REDMOND, WA - MicroVision, Inc. (NASDAQ:MVIS), known for its MEMS-based automotive lidar and ADAS solutions, announced its preliminary unaudited financial results for the third quarter of 2024. The company is actively engaging with top-tier global automotive OEMs, having received seven high-volume RFQs for passenger vehicles and is exploring opportunities in the heavy equipment sector with potential industrial customers.
The company's CEO, Sumit Sharma, expressed satisfaction with the engagement level in RFQs and development work, despite headwinds in the automotive industry. Sharma noted the company's efforts to position MicroVision for success in its end markets and a potential increase in revenue from heavy equipment customers starting in 2025.
MicroVision expects third-quarter revenue to be between $0.15 and $0.2 million, a decrease from the $1.0 million reported in the same period the previous year. This decline is attributed to a customer deferring orders. As of September 30, 2024, MicroVision reported $43.0 million in cash and cash equivalents, including investment securities. The company also highlighted access to $153 million of additional capital, with no equity raised through its existing ATM facility during the third quarter.
The company's cash used in operations for the quarter was approximately $14 million, improving from $20 million in the third quarter of 2023. MicroVision reaffirmed its revenue guidance for the 2024 fiscal year at $8-$10 million, subject to customer approvals, and maintained its annual cash burn rate projection at $55-$60 million.
These preliminary results are subject to completion and could materially differ from the reported figures. The company plans to announce its finalized third quarter results in November 2024. The information in this release is based on a press release statement and should be considered preliminary until the company completes its financial closing procedures.
In other recent news, MicroVision has secured a $75 million convertible note facility with High Trail Capital, aiming to strengthen its financial position and anticipate revenue growth from industrial and automotive sectors. This financing arrangement includes an initial sale of $45 million in senior secured convertible notes, with the option for MicroVision to sell up to an additional $30 million of notes under certain conditions. WestPark Capital, Inc. and EF Hutton LLC served as co-lead agents for the transaction.
In further developments, MicroVision announced the retirement of long-standing board member and former chair, Brian Turner. Turner's strategic insights and contributions have been instrumental in guiding the company through various market conditions.
MicroVision's Q2 2024 revenue was reported at $1.9 million, primarily from non-automotive customers. The company has a gross margin of 39% and anticipates a decrease in its cash burn by 20-25%. It has total liquidity of $179 million and expects revenues between $8 million to $10 million for the remainder of the year.
The CEO of MicroVision highlighted the potential of 905 nanometer lidar over 1550 nanometer alternatives for the long-term automotive market. The company is strategically focusing on American lidar to meet the demand in the US and EU markets. These recent developments underscore MicroVision's position in the lidar market and its focus on high-volume passenger car projects.
InvestingPro Insights
MicroVision's preliminary Q3 2024 results reveal some challenges, but the company's engagement with automotive OEMs and potential industrial customers suggests future growth opportunities. To provide a more comprehensive view of MicroVision's financial position, let's consider some additional data from InvestingPro.
According to InvestingPro data, MicroVision's market capitalization stands at $282.96 million. The company has shown impressive revenue growth, with a 710.44% increase over the last twelve months as of Q2 2024. This aligns with the company's efforts to position itself in the automotive and heavy equipment markets.
However, it's important to note that MicroVision is currently not profitable. An InvestingPro Tip indicates that the company has been quickly burning through cash, which is reflected in the reported $14 million used in operations during Q3. This cash burn rate is a critical factor for investors to monitor, especially given the company's reaffirmed annual cash burn projection of $55-$60 million.
On a positive note, another InvestingPro Tip highlights that MicroVision holds more cash than debt on its balance sheet. This financial cushion, along with the reported $43 million in cash and cash equivalents, provides some stability as the company navigates its growth strategy.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for MicroVision, providing deeper insights into the company's financial health and market position.
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