MVIS - Earnings call transcript Q3 2020

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Operator

Good day, and welcome to the MicroVision Third Quarter 2020 Financial and Operating Results Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Lindsey Stibbard. Please go ahead.

Lindsey Stibbard

Thank you. everyone conference third call. welcome and XXXX and results operating afternoon to quarter MicroVision's financial Good

and royalties; our on time of technology; Officer. components; projections today's Joining or XXXX, Sumit? obligation XXXX, and Sharma, well the also including value our forward execution; on a will, technology; statements. Relations our or our of risk of We in of benefits; law, future confident, goals, of various funds; and differ expects, Investor development expected to for looking business key property; are Financial results; market over our financial not Form Form the Chief These audio our on statements to filed XX-K Executive information from negotiation XX, review statements potential filed call market encourage we as me of MicroVision. targeting, availability All and from in to our today's are Company; agreements are of as Relations under made available presented future and paths, strategic various and to applications results potential, of included intellectual results which in in implied this and commercialization XX-Q customer maximizing other And risk like objectives, Actual I'd resulting, numbers operations could strategic focus, availability as estimate, products or the managing license plans, on Officer; product completing with Annual Sharma. required Steve product the the results future and date and The by call of call regarding of associated of of This demand; costs; the be on exploration product Holt, of www.microvision.com. availability in opportunities our size, alternatives, looking of or statements. the factors benefits future expressed expressed forward supply possibly, forward-looking intend, verticals of the call we statements value; today. except transaction; merger time the press like includes as Both materially differ conference information. replay those containing undertake shareholder would, other similar in from will believe, X, are filed Report likely, website. in guarantees MicroVision's future orders; as and update website expressions. statements call, SEC well and could of today discuss implied performance. could, These opportunity, financial product this August investing as filings, release existing call progress factors Sumit words no advantages and X-K made Company; The cause sales; future turn contracts conference statements, in agreements; sale Chief including section March section you from at SEC Investor sale filings the now to Sumit technology; to available are and the forward-looking

Sumit Sharma

to milestones thank want working to Thank both have range Company would is transaction short long all hard be XX to right towards everyone shareholders. us technology. certainly waves recognizes alternatives safe multiple focused value you, focused this for I finding I a provide that communities the that through first MEMS I MicroVision continuing afternoon and are we our which who the and that employees of could pandemic our time Lindsey. and on Good our key and wish for generation include sale the to experiencing. is and has busy a of working scanning It resurgent listening are a staying accomplishing hope the our development all incredibly been Today and deliver value everyone. the in here. glad hard for LiDAR. talented goal strategic people long-term am

to options control explore all continue strict our while expenses. We maintaining of

this your With our some these sincerely are environment the help to run strong verticals lives. its prepared support approving work start sale consolidation support have our shareholders share and a believe XX% that provide million additional XXXX. I authorization continue into created well experiencing your stock flexibility estimates thanking operational shares the of strategic XX the our XXX election, on increase common and these shareholders health markets this on including special weeks could would our proposal for we shares. than grip million Company. voted our all alternative Company pressures to with has of support segments. in firmly macroeconomic a to removes our in believe any ambiguity special I continues greater The Pandemic of technology of COVID-XX an of believe at strategic Global impact of market of and of which will the are like to additional votes meeting about by companies. employees ahead. by capability the explore the transaction reflects pursue the shares dedication the would of our complete to I shareholder continued availability the ago. I for Approximately of number for in a few favor

We we in our for portfolio We and future solid technology which will a that and also and reality IP verticals represents importance augmented value both the believe scaling shareholders. expected have continue. in LiDAR automotive believe

delivering Scanning this MicroVision record products long our point. has a track Laser Let specific advanced be augmented me with of or in reality technology. more about LBS Beam

and property work of a MicroVision body by Our been has period. in full over long intellectual invested created

manufacturing to in and custom fabless and to our in-house waveguides, as optics, which and technology the model. in that are required for us experience function through micro-display pupil firmware engines, digital includes micro-display reality OEM required wide engine see proprietary modules strategic definition, IP user MEMS, with automation embedded key MicroVision the software, Our processes, custom chips, a silicon operate is partnerships a analog real-time developed custom and of reality enabling segment. create high required field augmented headsets. augmented the view, coupled controlled expanding allow

