Microvision (MVIS)

Financial Results

For the nine months ended September 30, 2009, the company reported revenue of $2.9 million compared to $5.1 million for the same period in 2008 and for the three months ended September 30, 2009, the company reported revenue of $ 924,000 compared to $894,000 for the same period 2008. As of September 30, 2009, the backlog totaled $2.0 million compared to $647,000 at September 30, 2008. The decrease in revenue is primarily attributed to lower backlog at the beginning of 2009, which is a result of the company's strategy to focus most of its resources on commercializing PicoP products.

The company reported an operating loss for the nine months ended September 30, 2009 of $27.9 million compared to $25.3 million for the same period in 2008 and $9.3 million, for the quarter ended September 30, 2009 compared to $9.0 million for the same period in 2008.

The company reported a net loss of $30.8 million, or $0.43 per share, for the nine months ended September 30, 2009 compared to $22.7 million, or $0.38 per share for the same period in 2008 and $11.5 million, or $0.15 per share, for the quarter ended September 30, 2009 compared to $8.4 million, or $0.13 per share for the quarter ended September 30, 2008. The net loss for the three and nine months ended September 30, 2009 included a non cash loss on derivative instruments of $2.2 million and $3.0 million, respectively, compared to a gain of $585,000 and $2.0 million for the same periods in 2008. The loss on derivative instruments is due to the change in the value of the warrants to purchase the company’s common stock that were issued in connection with the company’s financing transactions.

Net cash used in operating activities was $23.4 million for the nine months ended September 30, 2009 compared to $22.3 million for the same period in 2008. Net cash used in operating activities was $7.1 million for the quarter ended September 30, 2009 compared to $7.6 million for the second quarter of 2009. The reduction in the quarterly cash burn was primarily a result of cost reduction efforts the company implemented in the first quarter of 2009. The net cash burn for the third quarter was partially offset by the receipt of $1.5 million for the exercise of investor warrants, and $300,000 for other investing and financing activities resulting in a net cash usage of $5.9 million for the third quarter of 2009. The company ended the quarter with $20.5 million in cash, cash equivalents, and investment securities.

Financial Results

“We continue to focus most of our resources on the commercialization of the first PicoP based pico projection product while aggressively managing operating costs and cash burn,” said Jeff Wilson, CFO of Microvision. “Cost reduction activities initiated in the first quarter of 2009 enabled us to maintain an operating loss for the second quarter of this year consistent with 2008, despite the lower revenue.”

For the six months ended June 30, 2009, the company reported revenue of $1.9 million compared to $4.2 million for the same period in 2008 and for the three months ended June 30, 2009, the company reported revenue of $987,000 compared to $1.6 million for the same period 2008. As of June 30, 2009, the backlog totaled $854,000 compared to $679,000 at June 30, 2008. The decrease in revenue is primarily attributed to lower backlog at the beginning of 2009, which is a result of the company's strategy to focus most of its resources on commercializing PicoP products.

The company reported an operating loss for the six months ended June 30, 2009 of $18.6 million compared to $16.4 million for the same period in 2008 and $9.5 million for the quarter ended June 30, 2009 compared to $9.3 million for the same period in 2008.

The company reported a net loss of $19.3 million, or $0.28 per share, for the six months ended June 30, 2009 compared to $14.3 million, or $0.25 per share for the same period in 2008 and $10.4 million, or $0.15 per share, for the quarter ended June 30, 2009 compared to $9.3 million, or $0.16 per share for the quarter ended June 30, 2008.

Net cash used in operating activities was $16.3 million for the six months ended June 30, 2009 compared to $14.9 million for the same period in 2008. Net cash used in operating activities was $7.6 million for the quarter ended June 30, 2009 compared to $8.8 million for the first quarter of 2009. The reduction in the quarterly cash burn was primarily a result of cost reduction efforts the company implemented in the first quarter of 2009. The company ended the quarter with $26.3 million in cash, cash equivalents, and investment securities.

Financial Results

For the three months ended March 31, 2009, the company reported revenue of $951,000 compared to $1.5 million in the fourth quarter of 2008 and $2.6 million for the first quarter of 2008. As of March 31, 2009, the backlog totaled $617,000 compared to $1.2 million at December 31, 2008 and $1.8 million at March 31, 2008. The decrease in revenue is primarily attributed to lower backlog at the beginning of 2009, which is a result of the company's strategy to focus most of its resources on commercializing PicoP products and decreased purchasing volume as a result of global economic conditions.

The company reported an operating loss for the quarter ended March 31, 2009 of $9.1 million compared to $10.2 million in the fourth quarter of 2008 and $7.1 million for the first quarter of 2008. The year-over-year increase is primarily attributable to lower revenue in 2009 and increased headcount and other research and development costs associated with the company’s preparation for initial commercial introduction of its PicoP accessory product. The company took a number of steps to reduce its operational expenses and cash usage in the first quarter of 2009 and expects to see additional impact from those reductions in the second quarter of 2009 and beyond.

