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Dec 31, 2019

Vuzix Q4 2019 Earnings Report

Vuzix reported a slight decrease in revenue and an overall gross profit before an inventory reserve for obsolescence.

Key Takeaways

Vuzix reported fourth quarter revenue of $2.0 million, a slight decrease of 1.3% compared to the prior year. The company had a gross profit of $0.2 million before a $4.6 million inventory reserve. The net cash operating loss was $4.0 million, an improvement compared to the average quarterly rate for the first three quarters of 2019.

Total revenues were $2.0 million, reflecting a small 1.3% decrease versus the prior year’s period.

Gross profit was $0.2 million before a $4.6 million inventory reserve for obsolescence, compared to $0.3 million for the same period in 2018.

Research and Development expense decreased to $2.1 million from $3.3 million in the comparable 2018 period.

Net cash operating loss after non-cash adjustments was $4.0 million, an improvement versus the average quarterly rate for the first three quarters of 2019.

Total Revenue
$1.95M
Previous year: $1.98M
-1.4%
EPS
-$0.31
Previous year: -$0.22
+40.9%
Gross Profit
$200K
Cash and Equivalents
$10.6M
Free Cash Flow
-$4.77M
Total Assets
$28.4M

Vuzix

Vuzix

Forward Guidance

Vuzix is well-positioned to achieve significant top line growth in 2020, thanks to the growing success of our current and new M-Series and Vuzix Blade Smart Glasses along with new and existing waveguide-based OEM engineering services programs.

Positive Outlook

  • Well-positioned to achieve significant top line growth in 2020.
  • Success of current and new M-Series and Vuzix Blade Smart Glasses.
  • New and existing waveguide-based OEM engineering services programs.
  • Manufacturing operations in West Henrietta, NY are now fully operational and ready to support the expected increase in business.
  • Products and services will be successful even in challenging environments as there has never been a better time to work hands-free and remotely with AR smart glasses.

Challenges Ahead

  • Current global economic and public health issues indicate some potential challenges for all of us.