ROCHESTER, N.Y., May 10, 2021 (Canada NewsWire via COMTEX) -- Vuzix smart glasses revenues for the quarter increased 177% year-over-year
Vuzix® Corporation /zigman2/quotes/205105106/composite VUZI -3.60% ("Vuzix" or the "Company"), a leading supplier of Smart Glasses and Augmented Reality (AR) technologies and products, today reported its first quarter results for the period ended March 31, 2021.
"Vuzix reported record smart glasses sales of $3.8 million as an increasing number of our customers continued to place larger and more frequent orders for our Smart Glasses," said Paul Travers, President and CEO of Vuzix. "Sales of our workhorse M400 Smart Glasses tripled versus the prior year's comparable quarter and we are seeing a broadening array of use cases emerging from literally every corner of the world. Sales of our Vuzix Blade® Smart Glasses offering were also stronger, rising 54% over the prior year's comparable period as the Blade's stereo audio, autofocus camera, and now standard safety rating features are generating increasing usage and interest from a growing number of enterprise customers who are experiencing demonstrable ROI courtesy of the Blade."
"Following further warrant exercises in our first quarter and our late March equity offering, our balance sheet is now stronger with pro forma cash of roughly $145 million as of April 1, which puts us in an excellent position to not only fund projected growth and planned product development, but also to broaden our product offerings through potential strategic initiatives," concluded Mr. Travers.
The following table compares condensed elements of the Company's unaudited summarized Consolidated Statements of Operations data for the three months ended March 31, 2021 and 2020, respectively:
For 3 Months Ended March 31 ($000s except per share amounts) 2021 2020 Sales: Sales of Products $3,805 $1,372 Sales of Engineering Services 110 160 Total Sales 3,915 1,532 Total Cost of Sales 2,836 1,451 Gross Profit 1,080 81 Gross Profit % 28% 5% Operating Expenses: Research and Development 2,080 2,023 Selling and Marketing 1,241 1,153 General and Administrative 3,704 1,538 Depreciation and Amortization 517 649 Loss on Fixed Assets and Other Asset Impairment 112 58 Total Operating Expenses 7,654 5,420 Loss from Operations (6,574) (5,339) Total Other (Expense), Net (65) (22) Net Loss (6,639) (5,361) Loss per Common Share $(0.12) $(0.18)
First Quarter 2021 Financial Results
For the three months ended March 31, 2021, total revenues increased to $3.9 million versus $1.5 million for the comparable period in 2020. The increase was driven by higher sales of Vuzix smart glasses products, which rose $2.4 million or 177% year-over-year.
There was an overall gross profit of $1.1 million for the three months ended March 31, 2021 as compared to $0.1 million for the same period in 2020. Product gross margins before overheads and other items averaged 47% of sales in the 2021 period as compared to 45% in the prior year's period. Overall gross margin in the period was 28% versus 5% in the prior year's comparable quarter as fixed overhead costs were absorbed over a significantly larger revenue base.
Research and Development (R&D) expense was $2.1 million for the three months ended March 31, 2021 compared to $2.0 million for the comparable 2020 period, an increase of approximately 3%. The rise in R&D expense was primarily driven by an increase in salary, salary benefits and stock-based compensation, which was largely offset by a decrease in external consulting fees related to M400 Smart Glasses development and maintenance.
Selling and Marketing (S&M) expense was $1.2 million for the three months ended March 31, 2021, versus $1.2 million the comparable 2020 period, as increases in salary, stock-based compensation and advertising expenses were offset by a decrease in trade show and travel expenses.
General and Administrative (G&A) expense for the three months ended March 31, 2021 was $3.7 million, versus $1.5 million the comparable 2020 period. The $2.2million increase in G&A expense was primarily due to a net increase in non-cash stock-based compensation expenses of $1.6 million, related to a vesting milestone under the Company's new Long-term Incentive Plan. Increases in legal, related to SEC filings, and regulatory expense drove the balance of the increase.
The net loss for the three months ended March 31, 2021 was $6.6 million or $0.12 cents per share versus a net loss of $5.9 million or $0.18 for the same period in 2020.
The net cash operating loss after adding back non-cash items for the first quarter of 2021 was $3.8 million as compared to a loss of $4.3 million for first quarter of 2020, a decrease of 12%. As of March 31, 2021, the Company maintained cash and cash equivalents of $132.7 million and an overall working capital position of $140.5 million.
"The reopening of global economies is waking-up segments of our business that went dormant over the past 14 months due to COVID, specifically within logistics, warehousing, retail picking and e-commerce. At the same time, we continue to see acceleration of our business across healthcare, manufacturing and field service. Our balance sheet is the strongest in our company's history and we believe that we are well-positioned to continue to achieve significant year-over-year comparative revenue growth throughout the balance of 2021, thanks to the growing success of our M-Series and Vuzix Blade Smart Glasses," said Mr. Travers.
Conference Call Information
Date: Monday, May 10, 2021Time: 4:30 p.m. Eastern Time (ET)Dial-in Number for U.S. & Canadian Callers: 877-709-8150 Dial-in Number for International Callers (Outside of the U.S. & Canada): 201-689-8354