View(US:VIEW)2023-08-10 21:30Revenue Performance - For the three months ended June 30, 2023, the company's revenue was $28.0 million, representing a period-over-period growth of 71.8% compared to $16.3 million in the same period of 2022[170]. - For the six months ended June 30, 2023, the company's revenue was $46.4 million, reflecting a period-over-period growth of 39.2% compared to $33.3 million in the same period of 2022[170]. - Smart Building Platform revenue increased by 98.9% to $18.0 million for the three months ended June 30, 2023, compared to $9.1 million in 2022[210]. - The United States accounted for 92.5% of total revenue for the three months ended June 30, 2023, with revenue of $25.9 million[211]. - The company’s revenue from View Smart Glass includes sales of IGUs and CSS components, with revenue recognized over time as each IGU is manufactured[190][192]. - The company’s contracts for Smart Building Technologies may include software as a service pricing, with revenue recognized over the contract period[196]. Financial Position and Cash Flow - As of June 30, 2023, the company had $30.1 million in cash and cash equivalents, $49.8 million in short-term investments, and $88.6 million in working capital[229]. - The company reported a net loss of approximately $123.6 million for the six months ended June 30, 2023, compared to a net loss of $165.3 million in the same period of 2022[229]. - Net cash used in operating activities was $107.6 million for the six months ended June 30, 2023, an improvement from $153.2 million in the prior year[241]. - Net cash used in operating activities was $107.6 million for the six months ended June 30, 2023, compared to $153.2 million for the same period in 2022, indicating a reduction in cash outflow[242][243]. - Net cash provided by investing activities was $43.9 million for the six months ended June 30, 2023, primarily from proceeds of $160.1 million from short-term investments[244]. - Cash used in financing activities was $1.8 million for the six months ended June 30, 2023, mainly due to tax withholdings on behalf of employees[246]. - The total value of standby letters of credit issued by the bank was $14.8 million as of June 30, 2023, down from $15.7 million at the end of 2022[249]. Operating Expenses - Cost of revenue for the three months ended June 30, 2023, was $41.8 million, or 149.1% of net sales, compared to $39.5 million, or 242.3% of net sales in 2022[213]. - Research and development expenses decreased by $11.2 million to $9.7 million for the three months ended June 30, 2023, primarily due to cost reductions in IGU product projects[216]. - Total operating expenses for the three months ended June 30, 2023, were $38.5 million, a decrease from $61.7 million in the same period of 2022[213]. - Selling, general, and administrative expenses decreased by $17.2 million (42.3%) to $23.5 million for the three months ended June 30, 2023, compared to $40.8 million in the same period of 2022[219]. - For the six months ended June 30, 2023, selling, general, and administrative expenses decreased by $34.8 million (41.6%) to $48.9 million, down from $83.7 million in the prior year[220]. - Restructuring costs amounted to $1.3 million for the three months ended June 30, 2023, and $5.5 million for the six months ended June 30, 2023, primarily related to employee severance and asset relocation[223]. Manufacturing and Capacity - The company has installed its Smart Glass products in over 48 million square feet of buildings, contributing to a total of 100 million square feet across all product lines[168]. - The company operates a manufacturing facility with a name-plate capacity of approximately 5 million square feet of smart glass per year, with plans to increase this capacity to 12.5 million square feet per year upon completion of a second production line[181]. - The company has incurred significant base operating costs due to investments in manufacturing capacity, which are expected to decrease as production volumes increase[198]. - Future contract losses may decrease as a percentage of total contract value as manufacturing volumes ramp up, although this has not yet been realized[199]. Research and Development - The company has over 1,400 patents and patent filings, demonstrating a strong commitment to technological innovation and R&D[177]. - The company plans to reduce R&D expenses in 2023 to focus on profitability after the successful launch of its fourth-generation smart glass and Smart Building Platform[179]. - The company anticipates a reduction in research and development expenses during 2023 as part of its restructuring plan, focusing on profitability[200]. Market Trends and Future Outlook - The company aims to capitalize on trends such as climate change and the demand for smart buildings, which are expected to drive future growth[171]. - The Inflation Reduction Act is anticipated to increase demand for the company's products by reducing net costs for customers through tax incentives[173]. - The company has identified a substantial doubt about its ability to continue as a going concern beyond September 2023, necessitating the search for additional capital[175]. - The company is actively seeking additional sources of capital to address cash needs and may consider strategic alternatives, including expense reductions and asset liquidation[229]. Accounting and Valuation - The company maintains a valuation allowance against U.S. federal and state deferred tax assets due to historical losses, indicating uncertainty in realizing these assets[208]. - There were no changes in critical accounting policies during the first six months of 2023, which include revenue recognition and stock compensation[250].