Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Microvision Inc (MVIS, Financial) is focusing on industrial opportunities, which represent a strong potential for establishing a recurring revenue stream.
- The company is engaged in seven RFQs with automotive OEMs, indicating potential future high-volume opportunities.
- Microvision Inc (MVIS) has successfully bolstered its balance sheet with a $75 million convertible note facility, extending its financial runway into 2026.
- The company has streamlined its cash burn and reduced operating expenses, positioning itself for improved cash flow timelines.
- Microvision Inc (MVIS) is leveraging its integrated hardware and software solutions to differentiate itself in both industrial and automotive markets.
Negative Points
- Revenue for the third quarter was lower than expected due to a delay in sensor deliveries by an existing customer.
- The company is still facing challenges in securing high-volume automotive contracts, with significant revenue from this sector not expected until later in the decade.
- Microvision Inc (MVIS) is dependent on customer timelines for ramping up production, which introduces uncertainty in revenue projections.
- The competitive landscape in the lidar industry remains challenging, with other companies also vying for market share.
- The company faces the risk of needing to further scale down programs if automotive production timelines are delayed.
Q & A Highlights
Q: What are the ASPs needed to get the industrial market moving, and what is the expected unit TAM for 2025?
A: Anubhav Verma, CFO, stated that ASPs are expected to be in the $1,000 to $2,000 range, driven by the software offering. The expected unit TAM for 2025 is between 10,000 to 30,000 units, as customers are looking to roll out sensors into their fleets, including new robots or vehicles and retrofitting existing inventory.
Q: How does Microvision balance pursuing high-volume automotive contracts with generating near-term revenue through industrial applications?
A: Anubhav Verma, CFO, explained that the strategy involves executing on near-term industrial applications to reduce cash flow and build confidence with automotive OEMs. This approach ensures the company can sustain itself until high-volume automotive projects ramp up later in the decade.
Q: What is Microvision's strategy for navigating the evolving landscape of tier-one suppliers in the automotive industry?
A: Sumit Sharma, CEO, mentioned that Microvision is open to collaborating with tier-one suppliers as directed by OEMs. However, OEMs often prefer direct engagement with Microvision due to better service and cost considerations. The focus is on providing a complete solution, not just lidar, to meet OEMs' system cost and performance requirements.
Q: How does Microvision view the competitive landscape in the lidar industry, and how do they differentiate their technology?
A: Sumit Sharma, CEO, highlighted that Microvision's differentiation lies in its ability to scale at competitive price points, leveraging silicon-based solutions for mass replication. The focus is on providing high-quality point clouds at low power and cost, making their technology compelling for both industrial and automotive applications.
Q: What steps is Microvision taking to attract more analyst coverage and increase visibility among institutional investors?
A: Anubhav Verma, CFO, stated that the recent convertible financing has improved visibility among financial institutions. The focus is on running a lean operation with a clear path to cash flow break-even, which is attracting attention from fixed-income investors and enhancing the company's profile in the financial community.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
