UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
Form 8-K
_____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported): October 25, 2018
MICROVISION, INC.
(Exact Name of Registrant as Specified in Charter)
| Delaware | 001-34170 | 91-1600822 |
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
6244 185th Avenue NE, Suite 100 Redmond, Washington 98052 |
| (Address of Principal Executive Offices) (Zip Code) |
(425) 936-6847
(Registrant's telephone number, including area code)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02. Results of Operations and Financial Condition.
The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended. On October 25, 2018, MicroVision, Inc. issued a press release announcing its Third Quarter 2018 results. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(c) Exhibits. 99.1 MicroVision, Inc. Press Release Announces Third Quarter 2018 Results.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MICROVISION, INC. | ||
| Date: October 25, 2018 | By: | /s/ David J. Westgor |
| David J. Westgor | ||
| Vice President, General Counsel & Secretary | ||
EXHIBIT 99.1
MicroVision Announces Third Quarter 2018 Results
REDMOND, Wash., Oct. 25, 2018 (GLOBE NEWSWIRE) -- MicroVision, Inc. (NASDAQ:MVIS), a leader in innovative ultra-miniature projection display and sensing technology, today announced results for the quarter ended September 30, 2018.
Revenue for the third quarter of 2018 was $11.6 million, compared to $5.4 million for the third quarter of 2017. MicroVision's net profit for the third quarter of 2018 was $0.3 million, or $0.00 per share, compared to a net loss of $5.8 million, or $0.08 per share for the third quarter of 2017.
“I am pleased with the progress we made in Q3 while targeting Tier 1 technology leaders who have the capabilities to bring our innovative solutions to market. During the quarter, we completed the technology transfer to our display-only licencee that we announced in May and continue to make significant progress on our product development,” said Perry Mulligan, MicroVision’s Chief Executive Officer. “Based on the team’s execution, I believe we are positioned to potentially support the launch of three product families during the second half of 2019, which could position us to achieve profitability in late 2019. To support these product launches, we are now working with our module manufacturing partner to be ready for our 2019 sales opportunities and to minimize the associated working capital requirements,” Perry added.
The company has implemented Revenue Standard ASC 606 for the year beginning January 1, 2018. The Company transitioned to the new standard using the full retrospective approach, and per the standard, historical periods have been adjusted as if the new standard was in place for historical periods.
Financial Results Conference Call
The company will host a conference call today to discuss its third quarter 2018 results and current business operations at 5:00 p.m. ET/2:00 p.m. PT. Interested parties can listen to the company's conference call by accessing the MicroVision website’s Investor Events Calendar page or dialing 1-877-883-0383 (for U.S. participants) or 1-412-902-6506 (for participants outside the U.S.) ten minutes prior to the start of the call using pass code number 4343681. A replay webcast of the call will also be available from the MicroVision website’s Investor Events Calendar page.
About MicroVision
MicroVision is the creator of PicoP® scanning technology, an ultra-miniature sensing and projection solution based on the laser beam scanning methodology pioneered by the company. MicroVision’s platform approach for this sensing and display solution means that its technology can be adapted to a wide array of applications and form factors. We combine our hardware, software, and algorithms to unlock value for our customers by providing them a differentiated advanced solution for a rapidly evolving, always-on world.
Extensive 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 has been included in the Ocean Tomo 300 Patent Index. The company is based in Redmond, Washington.
