Vuzix Reports Second Quarter 2024 Results
Vuzix (NASDAQ: VUZI) reported Q2 2024 results, showing a significant revenue decline. Total revenues decreased by 77% to $1.1 million, primarily due to lower M400 smart glasses sales. The company reported a gross loss of $0.3 million and a net loss of $40.6 million ($0.62 per share), compared to a net loss of $9.0 million ($0.14 per share) in Q2 2023. The increased net loss included a $30.1 million non-cash charge related to the termination of a technology license agreement. Despite challenges, Vuzix has reduced its annual cost structure by $8 million and maintains a cash position of $9.9 million. The company expects revenue improvement in the second half of 2024, driven by potential volume deployments and OEM business opportunities.
Vuzix (NASDAQ: VUZI) ha riportato i risultati del secondo trimestre 2024, mostrando una significativa diminuzione dei ricavi. I ricavi totali sono diminuiti del 77% a $1,1 milioni, principalmente a causa del calo delle vendite degli occhiali smart M400. L'azienda ha registrato una perdita lorda di $0,3 milioni e una perdita netta di $40,6 milioni ($0,62 per azione), rispetto a una perdita netta di $9,0 milioni ($0,14 per azione) nel secondo trimestre 2023. L'aumento della perdita netta ha incluso un onere non monetario di $30,1 milioni relativo alla risoluzione di un contratto di licenza tecnologica. Nonostante le difficoltà, Vuzix ha ridotto la propria struttura dei costi annuali di $8 milioni e mantiene una posizione di liquidità di $9,9 milioni. L'azienda si aspetta un miglioramento dei ricavi nella seconda metà del 2024, grazie a potenziali distribuzioni in volume e opportunità di business OEM.
Vuzix (NASDAQ: VUZI) reportó resultados del segundo trimestre de 2024, mostrando una disminución significativa en los ingresos. Los ingresos totales disminuyeron un 77% a $1.1 millones, principalmente debido a la baja en las ventas de las gafas inteligentes M400. La compañía reportó una pérdida bruta de $0.3 millones y una pérdida neta de $40.6 millones ($0.62 por acción), en comparación con una pérdida neta de $9.0 millones ($0.14 por acción) en el segundo trimestre de 2023. El aumento de la pérdida neta incluyó un cargo no monetario de $30.1 millones relacionado con la terminación de un acuerdo de licencia tecnológica. A pesar de los desafíos, Vuzix ha reducido su estructura de costos anuales en $8 millones y mantiene una posición de efectivo de $9.9 millones. La compañía espera una mejora en los ingresos en la segunda mitad de 2024, impulsada por posibles implementaciones por volumen y oportunidades comerciales OEM.
Vuzix (NASDAQ: VUZI)는 2024년 2분기 실적을 보고하며 수익이 크게 감소했음을 보여주었습니다. 총수익은 77% 감소하여 110만 달러에 달했습니다, 주로 M400 스마트 안경 판매 감소로 인한 것입니다. 회사는 300,000달러의 총 손실과 4060만 달러의 순 손실 ($0.62 per share)을 기록했으며, 이는 2023년 2분기의 순 손실 900만 달러 ($0.14 per share)와 비교됩니다. 증가한 순 손실에는 3001만 달러의 비현금 비용이 포함되어 있으며, 이는 기술 라이센스 계약 종료와 관련이 있습니다. 도전에도 불구하고 Vuzix는 연간 비용 구조를 800만 달러 줄였습니다와 990만 달러의 현금 보유 상황을 유지하고 있습니다. 회사는 OEM 사업 기회와 잠재적인 대량 배포에 의해 2024년 하반기에 수익 개선을 기대하고 있습니다.