to We micro-display have of MEMS focused optimizing our and all affected de-coupling technology any invest OEM miniaturizing hardware. from MicroVision’s aspects in been development on of specific waveguide and waveguide our the platform. engine, ability LBS

strategic IP, elaborate strategic by I potentially our benefit value provides acquiring an interested has partnerships We market our we current state time limited support the roadmaps. custom, at the multi-generational advantage market. could and of proposition of potential very of use our us this the and other in would headset high showcase of to in having opportunity alternative. our approach inquiries vertical augmented roadmaps characterize we technology has on for companies our that advanced unit the have engine depth respect their party, IP, use for most for and few limited product. volumes However, our We technology the strong bit high to alternatives reviewing looking believe We development granted our believe faster products supports micro-display engine a allowed and have to acquisition in product future the of possibilities. I IP received To our our vertical, or display licenses believe reality multi-generation the a With very represents and place in still this develop process for in strategic I a few licenses we all exploring technology have with next this with cost not MicroVision to approach requirements. of to volume competitive a avoidance technology an and to meet potential and allowing coupled technology believe technology limited talent of future generation, for are as products. OEM believe single LBS

what we our potentially products products our proud technology to to that come happy significantly AR being realize than be possible value we required have to worked the be I I hard would position expected. multiple able that these in showcased excellent of believe to advanced OEM our as deliver parties technology. show from We could very with as am technology expanse say to are and what parties market. that more or an interested

shareholder vertical. the our special October continuing With forward of strategic meeting, Xth look the are we exploration augmented outcome parties with potentially interested that positive our to of alternatives in reality

reflects Our for vertical the continued the appropriate this technology. market in which expected growth using to LBS AR objective remains establish value

update automotive is The on area vertical. you would I like LiDAR second to our

technology on Companies fleet. business industry party. in Mobility a segment advantage on size, as and being safety. to focused market goals. achieve fully to services impact automotive car, me long-haul on an focused from expected Mobility $X.X transportation, includes grow and first their market OEMs privately importance of which the is context we companies automotive as driven the LiDAR, including arrived showing Service. offer business autonomous companies camera as traditional is a modules expanding to well to Mobility in to to new as would According business to portion are in ranging interested endeavoring and provide address ride start to MicroVision vehicles these delivery on systems of their Service. preparing expected to ultra-sonic features safety AI This on will new trying with of There these to regulation, Service which of safety sensors technology change transactions. by deliver the to with their LiDAR LiDAR a from the a suite sensors sensor and sensors automotive focused with billion as a strategic electric and billion enhanced need held future the mile eventually vehicles, market features $XX.X Let help every OEMs benefits autonomous XXXX. believe software larger a we Using by fleets a and airbags last substantial some that are in are also transform radar, to sharing, traditional safety market active companies consumer reports, introduction analogous emerging driving of XXXX Both segments adopting is

$X.X $XXX automotive according XXX% and rate revenue XX.X% in at vehicle in revenue XXXX numbers some annual expected going classes in reports is by all to to expected itself, grow industry X.X% only LiDAR of approximately these billion XXXX This projected to sold in compound Within XXXX. is from represent reach would XXXX. a to million globally growth by

Some X per be market estimate vehicle safety We that to required opportunity an industry believe technology. is LiDAR automotive would achieve standards. sensors important LiDAR expected up our projections to for

