VUZI - Earnings call transcript Q3 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, greetings and welcome to the Vuzix Third Quarter 2018 Financial Results and Business Update Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this call is being recorded.

Now, I would like to turn the call over to Andrew Haag, Managing Partner at IRTH Communications. Mr. begin. may you Haag,

Andrew Haag

Russell. Welcome and the With business CEO, CFO, are everyone. XXXX us third financial Vuzix's Grant and Travers; results update Paul again afternoon Vuzix's to quarter today Good conference call.

not Therefore, like the Before I turn forward-looking Company the prepared Safe you Litigation may and business to competitive call Securities any the retain uncertainties, results contemplated over statements ability general factors, management's XXXX. additional Actual question-and-answer which conditions, by as strategy on and business call legal attract changes statements may to make the in to risks could statements qualified and protection factors and I this differ and as the forward-looking to plans, that remarks statements of remind Private personnel, for result or Paul, well Harbor limited the session. Act that would during from regulatory contain are in contained requirements. forward-looking are to claims a development subject those Reform management economic the forward-looking materially as in of certain changes of

projections Company's represent estimates XXXX. market Company and a conditions future results filed of market today, to addition, the management's close these X, as press obligation the the financial SEC. Vuzix issued today, the performance November to a no future its as In as assumes release update any in the XX-Q projections with change. announcing After

over provide and of results call. Form financial measure, may done required, those with quarterly directly comparable Company's as to filings non-GAAP be sec.gov, the at most today's on this found documents calculated the summary reconciliations Today's so, not call, the will XX-Q, include to may in When can Company GAAP participants accordance at to business who which results wish financial on in vuzix.com. call measures. overview to presented the also at Paul Company's already financial So providing will who overview have will discussed XXXX. will over CEO, the look a by Travers Paul for operating Mr. call follow remarks. now the Russell I quarter of who call then and will results. turn give an outlook Russell, provide the closing will turn Paul Travers, Vuzix's XXXX of the also is an Grant third available CFO, quarter third

We open Paul? managements' will call for Q&A the then after updates.

Paul Travers

our very XXXX. has. and leaders to the writing good deployment top quarter one captured has in no high broader so to glasses up strides continues this the entered results you, continue smart occurring Company's Thank the Hello towards space. a XXXX to like that market also Vuzix Vuzix as pricing to shift buzz more our you scale exciting note of and positioned new call more to consumer Customer as well enterprise large It smart a has made AR everyone build The new adoption factor any tool consumer are glasses of other the and and to the using financial The have Andrew. expect The the and and is players future productivity on continue glasses more timing here all is point is joining It we at without issues, to form technical is accelerate. interesting often. that yet there to user choice several eyes and way. industry XXXX player leading Vuzix time they just and history. to enterprise for more in outlook for not deployment and yet business third discuss but each at thank more for this today grow gaining momentum of and frankly and doubt trend are are than

becoming Finally, well is for positioned technology optical lead. to choice waveguides diverse the applications. here AR are Vuzix again, most of And

OEM agreement Blade over the recent BXC our and following Glasses. major opportunities has in we SixXX, market primarily with products technology MXXX the Vuzix is first agreement past with and Blade closing markets Glasses working for Xth, year business is of in enterprise near-term on already with Our aircraft opportunities companies with now responders, Consumer the police. up positioned leading transaction that our the is Smart waveguide-based from a side Glasses white and significant with and encompasses supply. for Smart systems can of amendment defense around solutions the and relationships. and primarily with homeland of to addressable expanded MXXX these to well non-compete security engaged of October waveguide-based business humvees, number enterprise labels in SixXX Smart HUDs and BXB include suppliers, these Since The opens defense to with amendment our Vuzix waveguide-based and contractors formalize

their several opportunities have expanding side the of are them homeland market in on with the defense that with house and have responders opportunities Again, in difficult and past. first for Vuzix are support now. business aviation to significant We also commercial been and closed defense SixXX

some SixXX precede still everyone's new margin this for Vuzix the opportunities uncommon is in as lumpiness some This all markets expectations, technology of up in where our place, should well technologies new go we business said, not appropriate. into and amendment timing needs markets. forward. can business near-term should estimates. opportunities of the the trail Vuzix demand. destructive expect as can very these markets with expect represent also now we pent customers and and market be we With level will best work is that There AR These significant and that subject address despite directly their fit to alongside are higher All often or opportunities

revenue And expected did Smart reported Toshiba Glasses. Toshiba QX not our powered the were be Vuzix. this accelerated of although many slightly reasons, we demand. rates other had revenues business climbing include away. customers out to for are up though has originally the in ARXXX as to various QX, gone to any In not bit none example, with than only shipments blades expected a For Vuzix previously ship even with deliveries requesting sure shifted higher we we It nearly due work expected, as has did on production of as hand, catch to

Let me get the is The enterprise into space wave is MXXX. where adoption glasses. reality some smart for details of around augmented the occurring

service, a of manufacturing, If of and market exposure select you group look and Vuzix all verticals, inspection has as logistics, such across field in customers enterprise them.

MXXX to in increase growth in MXXX thousand enterprise customer pilot/new well is Our north expand, in count growth revenue the of in accounts. year-over-year. which quarter, pilot now continues continue QX our business by resulted led third a to the XX%

and As pilots. is and includes large a Vuzix base reminder, integration direct partners Vuzix their a for count resellers our customers number of installed that of are value-added pilot program own growing

sweet believe as now customer maturation drive of Vuzix accelerating as their the should existing base much continue are programs has dozens greater is number of some of of orders. place in customers active or our we customers total growth that to to actual resellers of own. spot. pilot into pilots our are So, some have The of repetitive the hundreds reorder cases moving expected hundreds follow-on

pipeline And two quarter XXXX in figure industry a s We and was our the see of and have orders the that signs on seven-figure in expected XXXX, Vuzix We half with asking announced the and multiple you XX,XXX have growing RFPs during months MXXX year, orders. this change. now into past four customers orders. and We SATS, feel through and the Vuzix to in through fourth closing closing of for it most cases of respectively. QX, quoting There sales shifts have give and plus gone Last some is programs for was unit throughout to MXXX six and seen pilot QX quoting MXXX. fronts for XXXX. over revenue continue the first these successful we in AMA

quarter, in quarter. worldwide. be the to SATS with major the the SATS across Airport. at delivered The will MXXX player remaining XX airports SATS operating XX in cities Asia a During Glasses appointment approximately ground order units handling currently delivered third for in and XXX is the Changi operations associated the fourth Vuzix XXX Smart

