MicroVision Announces Third Quarter 2012 Results

  MicroVision Announces Third Quarter 2012 Results

    Year over year revenue increases by over 40 percent while cash used in
                    operations drops by nearly 40 percent

Business Wire

REDMOND, Wash. -- November 05, 2012

MicroVision, Inc. (NASDAQ:MVIS), a leader in innovative ultra-miniature
projection display technology, today announced its operating and financial
results for the third quarter of 2012 and the advancement of its 2012 business
objectives.

During the third quarter, MicroVision reported revenue of $2.6 million
resulting primarily from fulfillment of orders to Pioneer Corporation in
support of its Cyber Navi car navigation system. Revenue for the third quarter
represents an increase of over 40 percent from the same period one year ago.
Cash used in operations was reduced to $3.9 million, nearly a 40 percent
decrease from a year ago and more than 40 percent from the previous quarter.

Also in the quarter, MicroVision and Intersil Corporation announced an
agreement to partner on the development of advanced integrated chipsets
(ASICS) for MicroVision’s patented high definition (HD) PicoP^® display
technology. Through this cooperation with Intersil, the company expects to
offer PicoP display technology with much higher brightness while
simultaneously lowering power usage without increasing the size of the display
engine. This combination should enhance the mobility value proposition of
PicoP display technology by allowing consumers to use their devices for a
longer period of time in brighter conditions.

Recently Osram Opto Semiconductor announced commercial availability of direct
green lasers, a key component for PicoP display technology. Osram is the
second commercial source of direct green lasers introduced in 2012. As
MicroVision licenses its technology to Original Equipment Manufacturers and
Original Design Manufacturers, commercial availability of direct green lasers
is an important milestone in bringing PicoP display technology to market.

Financial Results

The following financial results are for three and nine months ended September
30, 2012, compared to the same periods one year earlier.

  * Revenue was $2.6 million for the third quarter of 2012, compared to $1.8
    million for the third quarter of 2011, and $5.6 million for the first nine
    months of 2012, compared to $4.1 million for the first nine months one
    year ago. Backlog was $4.5 million as of September 30, 2012.
  * Operating loss was $4.0 million for the third quarter, compared to $7.8
    million for the same quarter a year ago, and $18.8 million for the first
    nine months of 2012, compared to $26.1 million for the first nine months
    of 2011.
  * Net loss was $3.8 million, or $0.15 per share, for the quarter, compared
    to $7.8 million, or $0.57 per share, for the same quarter a year ago. Net
    loss was $18.6 million, or $0.91 per share, for the first nine months of
    2012, compared to $26.0 million, or $1.96 per share, for the first nine
    months of 2011. The per share numbers have been adjusted for the reverse
    stock split which became effective February 17, 2012.

For the nine months ended September 30, 2012, cash used in operations was
$17.0 million, compared to $21.8 million for the same period in 2011. For the
third quarter of 2012, cash used in operations was $3.9 million, compared to
$6.3 million for the same period in 2011. The reduction in cash used in
operations is consistent with the steps the company has taken to align to its
ingredient brand business model.

As of September 30, 2012, cash and cash equivalents were $10.7 million.

Conference Call

The company will host a conference call today to discuss its third quarter
2012 results and current business operations at 8:30 a.m. ET / 5:30 a.m. PT.
Participants may join the conference call by dialing 800-446-1671 (for U.S.
participants) or +1-847-413-3362 (for international participants) ten minutes
prior to the start of the call. The conference call pass code number is
33545572. The call will also be broadcast over the Internet and can be
accessed from the company's web site at www.microvision.com/investors. The
webcast and information needed to access the telephone replay will be
available through the same link approximately one hour after the conference
call concludes.

About MicroVision

MicroVision provides the PicoP® display technology platform designed to enable
next-generation display and imaging products for consumer devices, vehicle
displays and wearable displays. The company’s patented PicoP display
technology combines a MEMS scanning mirror with highly efficient laser light
sources to create vivid images with high contrast and brightness.

MicroVision is an independently recognized leader in the development of
intellectual property. MicroVision has been recognized by IEEE as a top 20 IP
portfolio among all global electronics companies, and the top U.S. Company in
the rankings. MicroVision’s intellectual property portfolio has also been
recognized by the Patent Board, in association with the Wall Street Journal,
as a top 50 IP portfolio among all global industrial companies. The Patent
Board has developed more than 50 indicators that track global patent activity
relating to companies' innovation, technology, and science strengths.
MicroVision’s intellectual property portfolio is further recognized by having
been added to the Ocean Tomo 300 Patent Index. The Index is priced and
published by the NYSE Euronext (NYSE:OTPAT). The Index is objectively based on
the value of intellectual property compared to competitors.