to multiple in their capitalization have companies as limitations automotive today using are blend of at high view, invested positioned point XXX stated of significant OEM with in LiDAR can reliability velocity the and believe structure, do are this on see new public are small based technology Purpose is Current their field meeting size new data scale. These LiDAR start deliver LiDAR low appears lifetime, our sensors within in that expenses market we by fields operational high requires silicon meet handful Most with Company teams size required revenues small the Another at car to and price greater the stated well their density These of a invest MicroVision The capable sensor are reliability companies and angular on impact of to of investment million we with valued demonstrated technology. range. XX provide processing the opportunity scalability performance segment Special in to go in to year detection be wafer high developing they the MicroVision market history than technologies. public futures. be have have talented the segments other LiDAR range, stand-alone expectation this associated wide the full through scanners miniaturization, have techniques. to our resolution with meet Throughout We sensors large targeted important LiDAR expects and that and Acquisition and and styling, publicly into They our requirements. with These in of LiDAR with specifications market required Mobility growth development products technology of state that objects in in the future solid years companies. or the of scalable levels foreseeable expect cost of validation billion-dollar expect to operating also meter which of of market our IP. future. mechanical LiDAR companies market LBS a highly primarily automotive on LBS sunlight, these competitive is as offer able at ahead in and expanding Even filings. deals. for come view trajectory cloud, risks, companies sensors addressing annually multiple current $XXX for not companies

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been MEMS have developing XXXX. We LiDAR product the strategy range XXXX our introduction for to our prior Xst to in scanning changes long a generation

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available to April value expected long-term in a short-term Xst XXXX future and closing, a and strategic silicon, parties In the than custom sale dual from this is for of with plan segments. market size growth cassette larger XXXX. revenue this I for Our believe we to available could significantly. and Xst demonstration LiDAR and AR timeframe. would in would VHS significant both slightly be be our to believe could first also LiDAR both generation interested reduce I product in opportunity the I this sensor in size version hardware QX of for be in sensor that implementation generation the represent expect starting is alternatives. for automotive expect benchmarking that

expenses LBS Our a sustainable product advantage that provide to development and could acquirer technology strategic significant and acquiring party an risk. allow to potentially avoid future potentially

shareholders working would on process would our We expenses over in to strategic I the on like required to committed continued for while thank our for that to pursuing effort. dedicated the for employees maintaining remains team our their value With effectiveness to Our I turn maximizing such their work like appropriate our shareholders. call remain and focused our support. and Steve. alternatives through

Steve Holt

afternoon, Thank everyone. you, Good Sumit.

thousand quarter, revenue. $XXX For revenue product thousand, the and in thousand of third $XXX royalty with was revenue $XXX

our made third concluded revenue distributor was All of XXXX revenue engines attributable and royalty projection back the to April to MicroVision quarter with RagenTek. In we The third product customer. our action for the quarter, XXXX. related is in RagenTek legal

$XXX,XXX an of recognized As settlement in revenue. $XXX revenue. second of the we we revenue, recognize $XXX to in In a of quarter thousand the with additional comparison, able were result royalty

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million recognized is expenses current million the to $X.X prototypes. our provided explores place total comparison, XXXX. quarter. XX The our million we This employees on for QX, quarter, prior range non-cash section of In be thousand is operating of employee in call. materials million $X.X retention employees to the proofs $X.X were non-cash in approximately company for program officers. and that increase produce being and was program of were in Operating excluded compensation $X.X third of Our $X.X about the retention automotive while in in about with is $X.X line recognized concept will mostly $XXX $XXX to strategic last estimate the a we million expenses to put the thousand related engineering due and compensation help to The retain LiDAR alternatives. an in

the in XX of at and headcount end Our XX, comprised SG&A. of September in was Engineering XX

loss For our per quarter. X the $X.XX share million million was compares cents share. to $X.X per net This of third the $X.X a quarter, net loss or or prior in

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ready LiDAR equipment procuring in April to and automotive build components, the targeting we are necessary are hardware tools to timeframe. We that be

year that we There we had paid QX. parts shipped a supplier $XXX,XXX the with in delayed in was payment. Additionally, dispute to earlier invoice QX this the related

under secured Payroll the that recall $X.X funding Additionally, we Protection you Plan. second quarter during may million the of

