Microvision, Inc (NASDAQ:MVIS) Hitting Its Stride

Microvision, Inc. (NASDAQ:MVIS)

Microvision, Inc. (NASDAQ:MVIS) released their Q4 and full year earnings last week and today announced a major sale – both have been well received by the market. Based on revenues that beat analyst expectations, MVIS shares gapped up to open at $1.75 and hit an inter-day high of $1.94 on volumes that were over four times normal. MVIS shares are still below their 52-week high of $2.32 but well above their 52-week low of $0.89.

Microvision, Inc. (NASDAQ:MVIS) is the creator of its proprietary PicoP® laser beam scanning (LBS) technology, an ultra-miniature laser projection and imaging solution that is licensed to firms that develop and manufacture high-tech components. The Redmond, WA-based firm has an IP portfolio that has been recognized by the Patent Board as a top 50 IP portfolio among global industrial companies and has been included in the Ocean Tomo 300 Patent Index.

Last week Microvision, Inc. (NASDAQ:MVIS) announced that for Q4 they experienced an EPS loss of -$0.09 and had revenues of $2.91 million which was better than the street estimate of $3.12 million and was also 57.3% better than Q4 2015. MicroVision achieved over 60% revenue growth with $14.8 million for the full year 2016 compared to $9.2 million in 2015. Microvision also improved gross margin to 30% in 2016 compared to 22% in 2015.

Today a $6.7 deal was announced with an Asian electronics device manufacturer. The customer plans to embed the MicroVision display engines in smartphones.

All four firms that follow Microvision, Inc. (NASDAQ:MVIS) have rated MVIS shares as a “Strong Buy”. The trend would support such a rating. EPS losses for 2016 (-$0.32) was not much better than the -$0.31 loss in 2015 but sales have risen steadily. In 2014 the company reported sales of $3.5 million followed in 2015 by $9.2 million, and then $14.8 million in 2016. That is also an unfortunate trend with the number of outstanding shares. Shares outstanding have increased each year and now stand at 51.96 million.

3/15/2017
Ticker Symbol MVIS
Last Price a/o 2:12 PM EST  $                      1.82
Average Volume                    567,550
Market Cap (mlns)  $                  110.94
Sales (mlns) $14.80
Shares Outstanding (mlns) 69.34
Share Float (mlns) 67.53
Shortable Yes
Optionable Yes
Inside Ownership 0.70%
Short Float 7.70%
Short Interest Ratio 9.16
Quarterly Return 52.38%
YTD Return 26.98%
Year Return -30.74%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Author: Marcus Anderson

Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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