Microvision, Inc. (NASDAQ:MVIS)
Microvision, Inc. (NASDAQ:MVIS) shares fell 24.9% after the leader in ultra-miniature displays reported third quarter financial results that fell short of Wall Street expectations. The net loss of (-$5.2) million or (-$0.07) a share compared to a net loss of (-$4.1) million reported last year, did not go well with investors.
Q3 Financial Results Reaction
The disappointing financial results added fuel to a sell-off wave that has plagued the stock in recent trading sessions. Over the past two months, the stock has shed more than 40% of market value. However, it is still up for the year.
Revenue growth in the third quarter was a soft spot in the company’s financial report. The company posted revenues of $6.1 million compared to $4 million reported a year ago. However, revenue for the first nine months of the year took a hit, dropping to $8.3 million compared to $11.9 reported last year.
Microvision, Inc. (NASDAQ:MVIS) expects revenue to continue growing heading into the year-end. In March, the company received a $6.7 million order from China-based smartphone manufacturer Ragentek. The order is for the supply of PSE-0403 display engine, which the company plans to fulfill in the coming months.
PSE-0403 is Microvision, Inc. (NASDAQ:MVIS) lead product in the engine line business. The Company also has two other scanning engines – one for 3D LiDAR sensor and another for interactive display. In addition, the company is currently working on a major supply contract for a laser beam scanning system for a leading technology company.
During the quarter, the company sold 1.5 million shares to a private investor at a price of $2.10 per share. Gross proceeds from the offering totaled $3.15 million. MicroVision plans to use proceeds from the offering for general corporate purposes. The company also issued 5.5 million shares in an underwritten public offering, generating gross proceeds of $11.5 million.
Separately, Microvision, Inc. (NASDAQ:MVIS) has confirmed the appointment of Bernee D.L Strom to its board of directors. He joins the company with over 25 years’ experience of executive management, marked by roles on various boards.
“Bernee Strom is a tremendous addition to the MicroVision board of directors with her background as a founder, leader, and board member of many public and private high technology companies,” said Brian Turner, Chairman and Independent Director at MicroVision.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.