The company reported a net loss of $8.9 million, or $0.13 per share, for the quarter ended March 31, 2009 compared to $9.9 million, or $0.15 per share for the quarter ended December 31, 2008 and $5.0 million, or $0.09 per share, for the first quarter of 2008.

Net cash used in operating activities was $8.8 million for the quarter ended March 31, 2009 compared to $8.9 million for the fourth quarter of 2008 and $5.3 million for the first quarter of 2008. The company ended the quarter with $19.1 million in cash, cash equivalents, and investment securities.

Financial Results

For the year ended December 31, 2008, the company reported revenue of $6.6 million compared to $10.5 million for the same period in 2007 and $1.5 million for the three months ended December 31, 2008 compared to $3.0 million for the same period in 2007, primarily due to deteriorating economic conditions which resulted in reduced contract activities in 2008 as the company moved closer to commercialization of its PicoP display engine. As of December 31, 2008, the backlog totaled $1.2 million compared to $4.1 million at December 31, 2007. The company expects no growth in contract revenue in 2009 versus 2008, due to current economic conditions and its continued focus on the release of consumer products including the accessory projector.

The company reported an operating loss for the year ended December 31, 2008 of $35.5 million compared to $26.7 million for the same period in 2007 and $10.2 million for the three months ended December 31, 2008 compared to $7.9 million for same period in 2007. The increase is primarily attributable to increased development costs associated with the planned introduction of PicoP enabled products, including increased headcount in strategic sourcing, supplier quality and business development and increased material costs consistent with product commercialization.

The company reported a net loss available to common shareholders of $32.6 million, or $0.53 per share for the year ended December 31, 2008 compared to $19.8 million, or $0.40 per share for the same period in 2007. Results for 2007 included a one time gain on the sale of the company’s investment in Lumera of $6.6 million. Excluding this gain, the net loss available to common shareholders for the year ended December 31, 2007 was $26.4 million, or $0.53 per share. For the three months ended December 31, 2008 the net loss available for common shareholders was $9.9 million, or $0.15 per share compared to $6.0 million, or $0.11 per share for the same period in 2007. The Lumera transaction did not have an effect on the net loss per share for the three months ended December 31, 2007.

Net cash used in operating activities was $31.2 million for the year ended December 31, 2008 compared to $21.3 million for the same period in 2007. The company ended the year with $28.2 million in cash, cash equivalents and investment securities.

Financial Results

For the nine months ended September 30, 2008, the company reported revenue of $5.1 million compared to $7.5 million for the same period in 2007 and for the three months ended September 30, 2008, the company reported revenue of $894,000 compared to $2.6 million for the same period in 2007. As of September 30, 2008, the backlog totaled $647,000 compared to $5.7 million at September 30, 2007. The decrease in backlog from 2007 is primarily attributed to completion of government and commercial development contracts in 2007 and early 2008.

The company reported an operating loss for the nine months ended September 30, 2008 of $25.3 million compared to $18.8 million for the same period in 2007 and $9.0 million for the quarter ended September 30, 2008 compared to $6.5 million for the same period in 2007. The increase is primarily attributable to lower revenue for the quarter and increased development costs associated with the planned introduction of PicoP enabled products. The increased development costs include increased headcount in strategic sourcing, supplier quality and business development as well as increased material costs consistent with product commercialization.

The company reported a net loss of $22.7 million for the nine months ended September 30, 2008 compared to $13.8 million for the same period in 2007 and $8.4 million for the quarter ended September 30, 2008 compared to $4.7 million for the same period in 2007. The net loss for the nine months and quarter ended September 30, 2007 included a gain on the company’s sale of its investment in Lumera Corporation of $6.4 million and $434,000, respectively. Excluding this gain, the adjusted net loss for the nine months and quarter ended September 30, 2007 was $20.2 million and $5.2 million, respectively.

The net loss per share was $0.38 for the nine months ended September 30, 2008 compared to $0.29 for the same period in 2007 and $0.13 for the quarter ended September 30, 2008 compared to $0.08 for the same period in 2007. Excluding the gain on the sale of Lumera of $0.13 and $0.01, respectively, for the nine and three months ended September 30, 2007, the adjusted net loss per share was $0.42 and $0.09, respectively.

Net cash used in operating activities was $22.3 million for the nine months ended September 30, 2008 compared to $16.6 million for the same period in 2007. The company ended the quarter with $37.2 million in cash, cash equivalents, and investment securities.