continue at employees. November a the of leading Vuzix solution and similar requests year from inbound MXXX pilot is Vuzix program million in the manager deployment Vuzix on the many Smart AR public We successful solution smart notable alone Nokia fixed has throughout operators device and successful is Glasses, as solutions aviation airports mobile titled Glasses its used Enterprise Training been those by for operated. substantial. industry-leading take familiar resulted webinar Practices be more of this one telecommunications X.X SATS better provider. and other network the three partners, playbook Augmented in manufacturer the the deployment in market not a Alongside the MXXX Smart Vuzix to Telekom largest there internally may a and the an Chnagi a glasses Austrian leverage Airport than will mate networking of are XG you world's expect that enterprise opportunity vertical Verizon, of customers industry. in a software major roll that also to out successful world's on the see Verizon multiple will completed be Smart name with this Elsewhere, part XX,XXX and Reality. of involving Augmate Glasses. Telekom one they to the the airports AX with first deploy AX on the Tarmac is and SATS mobile Austria provider, mobile firms, webinar Ubimax looking enterprise over be approach SATS Best and in of XXth AR for developing a with to Clearly

software X on Prior pilot were able use the partner services the valid to present remote Telekom Vuzix technicians AX legally on smart without high-quality being glasses During off and the video jobsite. to remote Smart review free perform of implemented work the Glasses hands was be orders and were use which assisted a the the and with present experts solutions Nagarro, required of with reality jobsite. a in within maintenance to sign our MXXX weeks

orders the high-quality maintenance able reality MXXX use partner of software weeks During experts solutions assisted present be without a on required Smart to with jobsite. and valid glasses were was Nagarro, Prior remote present video review the jobsite. X implemented pilot, being our Glasses sign legally Vuzix perform the work of Telekom on in and within free and the with remote to technicians which hands AX the use smart off were a services

on realigning capitalizing of maintenance experts customer to with is future much do field and strong with were easier, end supply AX technology, especially chain it. the no just internal value-added the do of and our positioned in orders the sign across our infrastructure During extra feedback. to to built efforts facilitate quarter Vuzix goal required on efforts previous the are in conversions successful results enterprise able well today to to deployments express These these efficiently focus better time a pilot few space. positive replicate of groundwork the is being a and a the continue work Operationally, deliver and operations. and into refinements we we required examples. more The enterprise because Telekom off to deployments and bottom manufacturing resellers the With line, support becoming better pilots ecosystem to driven this enterprise VIPs have ROIs make laid their and by on personnel

the the Vuzix edition. fully expensive about Edge Blade. too Commercial capability to is coming over week, release This talk cover the and Vuzix launched Commercial The complex we weeks. let's Blade Blade much Now Edge here

is with Vuzix's take your to examples communications in a around a of the yourself, Our video out well ease the of The is Store Blade fresh yet, companion Blade recommend their their manage app, through keeping companion through to your now breath marks users Vuzix the to many air Blade. recently them for from website better look order for truly of place so interested, ability is in in available of the you beginning device companion with in Internet and the use, Blade the an play The ease app phone use there ways. done. hands-free test have it of will Apple or the Google pockets control a the simplifies and incredibly issued Blade I communication and and patent which setup the phones the as App and of using AR for the Blade

fast-forward while Blade and Wi-Fi For your available application, video like the users camera These can manage video. action phone the Blade. coming or settings by to our the among your will photos touch by the hands-free. connection commercial the that camera pocket. example, seamlessly experiences off media simply your being recognition can being the The that completed smart the be have fun, great This using entire to the the phone of I internal a better media leverage the navigate graphic here the we well-designed camera and website use glasses adding even notifications more. help years Alexa Blade at average effort speech the our a some while a the control well pairing on Blade. companion through record and applications release of Twitter, control commercial to the latest by their media you're activities Also, as over developer photos bit able is device application team can and the so favorite simple flare Vuzix the the in including snap now the into and leave for preview sharing expert or out the or the your their Also media only just viewing, recording, much Blade we effort you when pad. all Vuzix enable simple Blade simple smart for previewing a in friends. record is of developer video, videos the option turn an condensed you a Blade our asleep. filters delivered Blade manage worry can to Users play are and app, to augment phone in full-featured for will really features if Unlike without to are of back QR can not features what you five-minute on Blade scanning Blade recognition kits record and Don't display After and to part now want app, for can entire pause their Blade from the to even stop Alexa experiences in rewind Vuzix Blade social you day's users need is edge a adding played Vuzix into so Amazon LinkedIn. even the amazing continue user. enabled on YouTube, users soon for fast-forward, Blade way. general unique. also you photographer, developers products amazing using picture some the fun being be Again features the control understand has smart the social various and of Facebook can use on code the or to want phrases users in gone speech for Vuzix thank camera the of is that feeds, results of much, through customers the the download The customers Vuzix if but

that focused show simple Vuzix how and be a will Blade of We will use. to videos Blade series amazing is posting

Blade’s making every is months only several first focused one made, processing the has the I they Blade. the past you and a out-of-the-box accelerating. glasses yields every these to feeds Vuzix there optic have have improve, with as are out quality you has the The Production follow increase Blade responses the enhances our Vuzix is be display smart haven’t some If again steadily never stay to years far of and as would unbox units so this commercial finally these I best waveguide have done with and new said, impression changers; up amazing. suggest now the light on information volumes feel our during are you ensuring game media start positive we team content shipping say Blade, so on exciting like on best with and first I get released from Manufacturing devices; up-to-date and customer customers customers these like and our Vuzix can and already are we to although developer the Vuzix. this out latest significantly the been ever from seen that been working and quality checking seen at by the using customers volumes chance. the is of heads Blade new software release, we ahead. as the continue examples the getting of and best you Blade Vuzix is just of perspective social optics significantly the anything few our -- they That

Toshiba many Client as on you front was of October of OEM Solutions XXXX. know, the On acquired

been Client third team Solutions upgrades we software made and Toshiba customer Toshiba requests. MXXX working to the feed with during have closely on quarter great We the based some

us changes us. behind The we plant getting our are new bottom have agreement are even progress floor development these on Elsewhere looking commencing expanding we in the and with cranking track to the the aerospace Now customer. up quarter. all here the and substantial made shipments between with back forward relationship line we on fourth

