Welcome!

News Feed Item

Vuzix Provides Business Update and Reports 2013 Annual Results

Transition to New Product Lines on Track with Introduction of World's First Smart Glasses and First Waveguide Base Wearable Display

ROCHESTER, N.Y., April 9, 2014 /PRNewswire/ -- Vuzix Corporation (OTC:QB: VUZI) ("Vuzix" or, the "Company"), today provided an update on its business and reported financial results for the fiscal year ended December 31, 2013.

Vuzix Logo.

Business Update:

"2013 represented a transitional year for Vuzix with changes to most of our products lines from lower margin lower resolution offerings to our next generation, smart, digital and waveguide based solutions," offered Paul Travers President and CEO of Vuzix.  Mr. Travers continued, "These introductions included our M100 Smart Glasses, the world's first Smart Glasses available for commercial sale, our all digital HDMI VR, AR and video eyewear viewers, and our M2000AR waveguide based HMD, which also is a world's first."

"The initial focus for the M100 has been in the enterprise space with well over 70% of our sales going to this sector.  It is interesting to note that unlike the general consumer space that is still looking for a killer application for Smart Glasses that could drive mass customer adoption, we are seeing valuable opportunities with our Enterprise market focus.  In fact, Gartner forecasts that Smart Glasses could save the field service industry alone up to $1 billion per year by 2017.  This is one of many examples where Vuzix is seeing applications being built for our M100 Smart Glasses with orders and development programs coming from many diverse enterprise sectors including transportation, retailers, telco's, refiners, medical, manufacturing, warehousing, airlines, automotive, and others. With the initial release of the M100 being focused on developers and enterprise customers with the placement of seed products, we expect growing sales through these activities. With tooled product not starting to ship until December 2013 and with our initial focus on enterprise based developers, initial M100 Smart Glasses sales where selective and overall slower than originally anticipated. However, M100 sales have been ramping month-over-month throughout the first quarter of 2014. Additionally during the first quarter of 2014, we have been focused on expanding the number of M100 applications developers. We have also been investing in refining the M100 mechanically as well as developing an entirely new version of its embedded operating system, as well support for non-Android smart phones. The new software upgrade will be released in Q2 of 2014 and will also support the Company's Smart Glasses app store for both enterprise and more pro-consumer oriented applications.  We believe these refinements will be well received in our markets and contribute to the continued growth of M100 product sales in 2014."

"The introduction of the M2000AR in late 2013 was another key milestone for the Company. Initially designed for the US defense markets through DARPA, the M2000AR version is our first waveguide based HMD. These are the same type of optics that will be used in our fashionwear based smart glasses. Industrial design is one of the biggest factors that wearable displays currently face when trying to offer broad market appeal. The Company's waveguide optics will solve this problem and open a critical door to the mass market. A case in point, these waveguides are the focus of Vuzix Tier one relationship which was announced in the first quarter of 2014."

Other Q1 2014 Initiatives:

"Vuzix' new V720 Video Headphones won two CES Innovations awards in January 2014 and all public demonstration of their early prototypes have been well received by wearers. The Company believes this HD product will have strong appeal to consumers all over the world for video viewing and game playing applications."

"On February 26, 2014 Vuzix announced they had been awarded the outstanding ~$75,000 Phase I Option and a ~$680,000 Phase II, Small Business Innovation Research (SBIR) award from the Office of Naval Research.  These programs will develop thin see through waveguide based optics and display engines fitted in a pair of goggles to superimpose computer generated information on an individual's view of the real world. The delivered system will be based on the Company's advanced optical waveguides. Management anticipates they will complete this development work before the end of 2014 and the resulting waveguide improvements can be applied to its industrial and consumer products."

"Continued increases in product sales will be important steps to achieving cash-flow positive operations and the Company is now effectively shipping all new products as compared to our products offerings through most of 2013.  These new products are being well received and again as a result sales are increasing month to month," Paul Travers concluded.

2013 Financial Year Results

For the twelve-month period ending December 31, 2013, revenues were $2,389,053 versus $3,228,228 in 2012, a decrease of 26%. The decrease was the direct result of the Company's limited working capital for the first 7 months of 2013 which caused both supply chain delays due to our limited ability to buy components and delays in new product development.

The loss from Continuing Operations was $4,652,557 for 2013 year versus $4,206,185 in 2012. Increased research and development accounted for the majority of the year over year increase. Due to the various financing transactions in 2013, the Company had $5,493,671 in other (non-operating) expenses versus $541,202 in 2012. The large increase resulted from $3,575,278 in mark-to-market losses from derivative liabilities, and $1,272,296 in debt extinguishment losses.

