MicroVision Announces 2012 Results and 2013 Objectives

  MicroVision Announces 2012 Results and 2013 Objectives

   Company achieves 49 percent year over year revenue growth and 26 percent
                     reduction in cash used in operations

Business Wire

REDMOND, Wash. -- February 27, 2013

MicroVision, Inc. (NASDAQ:MVIS), a leader in innovative ultra-miniature
projection display technology, today announced its 2012 operating and
financial results and an overview of its 2013 business objectives.

2012 Notable Operating Achievements

In 2012, MicroVision saw year over year revenue growth of 49 percent and a 26
percent decrease in cash used in operations. These improved operating results
are related to fulfillment of existing orders and the transition to and
restructuring around the company’s “Image by PicoP^®” ingredient brand
licensing model. Transitioning to this business model whereby MicroVision
licenses its patented PicoP^® display technology, sells key components and
receives royalties was one of the company’s three key goals for 2012.

Under this licensing business model, MicroVision had fourth quarter revenue of
$2.7 million primarily from fulfillment of orders to Pioneer Corporation.
High-definition PicoP^® Gen2 display engines based on direct green lasers were
brought to market as part of Pioneer’s Carozzeria Cyber Navi car navigation
system, the world’s first head-up display (HUD) to project augmented reality
information in front of the windshield. With the July 2012 introduction of
this product, MicroVision achieved its second 2012 goal to launch PicoP Gen2
display technology. The company also continued advancing PicoP display
technology defining a path for higher brightness, lower power consumption,
smaller size, lower cost and advanced features.

MicroVision made significant progress as well in pursuit of its third goal for
2012 to secure original equipment manufacturer (OEM) commitments to design
products using PicoP display technology. The company shipped samples for
evaluation to more than 50 customers, the majority of which are in
MicroVision’s primary target markets of consumer electronics (CE) and
automotive. Initial shipments began in late February last year and escalated
as the year progressed. The bulk of the samples were shipped in the second
half of 2012.

Delivery of samples for evaluation is the first step in the company’s design
win process which encompasses multiple phases including evaluation,
negotiation, product development and commercialization. MicroVision has moved
to the negotiation phase with its top priority customers from those that
indicated a desire to move forward following the evaluation phase. The company
also continues to engage with other customers as they evaluate the technology.

“The progress we made in 2012 to advance PicoP display technology, improve our
operating results and transition to our licensing business model form a solid
foundation for further advancement with OEMs in 2013,” said Alexander Tokman,
president and CEO of MicroVision. “We are in discussions with multiple OEMs in
our target markets and with ODMs and suppliers who can enable OEMs to
integrate PicoP display technology into their products.”

2012 Financial Results

MicroVision reported the following financial results for the fourth quarter
and year ended December 31, 2012, compared to the same periods one year ago.

  *Grew annual revenue to $8.4 million in 2012, compared to $5.6 million in
    2011. Revenue for the fourth quarter of 2012 was $2.7 million, compared to
    $1.5 million for the same quarter in 2011.
  *Reduced operating loss to $22.9 million for 2012, compared to $36.0
    million in 2011, and $4.1 million for the fourth quarter of 2012, compared
    to $9.9 million for the same quarter in 2011. The decrease in operating
    loss for 2012 was driven by higher margins on shipments to Pioneer and
    lower operating cost associated with transitioning to an ingredient brand
    licensing strategy.
  *Reduced net loss to $22.7 million, or $1.05 per share, compared to $35.8
    million, or $2.57 per share for the prior year and $4.1 million, or $0.16
    per share, compared to $9.8 million, or $.62 per share for the same
    quarter a year ago.
  *Decreased cash used in operations to $20.6 million in 2012, compared to
    $27.9 million for 2011, reflecting a 26% decrease from a year ago.

As of December 31, 2012, backlog was $1.8 million and cash and cash
equivalents were $6.8 million.

2013 Objectives and Outlook

MicroVision’s key goals for 2013 include:

  *Secure design wins and enter into licensing agreements.
  *Strengthen the supply chain for key components of PicoP display technology
    to offer multiple sources to OEMs as they prepare to bring their products
    to market.
  *Aggressively manage cash used in operations.

The ecosystem for pico projection continues to evolve and 2012 saw significant
forward movement. Studies continue to show that consumer consumption of video
on mobile devices is rapidly increasing. According to Cisco’s recently
published Visual Networking Index, mobile video will generate over 66 percent
of mobile data traffic by 2017 and have the highest compound annual growth
rate of any mobile application category in Cisco’s forecast. The Harvard
Business Review also recently published an article that broke down consumer
use of mobile devices into what the study deemed seven primary motivations
with the vast majority of the use being dedicated to “me time” for relaxation
and entertainment including viewing of short videos. The finding that 68% of
time engaged in this activity takes place at home indicates that accessing
web-based content from a mobile device is becoming an intrinsic use case for
people, not a convenience model when away from a desktop.

These trends along with the increasing availability of smartphones with
video-out capabilities and the number of smartphones touting larger screen
size as a selling feature are all factors that could pave the way for
increased demand for pico projection. Achieving the commercialization
milestone for PicoP Gen2 display technology and the availability of direct
green lasers from two sources with additional suppliers indicating their
intentions to enter the market are factors that strengthen the potential for
adoption of PicoP display technology by OEMs.