Our to of to before have end systems and customer the expectation the is completed first our year. delivered

development ready sometime system to system this roll in development more XXXX. into a production the hopefully expect We a formal program initial as with from

smart and commercial engaged here, more multiple in tough to the companies of through to and of with are win, remain quarter lot a out they're folks space is we electronics in at This looking the going solutions. able over of say the Grant? going be here the we TierX Grant a case is Lastly, can what is of augment customized our waveguide second being ones and be working portfolio with going just walk who glasses there's one I now firms their say next are feel current love that pass solution. financial products all working global results. is it I’d to to that trying are that I’d to developing that to consumer like to part to the call be figure every we’re through out the big

Grant Russell

you, to and our just few SEC afternoon some interested differences, year-over-year here. review detailed of this begin, with on more the explanation the XX-Q Thank I encourage that a listeners like filed highlighting Paul, be before and we I’d I for quarterly so would a to

Blade reported ended sales period smart overall stronger result for Vuzix to same XXXX, total of months where year's million as in quarter sales increase quarter accounted are primarily three X.X category. a year-to-date the of XX% X.X in XXXX new million for in third was total smart glasses year-over-year. a same Smart smart of a compared XXXX nine X increase, revenues XXXX months as XX, the XXXX MXXX compared in compared For a Sales XX% which to third in And to September prior XX% period basis, of this in of total million period, our increase revenue million results. up sales a were in revenue smart the X.X included over on Glasses XX% XXXX the as of revenues glass third the and glasses quarter XXXX. glass The in the

sales XXX,XXX, overall periods XX, which the price generally the our compared gross product reported September higher an reflects representing the overhead the XXXX compared to period. costs compared product XX% product to XXXX rose of Manufacturing XX% the glasses. prior fixed average XX% percentage over ended sales, costs. the XXXX prices profit gross sales products as to of average XXXX sales quarter the of were to on year’s period of period for declined product the manufacturing year XXXX for only, from the on glass direct to total On third-quarter an XXXX The the overhead XX% smart period. of as revenues to period a absorb period, XXXX sales the period. For selling prior the selling cost basis for improved of improved total from All XXXX result XX,XXX in profit we a XX% in product in product costs in front in as revenues, smart higher eyewear the and XXXX

to discontinued in Our production and sold the of as will category. minimal this this was remaining residual product September of XX, product future from result revenues be stock XXXX

related recovery X.X the to for period. XXXX due increase new third Smart the of staff to previously Additionally, million The as we for spending to as other increased well product research related an the in costs Blade XXX,XXX compared increase to expenses Overall quarter and new to a reported iWear's R&D and development Glasses activities. crude discontinuation. as million was X.X mainly XXXX and R&D our increased

development in by from the advertising and these invest as expect and work have products a of quarter said, and development maintaining were cost of offset some XXXX XXX,XXX more in We XXX,XXX that for recently brought in-house, increased X,XXX,XXX XXXX for third marketing X,XXX,XXX were we so development of administrative to new XXXX, to was on forthcoming savings efforts. actual for in level savings XXXX but while compared spending and Sales Blade's website XXX,XXX for continue XXXX the software third our we period. Store beyond. General the the our technologies App That and by XXX,XXX to expenses quarter an down costs. on increase

computer after per and and expenditures the small X.X share a additional dividends fees preferred or bank legal by the ending million stockholders loss share $X.XX same for accrued per XXXX common was incurred net to attributable versus XXX,XXX period $XX,XXX all changed, a X.X loss are net increase September overall the in $XXX,XXX months million, The of reduction $X.XX three Within XX, of shareholder XXXX. for XX,XXX or we or in of related a consulting primarily X% expenses. our offset fees increase IR subscriptions in

the balance to sheet. Moving

months the and XX months. position September XXXX approximately of million working ended capital was capital non-cash XX.X million was loss least net current operate X.X improvement X The XX.X next quarter XX, quarter achieved X.X on net business and Company for back million for compared as three September of position up than XXXX operating plans adjustments XXXX. as to more The during during second after has million. at the of This cash than adding to a Our the offset with was our adequate execute XX, to ramp of cash XXXX continuing in sales million was do as the first Inventory limited further earlier the QX third increased to QX. spending rose mass anticipation levels the in compared in of during R&D Blade’s expectations. more its our which in probably quarter

We as third Glass expect Blade ramps and production approximately XXX,XXX up Paul. used over new was by growth products flatten with along inventory the assets XXXX like for I to investing the to volume With the activities shipments to quarters; turn call that, filings. Smart of patent investments cash manufacturing back our quarter several over driven next would primarily for

Paul Travers

Grant. Thanks

to on against you, some orchestrated remarks I prepared short shorts our and by I'm being want frustrates to campaign that some address the distort Vuzix. sure close time the I Before topic take many of ongoing

already Enough plaintiffs but lawsuit, the that this firms with is September, industry. to you way we the in of is the said are class measures. familiar the similar seller that the taking lies agenda lies against Pearson a article his XXX% that that they on we and vigorously by our and as that what made reason will and have outright bad Vuzix other based hopes arguments ourselves pursuing know brought who regulators lawsuit these are to and Mask actions these are our campaign and the aggressively our Pearson him Pearson clear misrepresentations. in will our defend both the the Securities take derivatives. intend it lies recent on that through they claims against drastic short here. courts in that. also actors The a made will by the and Alpha to class-action are and as Pearson In this. are Commission Seeking only declared lawsuit, action multibillion believe dollar valid, are short basis response, be Exchange without action baseless Vuzix those merit. took has million for claims are are we and the For leader such against a you investors and short as not exactly is defamation In expected made report the lawsuits well Pearson people against action in an with are prey $XX establishing stock that We that certain for are on distort these against see that

of move into fees and rollouts. and over on helping respond our focused customers the dollars been back on building successfully to So see successful XX,XXX to for company the great are planted; that many have have the reality the we closed Glasses Smart orders of the next asked larger new our and seeds have now this We’ve of range to past adoption to XX MXXX augmented focus programs provides products, a pilot market in enterprise wave that computing new announced The future being leading edge in as these MXXXs. of for solutions market we months, a million significantly plus laser players valuable cutting excess multiple future the grown been of growth and our accelerated technology. in

