MicroVision(US:MVIS)2020-10-30 01:11Financial Data and Key Metrics Changes - For Q3 2020, revenue was $639 thousand, with $539 thousand from royalty revenue and $100 thousand from product revenue, compared to $587 thousand in Q2 2020 [37] - Operating expenses were $3.5 million in Q3, up from $2.9 million in the prior quarter, primarily due to non-cash compensation and engineering materials [42] - The net loss for Q3 was $2.8 million, compared to a net loss of $2.3 million in Q2 [43] Business Line Data and Key Metrics Changes - The company recognized all third-quarter royalty revenue from an April 2017 customer, with a balance of $8.2 million in prepayment liabilities [39] - Product revenue in Q3 was related to projection engines made for RagenTek in 2017, with a legal settlement allowing for an additional $100,000 of revenue recognition [37] Market Data and Key Metrics Changes - The automotive sensor market is projected to grow from $8.7 billion in 2020 to $22.4 billion by 2025, with automotive LiDAR expected to grow at a 113% compound annual growth rate [22] - By 2025, automotive LiDAR revenue is projected to reach $1.7 billion, representing only 2.3% of all vehicle classes sold globally [22] Company Strategy and Development Direction - The company is focused on exploring strategic alternatives, including a potential sale, while maintaining strict control over expenses [8][9] - MicroVision aims to leverage its intellectual property and technology portfolio in augmented reality and automotive LiDAR markets, emphasizing the importance of partnerships for future growth [12][20] Management's Comments on Operating Environment and Future Outlook - The management highlighted the ongoing impact of the COVID-19 pandemic on global markets and the potential for consolidation in the technology sector [11] - The company is optimistic about the future scaling of augmented reality and automotive LiDAR, believing it has a solid IP and technology portfolio to capitalize on these trends [12][25] Other Important Information - The company ended Q3 with total cash and cash equivalents of $5 million and raised $5.8 million from the Lincoln Park Capital facility in Q4 [48][49] - The company has granted very few limited licenses for its technology, which is seen as a strong value proposition for potential acquirers [17] Q&A Session Summary Question: Cash burn and elevated CapEx in Q4 - Management expects cash usage to be elevated in Q4 but anticipates it to be lower in Q1 [56] Question: Comparison of MicroVision's product with competitors - Management believes their product will significantly match or exceed current market offerings, especially in the automotive space [57] Question: Interest in consumer LiDAR products - Interest in consumer LiDAR remains neutral, with distinctions made between MicroVision's technology and competitors like Apple [66] Question: Status of strategic alternatives - Management indicated that the list of interested parties remains the same, with ongoing evaluations [69] Question: Shareholder support for strategic direction - Management confirmed commitment to exploring strategic alternatives while recognizing the potential for standalone growth [72] Question: Development of AR products - Management stated that AR development is ahead, but partnerships are crucial for commercialization [78][90] Question: Headcount and hiring plans - The company is hiring to support LiDAR development, with a current headcount of 41 [105]