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MicroVision(MVIS) - 2025 Q1 - Earnings Call Transcript
MVISMicroVision(MVIS)2025-05-12 21:30
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Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenues of 600,000, primarily driven by sales in the industrial verticals [23] - R&D and SG&A expenses for Q1 2025 were 14.1 million, including 1.9millioninnon−cashstock−basedcompensationand1.9 million in non-cash stock-based compensation and 1.4 million in non-cash depreciation and amortization, resulting in a reduction of 45% year-over-year [24][25] - The company finished the quarter with 69millionincashandcashequivalents,withadditionalavailabilityundervariousfinancingfacilities[26]BusinessLineDataandKeyMetricsChanges−ThecompanyisengagedinsevenRFQsforautomotiveprograms,butprogresshasbeenslowduetoOEMsfocusingonsupplychainissuesandglobaltraderebalancing[7][19]−Intheindustrialsegment,thecompanyhasmadeprogresswithitsMoviasensorintegratedwithonboardperceptionsoftware,expectingcommercialwinsfromongoingevaluations[12][20]−ThedefenseverticalisbeingexpandedwithanewlyestablisheddefenseadvisoryboardtoexploreopportunitieswiththeDepartmentofDefense[14][22]MarketDataandKeyMetricsChanges−TheautomotiveindustryisexperiencingdelaysinadvancedADASrollout,withLiDARintegrationatlowvolumes[7][19]−TheindustrialmarketshowsmomentuminAGVandAMRsectors,withcompaniesembracingautonomyandAI[20]−Thedefensemarketpresentsmultipleavenuesfortechnologyapplication,includingdronesandunmannedvehicles,whichdiffersignificantlyfromautomotiveapplications[104]CompanyStrategyandDevelopmentDirection−ThecompanyaimstofocusoncustomdevelopmentopportunitieswithOEMsintheautomotivesector,whilealsoexpandingitspresenceinindustrialanddefensemarkets[11][22]−Thestrategyincludesleveragingexistingtechnologyforpartnershipsinthedefensesector,emphasizingrapidinnovationthroughpublic−privatepartnerships[22]−ThecompanyplanstohostanInvestorDaytoshowcasetechnologyofferingsandengagewithpotentialcustomers[15]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedoptimismabouttheindustrialsegmentandthepotentialforsignificantrevenuegrowth,projecting69 million in cash and cash equivalents, with additional availability under various financing facilities [26] Business Line Data and Key Metrics Changes - The company is engaged in seven RFQs for automotive programs, but progress has been slow due to OEMs focusing on supply chain issues and global trade rebalancing [7][19] - In the industrial segment, the company has made progress with its Movia sensor integrated with onboard perception software, expecting commercial wins from ongoing evaluations [12][20] - The defense vertical is being expanded with a newly established defense advisory board to explore opportunities with the Department of Defense [14][22] Market Data and Key Metrics Changes - The automotive industry is experiencing delays in advanced ADAS rollout, with LiDAR integration at low volumes [7][19] - The industrial market shows momentum in AGV and AMR sectors, with companies embracing autonomy and AI [20] - The defense market presents multiple avenues for technology application, including drones and unmanned vehicles, which differ significantly from automotive applications [104] Company Strategy and Development Direction - The company aims to focus on custom development opportunities with OEMs in the automotive sector, while also expanding its presence in industrial and defense markets [11][22] - The strategy includes leveraging existing technology for partnerships in the defense sector, emphasizing rapid innovation through public-private partnerships [22] - The company plans to host an Investor Day to showcase technology offerings and engage with potential customers [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the industrial segment and the potential for significant revenue growth, projecting 30 million to 50 million in revenue over the next 12 to 18 months [28] - The company remains cautious about the automotive sector, expecting no substantial projects to be awarded in the near future [11] - Management highlighted the importance of a strong balance sheet and strategic partnerships to navigate the current market challenges [10][22] Other Important Information - The company has secured a production commitment with ZF in France, minimizing exposure to China tariffs and enhancing competitiveness [18] - The company is exploring strategic alliances in the defense sector but is currently focused on commercial agreements [57] Q&A Session Summary Question: Is this the first quarter with commercial sales? - The company confirmed that commercial sales were also present in the fourth quarter, indicating a continued effort in this area [32][33] Question: What is driving the potential revenue range of 30 million to $50 million? - The revenue is primarily driven by industrial automation activities and the deployment of ADAS solutions [35][36] Question: How many unique entities is the company working with? - The company is currently engaging with less than 10 unique customers in the industrial space [42] Question: What is the scope of military opportunities? - The company aims to be a technology partner for prime contractors in the military space, focusing on delivering integrated solutions rather than bidding for large contracts [44][45] Question: How does the company plan to compete with existing players in the industrial vertical? - The company plans to offer a complete solution that includes both hardware and software, aiming for lower price points through economies of scale [78][79] Question: What are the 2025 milestones to track? - Key milestones include signing commercial deals in the industrial space, engaging in pilot programs for new technologies, and establishing partnerships in the defense sector [89][90]