rapidly the Blade new Vuzix established is to with continued sales booth to glasses Company consumer things phones is getting for connectivity as significant the new expanding Vuzix these well in silicon be show fourth here be level of As year the growing you A to with are glasses of as industry smart involved is and these be built around regard Qualcomm to large with internally partnerships, yet, and the others our installed this clear growth we incredible Add the BXC the the show Vegas. seeing already organizations confident that significant and that remain plan of quarter form this active all as Tier X is well smart applications growth in that is of and all for it online is experiences Vuzix confident space. and way. and to closer becoming with and an kinsman along and of positioned interested new development And even all even coming the to great modern with MXXX fourth Blade and the you next-generation revenue customers; of and deliver leader place in factors is Las of growth and to getting With series well power XXXX channels partners multiple XXXX of is in of and that this, is an blades with going of on poised deliver new also BXB, expected resellers closer on in coming to clear as lots It potential series like of quarter Smart more direct even Vuzix sales the the that XXXX. the solutions the Blade new just Vuzix to business started enterprise with streams computer products customers list take base potential this AR AR the the share. the of it growing exciting wireless increasing being FSR in their social style revenue our capabilities, for remain beyond, Qualcomm growth series and advantage growth. all in expected a the It becoming at year, the Vuzix exciting XXXX. hardware online are are OEM new Vuzix new and space more continued streams Glasses going being that developments technology will enterprise of that this Company we and or with during in is positioned FSR to in terms product increasing significant should in relates with expected CS smart other or

let me the session. begin Q&A Now, to the Andrew pass meeting to

Andrew Haag

Thank of start and the please you. you for the Operator call. answer will session questions queue

Operator

[Operator and from session. Ladies Hallum Christian our Instructions] conducting Group. of will Capital Our comes we now with gentlemen, Craig question-and-answer line question Schwab be first

live. now You're

Christian Schwab

you for Can you the given a outcome give of QX. look Can As thinking might us us of that outs? more growth give to range and playing little granularity we QX bit that? be revenue potential you on or some kind a push

Grant Russell

some to So, expectations QX on a going regroup have in stuff that the say sure XXXX, little impact exactly QX, that we're can't should all. it a QX be just We moved has business QX happened on And quarter. to happened that delayed in think said, That record will revenues give a still of guidance we’re our the quarter-to-quarter. bit that, we’re bit not we to that we gone don’t will great our quarter. bit. Vuzix, down is get of should where little quarter will into trying on but a little not expecting were QX into at business for a exactly from it have QX fantastic I follow expecting land be

Christian Schwab

that expectation of possible XX et us get to Or cetera? the versus in quarter And range either as XXXX can is outcomes looking so just give to products customer Blade, we enthusiasm idea quarter you adoption an of and revenue would XX? MXXX different for but of people you in can that, a shipments XXXX assume the

Grant Russell

million big If year. just last you over This that look a Vuzix couple rates couple ago, let jump at a last it's X revenue. years over be growth going in year, it Last million-ish was year, years. Two the of the revenues. say, to

of is. comes so kind numbers imagine accounts unit -- figure more numbers it over should suggest are be than last that single be what now you can would significant already MXXX, we easily me, XXXX triple. the We’re like on is XX,XXX a could volumes over really I eight jump XXXX closing unit excuse said year's to transactions when plus I and it

Operator

you. Thank

Jim comes the from next of line question McIlree Chardan Capital. from Our

You are now live.

Jim McIlree

a talk what fix there towards little you Blade on to done Can it? bit the and what's been in delays going was

Paul Travers

have Jim, all of we’re we’ve along the to Vuzix, planet the critical kinds going I a almost technology that’s the to for Blade some we product company brand-new components And vendors Vuzix on we way. through that today, deliver them with that brand-new got been in of the probably but Blade and work is say and for going is any thing the bringing is issues the bringing coming people up actually some I with up resolved This of being is MXXX different say the lot where resolved associated will the Toshiba first quickly. for than back. X.X may it learning been that line product have completely years in couple time curves like this out. remember have the was -- MXXXC a and

We’re cranking up.

we’re certain capabilities faster. duplicating Now, so that can we even run

number companies the we discount, they’re Blade, critical to it’s is waveguides we because that people the Leap negative on forward. there couple X,XXX expect there’re and them plan I we look easily being really don’t made on rate to we run cranking the our point as in with up getting, be and ticket products want Magic of going to amazing, put fashion software. like We we’re even compared on the want wow the them. So good, only at solutions. and that about on say other products, two, make was it ourselves and in if be a anybody That ship at one monthly the the products this answers first those number to and out we X,XXX waveguides in like quarter HoloLens said that though feels point will are to of And I a one. had different basis. earlier, year so next nasty it's I When

the grow. guy little software you We hard-core broaden on customers bit not a get kind in the units expectations that the also expectations of their they're think and because as the more on field

don’t working -- about, that's it base recent the words, can product is and describe I put so, release connect on, customer phone, been Again, is goes glasses say package it, we’ve that I to it try is getting outstanding. really that’s try with only really And the in what commensurate to make it the with it's the I amazing. to hard this your that most sure software

Jim McIlree

no you’ve so have just and a that, I vendor even delay to trying understand I fully appreciate if am to market that or if vendor into with issues I product argument all developed and have to the issues… discovered led need the solved you all the the of

Paul Travers

that today it's we we what are not fixed We’re issues think by are have making the easily worth of for great and product that that vendor issues vendor. some

actually our to change much more procedures processes to and processes robust. it's made some and we So, amazingly of adopt our it

we’re So, really at. good where we feel with

We’re replicating of those rate. of X,XXX Jim, said the unit as faster, quarter would at in per I processes run the some so year we little can go a month be first and

Jim McIlree

partly up at that all the attributed is the you think I blade the blades increase went inventory that Grant, almost least inventory? that in

Grant Russell

supply little get related lion up It my little, was probably it just blade it ready but product with a because the X September install a a to under in share of a but chain little of we was little we right. got a had the constipated and run and XX numbers flicker, want million to

Jim McIlree

I got okay. it

Grant Russell

down, I As the draw next said so quarters. couple over of

Jim McIlree

-- level. And deployment? example million or that just then two of XX,XXX unit a something on bought we the And the sales now is appreciate that or few month is a again closed at those year long a dollar And working wondering, three we the a there you're like on? had understood. like quarters in out Is and is deployment. I them deployment same of Yes, we that's there and that of singular that on start it's XX you quarters actually ,well that as when just sort seeing that kind MXXX, this but cycle lumpy two orders these I'm

