MicroVision(US:MVIS)2022-07-28 22:39Financial Data and Key Metrics Changes - The company recognized $314,000 in royalty revenue from Microsoft in Q2 2022, with expectations to recognize approximately $1.5 million for the year 2022 [32][34] - R&D expenses totaled $7.7 million in Q2 2022, compared to $7.4 million in the same period last year, with cash R&D expenses at $5.7 million [36][37] - SG&A expenses were $6.3 million in Q2 2022, down from $8.4 million in the same period last year, with cash SG&A expenses at $4.2 million [38] - Cash used in operating activities for Q2 2022 was $9.7 million, reflecting an 11% reduction sequentially [40][43] - The company finished the quarter with cash and cash equivalents of $93 million, indicating a strong liquidity position [43] Business Line Data and Key Metrics Changes - The launch of the MAVIN dynamic range LiDAR product was highlighted as a significant achievement, combining short, medium, and long-range sensors [27][30] - The MAVIN product is expected to be a centerpiece for ADAS L3 and L2 solutions for over a decade [21] Market Data and Key Metrics Changes - The company anticipates a revenue opportunity between $2 billion to $4 billion through 2030, with a cumulative EBITDA profile of $1 billion to $2 billion [31] Company Strategy and Development Direction - The company is focused on achieving Class 1 certification and starting sample sales by Q4 2022, aligning with OEM expectations [13][18] - The strategy includes positioning MicroVision as a leader in LiDAR technology, emphasizing partnerships with OEMs rather than just sales [17][24] - Future plans include expanding software offerings to enable ADAS safety and autonomous driving [24][99] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the rising interest rate environment and supply chain challenges, indicating no direct impact from these factors [51][52] - The company is optimistic about its technology and the potential for strategic partnerships to build a high-growth business model [46][97] Other Important Information - The company has shifted its liquidity position to one-year treasury bills to capture yield from the market [43] - The ATM program is viewed as a flexible tool for funding growth plans, with no sales executed in the past year due to market conditions [45][66] Q&A Session Summary Question: Impact of rising interest rates on the business - Management indicated that the rising interest rates provide extra yield on investment securities, positioning the company well for the next four to six quarters [51] Question: Anticipated impact of supply shortages - Management stated that there is currently no direct impact from supply chain shortages due to strong engagement with OEMs [52] Question: Timing and use of the ATM program - The ATM program is seen as a flexible tool for capital raising, with no immediate need for execution due to the company's strong balance sheet [53][55] Question: Revenue ramp-up expectations - Management confirmed that sample sales are expected to begin in 2022, with potential revenue ramp-up in 2023 and exploration of non-automotive verticals [56][58] Question: Normal cash levels needed to support the business - Management reiterated that with $93 million in cash and a low cash burn rate, the company is well-positioned compared to peers [63] Question: Impact of the chips bill - Management noted that the company operates on a fabless model and is not directly affected by the chips bill, but it could benefit the automotive ecosystem if passed [66] Question: Class 1 certification necessity for public use - Management clarified that while Class 1 certification is not required for demos, it is essential for sales, ensuring safety and compliance [67][74] Question: Differences in point cloud quality - Management confirmed that the recently released point cloud data is directly from the LiDAR without post-processing, showcasing the product's capabilities [75][76] Question: Differences between MAVIN and prior products - Management highlighted that MAVIN offers higher specifications and flexibility to meet customer needs compared to previous products [82][88] Question: View on chip platforms like Qualcomm and NVIDIA - Management explained that their ASICs are co-located within the LiDAR hardware for optimal performance, differentiating from competitors using application processors [89][95] Question: Focus on automotive LiDAR and potential expansion - Management confirmed a continued focus on automotive LiDAR, while remaining open to opportunities in industrial applications and AR/VR if approached [97][99]