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Vuzix Schedules Conference Call and Provides Business Update and Reports its Second Quarter 2017 Financial ResultsROCHESTER, N.Y., Aug. 9, 2017 /CNW/ -- Vuzix® Corporation (NASDAQ: VUZI), a leading supplier of Smart Glasses, Augmented Reality (AR) and Virtual Reality (VR) technologies and products for the consumer and enterprise markets, today reported its second quarter financial results for the period ended June 30, 2017. Second Quarter 2017 and recent highlights included:
The following table compares the Company's summarized statement of operations data for the quarter ended June 30, 2017:
Second Quarter 2017 Financial Results For the three months ended June 30, 2017 revenues were $1,325,261, an increase of 136% compared to $560,877 for the three months ended June 30, 2016. The increase of revenue for the quarter ended June 30, 2017 compared to the same period in 2016 was primarily the result of M300 Smart Glasses sales and the sales of engineering services for a specialized version of our smart glasses for Toshiba. Total Gross Loss for the three months ended June 30, 2017 was a gross loss of $429,487 as compared to a gross loss of $126,054 for the three months ended June 30, 2016. The increase of cost of sales for the quarter ended June 30, 2017 compared to the same period in 2016 was primarily the result of increased revenues in the 2017 period as well as transitory costs related to low initial production yields and component quality issues incurred during manufacturing at our contract manufacturer's California operations. Cost of sales during the current quarter were also impacted by the decommission and transition costs of our contract manufacturer's operations from California to their facility in China. Research and Development expense was $1,198,940 for the three months ended June 30, 2017 compared to $1,669,043 for the three months ended June 30, 2016. The decrease of research and development expense for the quarter ended June 30, 2017 compared to the same period in 2016 was primarily the result of a decrease in M300 internal and outside contractor project development and research costs and the reclass of internal research and development wage costs related to the Toshiba engineering program. Selling and Marketing expense was $800,329 for the three months ended June 30, 2017 compared to $651,547 for the three months ended June 30, 2016. The increase of selling and marketing expense for the quarter ended June 30, 2017 compared to the same period in 2016 was primarily the result of increased marketing costs related to the M300 offset by a reduction in trade show costs. General and administrative expense was $1,308,2334 for the three months ended June 30, 2017 compared to $1,199,427 for the three months ended June 30, 2016. The increase of general and administrative expense for the quarter ended June 30, 2017 compared to the same period in 2016 was primarily the result of increase salary and stock compensation costs due to the hiring of new accounting and internal IR personnel and the Company's new COO offset by a reduction Sarbanes-Oxley consultant expense and reduced spending on investors relations activities. The net loss for the 3 months ending June 30, 2017 was $4,070,099 or $0.22 cents per share versus a net loss of $4,103,490 or $0.28 for the same period in 2016. As of June 30, 2017, the Company maintained cash and cash equivalents of $6,129,342, and an overall working capital position of $7,760,349. These amounts exclude the approximate $8,000,000 in net proceeds from the Company's recent financing discussed above. "2017 is off to strong start at Vuzix after achieving our second consecutive quarter of $1 million plus revenue during the second quarter and we are preparing to deliver significantly more revenue in the second half of 2017 driven by commercial enterprise smart glasses deployments," said Paul Travers, President and Chief Executive Officer of Vuzix. "With our shift of M300 manufacturing to China from the US complete it will drive improvement in our gross margins and allow us to flex our manufacturing needs to meet sales orders and increasing demand. Our enterprise order flow and sales pipeline led by our COO, Paul Boris continues to build momentum, which will have an immediate positive impact on our sales beginning in the 3rd quarter of 2017." Conference Call Information Date: Wednesday, August 9, 2017 Participating on the call will be Vuzix' Chief Executive Officer and President Paul Travers, Chief Financial Officer Grant Russell, and Chief Operating Officer Paul Boris who together will discuss operational and financial highlights for the second quarter ended June 30, 2017. To join the live conference call, please dial into the above referenced telephone numbers five to ten minutes prior to the scheduled conference call time. A replay will be available for 30 days, starting on August 10, 2017, at approximately 2:30 p.m. (ET). To access the replay, please dial 877-660-6853 within the U.S. or Canada, or 201-612-7415 for international callers. The conference ID# is 13668266. About Vuzix Corporation Forward-Looking Statements Disclaimer Media and Investor Relations Contact: Matt Margolis, Director of Corporate Communications and Investor Relations, Vuzix Corporation [email protected] Tel: (585) 359-5952 Andrew Haag, Managing Partner, IRTH Communications Vuzix Corporation, 25 Hendrix Road, Suite A, West Henrietta, NY 14586 USA, View original content with multimedia:http://www.prnewswire.com/news-releases/vuzix-schedules-conference-call-and-provides-business-update-and-reports-its-second-quarter-2017-financial-results-300501894.html SOURCE Vuzix Corporation |