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Sep 30, 2023
Vuzix Q3 2023 Earnings Report
Vuzix's third quarter results were reported, showing a decrease in revenue due to lower product sales but underlying momentum in enterprise and OEM businesses.
Key Takeaways
Vuzix reported a decrease in revenue for Q3 2023, primarily due to lower product sales. However, the company sees underlying momentum in both enterprise and OEM businesses and ended the quarter with a record $3.2 million backlog of current OEM projects. They are implementing changes expected to lower operating costs by as much as 20% annually once fully implemented.
Total revenues decreased by 36% to $2.2 million compared to $3.4 million in the same period in 2022, primarily due to lower product sales.
Gross loss of $0.2 million compared to a gross profit of $0.9 million for the same period in 2022 due to lower sales volumes.
Net loss increased to $11.0 million, or $0.17 per share, versus a net loss of $9.5 million, or $0.15 per share, for the comparable period in 2022.
Ended the third quarter with a record $3.2 million of current OEM projects yet to be completed.
Vuzix
Vuzix
Vuzix Revenue by Segment
Revenue by Segment
Engineering Services Revenue
CapyFin.com Forward Guidance
Vuzix anticipates continued positive momentum for the remainder of 2023 and into 2024. They are realigning certain parts of the organization to take advantage of scale and realign operations to better serve customers, expecting to lower operating costs by as much as 20% annually once fully implemented.
Positive Outlook
- Strong book of business with identified opportunities.
- Large potential deals and cornerstone customers for enterprise products.
- Expect to enter into new projects with new and existing defense and consumer product focused customers.
- Realigning the company to become more efficient.
- Focused on lowering cash operating burn and putting themselves on a faster and more visible path to profitability.
Challenges Ahead
- Delays of certain enterprise and OEM customer orders.
- Third quarter sales fell short of expectations.
- Lower sales volumes resulting in the lower absorption of fixed manufacturing overhead.
- Increased Selling and Marketing expense due to higher salary and benefits expenses.
- Net loss increased for the three months ended September 30, 2023.