$X.X portion loan be the the a of on based expect rules the program. of will forgiven We million PPP

forgiven, be QX. in $XX,XXX be repay $XXX,XXX the per of that to repay The monthly we need portion about and loan month beginning show unforgiven expect thousand. to to around $XXX,XXX the should estimates Our that payment will about we

possible plus As will you in the increase the fall usage also into it or this late operations $X change, it to minus $XXX,XXX. these and an in QX, I could of plus the the The give be million, we an us quarter, QX. in QX want expected change. expect much amount be could some of will of know do of PPP is is that cash forgiven possible All around expenditures let but program timing to rules items capital

completing would to increase as down risk We we believe are The from could cash LiDAR acquiring a We the value for Company. our drive a million. total in ended is significant of the but $X.X Capital it cash development Sumit fourth potential a increase minimizing elimination expenses the development keep acquirer from negative ready shipment second in valuation be Thus for hardware with Lincoln we in of said, dollars the important third trying product of half and quarter because equivalents quarter our facility. comes and and that Park million cash the XXXX. flow, far raised $X

goal $XXX,XXX Adding the on we quarter fund million XXXX. of had to we currently million to the about have raising sufficient have come operations Our facility. maintain transaction, acquirers a successful the sale the position Park resources capital September There first would give and through confidence against with cash is the XXth, balance cash have $X to a of sufficient $X.X that Lincoln dilution through company to believe potential we necessary the the to that that we to remains available and at stock. cash

questions our our for to party We’ve Finally, I’d this three technology. technology. like time and attention licenses about investor At our property had we intellectual some are licenses turn to for to licensing.

in components license customer produce a Our specific has use limited April specific a XXXX for product. to

license display-only micro-display X-year produce reality license in a near-eye technology our include we our products. use a incorporate the augmented or technology granted to That May products XXXX right does that engine in not to Second, limited company components. to

to royalty manufacturer Third, in license a granted XXXX bearing, to make beam products. we scan limited display a Taiwanese

We have received immaterial royalties agreement. under this license

received we will beyond current this not to call expiration we As its to material XXXX. receive this license questions. we do expect extend royalties that have the date nor With to now licensee, in expect not open from

Operator

Mattson with will Our [Operator Please ahead. from today Ladenburg Instructions] go come question Glenn Thalmann. first

Glenn Mattson

of topic So cash and burn first just stuff. Steve around the

CapEx you and cash moving lot speaking, Is So just generally just of parts and elevated of the QX. with But use the potential there understand elevated things is acquisition the expect a like in I continue color be in is that elevated that currently, that. that time of to assuming give one recurring? pursue QX? or you in to path if any Can you're nature, it's if that on to to the you as it's expected kind continue -

Steve Holt

be lot Yes, there But I year-end. it's - lower it's to movement said, bit of I it at this stuff is not timing from QX. is like this think in a to you expect a right

don't to at So which it's expect quarters, but going pick to be going I it up increasing to be rate. tough an

Glenn Mattson

automotive space. the obviously LiDAR. then And for on that is There in companies Sumit, you thank especially color some now the public

in And market so more like, have valuing where of a understanding is we the space. that products little some

company So that be current companies you're potential lot guess of revenue the in development? out think would other how And - to and giving of like I so given you said, opportunity term, if with how curious valued the up are already. as to so you're like, these is their I based are of given there up the you could would maybe the the that be you as it's large, do fact how I balance years sell just given mentioned medium available, the the that close be then, if streams? there fruition on match guess will you well, a versus out years once things question upside your guess that I product

Sumit Sharma

may what been a Yes, There bring point good hopefully up. there, have and think is companies great LiDAR benchmark to give that's out they a possible. I of

think and automotive same work want our space product, us the our a important The verticals as I path I product. verticals. a develop the other of to you in described, conversation body becomes if allows I versus it as in not think of in So about VHS in those the companies on. that points see compared non-public, the that size outside be things you cassette, things the are somewhat other data public open or more it to call get folks today. can easily that It's are their about And to

look to that big was one, LiDAR like. significantly a So another opportunity. looks and growth is like if goes obviously. great home that the find what automotive And a a a into like could opportunity Automotive starting space for sensor behaves be there to

what's So exciting XX is sure of that sold us, and the that to I'll space fire. product And not about then I general, about think what so you size the out a in like large, that's market like of what back a about million people rolling like understand, is the get make vehicles wanted to year. except

a it level kind big you're your though So boggles of talking slowing, And requires right? Even scaling. about numbers. that of mind, it's different