For more information, visit us on:

Website: www.microvision.com

Blog: www.microvision.com/displayground

Twitter: www.twitter.com/microvision

Facebook: www.facebook.com/microvisioninc

YouTube: www.youtube.com/mvisvideo

MicroVision and PicoP® 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 those relating to
future product development and operating results and those using words such as
“scheduled,” “expects,” “should” and “designed,” are forward-looking
statements that involve a number of risks and uncertainties. Factors that
could cause actual results to differ materially from those projected in the
company's forward-looking statements include the following: our ability to
raise additional capital when needed; products incorporating our PicoP display
engine may not achieve market acceptance, commercial partners may not perform
under agreements as anticipated, we may be unsuccessful in identifying parties
interested in paying any amounts or amounts we deem desirable for the purchase
or license of IP assets, our or our customers failure to perform under open
purchase orders; our financial and technical resources relative to those of
our competitors; our ability to keep up with rapid technological change;
government regulation of our technologies; our ability to enforce our
intellectual property rights and protect our proprietary technologies; the
ability to obtain additional contract awards; 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 our products; potential product liability claims;
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 filed with the
SEC. Except as expressly required by federal securities laws, we undertake 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.

                                                                 
MicroVision, Inc.
                                                                   
Balance Sheet
(In thousands)
(Unaudited)
 
                                              September 30,       December 31,
                                              2012                2011
                                                                   
Assets
Current Assets
Cash and cash equivalents                     $  10,743           $ 13,075
Accounts receivable, net of allowances           979                463
Costs and estimated earnings in excess           12                 70
of billings on uncompleted contracts
Inventory                                        622                4,254
Other current assets                             606                793       
Total current assets                             12,962             18,655
                                                                   
Property and equipment, net                      1,465              2,347
Restricted cash                                  436                786
Intangible assets                                1,910              2,048
Other assets                                     22                 34        
Total assets                                  $  16,795           $ 23,870    
                                                                   
                                                                   
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable                              $  3,877            $ 7,341
Accrued liabilities                              4,087              5,113
Billings in excess of costs and
estimated earnings on uncompleted                86                 156
contracts
Current portion of capital lease                 46                 39
obligations
Current portion of long-term debt                91                 93        
Total current liabilities                        8,187              12,742
                                                                   
Capital lease obligations, net of                34                 72
current portion
Long-term debt, net of current portion           -                  67
Deferred rent, net of current portion            -                  187       
Total liabilities                                8,221              13,068    
                                                                   
Commitments and contingencies
                                                                   
Shareholders' Equity
Common stock at par value                        25                 17
Additional paid-in capital                       442,006            425,658
Accumulated other comprehensive loss             -                  (35      )
Accumulated deficit                              (433,457 )         (414,838 )
Total shareholders' equity                       8,574              10,802    
Total liabilities and shareholders'           $  16,795           $ 23,870    
equity
                                                                   

                                                                    
MicroVision, Inc.
                                                                      
Statement of Operations
(In thousands, except earnings per share data)
(Unaudited)
                                                                      
                       Three months ended Sept.      Nine months ended Sept. 30,
                       30,
                       2012           2011           2012            2011
                                                                      
Product revenue        $ 2,015        $ 1,525        $ 4,294         $ 3,315
Contract revenue         515            314            1,261           798
Royalty revenue          83             -              83              -        
Total revenue            2,613          1,839          5,638           4,113    
                                                                      
Cost of product          887            2,483          4,781           7,708
revenue
Cost of contract         251            237            654             931      
revenue
Total cost of            1,138          2,720          5,435           8,639    
revenue
                                                                      
Gross margin             1,475          (881   )       203             (4,526  )
                                                                      
                                                                      
Research and
development              3,097          3,641          10,264          11,446
expense
Sales,
marketing,
general and              2,425          3,306          8,777           10,182
administrative
expense
Gain on disposal         (46    )       (4     )       (47     )       (11     )
of fixed assets
Total operating          5,476          6,943          18,994          21,617   
expenses
                                                                      
Loss from                (4,001 )       (7,824 )       (18,791 )       (26,143 )
operations
                                                                      
Other income             156            34             172             141      
(expense)
                                                                      
Net loss               $ (3,845 )     $ (7,790 )     $ (18,619 )     $ (26,002 )
                                                                      
Net loss per
share - basic          $ (0.15  )     $ (0.57  )     $ (0.91   )     $ (1.96   )
and diluted
                                                                      
Weighted-average
shares
outstanding -            24,974         13,655         20,406          13,258   
basic and
diluted
                                                                                

Contact:

MicroVision, Inc.
Jeff Wilson, 425-882-6629 (investors)
or
Edelman
Callie Snyder, 503-471-6816 (media/PR)