Listening to Microvision Q4/Year End conference call the one item I kept wondering about, as many other investors have for years, who are the companies interested in Microvision's technology? According to Microvision’s CEO, Alexander Tokman, over 50 OEM’s were shipped design samples and significant amounts have completed their evaluations. This time around, Microvision isn’t just going to just choose any OEM. Microvision has been burnt in the past by companies such as Nioncom, who ordered millions worth of display engines then backed out of the deal. After showcasing the new high definition engine at CES 2012, Microvision announced a deal with Wowee One which never amounted to anything. These failed deals not only hurt Microvision financially, but also their reputation and share price. Tokman listed specific attributes they are using in selecting the next OEM’s such as are they a blue chip company, how strong is their business case, their commitment, are they willing to share risk, etc. It seems Microvision understands that any future partnerships must be well planned and executed such as their success with Pioneer. No more random deals with unknown OEM’s. It also indicates that there's significant interest which allows Microvision to be very selective in who they choose.
Microvision technology continues to be ahead of the competition. At CES 2013, private meetings were held with multiple interested OEM’s who were provided a demonstration of a new 35 lumen high definition engine embedded into a tablet. The current partnership with Intersil is focused on further increasing the lumen output to a minimum of 50. There were a few competitors at CES demonstrating pico projectors but from what I saw none of their products could match with Microvision. But how much time, or should I say cash, does Microvision have to stay afloat? Well, they have around $6.8 million left in the bank. That’s enough to keep the lights on until June. Microvision also just received a notice from Nasdaq which stated they have failed to meet the minimum 50million market cap. So they are running on fumes and facing possible delisting. Tokman stated he would be disappointed if there wasn’t a partnership announcement by June. I’m sure a lot of shareholders will be watching closely because 2013 could be a make or break year for Microvision.
Microvision Management Discusses Q4 2012 Results - Earnings Call Transcript
