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To my thinking, this conference call was a great success.
My concerns from yesterday are relieved. I would be shocked if we don't move much higher, and quickly...
I was able to take notes during the first half...no guarantees on my transcription accuracy:
1Q2003 Microvision Conference Call
RR: Calling in from overseas. 1Q2004 rev of $3.0M. $675k product revs for Flic.
Consolidated net loss $6.7M, .31c per share.
…numbers are final. $14.8M cash. $2.3M convertible note financing.
2nd quarter rev increase significantly due to Nomad orders. Flic and Nomad growing. Contracts in pipeline closing shortly. Nomad launch, a lot of energies are focused.
Significant technology developments, accelerating curve to maturation and technology developments.
Milestone, certification by American Honda of Nomad unit, sets wheels in motion for Honda’s rollout. Pleased with designation by Honda that Nomad is recommended tool. Honda will aggregate orders and come back to MVIS to place a volume order during the quarter.
Purchase orders for 85 units to date, continuing to ramp production, aiming for several hundred units in current quarter. Will produce 100-150 units per week. Eventually will go to 150-200 units per week.
Other OEMs, independent rep network has been created over the last couple months.
Strategy is to come at market direct to dealers and through OEMs. Availability and experience with Honda, plus momentum of selling direct to dealers should allow sales to be accelerated vs. Honda experience. Gm, Ford, Honda, Porsche, Volvo, Toyota dealers have units.
Andrew Lee: Sold more units to Toyota than any others. Initiatives, trials, ongoing here and in Europe with OEMs. Utilizing units to go to dealerships, OEMs ‘sandboxes’ putting units on techs, certification for OEMs, putting it on Service Mgrs and operations folks. Very well received in all places. Sales cycle between 60-90 days. Process is, certification, pre-orders, feet-on-the-street 50 new individuals to cover the US.
RR: Feet on street are independent sales reps that sell tech products to OEMs and dealers. Confident that these folks will sell. Several hundred unit prospect funnel. OEM sales cycle. Strong support at major OEMs indicating his Sr. officer wanting to make sure that these folks are working on Nomad. Catalog Nomad in parts catalog. Snap on and SPX, Reynolds and ADP place Nomad in catalog.
Andrew Lee: Snap On doing fulfillment for Honda rollout.
RR: Major aircraft engine trial – 2 day trial completed – quantify productivity and ROI. Sales of small quantities to aircraft engine co. Moving to larger orders next year. Military logistics and maintenance, interest. Sr. officer wants to see Nomad in use in automotive environment. Plenty of wood to cut. Focused on auto.
Q2 comprised of dealer direct channel, independent reps (50) people growing to 75-100 people. 5-600 per quarter per region. Takes 4,5,6 quarters to get to this level. Reps are enthusiastic. Sales cycle – taken orders for 85 systems. Inbound calls. Delivering units into the channel. Ind reps. Quotas, incentives to sell Nomads. Accelerating growth a couple quarters out. Q2 Nomad has variability. Prospect numbers support 400 units sales in Q2.
Anticipate order from Army for Stryker brigade in Q2. Training w/ Stryker results excellent. Col. Brown needs Nomad, high on list of priorities. Hope to sell 533 units. Brigade has asked for 533 from the Pentagon. Confidence in order being placed is high. Long term, significant advantages over competing products. Potential Army order from Army depot, Q3 event. Broader military opportunity leveraging off automotive work.
Flic, sales for Q1 satisfying $675k, $85 avg sales price. Accessories have higher margin. Going forward opportunities to grow franchise, hope to accelerate. NCR greater than 60% of sales. Sequential growth, $7-800k of Flic sales. Europe/Asia looks good. Sync up NCR and resellers. Sales cycle will accelerate and shrink at NCR. Customers order 10s of units, then 100s of units. 100s, then 1000s of units. Large volume opportunities in the funnel. 25k unit volume potential purchases. Upside potential in Q2. Monitoring activity in the funnel.
Strategies, web based marketing tool to facilitate mobility customers, configure with PDAs as key enabler.
OEM opportunities for Flic.