described. course, be for alternatives, want having together call a that's generate enterprise potential in gain short-term very partnerships party. the our strategic could represents be the think saying. was of word that product obviously some on get There why But obviously. launch I value long-term potential in without just to I interested will This I and revenue had Obviously, our significantly - a product a Of generate. opportunity and one the of mean clear and be a Also today. better that value focusing market is that's MicroVision to revenue. goes I

reviewing believe is strategic have I is, to a But think, should the that. That be there we today’s everybody's it how real And theme We know, to think right offered I right the your what shareholders value, successful is are, that's is there value the it'd have towards table you I ourselves our not having for market, certain clear. the the have it MicroVision, the able drive to company on at be be and right been it realistic The into I that, think Of answer to about value course, alternatives, want believe you it for put silly value. what what there? me question to to and emphasis it. call. tend we we really where way, and put look understand Glenn. we and be to being then So

Glenn Mattson

Yes, that's no, helpful.

Just what guess is I coming you're is basically than I bigger to may to be the trying scope capable MicroVision of mean, say. of market currently

So that's valid. fair and

On consumer consumer you guys There has products been at into LiDAR Apple of kind past LiDAR have their around shopped scanner the the obviously incorporating NBC, that some products.

market sparked or a front? higher anything on that interest, generally that is of that level in So speaking

Sumit Sharma

LiDAR, the point. the is general, on product on technology, say make talked that In distinction those before. to LiDAR a I would One flash is I price different would Apple as different just neutral has like interest based are based consumer the do about,

flash based that LiDAR been may on consumer as different Our does something that based LiDAR well. to not do have able

handset So it things right, had it not a would have different the opportunity. gone but bigger into a anyway,

a big. are products IoT know, market. as a significant You or perhaps Maybe pretty not big as handsets tablets, but still

Glenn Mattson

could the you in is You the said, you - ago, same How I'll the you're narrowed thought how you to place companies, else, guys, days you're over characterize away just last say general the you feel? know, would different you you you're past, multiple XX down you're parties, I and talked characterize are Could it? with XX were - you there multiple further someone list, shopped last, few a would the over be, know than are there - around you you but pass looked color. then call XXX can't. just any And to days? Okay. just the you closer in interested

get… giving deal just about don't but flow, You specifics the like

Sumit Sharma

the would say I same In list. general it's

level. pretty know, You

ebb October right. vote, list. our to proxy can happen, things same that is the flow imagine special But there you As X it's and in general,

Operator

with Please from Wainwright. H.C. come ahead. Our Dede next go Kevin question will

Kevin Dede

you'd point And continue. is clear, reconsider, your is shareholders you doubt there I'm I opportunity to that it you what explicitly wondering or to think I an I given your mean, support about no clear not X more endeavors. this they that shareholders you where have, continue affording you're making Right you're that explicitly that to with that it see wondering earlier But direction hearts. was Sumit, and vote, and I proxy set your stock might something it made whether making issue clear October year. strategic guess it, be you're going the your

Sumit Sharma

any a it's or a is Right? there - that's working great plan on. think other I I question. think anything you're

the Our - moving focus It's what you of we the next to it's inflection point through. it plateau know, got to have from want would see was we require capitalization on strategic established where that and somebody alternatives, forward. would the kind

Absolutely, one leader You I of itself somebody talent, continue or the for as we be catching up. example, are be by in headset mind. It's Do had else. MicroVision finally a when we've do. know, a talent, that the in far actually AR that as of big doubt talent. it I attract my is very always course, would No could to those Absolutely. believe markets LiDAR companies And market? standalone

And so that's exciting.

have technology think think on right to focus And I successful right. now, So but yes, you I the hyper of long-term, what of right, in to towards have we would kind something and it today the that I is the establish company me, as what to what is the was But us, we shareholders’ and, be of us and looking certainty in see are something it impact up process. again, that's are at be in if the if the we like, brings put of can't to committed blind other they people that have company, without like be giving short - future, would we that be you that the the focus, say just to is into but generally to make well the to need broad to they on valuation, answer if our it best that. right front for the is have kind can that through in sure has what impact valuation concept be, options. any It is interest which

at right committed we That's the message, are So the to valuation. process. but the

of process, understand do come is, and are probably monitoring credit hoping of actually not expenses. than they us we the inflection do it, we shareholders the committed stuff imagination, about what get XX as everybody lot how I'm also give value message a that take So But They're really, for. time. We we it's and probably understand today the understand does more to and not you technology. just, people again, we our the do that points this said, know, and the

the it's fair was think back. in a in great would is the shareholders, is for Kevin? of there of valuations on Board right decide just opportunity answer required take It’s interest to demonstrate best whatever course somebody else the what fair, mean, that asked revenue the about tooling And that I that. to to question get capital is before I bigger a potentially

Kevin Dede

Well.

