Microsoft to hold HoloLens 2 press event next month

Mulligan, Holt Presentation Transcripts 9/5, 9/6

Here are PDF transcripts of last week's presentations:

HC Wainwright Presentation Transcript Perry Mulligan 9/5 New York

Liolios Conference Presentation Transcript Steve Holt 9/6 San Francisco

Excerpted Steve Holt commentary:

In the display only products we did in May of this year we licensed our display only technology to a company. Can’t give you the name, but it’s a major company that you would know. We licensed them the ability to make and sell our display only modules, for a five-year exclusive license for that. It’s a $10 million license fee that they paid, $5 million they paid back in June and another $5 million is due in October. We do expect to have some NRE related to that non-recurring engineering work where they want us to do various things for them. And we expect that that to be $3 million to $4 million of work. They will purchase components from us that they will then incorporate into their display only modules. And there’s a minimum requirement for them to maintain their exclusivity. If we put this in the context, people say, well, how much was that minimum requirement? We can’t give you the details on the quantities but we look at that and say that’s roughly $20 million of business to us [per year] in terms of selling them components if they maintain their minimum. So we should have $20 million of revenue [per year] plus or minus depends on product mix and various factors but that’s gets you in the ballpark of where we see that.

And you know some folks ask why this licensee? Part of it is that they share our go to market strategy of targeting tier 1 customers. We’re targeting tier 1 customers, customers that can move significant volume. And so, the licensee shares that philosophy of who to go after for customers. They have some of the right attributes as to be successful in this space. And one of them is the ability to produce at high levels and to bring costs down. And this company is a significant company with significant revenue and manufacturing expertise and the ability to bring the cost of these display only modules to the right space. And they have also the technical capabilities that are needed to be successful. And also there they have experience with dealing with tier one folks as well.

And then the other advantage here is that as they buy components from us for their customer that helps us reduce the cost of the products that we’re selling because our products and their products use many of the same components, same MEMS, asics and things like that. So we get some economies of scale from their volume going through the product.