Notes from the Wainwright Presentation

Here is some highlighted commentary from Mr. Mulligan during yesterday's presentation, linked above. 

When you think of Augmented and/or Mixed Reality, versus Virtual Reality, everything I read says that that technology will experience an inflection point sometime in the future, 2020, 2021.

If you believe that is the case, from the people who are developing these solutions, they tell me that MEMS-based laser beam scanning engine is the only technology that meets the form factor, power and weight requirements to support augmented and mixed reality.

(After Interactive Projection video)
For those technically inclined in the group, please recognize there’s no computer augmentation there, that’s connected to a Samsung Galaxy phone and the inputs and the outputs are simply the cables that provide the video control and the voice recognition from that device. So it’s an Alexa Developer that’s running on that app.

We think that we’re going to get a little bit of traction with that [Interactive Projection]. We think it makes it a lot easier for users to interact with the technology. Anybody that’s tried to do any kind of ordering using voice only will recognize that’s a pretty limited experience today.

So we think we’re getting some awareness from people like Google and Amazon about how they can make their experiences better for their customers.

We have heard from that Tier 1 customer that the $10M pre-pay that they provided us for component purchases, they’ll just consume that as they launch product in 2019, so they’re still of that plan that they’ll execute that launch once the development is complete.

One of the things that we’ve done over the years is there’ve been times as a company that we’ve over-committed and under-delivered. I want to reaffirm to you that that is not the case now. We are doing what we said we are going to do. We’ve brought the technology at the pace required to make it relevant to the market as it’s required and we remain committed to strive to be profitable at some point in time in 2019. And I’m pleased to say that that’s a true statement today as well.

Question on revenue required for profitability

Historically we’ve advertised that our burn rate might be $7-7.5M a quarter.
Module margins in the range of 35-40%, or component margins in the range of 30%, somewhere in the range of $20-25-30M in that range in a quarter would be adequate and sufficient to cover the burn, depending on product mix.