- Revenue up 67% year-over-year and 44%
quarter-over-quarter
ROCHESTER, N.Y., May 10, 2023
/CNW/ -- Vuzix® Corporation (NASDAQ: VUZI) ("Vuzix" or the
"Company"), a leading supplier of Smart Glasses and Augmented
Reality (AR) technologies and products, today reported its first
quarter results for the three months ended March 31, 2023.
"2023 is off to a strong start driven by record smart glasses
sales, which increased 67% year-over-year largely due to sales
channel growth and increased customer adoption in North America that has effectively multiplied
our salesforce in the US and other core strategic regions," said
Paul Travers, President and
CEO. "During the quarter, we made strong progress in terms of
product development, technology advancement and new business
engagements. On the OEM side of our business, we continue to see an
influx of customer interest including a growing number of requests
for quotes associated with defense, consumer and enterprise focused
customers, all of whom are interested in our waveguide and display
engine solutions."
The following table compares condensed elements of the Company's
unaudited summarized Consolidated Statements of Operations data for
the three months ended March 31, 2023
and 2022, respectively:
|
|
For Three Months
Ended March 31
|
|
|
($000s except per
share amounts)
|
|
|
2023
|
2022
|
Total
Sales
|
|
$4,191
|
$2,503
|
|
|
|
|
Total Cost of
Sales
|
|
3,315
|
2,027
|
|
|
|
|
Gross
Profit
|
|
876
|
476
|
Gross Profit
%
|
|
21 %
|
19 %
|
|
|
|
|
Operating
Expenses:
|
|
|
|
Research and
Development
|
|
3,070
|
3,103
|
Selling and
Marketing
|
|
2,540
|
2,023
|
General and
Administrative
|
|
5,132
|
5,453
|
Depreciation and
Amortization
|
|
964
|
259
|
Impairment of Patents
and Trademarks
|
|
18
|
50
|
|
|
|
|
Total Operating
Expenses
|
|
11,723
|
10,890
|
|
|
|
|
Loss from
Operations
|
|
(10,847)
|
(10,414)
|
|
|
|
|
Total Other Income
(Expense)
|
|
607
|
(92)
|
Net
Loss
|
|
(10,241)
|
(10,506)
|
|
|
|
|
Loss per Common
Share
|
|
$
(0.16)
|
$
(0.16)
|
|
|
|
|
|
First Quarter 2023 Financial Results
For the three months ended March 31,
2023, total revenues increased by 67% to $4.2 million versus $2.5
million for the comparable period in 2022. The increase in
total revenues was due to higher product sales and specifically
significantly higher unit sales of M400 smart glasses. No
engineering services revenues were booked in the current or prior
period.
There was an overall gross profit of $0.9
million or 21% of revenues for the three months ended
March 31, 2023 as compared to
$0.5 million or 19% for the same
period in 2022. This improvement was due to significantly higher
product sales.
Research and Development expense was essentially flat at
$3.1 million for the three months
ended March 31, 2023 as compared to
the prior year period.
Selling and Marketing expense was $2.5
million for the three months ended March 31, 2023, versus $2.0 million for the comparable 2022 period, an
increase of approximately 26%. This increase was primarily due to
higher salary and benefits expenses associated with increased
headcount as compared to the previous year's period.
General and Administrative expense for the three months ended
March 31, 2023 was $5.1 million versus $5.5
million for the comparable 2022 period, a decrease of
approximately 6%. The decline was primarily due to a decrease in
non-cash stock-based compensation expense related to the Company's
LTIP (long-term performance-based equity incentive plan).
The net loss decreased for the three months ended March 31, 2023 to $10.2
million or $0.16 cents per
share versus a net loss of $10.5
million or $0.16 for the
comparable period in 2022.
The net cash flows used in operating activities for the first
quarter of 2023 was $4.2 million as
compared to a loss of $6.4 million
for the first quarter of 2022. As of March
31, 2023, the Company maintained cash and cash equivalents
of $63.2 million and an overall
working capital position of $67.0
million.
Management Outlook
"Our bullish outlook for 2023 remains unchanged. For the
full year, we have a strong book of business with identified
opportunities, representing large deals and cornerstone customers
on the enterprise and OEM side of our business that we expect to
convert over the course of the calendar year. We also see
substantial opportunity on the OEM/engineering services side of our
business related to new programs for defense, consumers and
enterprise. As a result, we expect to achieve record overall
revenues in 2023 fueled by stronger sales of core smart glasses,
OEM products and engineering services, and SaaS solutions within
our Moviynt subsidiary," said Mr. Travers.
