Microvision Inc. (MVIS, Financial) filed Quarterly Report for the period ended 2010-09-30.
Microvision Inc. has a market cap of $156 million; its shares were traded at around $1.72 with and P/S ratio of 40.6.
Level 1 Level 2 Level 3 Total ------------ ------------ ------------ ------------ Assets Corporate equity securities $ -- $ 12,000 $ -- $ 12,000 Auction rate debt securities -- -- 2,600,000 2,600,000 Other current assets -- 142,000 -- 142,000 ------------ ------------ ------------ ------------ $ -- $ 154,000 $ 2,600,000 $ 2,754,000 ============ ============ ============ ============ Liabilities Liability associated with common stock warrants $ 11,000 $ 11,000 ============ ============ We valued the auction rate securities using significant unobservable assumptions and inputs and classified these securities at Level 3 in the inputs hierarchy. The corporate equity securities, other current assets and liability associated with common stock warrants are valued using inputs and common methods with sufficient levels of transparency and observability to be classified at Level 2.
September 30, December 31, 2010 2009 ------------ ------------ Raw materials $ 4,759,000 $ 626,000 Finished goods 2,954,000 300,000 ------------ ------------ $ 7,713,000 $ 926,000 ============ ============ The inventory at September 30, 2010 and December 31, 2009 consisted of raw materials for our pico projector products, and finished goods for our accessory pico projector and for ROV, our hand-held barcode scanner. Because our cost is currently higher than our selling price for our accessory pico projector product, inventory for the three and nine months ended September 30, 2010 also included write downs of $2.0 million and $3.5 million, respectively. The write downs included lower of cost or market adjustments primarily comprised of adjustments to our inventory value to reflect our current estimated selling price for our inventory, as well as a reserve adjustment for materials which we expect will become obsolete as we introduce new products.
Three Months Ended Nine Months Ended September 30, September 30, -------------------------- -------------------------- 2010 2009 2010 2009 ------------ ------------ ------------ ------------ Cost of contract revenue $ 5,000 $ 18,000 $ 12,000 $ 71,000 Cost of product revenue 7,000 2,000 37,000 16,000 Research and development expense 274,000 239,000 1,084,000 614,000 Sales, marketing, general and administrative expense 415,000 434,000 1,657,000 1,435,000 ------------ ------------ ------------ ------------ Share-based employee compensation cost charged against income $ 701,000 $ 693,000 $ 2,790,000 $ 2,136,000 ============ ============ ============ ============ Options Activity and Positions
% of % of contract contract 2010 revenue 2009 revenue $ change % change (in thousands) --------- --------- --------- --------- --------- --------- Three months ended September 30 Government revenue $ -- -- $ 370 45.3 $ (370) (100.0) Commercial revenue 221 100.0 447 54.7 (226) (50.6) --------- --------- --------- Total contract revenue $ 221 $ 817 $ (596) (72.9) ========= ========= ========= Nine months ended September 30 Government revenue $ 71 12.0 $ 1,412 60.3 $ (1,341) (95.0) Commercial revenue 521 88.0 930 39.7 (409) (44.0) --------- --------- --------- Total contract revenue $ 592 $ 2,342 $ (1,750) (74.7) ========= ========= ========= We earn contract revenue from performance on development contracts with the U.S. government and commercial customers and from the sale of prototype units and evaluation kits based on our PicoP display engine. Our contract revenue from development contracts in a particular period is dependent upon when we enter into a contract, the value of the contracts we have entered into, and the availability of technical resources to perform work on the contracts. Our contract revenue from sales of prototype units and evaluation kits may vary substantially due to the timing of orders from customers and potential constraints on resources.
% of % of product product 2010 revenue 2009 revenue $ change % change (in thousands) --------- --------- --------- --------- --------- --------- Three months ended September 30 Bar code revenue $ 95 8.8 $ 107 100.0 $ (12) (11.2) Pico projector revenue 985 91.2 -- -- 985 n/a --------- --------- --------- Total product revenue $ 1,080 $ 107 $ 973 909.3 ========= ========= ========= Nine months ended September 30 Bar code revenue $ 315 9.1 $ 520 100.0 $ (205) (39.4) Pico projector revenue 3,150 90.9 -- -- 3,150 n/a --------- --------- --------- Total product revenue $ 3,465 $ 520 $ 2,945 566.3 ========= ========= ========= Our product sales generally include acceptance provisions. We recognize product revenue upon acceptance of the product by the customer or expiration of the contractual acceptance period, after which there are no rights of return.
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Microvision Inc. has a market cap of $156 million; its shares were traded at around $1.72 with and P/S ratio of 40.6.
