MicroVision(US:MVIS)2021-10-29 03:19Financial Data and Key Metrics Changes - Revenue for Q3 2021 was $718,000, a slight decrease from $746,000 in Q2 2021, with all revenue attributed to royalty income from an augmented reality customer [25][26] - Gross profit for Q3 was $728,000, down from $777,000 in the previous quarter [27] - Operating expenses were $10.8 million, lower than the guidance of $14 million to $16 million and down from $15.7 million in Q2 [28] - Net loss for Q3 was $9.4 million, or $0.06 per share, compared to a net loss of $15 million, or $0.09 per share in Q2 [31] - Cash and equivalents at the end of Q3 were $125.1 million, down from $135.3 million at the end of Q2 [34] Business Line Data and Key Metrics Changes - The company is focusing on the OEM automotive lidar sensor market, which is expected to provide significant recurring revenue opportunities [10][17] - The introduction of the LiDAR sensor at the IAA Munich mobility show was highlighted as a key product showcase [9] Market Data and Key Metrics Changes - The company anticipates that OEMs will make partnership decisions within the next 16 months, with a larger rollout of electric vehicles expected in 2026 [12][20] - The demand for lidar technology is increasing as more OEMs incorporate it into their ADAS systems [71] Company Strategy and Development Direction - The company is prioritizing strategic sales to OEMs over direct sales, with plans to demonstrate an integrated software and hardware ADAS solution by June 2022 [16][17] - The focus on OEM partnerships is seen as critical for long-term success in the automotive market [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive position and the positive feedback received from OEMs regarding their lidar technology [12][42] - The company is preparing for a significant amount of consolidation in the ADAS space, with expectations of recurring revenue not materializing until 2025 and beyond [20] Other Important Information - The company announced a new CFO, Anubhav Verma, who will join on November 15, 2021, following the retirement of Steve Holt [21][22] - The company signed a lease for new office and testing space, indicating plans for expansion [36] Q&A Session Summary Question: Thoughts on Facebook's rebranding to Meta and its impact on AR investments - Management noted that significant investments in AR by large companies like Meta could spur further investment in the AR space [48][50] Question: Focus on OEM versus direct sales - Management acknowledged that while direct sales may provide incidental revenue, the focus will remain on securing OEM partnerships for long-term value [52][56] Question: Trends in lidar adoption among OEMs - Management confirmed that there is a growing trend among OEMs to adopt lidar technology, especially for higher-level ADAS features [70][72] Question: MicroVision's lidar sensor advantages - Management emphasized that their lidar technology is best-in-class due to cost, size, features, and technological maturity [88][92][102] Question: Employee morale and turnover - Management reported that employee morale is good and turnover has not been a significant issue [110] Question: Use of ATM and cash management - Management indicated that while they have not utilized the ATM recently, maintaining a strong balance sheet is important for long-term partnerships [112]