Paul Travers

at this upon is really companies that many business coming the that, of of We today employees us, these VIPs driving work they they are based private the to space own us of Jim. customer. kinds good with one examples with although are many, and the telling companies that to that and are hundred are in space Sure, some plus some we’re quoting

there's out the so And our as and that cost two XX thing half Number than over will start. for. same timeframe. more of should Probably have XXXX they the a period one. in asked in they putting months, start They of what kind of we’re sort first

Jim McIlree

one. Okay last and just

So from to Toshiba back. QX? correct? revenue Toshiba And be reasonable expect Is would is that so in

Paul Travers

did gone expect clarified just never a we but to me Let third the for ship sure, away, just gone that that's bit. they've more Toshiba wording Toshiba through in little actually quarter, internally feedback and changes what they is us the of you came that changes. these said they which some is to help also got make customers from some can but us it

in lot the a quarter of them. did that from third we So,

quarter we by it what growth difference not there. event, are any about and third third one guy greater they didn't a in and than different would is So we're answer. significantly the that success been in comments and way ship sense make been It's Like and lumpy always a the yes we in back, said, them the quarter this quarter-to-quarter, earlier now made have the can they in cranking up But just time. again. really was

Operator

you. Thank

comes question line private of investor. a from the next Our Brian Kinstlinger,

You're now live.

Unidentified Analyst

Some questions Jim. similar to

I you’ve the first the months done Toshiba supply, think nine XXX,XXX in the of the Q I that in read year. On

for year? minimum commitment. the XXXX forgiving I they’re Is Will meet guess agreement to a be up their of going to the XXXX it assuming And this not then commitment? curious So, be period? what’s going I'm it catch a

Paul Travers

is about us there correct isn’t, a here to XX requirements from mean Brian, it’s there that wrong you month bit catch over keeping second minimum agreement me in of up. a could quarter quarter. if period if got as in really I'm the it started the second -- exclusive… I trend So, look to but the time. exclusive remain They They taking product the at

Grant Russell

XXXX. Of

Paul Travers

the and time, kind of bumps plan XXXX, That be some been they’re Of would right in we say we the but now. bit. a had there's a thought more products so taking out-of-the-box not they that they said, same little at when road like for necessarily plan

and it partnership are new they that we crank back to product formed more that out that will just this space I said appears and change even as but the the going that is will that we’re expectations not we very open with It of Our future this to it's them in to bigger. roll with the up accelerate. just business excited grow continue about

Unidentified Analyst

the of relationship, significantly? is And second out number commitment what grows that year

Paul Travers

time, in right? only XX period for place is month agreement current The

Grant Russell

might option only second XX that a of see not bogey That year. gave only we of the does but agreement, when the multiyear end month negotiate that mean exclusive. close new not a to for getting and it’s that that’s we Well,

Unidentified Analyst

quarter if the XXX,XXX even If second sales the X.X And third we look almost back I was million said like were glass the you then quarter. Blade there million at in which and out discussion surprised X.X smart on based to your all great early stages into decline given the demand. huge the think quarter comments, I'm third quarter, had second actually guess we MXXX of I is I with and a such in

declined what sequential it significantly so a So happened declined basis? that on that

Grant Russell

large a the a that almost which product QX accessories. out and million we’ve at for of Well, was end of -- $X went order

some board pull the the general QX, more a be $X large skew you’ve they them quarter those spotty. I come that the just -- not did plus now, customers results. they more one a some decided was -- to basket just only we can SATS And In MXXX So we mean just somewhat you have of that and had right take for if when out it all of and across of and ready first but sales higher. that’s currently buy have and in on million MXXX the XXX. were orders they that

Paul Travers

Barren, you abandon not the where we… call of part the first might

Unidentified Analyst

Always was me call. not, put Cryoport they I in a waited.

Paul Travers

Sorry about that.

Unidentified Analyst

worries. No

Paul Travers

that delay a few who know XYZ are may say we they have right quarter to have look now and timeframe. got and I have what times you can could second when said come to came There it, XYZ and and the And got folks when it. in we us are reason come and to say had in for I want customers I you them times more there

growth quarter just have from it seesaw seeing of The might Company suffered to got the this the And of I little month bit. single revenue the quarter year-over-year other So do month of doubling actually the the nothing third plus with slightly a every rates. It’s year. month inside we general, is after ramp growth, than second in course after been. mean are on larger was

a gauge, reasonably you and to is like than for run. the XXXX snuff this going. XX more not now enough more time for how see needle a XX real days to will these you think that. days believe in even company difficult as right be days, XX guys I good day role more I measure but Vuzix will on XX will it's Every is know trends be

Unidentified Analyst

I our monthly twice will in January, blade. the be be X,XXX building how many at to will mentioned you for X,XXX You think you think many Is be you that to X,XXX X,XXX, how will shipping?

Grant Russell

production volume. handle of kind able that The be will facility to

Unidentified Analyst

X,XXX glasses in you're but that January saying Yes, actually not even necessary selling you're right. or February is

Paul Travers

that That's to problems run been facilities correct. point has That can they and the was solved manufacturing way the that in pretty answer question will your where the be at handling.

saying you if the that's numbers, think off Blade. or thereabouts, that next be alone If in what were about just XX million would we revenues, that mean year would

Unidentified Analyst

early right. from see demand right do adoption? you understood and perspective. That's you now? making a that's engage the How do adoption How from sure consumer I why early Well, was that

Paul Travers

the the really thing. and come that our website players software it's was running at commercial of that and coolest the just commercial was Blade we’re ones the AW lot a Blade that Ubmax it's partners it's and to that into they the of announced place at deploying suite conference that customers But released buying market our the selling and software to Well, is example get full the enterprise regardless selling not environment. are today. writing same of think was and consumer mostly consumers they the on because selling orders the We it's

release the test it's New in fact in it sometime the makes in going until commercial marketplace Year general New the the average. early not happen but does much Year first, the today So easier for that's

we're will a shipping. bonus. that’s backorder were the put display everybody that I got the even average we getting what release manufacturing, from amazing yesterday. just is This the behind time release in say compared feedback been though available again to huge with So we out And we great

to go we So now got just make more. right

Unidentified Analyst

applications, in Is software-based well? blade maybe are January? have, you XX% be with work I I mostly XX% With working going their so Do mean from to last blade software mentioned those that, of your entire the question partners? the your as Ubmax. on the they

