart glasses sales.
Research and Development expense was
Selling and Marketing expense was
General and administrative expense was
The net loss for the full year ending December 31, 2021 was
Net cash operating loss after adding back non-cash adjustments for the full year of 2021 was
As of December 31, 2021, the Company maintained cash and cash equivalents of
Fourth Quarter 2021 Financial Results
For the three months ended December 31, 2021, total revenues were
There was an overall gross profit of
Research and Development expense was
Selling and Marketing expense was
General and administrative expense for the three months ended December 31, 2021 was
Net cash operating loss after adding back non-cash adjustments for the fourth quarter of 2021 was
Management Outlook
"We expect the adoption acceleration we began to see in 2021 to lead to larger orders coming from repeat and, in some cases very large, customers to support significant deployments in terms of units and dollar value. This developing trend, although highly encouraging, was not broad-based last year, as many customers continued to delay orders due to COVID-19 operational business issues. Thus far in 2022, however, we are seeing businesses across the globe start to resemble a more normal profile. As a result, we are well-positioned to achieve significant year-over-year revenue growth in 2022 driven primarily by this accelerating smart glasses demand, but also by several opportunities within our OEM business group," said Mr. Travers. "At the same time, we will continue to evolve our technologies and products lines to further solidify our position as the go-to solutions provider within our industry."
"While we will continue to invest in our staff, core technology, and infrastructure in 2022, we recognize and believe that the market is significantly undervaluing Vuzix as a disruptive technology company that is focused on AR technologies and products for the enterprise and broader markets. The Vuzix Board of Directors agrees with this assessment and consequently has requested management to investigate up to a
Conference Call Information
Date: Monday, March 1, 2022
Time: 4:30 p.m. Eastern Time (ET)
Dial-in Number for U.S. & Canadian Callers: 877-709-8150
Dial-in Number for International Callers (Outside of the U.S. & Canada): 201-689-8354
A live and archived webcast of the conference call will be available on the investor relations page of the Company's website at: https://ir.vuzix.com/ or directly at https://themediaframe.com/mediaframe/webcast.html?webcastid=9s2PlKBk.
Participating on the call will be Vuzix' Chief Executive Officer and President Paul Travers, Chief Financial Officer Grant Russell, and Chief Operating Officer Pete Jameson, who together will discuss business, operational and financial highlights for the fourth quarter and full year ended December 31, 2021.
To join the live conference call, please dial into the above referenced telephone numbers five to ten minutes prior to the scheduled conference call time.
A telephonic replay will be available for 30 days, starting on March 1, 2022, at approximately 5:30 p.m. (ET). To access this replay, please dial 877-660-6853 within the U.S. or Canada, or 201-612-7415 for international callers. The conference replay ID# is 13727148.
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 244 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 2022 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 the 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, among other things, the timing of new product releases, R&D project successes, smart glass pilot to roll-out conversion rates, future operating results, and 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 Company's Annual Reports and other filings 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.
Investor Relations Contact
Ed McGregor, Director of Investor Relations
Vuzix Corporation
ed_mcgregor@vuzix.com
Tel: (585) 359-5985
Vuzix Corporation, 25 Hendrix Road, West Henrietta, NY 14586 USA,
Investor Information – IR@vuzix.com www.vuzix.com
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SOURCE Vuzix Corporation
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