Vuzix Corporation (NASDAQ:VUZI), an augmented reality technology company, projects adoption of its smart glasses to accelerate in the coming months despite supply chain issues and geopolitical uncertainties impacting its first quarter, the company announced.
The firm's outlook for 2022 remains "quite positive" despite continuing and challenging supply chain, geopolitical, and economic uncertainties, according to CEO Paul Travers.
“Adoption of smart glasses over the course of the year is expected to again accelerate with existing customer repeat orders and in some cases we anticipate significant new opportunities from new programs," Travers said in a statement.
READ: Vuzix receives multiple waveguide-based product reorders from defense contractors
For the three months ended March 31, 2022, total revenue was $2.5 million, a 36% decrease from $3.9 million in the same period of 2021. Net loss was $10.5 million, $0.16 per share, compared to $9.2 million, $0.17 per share, a year earlier.
Sales of Vuzix smart glasses products were 37% lower year-over-year at $1.4 million in the quarter, which is in part due to struggles its customers are facing, according to CEO Travers.
"The first quarter was a challenging one for many of our customers, suppliers and partners due to a combination of ongoing COVID disruptions and geopolitical tensions in Europe," Travers said. "These issues generally, and their impact on the timing of certain anticipated customer orders, resulted in first quarter sales falling short of expectations.”
That said, Travers sees the evidence of a bounceback on the horizon in orders from new and existing customers. Additionally, a non-compete related to the defense markets is set to expire in June, meaning that Vuizix “will be able to fully engage with any US or allied defense and homeland defense forces.”
Over the past year, Vuzix has invested in both its core technology and original equipment manufacturer component platforms, Travers said, nothing significant improvements in its waveguide manufacturing quality and performance.
“On the OEM side of our business, we are seeing growing demand and follow-on orders from new and existing defense customers and consumer electronic OEMs for head-worn waveguides and displays engines, which should positively impact our second quarter of this year,” Travers said.
Vuzix, based in Rochester, New York, holds 246 patents and 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 2022 and several wireless technology innovation awards among others.
The company's products include personal displays and wearable computing devices that offer users a portable high-quality viewing experience, and provide solutions for mobility, wearable displays and augmented reality.
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