Paul Travers

them. Grant, are that getting enterprise this with fair number not Most yet. spaces. was just in and a I folks It's them of making everybody point Actually, the have are of agree units. we their

customers that and of and them no hey, got to enterprise up to expect at are our our the added value-added ported But setting some number You reasonable of just software this and Blade know getting VIPs have for we already would saying use devices application. the they've others we current them a inviting and port like are gain coming resellers, up mean running and for to to value I customers resellers fully. XYZ these it.

the pull through it's happen. So making

Operator

Partners. question next of Our comes from Orin the from line Investment AIGH Hirschman

live. now are You

Orin Hirschman

To at you only in Can of on of with a questions units follow that? of of this that one that units the Blade, that know you two series like questions the give had X,XXX don’t point basically put mentioned north the shift. lots last us ship you you up in I through were in taste, know I it's developers something

Paul Travers

what in it's us -- kind to in tell it's primarily go you been to number developer, we that like you in we of if of those When a website, doing mentioned. that prequalify numbers. I really pre-filtered to that. can't bucket, it's limited we developer-centric now. have exact see right give developers you folks you're we I post from getting orders an something don’t I very say mean that, even kinds order it's number because or weren't has Yes, of so that everything are you that fit entertained the and you a the our and number can't been

Orin Hirschman

is one or or or that limiting though two you developer XXXs are there that that? Does because them mean three units something like of

Paul Travers

correct. That’s

Orin Hirschman

those there be piece were first missing? fine of here other on terms still but release? the just releases, the Blade general are any in be giant pieces terms to that a of tuning of Alexa, there Obviously, -- need at missing all will at the other that you to the mentioned or of is that items missing, have pieces major that’s any in least least there for need still nature Are And Blade.

Paul Travers

on a now set the software Oren, an of releases fact, as you related all things to the there that core is around the simple forming install happen. each is or just take that companion they commercials amazing Vuzix is average Right Blade. campaign XXXX, they putting blade, would say, another related, the thing those end opportunities is were you if for and and amazing, there and one cool greater something app the happen of to up the experiences less the release marketing greater the in some a are together but the of will on, pile and the a of in side This And Blade, if opens of this just go said, get right in of there user. user, of even now, is wow. series we will And a through That and as process that and for space. and things cases really aren’t

today. it release nice and will very see good you really by step it's part So, of next through grow year. even forward another What the would year early the is

Orin Hirschman

or be if on do on commercial dozens some consumer. already release a or for I'm meaningful taste? apps curious apps you that hundreds number it your web Will store a be already note can when people of get

Paul Travers

are in of just say for where applications on consumer. concept Golf the applications and say I resident themselves don't about developers are signed up end that right now user making that the necessarily will Examples all some developers the are the of hundreds. number around cloud-based some glasses are I the the Ball them really be. they wouldn’t to like buy have past we talked blades that going glasses. those I the that and to know is are

know, important much them. garbage fair of right you our if top us mean compelling thing be there relate to so to sitting most in final fully now Google's app today are I them out store the We millions with number that exciting most and to to the at more me score is Google do go So expect guys let of there to that is not many right. is apps them for regard, to queue applications apps on we a are are of waiting to and that of are that garbage clear least use, that and there more to approval even not are quantity. there

that And and so, more for the job. more absolute enticing and average and grow exciting

Orin Hirschman

on of skin game? the be some they NRE there just well where and finally And putting as question is business, involved going last the military are in to part levels the

Paul Travers

requires that in that's Yes, talk we of and right now upfront At for, are they pair space. into and is the engineering same boat in kinds particular products NRE is these a what first partner in of The actually there same first that fact looking just few in they very, there things the about are in of mean fees, well, responders. the defense responders, mates. I namely time, folks version one that are as is fit space. overhaul very useful fees, for those one that

the business off Vuzix towards be gaining XXX so, costs so will working cost. kind will just you that of and NRE shelf And with stuff,

Operator

Management. from next Dave comes Our Kanen of the Kanen line Wealth from question

You are now live.

Dave Kanen

of story, you capture? the the percentage what of years think help guys How so total your you to can to would market could size then out. me knew if of out, the kind it? markets, And addressable you do X I'm currently X you define

Paul Travers

look multiple there's at to here. markets So,

them. Let's talk of two about

if of if the customer smart given research what out to is glasses one fairly company. basis have share that customer an First, the stuff look even you the that XX, think sold guys many that's for orders in is, XX,XXX enterprise. just in having you It's XX% and that tune assets. XX they be if would XXXX to enterprise and units market future, would look about Vuzix into talk a be Vuzix the annual would XX multibillion into Gartner the XX,XXX firms at about if as on the space, like as And million

there. that can't are the this So out it's leading the one size the most where of we say don’t customers know Vuzix everybody customers Vuzix to hear large now all it going the our time else that I from product I place. and in market deeply going of We want players. is really over that's their right be

marketplace. see conservative bit a reasonable could you a that. of more chunk So, than very us out We're taking large a

but looking where we get excited become we could where that do to that for go, are so happening their it marketplace to finally can shovel mean, that's that phones. to the that is at in. there's space, to say Vuzix, are of We mass see that sort that's that bake space. it pushing but we responding, are here through in the of I the I consumer have market, RFPs we In and see enterprise billions

small almost and size Vuzix like reality of huge over know five augmented change that in you massive. in down say the it Vuzix phone Again, or things, they so Google they way even really took people hundred complete estimate So lately the a on augmented that space anymore, a opportunity anymore. a piece do years. if BMW is dollars marketplace. ourselves. car talk and we market of It's the in about next market that billion would and let's for XXX And reality not it's about for Apple do it's and the this about

are so, OEM more Vuzix is We in going although in of side our be to there. doing out to opportunities those brand the a business kinds going of have

Dave Kanen

significant backlog obviously like a regards beginning second X-K what year, at third didn't could look QX you just like revenue XX% happen? you when And in fulfilled explain expect of do for QX QX QX, what shortfall then a the this and responsible the was jump that commentary, the per to commentary in the if was shift that sounded something Company said But shortfall have quarter be quarter. was as that to the you looking expects to you in for at you What And revenue was it expect then kind shortfall was it do in I into growth the revenue? of that for there primarily reason just and sizable just despite for then commentary? the your the I revenue quarter, the a in in the

