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3Q 2004 Financial Results Conference Call
Brian Heagler: Welcome – forward looking statements disclaimer
Rick Rutkowski: Will focus on MVIS (rather than LMRA) revenue in call. [Explains MVIS/LMRA revenue recognition relationship.] LMRA going forward will not affect MVIS cash flow. Carrying 11.2M value of LRMA on balance sheet is based on book value of the stock, not market value. MVIS owns 5.5M shares ($42M worth) of LMRA stock.
Revenue for MVIS for 3Q04 was $2.6M
$2.1M in contract revenue.
Prod revenue was $572k.
$224k from Nomad,
$340k from Flic.
Expect to receive $2M Kiowa Warrior contract.
Backlog $3.2M,
$2.9M for contracts,
$194k for Nomad
$86k for Flic
Consolidated net loss $10.1M or $.46/share
Includes inventory write-offs for parts obsolescence.
$400 scanner replaced with $100 part. Includes start-up cost for Nomad production line.
Increase in sales/mktg of $1M for Nomad launch. Plan to focus squarely on go-to-market strategy.
[Explains net loss attributable to LMRA]
Cash used in operations was $7.1M.
Cash burn lower going forward due to increase in product sales and lack of one time items.
Ended quarter with $8.8M in cash.
Exceptionally low level of total defects per unit.
Prognosis for business going forward.
Frame discussion around two business components:
Finished goods products (Nomad, Flic).
OEM display and imaging solutions – sell module to be integrated into OEM product (MicroHUD, Canon EVF, Laser Printer engine, Laser camera, micro camera)
Focused on driving both segments.
OEM Solutions:
Relates to contract revenue model. US DOD and major partners. Strategic objective to advance tech towards specific solution and achieve design win for volume production and associated revenue. 1H04 contract revenue lower due to Kiowa Warrior contract delay. Put contract revs on track, sequential increase in Q3, Q4. New bookings for Q4 and 1H05 look very encouraging include Kiowa Warrior.
Strategic results: moving towards design wins. Progress very very encouraging in every one: MicroHUD (BMW, VW/Audi, Tier 1 supplier) significant milestones, HUDs in 4 vehicles in 2005 across multiple brands.
Consumer displays: for Canon, display is 9M pixels (rather than 7.6M). scans arrays of lightsources. Multizone allows very high resolution. Gaming product and entertainment wearable displays. Very exciting product opportunities in that area.
Laser Print Engine: successful delivery. Achieved very tough milestones. Expect follow on contract.
Laser Camera, Laser Microcamera. Talking about 3mm diameter camera with 1.2M resolution. Very compelling features for medical applications that we’ve worked with in the past.
Strong potential for development activity leading to design wins in this area as well.
Emphasis is convert contracts into solutions for OEMs.
Upside surprises for design wins. Very encouraged.
$6.4M in congressional appropriations for 2005
$2M on Kiowa Warrior
Transportation bill candidate for congressional mark.
DOD work quite well funded for 2005
Commercial repeat and new business looking very good.
Strong interest in Laser Microcamera. Will talk more about that.
Under contract now for systems definition to complete before the end of the year.
Steve Willey will talk about some of the work in Asia:
SW: completed deliverable to Canon. Sudden interest in the market place. Increase in tempo of activity. Large companies approaching Microvision. Shift to clear definition/application for customers for consumers. Viewfinder, Wearable displays, Display engines for 70" diagonal Laser TV applications. Ongoing discussions very serious for all three applications.
Growing awareness – critical mass of interest of MVIS in Asia. Respect for work done over the last couple of years. MVIS viewed as unique and powerful solution provider. Intel and Phillips leaving market for LCOS. MVIS holds key patents in area. Focus on MVIS IP portfolio.
3rd reason for interest are enabling tech driving the industry. 3G Wifi, Wimax, digital satellite tv, ipod like solutions. 2” miniature lcd display is a bottleneck. Consumer wants laptop screen in ipod form factor.
RR: Customers have concluded that requirements can not be met with miniature LCD displays. Performance price and package are limitations of LCDs. Entering market when needs are being validated and means to satisy needs from competitors are being discarded. [Only MVIS can meet microdisplay needs].
2005 could start to accumulate more of contract backlog. Don’t pursue lots of small contracts but pursue large contracts. Lumpiness from boulders moving in and out of position. Serious sponsored investment of development leading to design wins.
