Vuzix announces its results for the second quarter of 2022

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ROCHESTER, NY, August 9, 2022 /PRNewswire/ — Vuzix® Corporation (NASDAQ: VUZI) (“Vuzix” or the “Company”), a leading provider of smart eyewear and augmented reality (AR) technologies and products, today announced today its second quarter results for the period ended June 30, 2022.

“Despite the macro challenges that persisted throughout our second quarter, we were able to achieve sequential and modest year-over-year product sales growth,” said Paul Travers, Chairman and CEO. “Most importantly, we continued to make steady progress in our quest for larger product rollouts with numerous enterprise accounts, particularly in the areas of warehousing and logistics and healthcare. At the same time, we continued to seize opportunities to expand and strengthen our global sales. channel in some areas. On the OEM side of our business, we are seeing growing interest in our waveguide and display engine solutions from new and existing customers in the defense, consumer and enterprise sectors.

The following table compares condensed data items from the company’s unaudited condensed consolidated statements of earnings for the three months ended June 30, 2022 and 2021, respectively:



For the three months ended June 30



(in thousands of dollars, except per share amounts)



2022

2021

Sales:




Product sales


$2,899

$2,834

Engineering Services Sales


109

83





Total sales


3,008

2,917





Total cost of sales


2,582

2,337





Gross profit


426

579

Gross profit %


14%

20%





Operating Expenses :




Research and development


2,996

2,724

Sales and marketing


1,851

1,349

General and administrative


5,040

5,181

Depreciation and amortization


540

502

Infringement of patents and trademarks


31





Total operating expenses


10,427

9,787





Operating loss


(10,001)

(9,207)





Total other income (expenses)


(21)

(38)

Net loss


(10,022)

(9,245)





Loss per common share


$(0.16)

$(0.15)






Second quarter 2022 financial results

For the three months ended June 30, 2022total revenue increased by 3% to $3.0 million versus $2.9 million for the comparable period in 2021. Sales of Vuzix smart glasses products and engineering services were relatively unchanged during the period.

There was an overall gross profit of $0.4 million i.e. 14% of revenue for the three months ended June 30, 2022 compared to $0.6 million or 20% for the same period in 2021. The decrease is largely due to a higher level of sales rebates on large unit sales volume and negative currency effects from our non-US dollar denominated sales.

Research and Development (R&D) expenses were $3.0 million for the three months ended June 30, 2022 compared to $2.7 million for the comparable period of 2021, an increase of approximately 10%. The increase in R&D spending is largely due to increased external development spending related to Shield smart glasses and payroll and social charges.

Sales and marketing expenses were $1.9 million for the three months ended June 30, 2022versus $1.3 million compared to the comparable period of 2021, an increase of approximately 37%. The increase is mainly due to the increase in salary and benefits expenses due to the increase in the workforce.

General and administrative expenses for the three months ended June 30, 2022 has been $5.0 million versus $5.2 million for the comparable period of 2021, a decrease of approximately 3%. The decrease is mainly due to lower expenses related to shareholders and IR.

The net loss for the three months ended June 30, 2022 has been $10.0 million Where $0.16 per share against a net loss of $9.2 million Where $0.15 for the same period in 2021.

The net operating loss after adding non-cash items for the second quarter of 2022 was $5.5 million compared to a loss of $4.6 million for the second quarter of 2021. As of June 30, 2022the Company maintained cash and cash equivalents of $100.6 million and an overall working capital of $109.1 million.

Management outlook

“Despite the challenging supply chain and economic environments that remain in place, our outlook for the remainder of 2022 continues to be positive and we expect our second half revenue to see further growth. Enterprise adoption of our smart glasses is poised to accelerate with greater advance repeat orders and, in some cases, very large new customers that are ultimately expected to represent significant units and dollar values. Major customers, with whom we are already engaged and shipping to, remain committed to deploying Vuzix smart glasses in greater numbers and we believe it is now only a matter of when, not if, for each of them,” Travers said.

“Our OEM business is no less exciting in terms of engagements already underway and many new opportunities appearing regularly. Our OEM revenue in the second half of 2022 is expected to see strong growth as we begin to leverage investments that we have already achieved in our core technology and OEM platform.The significant improvements we have made in the performance and quality of our waveguides and our ability to manufacture in volume and at very competitive prices have opened and will continue to open new doors with mainstream OEM customers.On the defense side, the expiration of our unique, non-competitive status as a US-based manufacturer and supplier of waveguides, we ideally positions us to easily engage with any U.S. or allied defense and homeland defense forces around the world,” concluded Mr. Travers.

Conference call information

Date: Tuesday, August 9, 2022
Time: 4:30 p.m. Eastern Time (HEY)
Call number for US and Canadian callers: 877-709-8150
Call number for international callers (outside the United States and Canada): 201-689-8354

A live and archived webcast of the conference call will be available on the Investor Relations page of the Company’s website at: https://ir.vuzix.com/ or directly at https:/ /event.choruscall.com/mediaframe/webcast. html?webcastid=q6sCimQK

The general manager and president of Vuzix will take part in the call Paul Travers and financial director Grant Russelwho will discuss operational and financial highlights for the quarter ended June 30, 2022.

To join the live conference call, please dial the telephone numbers referenced above five to ten minutes before the scheduled time of the conference call.

A telephone replay will be available for 30 days from August 9, 2022at about 5:30 p.m. (ET). To access this replay, please dial 877-660-6853 in the United States or Canada, or 201-612-7415 for international callers. The conference replay ID is 13731800.

About Vuzix Corporation

Vuzix is ​​a leading provider of smart eyewear and augmented reality (AR) technologies and products for the consumer and enterprise markets. The Company’s products include personal displays and portable computing devices that provide users with a high-quality portable viewing experience, provide solutions for mobility, portable displays and augmented reality. Vuzix holds 247 patents and patents pending and numerous IP licenses in the field of video eyewear. The company has won innovation awards at the Consumer Electronics Show (or CES) for the years 2005 to 2022 and several wireless technology innovation awards, among others. Founded in 1997, Vuzix is ​​a public company (NASDAQ: VUZI) with offices in Rochester, NY, Oxford, United Kingdomand Tokyo, Japan. For more information, visit the Vuzix website, Twitter and

Vuzix website, Twitter and Facebook pages.

Disclaimer of Forward-Looking Statements

Certain statements contained in this press release are “forward-looking statements” within the meaning of the Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Forward-looking statements in this release relate to, among other things, the timing of new product launches, market disruption opportunities, R&D project successes, the smart glasses pilot project to roll out conversion rates, services existing and new engineering capabilities and conversion to volume production OEM programs, future operating results and the company’s leadership in the smart glasses and AR display industry. They are usually identified by words such as “believes”, “may”, “expects”, “anticipates”, “should” and similar expressions. Readers should not place undue reliance on these forward-looking statements, which are based on the Company’s beliefs and assumptions as of the date of this release. The Company’s actual results could differ materially due to risk factors and other matters described in more detail in the Company’s annual reports and other filings with the United States Securities and Exchange Commission and the applicable Canadian securities regulators (copies of which may be obtained at www.sedar.com or www.sec.gov). Subsequent events and developments may cause these forward-looking statements to change. The Company specifically disclaims any obligation or intention to update or revise these forward-looking statements as a result of changes in events or circumstances after the date of this release, except as required by applicable law.

Investor Relations

Ed McGregorInvestor Relations Director
Vuzix Company
[email protected]
Tel: (585) 359-5985

Vuzix Corporation, 25 Hendrix Road, West Henrietta, NY 14586 United States,
Investor Information – [email protected] www.vuzix.com

SOURCEVuzix Corporation

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