"Although we are less than halfway through Q2, we are currently
expecting another strong quarter that we expect will result in
robust year-over-year growth in smart glasses products and solution
sales in Q2. Our OEM business, which includes engineering services
and waveguide and display engine sales, continues to gain momentum
such that it will positively contribute to our top-line in Q2,"
concluded Mr. Travers.
Conference Call
Information
Date: Wednesday, May 10, 2023
Time: 4:30 p.m. Eastern Time (ET)
Dial-in Number for U.S. & Canadian Callers: 877-709-8150
Dial-in Number for International Callers (Outside of the U.S. &
Canada): 201-689-8354
A live and archived webcast of the conference call will be
available on the investor relations page of the Company's website
at: https://ir.vuzix.com/ or directly at
https://event.choruscall.com/mediaframe/webcast.html?webcastid=0VAdRhHm.
Participating on the call will be Vuzix' Chief Executive Officer
and President Paul Travers and Chief
Financial Officer Grant Russell, who
together will discuss operational and financial highlights for the
quarter ended March 31, 2023.
To join the live conference call, please dial into the above
referenced telephone numbers five to ten minutes prior to the
scheduled conference call time.
A telephonic replay will be available for 30 days, starting on
May 10, 2023, at approximately
5:30 p.m. (ET). To access this
replay, please dial 877-660-6853 within the U.S. or Canada, or 201-612-7415 for international
callers. The conference replay ID# is 13738490.
About Vuzix Corporation
Vuzix is a leading designer, manufacturer and marketer of Smart
Glasses and Augmented Reality (AR) technologies and products for
the enterprise, medical, defense and consumer markets. The
Company's products include head-mounted smart personal display and
wearable computing devices that offer users a portable high-quality
viewing experience, provide solutions for mobility, wearable
displays and augmented reality, as well OEM waveguide optical
components and display engines. Vuzix holds more than 300 patents
and patents pending and numerous IP licenses in the fields of
optics, head-mounted displays, and augmented reality Video Eyewear
field. Moviynt, an SAP Certified ERP SaaS logistics solution
provider, is a Vuzix wholly owned subsidiary. The Company has won
Consumer Electronics Show (or CES) awards for innovation for the
years 2005 to 2023 and several wireless technology innovation
awards among others. Founded in 1997, Vuzix is a public company
(NASDAQ: VUZI) with offices in: Rochester, NY; Oxford, UK; Munich,
Germany; and Kyoto and
Tokyo, Japan. For more
information, visit the
Vuzix website, Twitter and Facebook pages.
Forward-Looking Statements Disclaimer
Certain statements contained in this news release are
"forward-looking statements" within the meaning of the Securities
Litigation Reform Act of 1995 and applicable Canadian securities
laws. Forward-looking statements contained in this release relate
to, among other things, the timing of new product releases,
opportunities related to market disruptions, R&D project
successes, smart glasses pilot to roll-out conversion rates,
existing and new engineering services and conversion to volume
production OEM programs, future operating results, and the
Company's leadership in the Smart Glasses and AR display industry.
They are generally identified by words such as "believes," "may,"
"expects," "anticipates," "should" and similar expressions. Readers
should not place undue reliance on such forward-looking statements,
which are based upon the Company's beliefs and assumptions as of
the date of this release. The Company's actual results could differ
materially due to risk factors and other items described in more
detail in the Company's Annual Reports and other filings with the
United States Securities and Exchange Commission and applicable
Canadian securities regulators (copies of which may be obtained at
www.sedar.com or www.sec.gov). Subsequent events and developments
may cause these forward-looking statements to change. The Company
specifically disclaims any obligation or intention to update or
revise these forward-looking statements as a result of changed
events or circumstances that occur after the date of this release,
except as required by applicable law.
Investor Relations Contact
Ed McGregor, Director of Investor
Relations
Vuzix Corporation
ed_mcgregor@vuzix.com
Tel: (585) 359-5985
Vuzix Corporation, 25 Hendrix Road, West Henrietta, NY 14586 USA,
Investor Information – IR@vuzix.com www.vuzix.com
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SOURCE Vuzix Corporation