Vuzix Corporation (NASDAQ:VUZI) has reported second-quarter revenue of $3.0 million, up 3% from a year earlier, with growth expected to continue for the remainder of the year.
"Despite the macro challenges that persisted throughout our second quarter, we were able to achieve both sequential and modest year-over-year product sales growth," Vuzix president and CEO Paul Travers said in a statement announcing the company’s results.
"More importantly, we continued to make steady progress in our pursuit of larger product deployments with many enterprise accounts, especially within warehousing and logistics as well as healthcare. At the same time, we continued to execute on opportunities to expand and strengthen our global sales channel in select regions. On the OEM side of our business, we are seeing growing interest in our waveguide and display engine solutions from both new and existing customers across the defense, consumer and enterprise sectors," he added.
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For the three months ended June 30, 2022, the company made a gross profit of $0.4 million or 14% of revenues, compared to $0.6 million or 20% for the same period in 2021. The decrease was largely due to higher discounts on a large unit volume sale and the negative impact of foreign exchange from its non-US dollar-denominated sales, Vuzix said.
Net loss for the three months was $10.0 million or $0.16 cents per share versus a loss of $9.2 million or $0.15 for the same period in 2021.
As of June 30, 2022, the company had cash and cash equivalents of $100.6 million and an overall working capital position of $109.1 million.
"Notwithstanding the challenging supply chain and economic environments that remain in place, our outlook for the balance of 2022 continues to be positive with the expectation that our second half revenue will see further growth,” CEO Travers said.
“Enterprise adoption of our smart glasses is poised to accelerate with larger orders anticipated from repeat and, in some cases, very large new customers that should ultimately represent significant units and dollar values. These major customers, with which we are already engaged and shipping to, remain committed to deploying Vuzix smart glasses in larger numbers and we believe it is now just a matter of when, and not if, for all of them," he added.
Revenue from OEM is expected to see strong growth in the second half of 2022 as the company leverages on the investments made for its core technology and OEM platform.
“The significant improvements we have made in our waveguide performance and quality and our ability to manufacture in volume and at very competitive price points has opened and will continue to open new doors with consumer OEM customers," Travers said. “And on the defense side, the expiration of our non-compete and unique status as a US-based manufacturer and supplier of waveguides, ideally positions us to readily engage with any US or allied defense and homeland defense forces around the world."
Investors interested to learn more about the second-quarter operational and financial performance can listen to a replay of the conference call hosted by Travers and Vuzix CFO Grant Russell by dialing 877-660-6853 within the US or Canada, or 201-612-7415 for international callers. The conference replay ID# is 13731800.
Vuzix is a leading supplier of smart glasses and augmented reality (AR) technologies and products for the consumer and enterprise 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 augmented reality.
Contact the author at jon.hopkins@proactiveinvestors.com