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 registered 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 executing milestones, progress on product development, future product and product applications, potential demand for MicroVision technology and products, the potential launch of new products, support of module manufacturing partners, minimizing working capital, achieving profitability and those containing words such as “believe,” and “could,” are forward-looking statements that involve 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: our ability to raise additional capital when needed; products incorporating our PicoP display technology 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 purchase or 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) | ||||||||
| September 30, | December 31, | |||||||
| 2018 | 2017 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 13,210 | $ | 16,966 | ||||
| Accounts receivable, net | 5,044 | 15 | ||||||
| Costs and estimated earnings in excess of billings on uncompleted contracts | 1,080 | 680 | ||||||
| Inventory | 3,347 | 4,541 | ||||||
| Other current assets | 893 | 1,015 | ||||||
| Total current assets | 23,574 | 23,217 | ||||||
| Property and equipment, net | 2,954 | 3,251 | ||||||
| Restricted cash | 435 | 435 | ||||||
| Intangible assets, net | 515 | 602 | ||||||
| Other assets | 2,492 | 2,262 | ||||||
| Total assets | $ | 29,970 | $ | 29,767 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 1,631 | $ | 3,063 | ||||
| Accrued liabilities | 5,719 | 5,864 | ||||||
| Billings on uncompleted contracts in excess of related costs | 1 | 5 | ||||||
| Other current liabilities | 10,027 | 10,142 | ||||||
| Current portion of capital lease obligations | 13 | - | ||||||
| Total current liabilities | 17,391 | 19,074 | ||||||
| Capital lease obligations, net of current portion | 27 | - | ||||||
| Deferred rent, net of current portion | 504 | 302 | ||||||
| Other long-term liabilities | - | 305 | ||||||
| Total liabilities | 17,922 | 19,681 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders' Equity | ||||||||
| Common stock at par value | 93 | 79 | ||||||
| Additional paid-in capital | 546,123 | 528,873 | ||||||
| Accumulated deficit | (534,168 | ) | (518,866 | ) | ||||
| Total shareholders' equity | 12,048 | 10,086 | ||||||
| Total liabilities and shareholders' equity | $ | 29,970 | $ | 29,767 | ||||
| MicroVision, Inc. | |||||||||||||||
| Statement of Operations | |||||||||||||||
| (In thousands, except earnings per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Product revenue | $ | - | $ | 2,253 | $ | - | $ | 2,298 | |||||||
| License and royalty revenue | 10,000 | 77 | 10,011 | 280 | |||||||||||
| Contract revenue | 1,572 | 3,095 | 5,763 | 4,754 | |||||||||||
| Total revenue | 11,572 | 5,425 | 15,774 | 7,332 | |||||||||||
| Cost of product revenue | 1,434 | 3,178 | 1,998 | 3,572 | |||||||||||
| Cost of contract revenue | 1,211 | 2,525 | 4,201 | 3,740 | |||||||||||
| Total cost of revenue | 2,645 | 5,703 | 6,199 | 7,312 | |||||||||||
| Gross margin | 8,927 | (278 | ) | 9,575 | 20 | ||||||||||
| Research and development expense | 6,386 | 3,427 | 17,905 | 10,417 | |||||||||||
| Sales, marketing, general and administrative expense | 2,253 | 2,062 | 6,953 | 6,967 | |||||||||||
| Total operating expenses | 8,639 | 5,489 | 24,858 | 17,384 | |||||||||||
| Income (loss) from operations | 288 | (5,767 | ) | (15,283 | ) | (17,364 | ) | ||||||||
| Other income (expense), net | 1 | 5 | (19 | ) | (3 | ) | |||||||||
| Net income (loss) | $ | 289 | $ | (5,762 | ) | $ | (15,302 | ) | $ | (17,367 | ) | ||||
| Net income (loss) per share - basic | $ | 0.00 | $ | (0.08 | ) | $ | (0.18 | ) | $ | (0.25 | ) | ||||
| Net income (loss) per share - diluted | $ | 0.00 | $ | (0.08 | ) | $ | (0.18 | ) | $ | (0.25 | ) | ||||
| Weighted-average shares outstanding - basic | 93,073 | 74,922 | 84,388 | 70,828 | |||||||||||
| Weighted-average shares outstanding - diluted | 93,204 | 74,922 | 84,388 | 70,828 | |||||||||||
Investor Relations Contacts
Ted Moreau
Darrow Associates, Inc.
608.298.7369
tmoreau@darrowir.com
or
David H. Allen
Darrow Associates, Inc.
408.427.4463
dallen@darrowir.com