Vuzix Provides Business Update and Reports Third Quarter 2015 Operating Results

Press Releases  |

ROCHESTER, N.Y., Nov. 12, 2015 -- Vuzix® Corporation ($VUZI), a leading supplier of Video Eyewear and Smart Glasses products in the consumer, enterprise, and entertainment markets, today provided an update on its business initiatives and reported its third quarter financial results for the period ended September 30, 2015.

Recent Corporate Highlights:

Vuzix CEO and President Paul J. Travers said, "We are seeing momentum in orders of our wearable products, as more and more customers convert successful pilot programs to commercial orders. Total quarterly revenues for the 3 months ended September 30, 2015 were up over 125% from our second quarter ending June 30, 2015, and up 46% over the same period ending September 30, 2014. We are pleased that sales of M100 Smart Glasses advanced 38% in the third quarter compared to the prior year, as customer volume roll-outs accelerate. As our customers' programs mature and with our new products on the horizon we are very excited about the outlook for the Company."

Mr. Travers continued, "The order flow from enterprise has also improved the make-up of our sales mix over the course of 2015 as we continue to successfully transition to all new product and technology offerings. We are also well prepared for what we anticipate will be a significant uptick in orders moving to 2016. The Company's newly opened Rochester facility will have the capacity to produce millions of waveguides annually and will be a highly advanced R&D center for new product and development."

Some of the highlights during our third quarter include:

The forward outlook is promising with the ongoing launches of the iWear Video Headphones and enhancements to the M100 Smart Glasses in Q4. Through the remainder of the year, the Company will be focused on finishing development of its new waveguide products which will be publicly demonstrated in early 2016 at CES.

The following table compares the Company's condensed statement of operations data for the three months and nine months ended September 30, 2015 and 2014.                                                           

VUZIX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 (Unaudited) 

(Unaudited)

For Three Months

For Nine Months

Ended September 30,

Ended September 30,

2015

2014

2015

2014

Sales of Products

$

890,629

$

624,586

$

2,014,015

$

1,883,891

Sales of Engineering Services

79,750

40,000

193,331

302,371

Total Sales

970,379

664,586

2,207,346

2,186,262

Total Cost of Sales

644,246

460,234

1,667,616

1,372,722

Gross Profit

326,133

204,352

539,730

813,540

Operating Expenses:

Research and Development

944,426

484,510

2,191,624

1,177,484

Selling and Marketing

469,443

336,099

1,172,252

957,422

General and Administrative

1,120,982

592,914

5,079,131

1,605,112

Depreciation and Amortization

88,285

59,680

226,472

260,823

(Loss) from  Operations

(2,297,003)

(1,268,851)

(8,129,749)

(3,187,301)

Other Income (Expense)

Other Taxes and Foreign Exchange

(30,156

(13,220)

(43,173)

(59,992)

Gain (Loss) on Derivative Valuation

58,239

(1,698,940)

(968,467)

2,124,878

Net Interest and Debt related Amortization Expenses

(156,051)

(320,310)

(776,761)

(427,890)

Total Other Income (Expense)

(127,968)

(2,032,470)

(1,788,401)

1,636,996

Income (Loss) Before Provision for Income Taxes

(2,424,971)

(3,301,321)

(9,918,150)

(1,550,305)

Provision (Benefit) for Income Taxes

Net (Loss)

(2,424,971)

$

(3,301,321)

(9,918,150)

(1,550,305)

Preferred Stock Dividends

(386,377)

(1,121,860)

(Loss) Attributable to Common Stockholders

$

(2,811,348)

$

(3,301,321)

$

(11,040,010)

$

(1,550,305)

Basic and Diluted Loss per Share

$

(0.17)

$

(0.31)

$

(0.73)

$

(0.15)

Operational Financial Commentary for the Three Months ending September 30, 2015:

Balance Sheet and Capital Resources Improvements

As of September 30, 2015, we had cash and cash equivalents totaling $16,072,222.  We had a positive working capital position of $18,856,052 on September 30, 2015 versus a negative working capital position of $1,427,139 as of December 31, 2014. The Company has paid down its accounts payable and is now investing in inventory and components for the recent launch of its iWear Video Headphones. During the third quarter of 2015 inventories and vendor component purchase deposits increased by $1,109,572 from June 30, 2015 to a total of $3,040,182 as of September 30, 2015. A further similar increase is expected in the fourth quarter to meet supply chain requirements as the new products will commence volume production for sale.