Conference Call

The company will host a conference call today to discuss its financial and
operating results for 2012, 2013 business objectives 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 34315398. A live
webcast of the call can be accessed from the investor page of the company’s
web site. A replay of this call will be available after 8:00 a.m. PT the day
of the conference call through the same link or by calling 888-843-7419 (U.S.)
or (International) +1-630-652-3042, pass code 34315398#.

About MicroVision

MicroVision is the creator of PicoP® display technology, an ultra-miniature
laser projection solution for mobile consumer electronics, automotive head-up
displays and other applications. MicroVision’s patented display technology
helps OEMs break down display boundaries and offer enhanced visibility to
mobile experiences. Nearly two decades of research has led MicroVision to
become an independently recognized leader in the development of intellectual
property. MicroVision’s IP portfolio has been recognized by the Patent Board
as a top 50 IP portfolio among global industrial companies and is also
included in the Ocean Tomo 300 Patent Index. The company is based in Redmond,
Wash.

For more information, visit the company’s website at www.microvision.com, on
Facebook at www.facebook.com/MicroVisionInc or follow MicroVision on Twitter
at @MicroVision.

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 commercial contracting, operating results, and
product commercialization, which includes the risk that no definitive
agreements result from the memorandum of understanding, and those using words
such as “goals,” “could,” “potential,” and “will” 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; 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)
                                         December 31,             December 31,
                                           2012                     2011
                                                                  
Assets
Current Assets
Cash and cash equivalents                $ 6,850                  $ 13,075
Accounts receivable, net of                1,115                    463
allowances
Costs and estimated earnings in
excess of billings on                      12                       70
uncompleted contracts
Inventory                                  497                      4,254
Other current assets                      1,221                  793      
Total current assets                       9,695                    18,655
                                                                  
Property and equipment, net                1,205                    2,347
Restricted cash                            436                      786
Intangible assets                          1,580                    2,048
Other assets                              22                     34       
Total assets                             $ 12,938                $ 23,870   
                                                                  
                                                                  
Liabilities and Shareholders'
Equity
Current Liabilities
Accounts payable                         $ 3,035                  $ 7,341
Accrued liabilities                        4,007                    5,113
Deferred revenue                           609                      -
Billings in excess of costs and
estimated earnings on                      98                       156
uncompleted contracts
Current portion of capital lease           48                       39
obligations
Current portion of long-term              67                     93       
debt
Total current liabilities                  7,864                    12,742
                                                                  
Capital lease obligations, net             20                       72
of current portion
Long-term debt, net of current             -                        67
portion
Deferred rent, net of current             -                      187      
portion
Total liabilities                         7,884                  13,068   
                                                                  
Commitments and contingencies
                                                                  
Shareholders' Equity
Common stock at par value                  25                       17
Additional paid-in capital                 442,560                  425,658
Accumulated other comprehensive            -                        (35      )
loss
Accumulated deficit                       (437,531 )              (414,838 )
Total shareholders' equity                5,054                  10,802   
Total liabilities and                    $ 12,938                $ 23,870   
shareholders' equity
                                                                  

                                                                  
MicroVision, Inc.
                                                                                   
Statement of Operations
(In thousands, except earnings per share data)
(Unaudited)
                                                                                   
                                                                                   
                       Three months ended Dec. 31,             Twelve months ended Dec. 31,
                         2012               2011                 2012                2011
                                                                                   
                                                                                   
Product revenue        $ 2,405            $ 1,023              $ 6,782             $ 4,338
Contract revenue        322              481                1,583             1,279   
Total revenue           2,727            1,504              8,365             5,617   
                                                                                   
Cost of product          1,304              3,932                6,085               11,640
revenue
Cost of contract        185              494                839               1,425   
revenue
Total cost of           1,489            4,426              6,924             13,065  
revenue
                                                                                   
Gross margin            1,238            (2,922 )            1,441             (7,448  )
                                                                                   
                                                                                   
Research and
development              2,871              3,833                13,135              15,279
expense
Sales,
marketing,
general and              2,475              3,132                11,252              13,314
administrative
expense
Gain on disposal        (32    )          -                  (79     )          (11     )
of fixed assets
Total operating         5,314            6,965              24,308            28,582  
expenses
                                                                                   
Loss from                (4,076 )           (9,887 )             (22,867 )           (36,030 )
operations
                                                                                   
Other income            2                81                 174               222     
(expense)
                                                                                   
Net loss               $ (4,074 )         $ (9,806 )           $ (22,693 )         $ (35,808 )
                                                                                   
Net loss per
share - basic          $ (0.16  )         $ (0.62  )           $ (1.05   )         $ (2.57   )
and diluted
                                                                                   
Weighted-average
shares
outstanding -           25,135           15,880             21,595            13,919  
basic and
diluted

Contact:

MicroVision, Inc.
Dawn Goetter, 425-882-6629 (investors)
or
Edelman
Callie Bruhn, 503-471-6816 (media/PR)
 
Press spacebar to pause and continue. Press esc to stop.