Vuzix (NASDAQ: VUZI) a publié les résultats du deuxième trimestre 2024, révélant une baisse significative des revenus. Les revenus totaux ont diminué de 77 % à 1,1 million de dollars, principalement en raison de la baisse des ventes des lunettes intelligentes M400. L'entreprise a déclaré une perte brute de 300 000 dollars et une perte nette de 40,6 millions de dollars (0,62 $ par action), contre une perte nette de 9,0 millions de dollars (0,14 $ par action) au deuxième trimestre 2023. L'augmentation de la perte nette comprenait une charge non monétaire de 30,1 millions de dollars liée à la résiliation d'un accord de licence technologique. Malgré les défis, Vuzix a réduit sa structure de coûts annuelle de 8 millions de dollars et maintient une position de liquidités de 9,9 millions de dollars. L'entreprise s'attend à une amélioration des revenus dans la seconde moitié de 2024, grâce à de potentielles distributions en volume et des opportunités commerciales OEM.
Vuzix (NASDAQ: VUZI) hat die Ergebnisse für das zweite Quartal 2024 veröffentlicht, die einen signifikanten Rückgang der Einnahmen zeigen. Die Gesamterlöse sanken um 77% auf 1,1 Millionen US-Dollar, hauptsächlich aufgrund geringerer Verkaufszahlen der M400 Smart-Brillen. Das Unternehmen berichtete von einem rohen Verlust von 300.000 US-Dollar und einem Nettoverlust von 40,6 Millionen US-Dollar (0,62 US-Dollar pro Aktie), verglichen mit einem Nettoverlust von 9,0 Millionen US-Dollar (0,14 US-Dollar pro Aktie) im zweiten Quartal 2023. Der gestiegene Nettoverlust beinhaltete eine nicht liquiden Belastung von 30,1 Millionen US-Dollar, die mit der Beendigung einer Technologielizenzvereinbarung verbunden war. Trotz der Herausforderungen hat Vuzix seine jährlichen Kosten um 8 Millionen US-Dollar gesenkt und hält eine liquide Mittelposition von 9,9 Millionen US-Dollar. Das Unternehmen erwartet im zweiten Halbjahr 2024 eine Verbesserung der Einnahmen, die durch potenzielle Volumeneinsätze und OEM-Geschäftsmöglichkeiten angetrieben wird.
- Reduced annual cost structure by $8 million through various measures
- Maintained cash and cash equivalents of $9.9 million
- Overall working capital position of $22.1 million
- Expecting top-line revenue improvement in the second half of 2024
- Backlog of OEM business to deliver against
- Total revenues decreased by 77% to $1.1 million in Q2 2024
- Gross loss of $0.3 million compared to a gross profit of $1.0 million in Q2 2023
- Net loss increased to $40.6 million ($0.62 per share) from $9.0 million ($0.14 per share) in Q2 2023
- $30.1 million non-cash charge due to termination of technology license agreement
- Cash net loss increased to $5.9 million from $4.5 million in Q2 2023
Insights
Vuzix's Q2 2024 results reveal significant challenges. Revenue plummeted
Vuzix's struggles reflect broader challenges in the AR smart glasses market. The sharp decline in M400 sales indicates market saturation or competition from newer technologies. However, the company's focus on OEM opportunities and defense contracts could provide a lifeline. The termination of the Atomistic license agreement is concerning, potentially signaling issues with technology development or strategic partnerships. Vuzix's ability to capitalize on enterprise deployments and ramp up waveguide production will be important for its turnaround. The AR industry's evolution demands rapid innovation and market adaptation, which Vuzix must achieve to remain competitive.
Vuzix's Q2 results highlight the volatile nature of the AR market. The significant drop in product sales suggests either a shift in customer preferences or economic headwinds affecting enterprise spending. The increase in engineering services revenue, albeit small, indicates some interest in custom solutions. Vuzix's strategy to focus on key end-customer relationships and strategic partnerships in enterprise, consumer and defense markets is prudent. However, the company must demonstrate tangible results from these efforts to regain investor confidence. The market will closely watch for signs of the promised revenue improvement in the second half of 2024.