The following table summarizes key balance sheet areas as of September 30, 2015 as compared to December 31, 2014.

 

 

VUZIX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

September 30,

December 31,

2015

2014

ASSETS

Current Assets

Cash and Cash Equivalents

$

16,072,222

$

84,967

Accounts Receivable

664,567

383,533

Inventories and Vendor Deposits

3,040,182

1,068,040

Prepaid Expenses and Other Assets

370,566

422,909

Total Current Assets

20,147,537

1,959,449

Tooling and Equipment, Net

804,937

416,965

Patents and Trademarks, Net

528,798

423,489

Software Development Costs, Net

572,901

787,738

Debt Issuance Costs, Net

77,781

112,521

Total Assets

$

22,131,954

$

3,700,162

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities

Accounts Payable

$

397,927

$

2,183,565

Current Portions, Notes Payable and Credit Lines

73,985

294,845

Customer Deposits and Unearned Revenue

94,565

173,953

Accrued Expenses and Other Taxes Payable

725,008

734,225

Total Current Liabilities

1,291,485

3,386,588

Long-Term Liabilities

Long-Term Derivative Liability

110,788

13,541,138

Long-Term Portion of Term Debt, Accrued Interest, Net of discount

1,342,868

1,170,447

Total Long-Term Liabilities

1,453,656

14,711,585

Total Liabilities

2,745,141

18,098,173

Stockholders' Equity (Deficit)

Preferred and Common Stock

50

Common Stock

16,058

11,296

Additional Paid-in Capital

73,450,245

29,752,083

Accumulated Deficit

(54,079,540)

(44,161,390)

Total Stockholders' Equity (Deficit)

19,386,813

(14,398,011)

Total Liabilities and Stockholders' Equity (Deficit)

$

22,131,954

$

3,700,162

Readers should refer to our 10-Q for the quarter ended September 30, 2015, for the completed financial statements and management discussion of results from operations.

Conference call information:

Date: Friday, November 13, 2015

Time: 8:30 AM 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

Participating on the call will be Vuzix Chief Executive Officer and President Paul Travers and Chief Financial Officer Grant Russell, who will discuss operational and financial highlights for the third quarter 2015.

To join the live conference call, please dial in to the above referenced telephone numbers five to ten minutes prior to the scheduled call time.

A replay will be available for 14 days starting on November 13, 2015, at approximately 11:00 AM (ET). To access the replay, please dial 877-660-6853 in the U.S. and 201-612-7415 for international callers. The conference ID# is 13624748. 

About Vuzix Corporation
Vuzix is a leading supplier of Video Eyewear and Smart Glasses products in the consumer, enterprise and entertainment markets. The Company's products include personal display and wearable computing devices that offer users a portable high quality viewing experience, provide solutions for mobility, wearable displays and virtual and augmented reality. Vuzix holds 41 patents and 12 additional patents pending and numerous IP licenses in the Video Eyewear field. The Company has won Consumer Electronics Show (or CES) awards for innovation for the years 2005 to 2014 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 and Tokyo, Japan.

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 future revenues, possible customer purchase plans and new products, among other things, and the Company's leadership in the Video Eyewear, VR 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 "Risk Factors" section of the Company's Annual Reports and MD&A filed 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 and Media Relations Contact:
Andrew Haag                         
Managing Partner      
IRTH Communications           
vuzi@irthcommunications.com
1-866-976-4784

Vuzix Corporation
25 Hendrix Road, Suite A
West Henrietta, NY 14586 USA
Investor Information – Grant Russell
IR@Vuzix.com
Tel: (585) 359-7562
www.vuzix.com



DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
VUZI Vuzix Corporation 7.68 -0.43 -5.25 320,654 Trade

Comments

Emerging Growth

Singlepoint Inc

SinglePoint Inc is a mobile technology company engaged in mobile payments, mobile giving, and mobile bidding. It operates mobile commerce and communications platform to accept mobile credit card payments.