Brian Heagler: Welcome – forward looking statements disclaimer
Rick Rutkowski: Will focus on MVIS (rather than LMRA) revenue in call. [Explains MVIS/LMRA revenue recognition relationship.] LMRA going forward will not affect MVIS cash flow. Carrying 11.2M value of LRMA on balance sheet is based on book value of the stock, not market value. MVIS owns 5.5M shares ($42M worth) of LMRA stock.
Revenue for MVIS for 3Q04 was $2.6M
$2.1M in contract revenue.
Prod revenue was $572k.
$224k from Nomad,
$340k from Flic.
Expect to receive $2M Kiowa Warrior contract.
Backlog $3.2M,
$2.9M for contracts,
$194k for Nomad
$86k for Flic
Consolidated net loss $10.1M or $.46/share
Includes inventory write-offs for parts obsolescence.
$400 scanner replaced with $100 part. Includes start-up cost for Nomad production line.
Increase in sales/mktg of $1M for Nomad launch. Plan to focus squarely on go-to-market strategy.
[Explains net loss attributable to LMRA]
Cash used in operations was $7.1M.
Cash burn lower going forward due to increase in product sales and lack of one time items.
Ended quarter with $8.8M in cash.
Exceptionally low level of total defects per unit.
Prognosis for business going forward.
Frame discussion around two business components:
Finished goods products (Nomad, Flic).
OEM display and imaging solutions – sell module to be integrated into OEM product (MicroHUD, Canon EVF, Laser Printer engine, Laser camera, micro camera)
Focused on driving both segments.
OEM Solutions:
Relates to contract revenue model. US DOD and major partners. Strategic objective to advance tech towards specific solution and achieve design win for volume production and associated revenue. 1H04 contract revenue lower due to Kiowa Warrior contract delay. Put contract revs on track, sequential increase in Q3, Q4. New bookings for Q4 and 1H05 look very encouraging include Kiowa Warrior.
Strategic results: moving towards design wins. Progress very very encouraging in every one: MicroHUD (BMW, VW/Audi, Tier 1 supplier) significant milestones, HUDs in 4 vehicles in 2005 across multiple brands.
Consumer displays: for Canon, display is 9M pixels (rather than 7.6M). scans arrays of lightsources. Multizone allows very high resolution. Gaming product and entertainment wearable displays. Very exciting product opportunities in that area.
Laser Print Engine: successful delivery. Achieved very tough milestones. Expect follow on contract.
Laser Camera, Laser Microcamera. Talking about 3mm diameter camera with 1.2M resolution. Very compelling features for medical applications that we’ve worked with in the past.
Strong potential for development activity leading to design wins in this area as well.
Emphasis is convert contracts into solutions for OEMs.
Upside surprises for design wins. Very encouraged.
$6.4M in congressional appropriations for 2005
$2M on Kiowa Warrior
Transportation bill candidate for congressional mark.
DOD work quite well funded for 2005
Commercial repeat and new business looking very good.
Strong interest in Laser Microcamera. Will talk more about that.
Under contract now for systems definition to complete before the end of the year.
Steve Willey will talk about some of the work in Asia:
SW: completed deliverable to Canon. Sudden interest in the market place. Increase in tempo of activity. Large companies approaching Microvision. Shift to clear definition/application for customers for consumers. Viewfinder, Wearable displays, Display engines for 70" diagonal Laser TV applications. Ongoing discussions very serious for all three applications.
Growing awareness – critical mass of interest of MVIS in Asia. Respect for work done over the last couple of years. MVIS viewed as unique and powerful solution provider. Intel and Phillips leaving market for LCOS. MVIS holds key patents in area. Focus on MVIS IP portfolio.
3rd reason for interest are enabling tech driving the industry. 3G Wifi, Wimax, digital satellite tv, ipod like solutions. 2” miniature lcd display is a bottleneck. Consumer wants laptop screen in ipod form factor.
RR: Customers have concluded that requirements can not be met with miniature LCD displays. Performance price and package are limitations of LCDs. Entering market when needs are being validated and means to satisy needs from competitors are being discarded. [Only MVIS can meet microdisplay needs].
2005 could start to accumulate more of contract backlog. Don’t pursue lots of small contracts but pursue large contracts. Lumpiness from boulders moving in and out of position. Serious sponsored investment of development leading to design wins.
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