The net loss for 2013 was $10,146,228 or $1.69 per share versus a net loss from continuing operations of $4,747,387 or $1.34 per share for the same period in 2012.

Complete details of the Company's operating results and financial statements are available in its annual 10K report filed with the SEC.

Finally, during the first quarter of 2014, holders of the warrants issued in Vuzix' public offering which closed on August 5, 2013 have exercised for cash warrants for the purchase of 638,300 shares of common stock and the Company has received proceeds of $1,436,175 from such warrant exercises, further adding to the Company's year-end cash position.

Summation:

"The past year has seen a significant uptick in interest in wearable displays in the enterprise space. With major companies approaching the Company to employ our products in their solutions. Since Vuzix is the only commercially available Smart Glasses, we are uniquely positioned to partner with these companies, helping the Company to set the standard and capture early design wins," Mr. Travers said.

"For 2014 we will continue our investments in technology development, we also expect to continue to expand our customer base while we see our existing customers begin to offer solid solutions to their customers around our Smart Glasses," Mr. Travers continued. "With these new applications, and with the refinements we are making to our smart glasses and our M2000AR through the first half of 2014, we expect continued revenue growth through 2014 and beyond."

Forward-Looking Statements Disclaimer

Certain statements contained in this release are "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Forward-looking statements contained in this release relate to, among other things, refinancing opportunities, potential asset sales, debt reduction, improving operating results, the Company's financial position, new opportunities, the Company's ability to capitalize on new opportunities and the Company's leadership in the Video Eyewear industry. They are generally identified by words such as "plans," "seeks," "believes," "may," "expects," "anticipates," "should'" and similar expressions. Readers should not place undue reliance on such forward-looking statements, which are based upon the Company's beliefs and assumptions as of the date of this release. The Company's actual results could differ materially from those projected in the Company's forward-looking statements due to, among other things, our ability to raise necessary capital; government regulation of our technologies; our ability to enforce our intellectual property rights and protect our proprietary technologies; the timing of new product launches; delays in product development; and dependence on third parties for certain key components. These risk factors and others are described in more detail in the "Risk Factors" section of the Company's Annual Reports and MD&A filed with the United States Securities and Exchange Commission and applicable Canadian securities regulators (copies of which may be obtained at www.sedar.com or www.sec.gov). Subsequent events and developments may cause these forward-looking statements to change. The Company specifically disclaims any obligation or intention to update or revise these forward-looking statements as a result of changed events or circumstances that occur after the date of this release, except as required by applicable law.

About Vuzix Corporation

Vuzix is a leading supplier of Video Eyewear and Smart Glasses products in the consumer, commercial and entertainment markets. The Company's products include personal display and wearable computing devices that offer users a portable high quality viewing experience, provide solutions for mobility, wearable displays and virtual and augmented reality. Vuzix holds 36 patents and 12 additional patents pending and numerous IP licenses in the Video Eyewear field. The Company has won Consumer Electronics Show (or CES) awards for innovation for the years 2005 to 2014 and several wireless technology innovation awards, among others. Founded in 1997, Vuzix is a public company (VUZI:QB) with offices in Rochester, NY, Oxford, UK and Tokyo, Japan. For more information visit www.vuzix.com

Logo - http://photos.prnewswire.com/prnh/20130516/NY15123LOGO

For further press information, please contact:

Grant Russell, CFO 
[email protected]  
75 Town Centre Drive 
Rochester, NY USA
Tel: (585) 359-5962

Investor Relations Contact:

Andrew Haag  
Managing Partner            
IRTH Communications     
[email protected]  
877-368-3566 

SOURCE Vuzix Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
You are moving to the Cloud. The question is not if, it’s when. Now that your competitors are in the cloud and lapping you, your “when” better hurry up and get here. But saying and doing are two different things. In his session at @DevOpsSummit at 18th Cloud Expo, Robert Reeves, CTO of Datical, explained how DevOps can be your onramp to the cloud. By adopting simple, platform independent DevOps strategies, you can accelerate your move to the cloud. Spoiler Alert: He also makes sure you don’t...
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, shared the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
"We are a custom software development, engineering firm. We specialize in cloud applications from helping customers that have on-premise applications migrating to the cloud, to helping customers design brand new apps in the cloud. And we specialize in mobile apps," explained Peter Di Stefano, Vice President of Marketing at Impiger Technologies, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...