Vuzix Reports Q1 20

ROCHESTER, NY, May 10, 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 first quarter results for the period ended March 31, 2022.

“The first quarter was challenging for many of our customers, suppliers and partners due to a combination of ongoing COVID disruptions and geopolitical tensions in Europe,” said Paul Travers, Chairman and CEO. “These issues in general, and their impact on the timing of certain anticipated customer orders, resulted in first quarter sales falling short of expectations. Despite the delays in the first quarter, we continued to see underlying momentum in the within our major smart glasses accounts, particularly in warehousing, logistics and healthcare.On the OEM side of our business, we are seeing growing demand and follow-up orders from new and existing customers of defense and consumer electronics OEMs for waveguides and head-worn display engines, which should have a positive impact on our second quarter of this year.”

The following table compares condensed data items from the company’s unaudited condensed consolidated statements of earnings for the three months ended March 31, 2022 and 2021, respectively:

For 3 months ended March 31

(in thousands of dollars, except per share amounts)

2022

2021

Sales:

Product sales

$2,503

$3,805

Engineering Services Sales

110

Total sales

2,503

3,915

Total cost of sales

1,864

2,836

Gross profit

639

1.080

Gross profit %

26%

28%

Operating Expenses :

Research and development

3,103

2,205

Sales and marketing

2,023

1,303

General and administrative

5,454

6,028

Depreciation and amortization

423

517

Loss on disposal of fixed assets

84

Infringement of patents and trademarks

50

28

Total operating expenses

11,053

10,166

Operating loss

(10,414)

(9,086)

Net loss

(10,506)

(9,151)

Loss per common share

$(0.16)

$(0.17)


First quarter 2022 financial results

For the three months ended March 31, 2022total revenues decreased by 36% for $2.5 million versus $3.9 million for the comparable period in 2021. The decrease is mainly due to lower sales of Vuzix smart glasses products, which were $1.4 millioni.e. 37% less than the previous comparable period in 2021.

There was an overall gross profit of $0.6 million i.e. 26% of turnover for the three months ended March 31, 2022 compared to $1.1 million or 28% for the same period in 2021. The decrease is largely due to lower revenues to absorb overhead costs compared to the prior year period.

Research and Development (R&D) expenses were $3.1 million for the three months ended March 31, 2022 compared to $2.2 million for the comparable period of 2021, an increase of approximately 41%. The increase in R&D spending is largely due to increased external development spending related to the pending Shield smart glasses and higher payroll spending due to increased headcount.

Sales and marketing expenses were $2.0 million for the three months ended March 31, 2022versus $1.3 million for the comparable period of 2021, an increase of approximately 55%. The increase was primarily due to new hires, which resulted in higher payroll expenses coupled with increased trade show expenses.

General and administrative expenses for the three months ended March 31, 2022 has been $5.5 million versus $6.0 million for the comparable period of 2021, a decrease of approximately 10%. The decrease is mainly due to a $0.6 million decrease in non-cash stock-based compensation.

The attributable net loss for the three months ended March 31, 2022 has been $10.5 million Where $0.16 per share against a net loss of $9.2 million Where $0.17 for the same period in 2021.

Net cash loss after adding non-cash items for the first quarter of 2022 was $5.7 million compared to a loss of $3.8 million for the first quarter of 2021. As of March 31, 2022the Company maintained cash and cash equivalents of $113.3 million and an overall working capital of $126.6 million.

Management outlook

“Our outlook for 2022 remains quite positive despite ongoing and challenging supply chain, geopolitical and economic uncertainties. Smart glasses adoption during the year is expected to further accelerate with repeat orders from existing customers and , in some cases, we anticipate significant new opportunities for new programs,” Travers said.

“Over the past year and counting, we have invested in our core technology and OEM component platforms. The significant improvements we have made to the manufacturing quality and performance of our waveguides, as well as that our ability to more easily manufacture in volume at competitive prices, opens new doors with mainstream OEM customers.Additionally, with the expiration of our non-competition clause related to defense markets occurring in June, we we will be able to fully engage with all U.S. or allied defense and homeland defense forces around the world,” Travers concluded.

Conference call information

Date: Monday, May 10, 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=Sks0BRX8.

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 March 31, 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 May 10, 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 13729447.

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 246 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

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SOURCEVuzix Corporation

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