Highlight of Business Operations:
Three Months Ended Nine Months Ended September 30, September 30, -------------------------- -------------------------- 2010 2009 2010 2009 ------------ ------------ ------------ ------------ Numerator: Net loss available for common shareholders - basic and diluted $ (11,850) $ (11,525) $ (32,040) $ (30,784) ============ ============ ============ ============ Denominator: Weighted-average common shares outstanding - basic and diluted 89,376 76,265 88,948 71,105 ============ ============ ============ ============ Net loss per share - basic and diluted $ (0.13) $ (0.15) $ (0.36) $ (0.43) ============ ============ ============ ============ On September 30, 2010 and 2009, we excluded the following convertible securities from diluted net loss per share, as the effect of including them would have been anti-dilutive: publicly traded warrants convertible into 6,025,000 and 6,703,000 shares of common stock, respectively, options and private warrants convertible into a total of 12,536,000 and 13,081,000 shares of common stock, respectively, and 485,000 and 410,000 shares of nonvested equity shares, respectively.Level 1 Level 2 Level 3 Total ------------ ------------ ------------ ------------ Assets Corporate equity securities $ -- $ 12,000 $ -- $ 12,000 Auction rate debt securities -- -- 2,600,000 2,600,000 Other current assets -- 142,000 -- 142,000 ------------ ------------ ------------ ------------ $ -- $ 154,000 $ 2,600,000 $ 2,754,000 ============ ============ ============ ============ Liabilities Liability associated with common stock warrants $ 11,000 $ 11,000 ============ ============ We valued the auction rate securities using significant unobservable assumptions and inputs and classified these securities at Level 3 in the inputs hierarchy. The corporate equity securities, other current assets and liability associated with common stock warrants are valued using inputs and common methods with sufficient levels of transparency and observability to be classified at Level 2.
September 30, December 31, 2010 2009 ------------ ------------ Raw materials $ 4,759,000 $ 626,000 Finished goods 2,954,000 300,000 ------------ ------------ $ 7,713,000 $ 926,000 ============ ============ The inventory at September 30, 2010 and December 31, 2009 consisted of raw materials for our pico projector products, and finished goods for our accessory pico projector and for ROV, our hand-held barcode scanner. Because our cost is currently higher than our selling price for our accessory pico projector product, inventory for the three and nine months ended September 30, 2010 also included write downs of $2.0 million and $3.5 million, respectively. The write downs included lower of cost or market adjustments primarily comprised of adjustments to our inventory value to reflect our current estimated selling price for our inventory, as well as a reserve adjustment for materials which we expect will become obsolete as we introduce new products.
Three Months Ended Nine Months Ended September 30, September 30, -------------------------- -------------------------- 2010 2009 2010 2009 ------------ ------------ ------------ ------------ Cost of contract revenue $ 5,000 $ 18,000 $ 12,000 $ 71,000 Cost of product revenue 7,000 2,000 37,000 16,000 Research and development expense 274,000 239,000 1,084,000 614,000 Sales, marketing, general and administrative expense 415,000 434,000 1,657,000 1,435,000 ------------ ------------ ------------ ------------ Share-based employee compensation cost charged against income $ 701,000 $ 693,000 $ 2,790,000 $ 2,136,000 ============ ============ ============ ============ Options Activity and Positions
% of % of contract contract 2010 revenue 2009 revenue $ change % change (in thousands) --------- --------- --------- --------- --------- --------- Three months ended September 30 Government revenue $ -- -- $ 370 45.3 $ (370) (100.0) Commercial revenue 221 100.0 447 54.7 (226) (50.6) --------- --------- --------- Total contract revenue $ 221 $ 817 $ (596) (72.9) ========= ========= ========= Nine months ended September 30 Government revenue $ 71 12.0 $ 1,412 60.3 $ (1,341) (95.0) Commercial revenue 521 88.0 930 39.7 (409) (44.0) --------- --------- --------- Total contract revenue $ 592 $ 2,342 $ (1,750) (74.7) ========= ========= ========= We earn contract revenue from performance on development contracts with the U.S. government and commercial customers and from the sale of prototype units and evaluation kits based on our PicoP display engine. Our contract revenue from development contracts in a particular period is dependent upon when we enter into a contract, the value of the contracts we have entered into, and the availability of technical resources to perform work on the contracts. Our contract revenue from sales of prototype units and evaluation kits may vary substantially due to the timing of orders from customers and potential constraints on resources.
% of % of product product 2010 revenue 2009 revenue $ change % change (in thousands) --------- --------- --------- --------- --------- --------- Three months ended September 30 Bar code revenue $ 95 8.8 $ 107 100.0 $ (12) (11.2) Pico projector revenue 985 91.2 -- -- 985 n/a --------- --------- --------- Total product revenue $ 1,080 $ 107 $ 973 909.3 ========= ========= ========= Nine months ended September 30 Bar code revenue $ 315 9.1 $ 520 100.0 $ (205) (39.4) Pico projector revenue 3,150 90.9 -- -- 3,150 n/a --------- --------- --------- Total product revenue $ 3,465 $ 520 $ 2,945 566.3 ========= ========= ========= Our product sales generally include acceptance provisions. We recognize product revenue upon acceptance of the product by the customer or expiration of the contractual acceptance period, after which there are no rights of return.
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