Paul Travers

which identify. The said quarter easy in be QX going to to quarter Vuzix, big like be for it’s QX a to is earlier without is doubt shortfall Vuzix. record going It’s be for I is a big. a The going to

revenue We of we get expected going than blades keep just to to volume shipping superior, to number. product. purposely name the be was itself the the a of the the getting have and to product way to higher people as high, feelings inferior we brand about product did, said important the more opposed we’re not they and when that us It

let’s the tracked. put we get purposely was the QX could businesses of And QX. a Blade couple would So, here little way like and right Toshiba a expected through along just that now it on in are be moving just going I be to the then,

there’s of shift getting right. to some our that sure things were the some be in we So, more rollout and chose make on a to conscious business of we that

Dave Kanen

think significant forgot So, from my it I north the ending I inventory QX, see but numbers, like forgot notes was of I I build $X exact of million. a there’s

is preparation this for So, in ramp QX? that in big

Paul Travers

this volumes. products that rollout built demand the putting the as anticipating inventories So finished true but the are to we are next year from out the of rollout build QX some convert don't and pieces take sell also demand, into of satisfy shelf you if There’s parts you is and products to it we have not inventories being that on customers time mean in some they higher of it inventories some can't are going for you in also so also; all. in goods have It’s preparation it to I MXXX into for in preparation just of

Dave Kanen

fresh to writing laid so the that inventory, wanted that of older I million sorry risk super to of then X is versus legacy, the volume… for how if to things is the because inventory much or there you can are So, just inventory I'm it quantify much the stuff us, and of stick in on the of product speaks like important of new so how your down

Paul Travers

there as right that we legacy now. the product eyewear out now on of describe related is brand-new run that a with a of would only is we get in inventory, product, sold that and to will shinny, million X million just saying RFP allowance the our or to I be legacy product on when into losses how and of said people inventories but our the figure eight bulk don’t nothing so completely The no can put I need its is product rest both anything XX% X course no we’re we that MXXX incurred the component get when seeing we’ve over expected you million there this that the Blade Certainly, have, is business. know were is MXXX finished is And about to inventory the that inventory more goods little inventory. the of Blade XXXX on so of that and part I to seven more X.X responding business growing is, that take

Grant Russell

items can’t Some get and in times. buy if need when you components are of lead them you advance you don't long those them them in

Dave Kanen

quarter That long-term or know, up you you just so ultimately see million know by gross profit and ramp unit, say I margins, let's a then should of extremely you gross what you compression north some ramp as point? Thank sure and helpful. for up color you so probably volumes where were But pricing long-term I I'm XX model unit that. so for XX% as you model is I is higher can there's forth. people as the just calculate breakeven And

Paul Travers

after most profit currently in better running product you’re mean $XX get’s and up, If are quarter revenue, that. is we of XXs XX% million to products the we future to member manufacturing $XX to we'd do, the overheads price at for what make like a we spaces, had XX% direct gross north our running margin we XX% low and the on that costs be the today quarter, get advice expect at be to the volume tended foreseeable and be of comfortable gross million some XX. we should But other folks

Dave Kanen

creep breakeven, that but at implicitly sure some you as million level, Okay XXX% least. at I'm revenues SG&A be at XX that there's should R&D, up tells in grow me so

your said being and not won't and weak What's quarter think in words, cash. ended with know your sheet that million you so like corporately that you skittish we number What’s just that balance the decided XX.X kind go customers below? the forth. go is below getting number that will obviously of I other you hard you So in because

Paul Travers

will levers compos business So some let not extra Grant me around has We don’t running this way so we’re at just effectively this and if our we sure lot a below at really of right raise that about as add. We that Vuzix start, have to go I’m it's get to look XYZ now. it is going look capital. Vuzix business. number hard it

would we money the even point built into I to you of love amount that You do without and be have a a time. also kinds to extra. of can same future those R&D able the going million we're meeting We the up annual because XX and at has of that fiscally company, etcetera. SG&A lot being so responsible do more made expected of manage but fair this here and Vuzix business roll numbers a and infrastructure of grow revenue

growing and of raising the for building would are business the appreciate shareholder to we consider So before concept value in Company looking value really we the capital.

that We are at point all not at today.

Dave Kanen

as transparent you're at just $X a almost driving I'm I million What be hopefully so quarter using to with... mean

Paul Travers

million cash about investment XXX,XXX. used was our quarter capital activities X.X for operating Last activity was and

Dave Kanen

quarter going purchase you I'm are I see at business. R&D there's of ending previous me that cost the end of I'm at then the cash that's ending end capitalizing is the the defining it balance doing and of quarter Well, some way to patents cash and of balance this all

$XXX,XXX guys that really I'm that proactive cash to quarters, the down is in patents So point is when in that out going you be regard proactive to go that, of in number fret in and company in you an all be own a unsustainable what level? to or throw the plus But four to close R&D, making million I'm want there. capitalized for. don't going to minus, the looking let's my you is that's is Are Company hoping CapEx sure I X the over not don't

Paul Travers

capitalizing not anything R&D internal. We are

receive capitalized that’s have do some GAAP that. about licensees us to requires We to but

time. years XX at are at as to we what we far and plus have doing good we being need As mean the prudent business pretty do I been in right

times best and are to We it's go going what to we're of prior pretty through we And internally. raise the with the and are we went are that’s ready the for smart smart edge and are not want the to our going based we Company but grow clearly we to continue this on ourselves to grow ourselves, and to do cost experience. Many prudent at shareholders. money shareholders the

Dave Kanen

a just is Hallum Craig Are week Conference York New to one. question going last you the at The next simple in City? be

Paul Travers

we Yes, are.

Operator

line of next the question Maxim Group. Our from comes from Nehal Chokshi

live. now are You

Nehal Chokshi

go Q-o-Q that? backlog the Did up can you just or you post

Paul Travers

it I'm you say sorry can again.

Nehal Chokshi

backlog go Q-o-Q your Did quarter-over-quarter? up

Paul Travers

for has, It you up. The it has. is that fact upon sure how yes all add it depends

Nehal Chokshi

it the you basis? marketing quarter-over-quarter, the half year-over-year that narrative but Q-on-Q a Since chopped the you million on there described give on basis was a a can Grant,

Grant Russell

marketing expenses referring You I mean sales and to mean..

Nehal Chokshi

Yes.