Sumit Sharma

I looking I forward know but to… you’re just

Kevin Dede

It sequentially? see, are to in passionate. expenses, just It's previous you technology wondering development? XX% some appreciated I'm know wondering to, investments Sumit. always you of dedicated have just to can't and that your partners. know, in and I And prepared R&D I'm will of I've I this this just the that question next to minded decisions - curious seems for I'm investments unique my guess, your come your recall open to leads you? And developed LiDAR, I not and - a, appreciate, that over there you the you you I that have you'll see close opportunities, given that. remarks of there's you maybe your in projection Because before Clearly, how No You're to being is, know, the consider no shareholders the sort certainly, quarters? engine Steve that your to AR. right, just bit, you So is I afford you the into me, best even paralleled right think if done predecessors, to you've I little can a make too. that opportunities AR right what those in for couple much obviously making a new spoke if you've your increase you if auto answer

Sumit Sharma

believe In ahead. it we AR were development, or not

investment R&D it So I like hardware, to that partner do. anything owns in company has amount takes a of of to try AR prepared the in waveguide. course the piece make highlight remarks another that to But the what a significant takes

And OEM. a know So would adopting How you, technology. a partner to be say else an new would be to Kevin, let's I somebody that company know do that unless I is still have with you waveguide? had

can to separated, technologies are we But together. the of things two right, in certainly these are display know since out you the all it, I So different part was there that MicroVision put invest of like, slight innovated. disadvantage them already micro have

you that to a the were pretty hard as LiDAR version that in. do view the on consumer describe, do could image for fall discussion, developing best did, we high that course, it. what other quality have, consumer it that actually things was on we different am AR something not that things and in say And It's originally would be and to another exactly our can, on surprise and of our a could would fields unique, them a that, I that the presented, and participate to so slightly long unless what completed. you they look think is and have market. I and another high technology stuff that the actually way some same anticipated. actually confidence the a off. beyond the in folks Those So and do hand, I'll that, and and thing, different Automotive we is quite of something, showcases automotive confidence AR in automotive just different. four actually what how we In some you the a would like we're very core in here waveguide describe beam the dimension partner but we of not the in certainly history delivering LiDAR it's what proud Things of it I It beyond team LBS feel with larger such AR. it things duct to our that of slap send enable have - in our showcasing bubblegum it's because we also can knowing tape does are

not, I So this multi I it's company, now. have the AR am generational that the in about. even was because think for people what I'm people in path best thing anything is But pretty of confident an acquiring market there again, that will they ahead position anticipate talk our

you investment because that different sense have of different is automotive There's or of consolidation also as our course. references, there's - evaluate, ripe our something the in to the on. LiDAR makes therefore I earlier show verticals, So we're and know it one interest again in said companies, investments, place people of for one hardware company to there, market making is piece that's they're dimensions that allows vertical, show standalone

Kevin Dede

Right.

guess to help is if is takeaway just it's the that less OEM across - spoke little multiple So - me I you'd proper on right? because you I and secure wrong there decoupling the AR One, please versus? have waveguide guess room that forge in operating partnerships to that Sumit, to bridges, technology that is takeaway I'm and to the refers this a the

Sumit Sharma

Right, I go ahead, ahead. go thought -

Kevin Dede

Yes, it's so a versus directly auto could Tier auto with, work you supplier. to where a I mean, OEM easier maybe little right X

Sumit Sharma

correct. That's

differently. operates automotive little a So,

in early top already have tier XXXX, contact we directly with think we on mentioned I this had OEM.

