MicroVision(US:MVIS)2022-04-27 23:02Financial Data and Key Metrics Changes - The company recognized $350,000 in royalty revenue from Microsoft in Q1 2022, with an expectation to recognize $2.5 million for the entire year against the contract liability [34][36] - R&D expenses totaled $7.6 million in Q1 2022, up from $4.5 million in the previous year, primarily due to increased headcount and inflation-based salary adjustments [37] - SG&A expenses increased to $5.9 million in Q1 2022 from $2.2 million last year, driven by higher non-cash stock-based compensation and increased payroll expenses [38] - Cash used in operating activities was $10.9 million in Q1 2022, including approximately $1.5 million of one-time non-recurring payments [39] - The company finished the quarter with liquidity of $103 million, including investment securities, which increased from $33 million at the end of December to $47.6 million at the end of March [40] Business Line Data and Key Metrics Changes - The company is focused on securing partnerships with OEMs and Tier 1 suppliers to provide LiDAR technology for ADAS systems, with demo vehicles ready by the end of June [9][13] - The business model is built on partnering with OEMs, with hardware contributing 25% and software 75% of total revenue [30] Market Data and Key Metrics Changes - The cumulative revenue opportunity for LiDAR sensors is estimated at $80 billion through 2030, with MicroVision's potential revenue between $2 billion to $4 billion based on an average selling price of $500 [28][29] - The company expects to start strategic sales in the second half of 2022, with sample sales anticipated [18] Company Strategy and Development Direction - The company aims to take a leadership role in the ADAS space by providing advanced highway pilot safety features through its integrated hardware and software solutions [19][20] - The focus remains on executing the go-to-market strategy and building momentum towards securing OEM partnerships [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the technology and the ongoing track testing of the integrated LiDAR solution, which is crucial for demonstrating capabilities to OEMs [24][45] - The company anticipates a moderately higher cash burn in 2022 compared to 2021 as it scales the business and invests in growth [40] Other Important Information - The company has secured materials needed to meet objectives for 2022 and 2023, mitigating supply chain disruptions [61][63] - The ATM facility remains available for strategic use, with $140 million currently accessible [53][56] Q&A Session Summary Question: What were the biggest selling points for OEMs? - Management highlighted the technology's pedigree, reliability, and the comprehensive feature set including range and resolution as key selling points [50][52] Question: How will the ATM program be used going forward? - The ATM facility is viewed as a flexible tool for funding growth plans, to be used judiciously based on market conditions [56] Question: Is there consideration for targeting non-automobile verticals? - The primary focus remains on securing a foothold in the ADAS market, with potential exploration of other segments once hardware is available [58][59] Question: What is the visibility into supply chain disruptions? - The supply chain team has secured necessary materials, and the company is well-positioned to mitigate risks associated with supply chain issues [61][63] Question: How does MicroVision's LiDAR solution compare to competitors? - Management emphasized the importance of range, resolution, and velocity, asserting that their solution meets all three criteria effectively [87][89]