"In our second quarter of 2024, Vuzix underpinned key end-customer and strategic relationships within the enterprise, consumer, and defense markets centered around business opportunities that are expected to have a meaningful impact on both our balance sheet and top-line revenue growth over the back half of 2024 and into 2025," said Paul Travers, President and CEO of Vuzix. "At the same time, we have reduced our annual cost structure going forward by
The following table compares condensed elements of the Company's unaudited summarized Consolidated Statements of Operations data for the three months ended June 30, 2024 and 2023, respectively:
For Three Months Ended June 30 | |||||
( | |||||
2024 | 2023 | ||||
Sales: | |||||
Sales of Products | $ 601 | ||||
Sales of Engineering Services | 491 | 266 | |||
Total Sales | 1,093 | 4,691 | |||
Total Cost of Sales | 1,426 | 3,718 | |||
Gross Profit (Loss) | (333) | 972 | |||
Gross Profit (Loss) % | (30) % | 21 % | |||
Operating Expenses: | |||||
Research and Development | 2,359 | 2,837 | |||
Selling and Marketing | 2,238 | 2,510 | |||
General and Administrative | 4,492 | 4,260 | |||
Depreciation and Amortization | 1,188 | 973 | |||
Impairment of Patents and Trademarks | 30,120 | - | |||
Loss from Operations | (40,730) | (9,608) | |||
Total Other Income (Expense) | 118 | 563 | |||
Net Loss |
(40,612) |
(9,045) | |||
Loss per Common Share | $ (0.62) | $ (0.14) | |||
Second Quarter 2024 Financial Results
For the three months ended June 30, 2024, total revenues decreased by
There was an overall gross loss of
Research and Development expense was
Selling and Marketing expense was
General and Administrative expense for the three months ended June 30, 2024 was
Included in operating expenses for the three months ended June 30, 2024 was a
The net loss for the three months ended June 30, 2024 was
The cash net loss, excluding working capital changes, a non-GAAP measure, was
Management Outlook
"We expect to see top-line revenue improvement over the second half of 2024. We have a number of enterprise accounts that are on a path to volume deployment of our smart glasses and solutions within their operations to deliver improved productivity, lower onboarding times and fewer errors. Our OEM business opportunities remain robust; we have a backlog of business to deliver against and we expect at least one of our defense contractors and one of our commercial enterprise customers to move into production later this year. On the waveguide manufacturing front, we will continue to implement process improvements as we prepare to ramp production to support underlying demand from partners and the broader markets," said Mr. Travers.
Conference Call Information
Date: Wednesday, August 14, 2024
Time: 4:30 p.m. Eastern Time (ET)
Dial-in Number for
Dial-in Number for International Callers (Outside of the U.S. &
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://event.choruscall.com/mediaframe/webcast.html?webcastid=RkRQYjCk
Participating on the call will be Vuzix' Chief Executive Officer and President Paul Travers and Chief Financial Officer Grant Russell, who together will discuss operational and financial highlights for the quarter ended June 30, 2024.
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 August 14, 2024, at approximately 5:30 p.m. (ET). To access this replay, please dial 877-660-6853 within the
About Vuzix Corporation
Vuzix is a leading designer, manufacturer and marketer of Smart Glasses and Augmented Reality (AR) technologies and products for the enterprise, medical, defense and consumer markets. The Company's products include head-mounted smart personal display and wearable computing devices that offer users a portable high-quality viewing experience, provide solutions for mobility, wearable displays and augmented reality, as well OEM waveguide optical components and display engines. Vuzix holds more than 375 patents and patents pending and numerous IP licenses in the fields of optics, head-mounted displays, and augmented reality Video Eyewear field. Moviynt, an SAP Certified ERP SaaS logistics solution provider, is a Vuzix wholly owned subsidiary. The Company has won Consumer Electronics Show (or CES) awards for innovation for the years 2005 to 2024 and several wireless technology innovation awards among others. Founded in 1997, Vuzix is a public company (NASDAQ: VUZI) with offices in:
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, opportunities related to market disruptions regarding smart glasses demand, R&D project successes, smart glasses pilot to roll-out conversion rates, existing and new engineering services and conversion to volume production OEM programs, future revenue and operating results, the amount and impact of operating expense cash reductions, 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,
Investor Information – IR@vuzix.com www.vuzix.com
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SOURCE Vuzix Corporation
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