Microvision Reports Second Quarter 2009 Results

Microvision has reported their financial results for 2Q 2009. During the quarter, they completed two important milesontes - green laser supply agreement, and a major investment.

Alexander Tokman, Microvision’s President and CEO: “We are rapidly approaching the introduction of Microvision’s first product based on our proprietary PicoP display engine which is scheduled for later this summer. We are completing the product reliability and quality testing and we are validating manufacturing processes at our suppliers. Additionally, we are finalizing supply quantities that will be available to support our commercial introduction this year and as we have previously indicated, we estimate that the demand for the SHOW WX will exceed the initial quantities available in 2009."

During the second quarter, Microvision continued to supply PicoP Evaluation Kits (PEKs) to a diverse group of customers in the consumer electronic and automotive industries. The strong demand for Microvision’s tiny laser-based PicoP display engine continues as customers explore embedding the PicoP into a variety of host devices. The company plans to supply PEKs to selected customers through the end of this year.

Financial Results

For the six months ended June 30, 2009, the company reported revenue of $1.9 million compared to $4.2 million for the same period in 2008 and for the three months ended June 30, 2009, the company reported revenue of $987,000 compared to $1.6 million for the same period 2008. As of June 30, 2009, the backlog totaled $854,000 compared to $679,000 at June 30, 2008. The decrease in revenue is primarily attributed to lower backlog at the beginning of 2009, which is a result of the company's strategy to focus most of its resources on commercializing PicoP products.

The company reported an operating loss for the six months ended June 30, 2009 of $18.6 million compared to $16.4 million for the same period in 2008 and $9.5 million for the quarter ended June 30, 2009 compared to $9.3 million for the same period in 2008.

The company reported a net loss of $19.3 million, or $0.28 per share, for the six months ended June 30, 2009 compared to $14.3 million, or $0.25 per share for the same period in 2008 and $10.4 million, or $0.15 per share, for the quarter ended June 30, 2009 compared to $9.3 million, or $0.16 per share for the quarter ended June 30, 2008.

Net cash used in operating activities was $16.3 million for the six months ended June 30, 2009 compared to $14.9 million for the same period in 2008. Net cash used in operating activities was $7.6 million for the quarter ended June 30, 2009 compared to $8.8 million for the first quarter of 2009. The reduction in the quarterly cash burn was primarily a result of cost reduction efforts the company implemented in the first quarter of 2009. The company ended the quarter with $26.3 million in cash, cash equivalents, and investment securities.