Andrew Lee: Significant design wins. Q1 and end of 2003, wins against competition. Flic targeted at small and medium business. People want to bundle solutions for that market. AutoID industry hasn’t marketed well to small business. The scanner for the rest of us. Small, unique, plug and play. Implications for large quantities. Healthcare, FDA mandates extensive use of bar codes. Design wins in Healthcare. Potential large orders in Healthcare. Data retrieval in enterprise market. Large telecom giants looking to incorporate with cell phones and portable data devices.
RR: Canada wireless network provider bought Flic over two competitors. TCO was basis for win.
Andrew Lee: NCR action is getting to where shareholders can see it.
RR: Major office products company looking to sell at Office Depot. Flic bundled with shrink wrapped software. Inventory tracking. Small businesses. Simplicity, operation and setup plus low cost. Short term, several thousand unit test rollout – based on this outcome, potential national rollout.
Too early to say, but franchise could go to hundreds of thousands of units per year.
PDA manufacturer is interested.
Not next quarter, but after gestation, Flic could go big.
NCR engaging in writing software.
2004, want to gain understanding of how to put larger opportunities in play. Flic looks encouraging in Q2. Monitor it closely.
Contract work, VCOP hope to enter extension. $25M spent so far on helmet mounted display. Converges with Stryker –both work as a platform solution. Other military contracts in pipeline. Funding exists, working to move forward.
Commerical contracts, second half of this year. Automotive display, consumer display activity with Canon. Others in commercial, Laser printer and image capture. Automotive HUD, increase in intensity of activity in last quarter. System delivered in Q42003, set wheels in motion. System currently in use uses LCD display. Volume required is 5 litres. Prototype volume currently only 1.3 litres. Meaningful because want to get in compact cars. 2007 model year, production late next year, design production decisions late this year, tier 1 partner activity increasing. Laser HUD has high and low ambient light performance (high contrast), validated by focus groups. Consumer demand outpacing OEM estimates for BMW 5 series, 80,000 units.
Entering space at propitious time, demand being validated, GPS nav driving demand interest.
My concerns from yesterday are relieved. I would be shocked if we don't move much higher, and quickly...
I was able to take notes during the first half...no guarantees on my transcription accuracy:
1Q2003 Microvision Conference Call
RR: Calling in from overseas. 1Q2004 rev of $3.0M. $675k product revs for Flic.
Consolidated net loss $6.7M, .31c per share.
…numbers are final. $14.8M cash. $2.3M convertible note financing.
2nd quarter rev increase significantly due to Nomad orders. Flic and Nomad growing. Contracts in pipeline closing shortly. Nomad launch, a lot of energies are focused.
Significant technology developments, accelerating curve to maturation and technology developments.
Milestone, certification by American Honda of Nomad unit, sets wheels in motion for Honda’s rollout. Pleased with designation by Honda that Nomad is recommended tool. Honda will aggregate orders and come back to MVIS to place a volume order during the quarter.
Purchase orders for 85 units to date, continuing to ramp production, aiming for several hundred units in current quarter. Will produce 100-150 units per week. Eventually will go to 150-200 units per week.
Other OEMs, independent rep network has been created over the last couple months.
Strategy is to come at market direct to dealers and through OEMs. Availability and experience with Honda, plus momentum of selling direct to dealers should allow sales to be accelerated vs. Honda experience. Gm, Ford, Honda, Porsche, Volvo, Toyota dealers have units.
Andrew Lee: Sold more units to Toyota than any others. Initiatives, trials, ongoing here and in Europe with OEMs. Utilizing units to go to dealerships, OEMs ‘sandboxes’ putting units on techs, certification for OEMs, putting it on Service Mgrs and operations folks. Very well received in all places. Sales cycle between 60-90 days. Process is, certification, pre-orders, feet-on-the-street 50 new individuals to cover the US.
RR: Feet on street are independent sales reps that sell tech products to OEMs and dealers. Confident that these folks will sell. Several hundred unit prospect funnel. OEM sales cycle. Strong support at major OEMs indicating his Sr. officer wanting to make sure that these folks are working on Nomad. Catalog Nomad in parts catalog. Snap on and SPX, Reynolds and ADP place Nomad in catalog.