Financial Results

For the six months ended June 30, 2008, the company reported revenue of $4.2 million compared to $4.9 million for the same period in 2007 and for the three months ended June 30, 2008, the company reported revenue of $1.6 million compared to $2.7 million for the same period in 2007. As of June 30, 2008, the backlog totaled $679,000 compared to $7.7 million at June 30, 2007. The decrease in backlog from 2007 is primarily attributed to completion of government and commercial development contracts in 2007 and early 2008. Many of the company’s customers are currently using the prototypes that were delivered under these contracts to market Microvision’s PicoP technology to their customers with the goal of determining the next steps in the commercialization process.

The company reported an operating loss for the six months ended June 30, 2008 of $16.4 million compared to $12.3 million for the same period in 2007 and $9.3 million for the quarter ended June 30, 2008 compared to $6.3 million for the same period in 2007. The increase is primarily attributable to lower revenue for the quarter and increased development costs and increased headcount in Strategic Sourcing, and Business Development associated with the planned introduction of PicoP enabled products.

The company reported a net loss of $14.3 million for the six months ended June 30, 2008 compared to $9.0 million for the same period in 2007 and $9.3 million for the quarter ended June 30, 2008 compared to $2.2 million for the same period in 2007. The net loss for the three and six months ended June 30, 2007 included a gain on the company’s sale of its investment in Lumera Corporation of $6.0 million. Excluding this gain, the adjusted net loss for the six months and three months ended June 30, 2007 was $15.0 million and $8.1 million, respectively. The net loss per share was $0.25 for the six months ended June 30, 2008 compared to $0.21 for the same period in 2007 and $0.16 for the quarter ended June 30, 2008 compared to $0.05 for the same period in 2007. Excluding the gain on the sale of Lumera of $0.14 per share, the adjusted net loss per share was $0.35 and $0.19, respectively, for the six months and quarter ended June 30, 2007.

Net cash used in operating activities was $14.9 million for the six months ended June 30, 2008 compared to $11.5 million for the same period in 2007. Cash used in operating activities during the second quarter included a total of approximately $1.8 million from annual payments to a MEMS development partner and employee bonuses for 2007, as well as increased investment in operational infrastructure to support the planned commercial product introduction. The company ended the quarter with $20.7 million in cash, cash equivalents, and investment securities and added approximately $24.2 million in net proceeds from its sale of common stock and warrants in July 2008.

Financial Results

For the three months ended March 31, 2008, the company reported revenue of $2.6 million compared to $2.2 million for the same period in 2007. As of March 31, 2008, the backlog totaled $1.9 million compared to $6.9 million at March 31, 2007. The decrease in backlog from 2007 is primarily attributed to completion of government and commercial development contracts in 2007 and early 2008. Many of the company’s customers are currently using the deliverables that resulted from these contracts to market Microvision’s PicoP technology to their customers with the goal of determining the next steps in the commercialization process.

The company reported an operating loss for the quarter ended March 31, 2008 of $7.1 million compared to $6.0 million for the same period in 2007. The increase is primarily attributable to increased headcount in Research and Development (R&D), Strategic Sourcing, and Business Development and other R&D costs as the company prepares for initial commercial introduction of the accessory product.

The company reported a net loss of $5.0 million for the quarter ended March 31, 2008 compared to $6.9 million for the same period in 2007. The net loss per share was $0.09 for the quarter ended March 31, 2008 compared to $0.16 for the same period in 2007.

Net cash used in operating activities was $5.3 million for the quarter ended March 31, 2008 compared to $5.6 million for the same period in 2007. The company ended the quarter with $30.1 million in cash, cash equivalents, and investment securities.

Financial Results

For the year ended December 31, 2007, the company reported revenue of $10.5 million compared to $7.0 million for the same period in 2006 and $3.0 million for the three months ended December 31, 2007 compared to $1.8 million for the same period in 2006. As of December 31, 2007, the backlog totaled $4.1 million compared to $7.1 million at December 31, 2006.

The company reported an operating loss for the year ended December 31, 2007 of $26.7 million compared to $29.0 million for the same period in 2006 and $7.9 million for both the three months ended December 31, 2007 and December 31, 2006.

The company reported a net loss available to common shareholders of $19.8 million for the year ended December 31, 2007 compared to $27.3 million for the same period in 2006 and $6.0 million for the three months ended December 31, 2007 compared to $8.7 million for the same period in 2006. The net loss per share was $0.40 for the year ended December 31, 2007 compared to $0.81 for the same period in 2006 and $0.11 for the three months ended December 31, 2007 compared to $0.21 for the same period in 2006.

Net cash used in operating activities was $21.3 million for the year ended December 31, 2007 compared to $27.1 million for the same period in 2006 and $4.7 million for the three months ended December 31, 2007 compared to $5.8 million for the same period in 2006. The company ended the year with $35.8 million in cash, cash equivalents and investment securities.