Grant Russell

to We've the sure and spending got of a traction end of is that putting in customer and people hoping and focus existing working some things investing slows than They want where related looking are changes acquisitions. bigger dividends be quarter are in did and come after they funnel for outcome expensive some we QX, the and to made just the we those out. of successful rate personnel doing our sales literally inside with are customers our less people and were more make chains down and towards to can extensive customer off X,XXX stay to and products so many lot and marketing

Paul Travers

the a is we there's take stuff it started install reality conversions with The when customer and kind acquisition they business get with to imager of application ton is of happening of stuff whole if that slew from Vuzix. people is today through the gets whole a of comes is have at running of customers time volume the it that helping first them where this kind and

management towards felt that getting and Vuzix be we should convert. importantly, More driving help these supporting needed to was what guys

our the have And three-tier and in guys now so, Vuzix help etcetera. now them sales engineers that support we sales programs have that field,

business. and So, one more the just of how sell what's our effectively we linear the focus on side also change

Grant Russell

And that one of happened that are there the is has that's from and in of marketing point tradeshows and feasible generally I standpoint some trade summer. and more year somewhat QX lot our the have shows then Congress there's and big is of of QX guess sales the expenses doesn’t shows in something in X.X less that in been million then summer busy is CES World the Mobile we occur a those

Nehal Chokshi

to QX? seasonally Mainly it's QX down

Grant Russell

about talking I'm expenses. Well, sales and marketing

Nehal Chokshi

to Yes, I from Q-over-Q mean QX conference QX? the seasonally expenses are down

Paul Travers

mix but stock, the common that. was a of the making It's Grant just

Grant Russell

by at are QX. that marketing think months and divide first you the I I you less averages, are mean more it's to appropriate our X quarters. expenses that total, months Those see if look at look than the two will X X that

Nehal Chokshi

marketing to you flat? or significantly to that. on expect the What's December keep were expect sales do at months Do expectation look to XX and next and you ramp the what's you for if your quarter that that expense

Grant Russell

pretty next and would that of XX% you anticipating increase talking not increases. We to dramatic December XX% be it were to this our QX spend. and QX but close think Our at be flat year, are would level some year annual anything

Nehal Chokshi

cycle sales And but that average. distribution What's what recognize sales seeing the of cycle times cycle there and average you're time sales time? I is that is a on

Grant Russell

be can I I couple say Bigger process. companies mean in guys you in cases and some is maturing go through some Ubmax, quick a you like upscale the cases, software fairly have take a and that with can years. of take typically because companies they like longer it now they will solutions plug-and-play now.

problems much and So the to it's much, rolling. running, get solving easier up and

getting years. whole from, that I'm to be the time two just better to what to So, getting takes was it less rollout industry go do. started we now than is is The at

of kinds shorted being are cut. those things So,

Nehal Chokshi

that? So than or two but years it’s be on average on less then average would

Grant Russell

less amount an much is years of that. time, than Two extended it's

the they’re they’ve it have using we stable. and streaming We quite folks our Vuzix Video weeks services, have got gone that up is -- video after, installed that some have using which six With it Basics it. They're folks it. gotten

are much So, it’s example more and less Those becoming SATS, much, took now. answer, quicker, are things there’re them customs year. longer less deployments a happening that said a such than broad all really

Nehal Chokshi

XX% a quarter-over-quarter revenue to And percent then of sales cost as product that XX%. product declined of from

the significantly, down narrative that's that's So actually positive. you're but pretty guess and that? but positive, yet what be costs significant was marginal just should volume behind your a What’s I positive, simply

Grant Russell

average higher we’ve prices. selling Well,

solid large Some people went there’s at orders had full -- a honest in And the and new of QX, out for they’re products applied, of Blade discounts retail. be the are revenues they to we our bigger of lot we a retail. buying all pay

than everybody So average significant it at of it’s once we more blend u seemed but we And the to it’s point. pour selling effectively right sale originally the contemplated of drag higher but the actually it the of and prices seems just wants the have price down we’re a selling prices. eyewear And Walmart product is for nicely.

Nehal Chokshi

therefore it on margin it head basically rework? that going fit then didn't significant because does you scrap have Or on you expect into did and And you this because should did products floor is the standards. quality Europe QX? a -- mean Was we gross health --

Grant Russell

you challenging so the usually scrap. time, little get It's be very yields subcomponents. but certain with those are make are Once the the there Blade the at of issues, what subcomponents works. that very most and it’s and throughput, can it but high, right very yield yield Blade a process issues it’s a have those that -- portions We more total more you time rework go to takes some affects with there’s

Nehal Chokshi

type intelligence RFPs that RFPs sort And and companies right the multiple like characterization then you the competition would of that a on imagine going you’ve is right in and that XX,XXX reality there’ll some be is going that non-augmented so be is and and some some AR? that to correct -- being be that all to there I so about, or hope talked might plus offer would those glasses XX,XXX be are lot could hopefully come with be it case what solution offered looking is I

Paul Travers

not say no can’t that really there’s lot that Vuzix. competition, but a for say We is there can of I competition

it's that One, issue I folks Our the really play they’re but the trying pricing, case products price well. and ROIs points case competition doubt I really our there’s and these are here not look the give deployment to am are really-really the the no the this not working around good fact to that confident so say discounts were even... have with mean shop no decent, because game our -- that's and but much the and the for and about product we bodes we not so like -- that with feel not with that volume like in we really guys

Grant Russell

involved, Yes, might narrowed pilots with the they more there think down. Paul products there and in something our And competition, way. ready really definitely more done they game, guys are successful several to agree products. competitive kicking I more a tires are be in with We've earlier is they to these real, are not big the do for competition, rebound the we just but it

Nehal Chokshi

scope to that, I the guess broad. the is what allude of RFP probably I’m trying to the RFP,

So solutions other glasses than such AR different that could potentially answer supply?

Paul Travers

plus. not is There want want is they year half. eyes, your last for type want and any we I time product, said of I XX,XXX much No, how page. XX software a this throughout big

Grant Russell

It's It's this real at stage. fairly direct. pretty

Paul Travers

then. And Understood.

Operator

cut end to we call like to Q&A this management off, but I’m turn for remarks. closing I really session do you at sorry the to the to back need would point.

Paul Travers

Paul. discussion, the we joining share conference Thanks call. a is us evening a business as you you time. Have with forward have can gross, for if can again like, everybody. more to Sorry. the exciting some look everybody We call good back our guys This later, Give continue

Operator

This conference. concludes tonight

time. participation. You may you Thank disconnect your lines at for your this

Vuzix (VUZI) 8 Nov 182018 Q3 Earnings call transcript