Andrew Lee: Snap On doing fulfillment for Honda rollout.
RR: Major aircraft engine trial – 2 day trial completed – quantify productivity and ROI. Sales of small quantities to aircraft engine co. Moving to larger orders next year. Military logistics and maintenance, interest. Sr. officer wants to see Nomad in use in automotive environment. Plenty of wood to cut. Focused on auto.
Q2 comprised of dealer direct channel, independent reps (50) people growing to 75-100 people. 5-600 per quarter per region. Takes 4,5,6 quarters to get to this level. Reps are enthusiastic. Sales cycle – taken orders for 85 systems. Inbound calls. Delivering units into the channel. Ind reps. Quotas, incentives to sell Nomads. Accelerating growth a couple quarters out. Q2 Nomad has variability. Prospect numbers support 400 units sales in Q2.
Anticipate order from Army for Stryker brigade in Q2. Training w/ Stryker results excellent. Col. Brown needs Nomad, high on list of priorities. Hope to sell 533 units. Brigade has asked for 533 from the Pentagon. Confidence in order being placed is high. Long term, significant advantages over competing products. Potential Army order from Army depot, Q3 event. Broader military opportunity leveraging off automotive work.
Flic, sales for Q1 satisfying $675k, $85 avg sales price. Accessories have higher margin. Going forward opportunities to grow franchise, hope to accelerate. NCR greater than 60% of sales. Sequential growth, $7-800k of Flic sales. Europe/Asia looks good. Sync up NCR and resellers. Sales cycle will accelerate and shrink at NCR. Customers order 10s of units, then 100s of units. 100s, then 1000s of units. Large volume opportunities in the funnel. 25k unit volume potential purchases. Upside potential in Q2. Monitoring activity in the funnel.
Strategies, web based marketing tool to facilitate mobility customers, configure with PDAs as key enabler.
OEM opportunities for Flic.
Andrew Lee: Significant design wins. Q1 and end of 2003, wins against competition. Flic targeted at small and medium business. People want to bundle solutions for that market. AutoID industry hasn’t marketed well to small business. The scanner for the rest of us. Small, unique, plug and play. Implications for large quantities. Healthcare, FDA mandates extensive use of bar codes. Design wins in Healthcare. Potential large orders in Healthcare. Data retrieval in enterprise market. Large telecom giants looking to incorporate with cell phones and portable data devices.
RR: Canada wireless network provider bought Flic over two competitors. TCO was basis for win.
Andrew Lee: NCR action is getting to where shareholders can see it.
RR: Major office products company looking to sell at Office Depot. Flic bundled with shrink wrapped software. Inventory tracking. Small businesses. Simplicity, operation and setup plus low cost. Short term, several thousand unit test rollout – based on this outcome, potential national rollout.
Too early to say, but franchise could go to hundreds of thousands of units per year.
PDA manufacturer is interested.
Not next quarter, but after gestation, Flic could go big.
NCR engaging in writing software.
2004, want to gain understanding of how to put larger opportunities in play. Flic looks encouraging in Q2. Monitor it closely.
Contract work, VCOP hope to enter extension. $25M spent so far on helmet mounted display. Converges with Stryker –both work as a platform solution. Other military contracts in pipeline. Funding exists, working to move forward.
Commerical contracts, second half of this year. Automotive display, consumer display activity with Canon. Others in commercial, Laser printer and image capture. Automotive HUD, increase in intensity of activity in last quarter. System delivered in Q42003, set wheels in motion. System currently in use uses LCD display. Volume required is 5 litres. Prototype volume currently only 1.3 litres. Meaningful because want to get in compact cars. 2007 model year, production late next year, design production decisions late this year, tier 1 partner activity increasing. Laser HUD has high and low ambient light performance (high contrast), validated by focus groups. Consumer demand outpacing OEM estimates for BMW 5 series, 80,000 units.
Entering space at propitious time, demand being validated, GPS nav driving demand interest.
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