Microvision today held its year end conference call to discuss 2011 results. Microvision has successfully achieved several major objectives it set out in 2011 such as advancement of the PicoP Gen2 engine, increased revenue growth of 18% mainly due to the sales of its ShowWX products, and reduced cash used in operations by 40%. Microvision’s CEO, Alexander Tokman, also highlighted business relationships in terms of distribution with Apple, Intel, and Research In Motion. While Apple carries multiple pico projectors, Tokman did highlight that both Intel and Research In Motion have chosen Microvision as their pico projector of choice to its customers. The joint partnership with Pioneer in developing a laser based heads up display is scheduled for launch in mid-2012. Commercialization of direct green lasers will be available by one manufacture, which will meet the demand for Pioneer’s HUD, followed by an additional two suppliers in the second half of 2012. Microvision had great success at CES in Las Vegas showcasing the new HD PicoP Gen2 engine along with the Pico Magic. Popular Science awarded the Pico Magic “Product of the Future”.
Microvision is an industry leader within the pico projector market. The new 720p HD PicoP Gen2 projector is one of the smallest and most efficient pico display engines in the world. The Pico Magic, showcased at CES, has the capability of touch screen and 3D display. However, shareholders have seen better days. Even though the ShowWX+ HDMI is the projector of choice and has great reviews, overall sales have not produced significant revenue. The synthetic green laser contained in ShowWX, as Tokman stated, could never meet commercial production. Therefore, corporations interested in embedding Microvision’s PicoP engine in their products have waited on the sidelines. This is clearly evident in the latest blow to Microvision as ESPlus has delayed their 3.5 million dollar order. ESPlus has stated they need more time to “mature the commercial readiness” of their product. However, why release a product based on outdated synthetic green lasers when direct green lasers will be available in the near future. Unable to secure a steady flow of revenue, Microvision has continued to seek financing to fund operations through share offers. This has been an ongoing story for Microvision as shareholders continue to watch the stock plunge.
At a special shareholder meeting , Microvision shareholders voted in favor of a reverse stock split. Management assured shareholders that the reverse split was necessary to prevent the possible delisting of Microvision’s shares from the NASDAQ exchange. The reverse stock split was to be used as a “back up plan”, however, at the close of trading that very day of the meeting, Microvision announced the reserve stock split would take affect the following Monday. Microvision reported today that at the end of 2011 they had 13.1 million dollars in cash which is expected to last through June of 2012. Even though Microvision announced it had successfully achieved several objectives in 2011, the stock dropped 15% by the end of the trading day.
At the end of the conference call, CEO Alexander Tokman acknowledged the pain shareholders had endured during this past year. He stated “no great endeavors in history were accomplished without pain and sacrifice”. I believe the pain isn’t over just yet for Microvision shareholders but the future looks a lot brighter. If you look throughout this blog you will see that major corporation’s like Intel, Pioneer, Microsoft, Apple, Research In Motion, along with several others are very interested in Microvision’s technology. However, in the past couple years Microvision has spent millions of its own dollars to prove the pico projection market is real and their technology is ready. However, the synthetic green laser was disaster due to unstable cost and supply. The direct green laser has exceeded the synthetic green laser in every aspect from image quality, reduced size, efficiently etc. But most importantly, in the very near future the commercialization of the direct green laser will satisfy what many interested in Microvision’s technology have long been waiting for, a display engine that is the best in the industry which is available in stable supply along with a consistent cost. CEO Alexander Tokman stated in today’s conference call “The Future Beginnings This Year”.
MicroVision Announces 2011 Results and 2012 Objectives
