Vuzix Q1 2024 Earnings Report
Key Takeaways
Vuzix reported a decrease in total revenues by 52% to $2.0 million for Q1 2024, compared to $4.2 million in Q1 2023. The company experienced a gross loss of $0.1 million, and a net loss of $10.0 million, or $0.16 per share. Vuzix is implementing measures to reduce its cost structure by up to 35% by the end of Q2 and remains positive about top line improvements for the rest of the year.
Total revenues decreased by 52% to $2.0 million compared to $4.2 million in the same period last year, due to lower product sales, particularly M400 smart glasses.
Engineering services revenues increased to $0.2 million, compared to nil in the prior year's quarter.
The company had a gross loss of $0.1 million, compared to a gross profit of $0.9 million in the same period last year.
Vuzix is implementing proactive measures to reduce its cost structure by up to 35% by the end of Q2 2024.
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Vuzix Revenue by Segment
Forward Guidance
Vuzix anticipates top line improvements over the balance of the year, driven by enterprise smart glasses products and solutions, OEM business opportunities, and new projects. The company is also focused on lowering operating costs through various measures, including a voluntary salary reduction program.
Positive Outlook
- Good potential for top line improvements over the balance of this year.
- Well-defined book of business with identified opportunities representing large potential deals with cornerstone customers for enterprise smart glasses products and solutions.
- Enterprise accounts are approaching a critical mass in their operations with Vuzix smart glasses, resulting in improved productivity, lower onboarding times and fewer errors.
- OEM business opportunities continue to expand.
- Expect at least one defense contractor and one commercial enterprise customer to move into production later this year.
Challenges Ahead
- Total revenues decreased by 52% in Q1 2024.
- The decrease in total revenues was due to lower product sales and specifically reduced unit sales of M400 smart glasses.
- There was an overall gross loss of $0.1 million for the three months ended March 31, 2024 as compared to a gross profit of $0.9 million for the same period in 2023.
- The loss was the result of lower revenues to absorb many of our relatively fixed manufacturing overhead costs as compared to the 2023 period.
- Voluntary salary reduction program adopted by many company constituents that offers staff, directors and management restricted stock or stock options in lieu of foregoing 10% to 50% of their base salaries.
Revenue & Expenses
Visualization of income flow from segment revenue to net income