MicroVision Announces First Quarter 2013 Results

  MicroVision Announces First Quarter 2013 Results

   Development Agreement with Leading Electronics OEM Brand and Significant
         Reduction in Operating Expenses Set Stage for Future Growth

Business Wire

REDMOND, Wash. -- May 02, 2013

MicroVision, Inc. (NASDAQ: MVIS), a leader in innovative ultra-miniature
projection display technology, today announced its operating and financial
results for the first quarter of 2013 and the advancement of its 2013 business
objectives.

The company made demonstrable progress on its objectives of securing licensing
design wins and aggressively managing costs and cash used in operations. On
April 3, 2013 MicroVision announced a development agreement with a major
electronics company to incorporate MicroVision’s patented PicoP® display
technology into a display engine that could enable a variety of new products
from this Fortune Global 100 company. This agreement includes $4.6 million in
fees for MicroVision’s support to the original equipment manufacturer (OEM) in
its development of a display engine based on patented PicoP display
technology. The companies have begun commercial negotiations with the
expectation that licensing and component supply agreements would constitute
the next stage of engagement leading to the OEM’s introduction of commercial
products incorporating PicoP display technology.

In line with its objective of managing costs, MicroVision realized a reduction
in the quarterly operating and net losses of 63 percent compared to the same
quarter in 2012 as a result of improved gross margin and reduction in
operating expenses. The company continues to realize the benefits from the
significant cost-reduction measures from the past year including a
restructuring in 2012 to align to its ingredient brand “Image by PicoP®”
licensing business model.

“We showed strong progress in the first quarter on our key objectives,” said
Alexander Tokman, president and CEO of MicroVision. “The combination of
improved green laser supply, the transition to our core business model and the
evolving mobility ecosystem facilitated our ability to attract global OEMs.
Additionally we were able to significantly lower our operating expenses and
improve on critical financial metrics.”

Under the ingredient brand business model, MicroVision would license its
patented PicoP display technology and sell key display engine components to
customers to integrate into their products. MicroVision has provided samples
to a number of potential customers in the consumer electronics and automotive
markets and continues its discussions and negotiations to potentially secure
additional design wins this year.

Market dynamics in the consumer electronics and automotive segments are seeing
positive advances that align to potential growth opportunities for
MicroVision. According to industry sources, consumer interest in watching
video content from mobile devices has continued to grow at double digit rates.
FierceOnlineVideo recently reported on AccuStream Research’s findings that the
digital video viewing audience grew 20.3 percent in 2012, topping the 500
billion view mark and encompasses content that is both professionally produced
such as TV and movies and user-generated content such as YouTube videos. On
the head-up display (HUD) front, rapid growth is expected on the horizon as
well as reported in a recent Wall Street Journal article by Chester Dawson.
The article noted that according to Masahiro Ohta, an analyst at Tokyo-based
research firm Fuji Chimera Research Institute, HUD sales in 2012 exceeded
800,000 units, and demand is expected to rise to 10 times that level over the
next decade. “The traditional dashboard-embedded instrument panel behind the
steering wheel could disappear altogether in favor of HUDs within the next 20
years,” Mr. Ohta said.

Financial Results

The following financial results are for the three months ended March 31, 2013,
compared to the same period one year earlier.

  *Revenue was $1.8 million, compared to $1.7 million a year ago, primarily
    from fulfillment of orders to Pioneer Corporation and performance under
    the recently announced development agreement.
  *Operating loss was $3.7 million, compared to $9.8 million for the same
    quarter a year ago.
  *Net loss was $3.7 million, or $0.14 per share, compared to $9.8 million,
    or $0.58 per share for the same quarter a year ago.
  *Cash used in operations was $3.5 million during the quarter ended March
    31, 2013, compared to $6.2 million for the first quarter of 2012.

As of March 31, 2013, backlog was $5.1 million and cash and cash equivalents
were $3.3 million.

Conference Call

The company will host a conference call today to discuss its first quarter
2013 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
34764347. A live webcast of the call can be accessed from the company's web
site in the Investor Events Calendar section on the Investor’s page. 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 34764347#.

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
contract benefits and negotiations, strategy, expected market interest and
growth, and future product and technology development and sales, and those
containing words such as “expects,” 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: we may be unable to
successfully perform our obligations under the agreement, our contract party
may not perform its obligations under the agreement, 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 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)


                                              March 31,      December 31,
                                                 2013             2012
                                                                  
Assets
Current Assets
Cash and cash equivalents                        $ 3,310          $ 6,850
Accounts receivable, net of allowances             1,506            1,115
Costs and estimated earnings in excess of          12               12
billings on uncompleted contracts
Inventory                                          217              497
Other current assets                              699            1,221    
Total current assets                               5,744            9,695
                                                                  
Property and equipment, net                        1,003            1,205
Restricted cash                                    435              436
Intangible assets                                  1,540            1,580
Other assets                                      18             22       
Total assets                                     $ 8,740         $ 12,938   
                                                                  
                                                                  
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable                                 $ 2,314          $ 3,035
Accrued liabilities                                3,501            4,007
Deferred revenue                                   363              609
Billings in excess of costs and estimated          692              98
earnings on uncompleted contracts
Current portion of capital lease                   51               48
obligations
Current portion of long-term debt                 42             67       
Total current liabilities                          6,963            7,864
                                                                  
Capital lease obligations, net of current         5              20       
portion
Total liabilities                                 6,968          7,884    
                                                                  
Commitments and contingencies
                                                                  
Shareholders' Equity
Common stock at par value                          25               25
Additional paid-in capital                         442,932          442,560
Accumulated deficit                               (441,185 )      (437,531 )
Total shareholders' equity                        1,772          5,054    
Total liabilities and shareholders' equity       $ 8,740         $ 12,938   
                                                                  


MicroVision, Inc.

Statement of Operations
(In thousands, except earnings per share data)
(Unaudited)


                                               Three months ended March 31,
                                                  2013            2012
                                                                    
Product revenue                                   $  1,219          $ 1,529
Contract revenue                                     282              201
Development revenue                                 300            -      
Total revenue                                       1,801          1,730  
                                                                    
Cost of product revenue                              664              4,175
Cost of contract revenue                            137            155    
Total cost of revenue                               801            4,330  
                                                                    
Gross margin                                        1,000          (2,600 )
                                                                    
                                                                    
Research and development expense                     2,252            3,940
Sales, marketing, general and                        2,403            3,288
administrative expense
Gain on disposal of fixed assets                    (2      )       -      
Total operating expenses                            4,653          7,228  
                                                                    
Loss from operations                                 (3,653  )        (9,828 )
                                                                    
Other income (expense)                              (1      )       25     
                                                                    
Net loss                                          $  (3,654  )      $ (9,803 )
                                                                    
Net loss per share - basic and diluted            $  (0.14   )      $ (0.58  )
                                                                    
Weighted-average shares outstanding - basic         25,240         17,027 
and diluted

Contact:

MicroVision, Inc.
Dawn Goetter, 425-882-6629 (investors)
or
Edelman
Joani Jones, 503-471-6863 (media/PR)
 
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