|By PR Newswire||
|April 9, 2014 06:27 PM EDT||
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.
"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.
"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
For further press information, please contact:
Grant Russell, CFO
75 Town Centre Drive
Rochester, NY USA
Tel: (585) 359-5962
Investor Relations Contact:
SOURCE Vuzix Corporation
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
Dec. 25, 2014 04:00 PM EST Reads: 1,745
This builds on Puppet Labs' first class Windows support, including native .MSI packages for x32 and x64 operating systems, modules to extend common Windows server management tools, including Powershell, and integrations with Microsoft Azure and Visual Studio. By automating common Windows administration tasks, Puppet Labs is enabling users to adopt DevOps practices, thereby reducing the time needed to deploy applications from weeks to hours.
Dec. 25, 2014 04:00 PM EST Reads: 1,024
Dec. 25, 2014 02:00 PM EST Reads: 2,416
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
Dec. 25, 2014 12:30 PM EST Reads: 1,796
"SAP had made a big transition into the cloud as we believe it has significant value for our customers, drives innovation and is easy to consume. When you look at the SAP portfolio, SAP HANA is the underlying platform and it powers all of our platforms and all of our analytics," explained Thorsten Leiduck, VP ISVs & Digital Commerce at SAP, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 25, 2014 11:00 AM EST Reads: 1,716
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
Dec. 25, 2014 11:00 AM EST Reads: 1,953
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big D...
Dec. 25, 2014 11:00 AM EST Reads: 2,180
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective ...
Dec. 25, 2014 11:00 AM EST Reads: 1,861
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
Dec. 25, 2014 11:00 AM EST Reads: 2,020
Dec. 25, 2014 10:45 AM EST Reads: 1,631
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...
Dec. 25, 2014 10:15 AM EST Reads: 2,205
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
Dec. 25, 2014 09:45 AM EST Reads: 1,551
SYS-CON Media announced today that Skytap blog on "DevOps Journal" exceeded 84,000 story reads. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Noel Wurst is the managing content editor at Skytap. Skytap provides SaaS-based dev/test environments to the enterprise. Skytap solution removes the inefficiencies and constraints that comp...
Dec. 25, 2014 09:00 AM EST Reads: 1,365
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Dec. 25, 2014 09:00 AM EST Reads: 7,090
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
Dec. 25, 2014 09:00 AM EST Reads: 2,556