MicroVision(US:MVIS)2024-05-09 23:53Financial Data and Key Metrics Changes - For Q1 2024, the company recorded $1 million in revenue, slightly ahead of expectations, primarily from MOVIA device sales to a global commercial trucking OEM and sensors to an agricultural equipment company [49] - Cash used in operating activities for Q1 was $20.8 million, aligning with expectations, indicating financial discipline with cash burn [50] - Adjusted gross margins were approximately 25%, differentiating the company from peers with negative or near-zero margins [44] Business Line Data and Key Metrics Changes - The company is engaged in seven RFQs for its MAVIN product, focusing solely on large volume passenger car projects from OEMs [24][33] - The MOVIA L hardware is in production, serving as a demonstration point for OEM partnerships [16] - The company has not funded new development for MOVIA L or MOVIA S, focusing on demonstrating mature hardware for OEMs [16] Market Data and Key Metrics Changes - The automotive market is experiencing stiff competition from Chinese OEMs, impacting pricing and features of software-defined vehicles [18] - OEMs are under pressure to realize returns on investments made for transitioning to electric vehicles, with recent UAW actions further driving cost focus [19] - The high interest rate environment is affecting the cost of capital for OEMs and Tier-1 suppliers, complicating new sensor program initiatives [38] Company Strategy and Development Direction - The company aims to focus on automotive OEMs for ADAS features in passenger vehicles, which are expected to have the highest demand [5] - There is a strategic shift to explore partnerships and licensing in smaller industrial markets to generate non-dilutive capital [35] - The company plans to maintain a capital-light business model with low cash burn to navigate the current market challenges [43] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the frustration of shareholders regarding the speed of OEM validation and emphasizes the complexity of OEM requirements [11][14] - The company is cautious about timelines for OEM decisions, with expectations for significant decisions to be made in 2024 [60][83] - Management believes there is a substantial demand for LiDAR in the second half of the decade, driven by global competition, despite current low volumes [23] Other Important Information - The company has a liquidity position of $201.3 million as of March 31, including $73 million in cash and cash equivalents [45] - The expected cash burn for 2024 is projected to be between $65 million to $70 million, similar to 2023 [46] - The company is exploring revenue streams from non-automotive verticals to reduce dependence on low volumes in the short to medium term [24] Q&A Session Summary Question: What happened with the expected OEM contract win by March 31? - Management indicated that while there were expectations for contract announcements, the timelines have shifted, and they are cautious about making predictions [54][60] Question: How will revenue recognition from an OEM contract win occur? - Revenue is expected to start with non-recurring engineering (NRE) revenues, gradually ramping up as production volumes increase [61][86] Question: Are there other automotive trucking customers in the RFQs? - All seven RFQs currently involve passenger vehicle OEMs [91] Question: What is the competitive advantage of the MOSAIK software? - MOSAIK automates a significant portion of the validation process for sensors, potentially leading to cost savings for OEMs [92] Question: How does the company view its market position compared to competitors? - Management believes the company remains ahead of the competition in technology and is focused on securing sustainable contracts without jeopardizing long-term health [98][100]