Vuzix Corporation (NASDAQ:VUZI) has released its 2Q 2021 financial results that highlight continued growth in the company’s Smart Glasses segment.
The supplier of Augmented Reality (AR) technologies and products and Smart Glasses also provided an update on the “transformative initiatives underway to accelerate growth and profitability in 2H21 and beyond.”
Sales of Smart Glasses rose 21% for the three-month period to end June 30 compared to the same duration in 2020.
READ: Vuzix creates new software-as-a-service based Integration Solutions Business Unit
"2021 has thus far been, and will continue to be, a transformative year for Vuzix,” Paul Travers, CEO of Vuzix said in a statement.
“We now have roughly $138 million of cash as of mid-year, have expanded our management, R&D and sales teams, established a new SaaS-based Integrated Solutions Business Unit, and are aggressively pursuing other strategic initiatives that will strengthen and extend our business model from one primarily focused on being an industry leader in smart glasses hardware to also now becoming a broader solutions provider in various high-growth market verticals."
Travers went on to point out the company’s healthcare segment has also grown, and is now being used in approximately 1,000 operating rooms worldwide.
"During the second quarter, we spent considerable time reviewing the imminent needs of our largest cornerstone customers and initiating the necessary augmentations to our operations to effectively support these customers with large-scale deployments of Vuzix Smart Glasses and we have also set the foundation for certain other markets that are showing leadership in broad-based smart glasses deployments,” said Travers.
In the quarterly financial report, the tech company reported revenues of $2.9 million, a 4% decrease compared to the same period in 2020.
“The decrease was entirely due to a $0.6 million ($600,000) decline in engineering services sales, which was mostly offset by higher sales of Vuzix smart glasses products, which rose $0.5 million or 21% over the comparable period in 2020," the company told shareholders.
The quarter saw an overall gross profit increase of $600,000 million or 20% year-over-year for the quarter.
Additionally, direct product gross margins before overheads and other items improved to 53%.
There was an $1.3 million increase to total operating costs year-over-year, which the company ascribes to non-cash stock-based compensation and primarily related to the company's new performance-based LTIP introduced this year.
Vuzix is also reporting a net loss of the quarter of $8.8 million or $0.14 cents per share.
"Our business outlook for the second half of 2021 remains positive,” said Travers. “We currently anticipate sequential top-line revenue growth in our second half of 2021, driven by strong smart glasses demand and the expected return of OEM-related engineering services revenue and initial sales of OEM production units to a Tier-1 defense customer.”
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