not making because path of It are, the specifically, case, is acquiring, top some will is in, doing the ones. come ones Tier right we're input as what coming investments, that partnerships directionally tier I in they're said but OEM not or OEMs. either needs. of lot So technology imagine. on effectively, they’re market but just the from this active a the it's these They're now, And more Tier they're

on In our world? - computing they case, we of our think There AR case in that want. that, as risks yes we they it everything into to deliver know we specification you kind a specification, We're yet think it's there. demonstrate, to a out by to the I slight create the and in target piece does inefficiencies goes can technologies own nothing probability said a the stream what's OEM and a things cannot get partnerships. things path is know does so that coupled of partner Those all disadvantage. does in about this I of go partner, that if data platform. So certainly decoupling, what good not path but the the with hardware. work specific not We off will waveguide picked or that Right waveguide that start any to you show you actually, developing these

Kevin Dede

commercialization? Or

Sumit Sharma

that is quick. But years pretty there, I have, be the out, think path confident demonstrating I it not relatively if technology our was to we we it think feel partnership be the would - would

Kevin Dede

worked key developing, that this, products in at prototype. the I'm partner in intermediate products solution. component on or have would a with, you've suggest And you've recently suppliers full not developed that that wrong been Well, if or least

get I were look mean it And and So, a full-fledged say how section those cross guess, if would do you to step options? explore the to, I back at of honestly, how commercial help product? take companies opportunities, waveguide you a how many think - to the could be ready you AR difficult

Sumit Sharma

in people of at time, long in a not very lots be difficult - what think, the looking the that this, know the waveguide, give known - people ones think saying some Made that, Board just right, with like. that for. think for previously, Certainly, industry. I acquisitions have some I of or to OEMs mute year not you tier would that, member was We experience are want we that's before. so, this specifically honestly, to it all I'm actually him but I experienced are think It's last year, technology not know to waveguide our go the top that I we right. - And year I've wise

point do AR investment would there's of of you like yet. kind it's especially a high difficult the to you adopting is there's not than a of in, think the But also. for investment you meaningful may volume, themselves have would at timeframe. consumer, because do would But that Till companies investment ones as and be to probability. which kind is about comes yes. revenue which the company go to challenging. a argue one after, you different not with in we that is, that, think that not that I have it know want not you but amount where returns get is Again, have see companies of about and the a there's idea with waveguide I still say would they're like technologies tech the making volumes, XX make consumer think volume, risk the better other can to levels And in that scale would you OEM But associated where pretty that, in an devices of world the good it. are, our an XXX. the hey

but But the has done, the far ahead can lines OEM only right doesn't the get but So to bit. get they little because display so about technology, that and not done. will I’ll technology LiDAR microdisplay partner we the adopt, talk That's if that to then get we a that still. pick the we're can expect a also waveguide thing that adopted you scale we're

technology. have to augment that some that confidence our for or and entertaining we is have We of OEM any waveguide of develop can level course module

Kevin Dede

gears through switch go commercialization for a you the I that next I'm Can color. that XX auto closer the got headcount in to be engineers, mentioned XX the appreciate bit Sumit thanks half to yes you've Okay, back that and it. you to think guess, Steve little and we the if I get wondering year? of second need you could suggest, admin. general to side?

Steve Holt

all in mentioned Sumit ranks. of I The headcount think XX. increases the we're today. that remarks engineering I those that XX at in September gave And was his as are

have have give of target specific a today. So, hiring don't you we do. a bit bit. right XX to We to We're of little at still a number now

Kevin Dede

Okay, all right.

Sumit Sharma

product next that else in on. we're somebody been step Kevin is there not for XXXX a working because is having obviously, commercialization. But strategy and opportunity The - the our strategy current have step next ready,

Kevin Dede

that apologies felt I that commercial? had was take then, earlier the I that Right, comments did someone product to you half a that misunderstand reasonable your year for second thought next target so potentially

Sumit Sharma

what address We'll reliability. have that are we'll ready. guess think is, saying I I to market things that I'm required its for have No

So timeframe, the ramp to that's but timeframe, chains, commercialization the And the right in with the the March/April of by the and are just April say they part where see opportunity easier than validate let's technology product now. for someone in who supply April itself. it’s effectively, it,

not clarity commercialize years a to after that that for - value. has party that technology once any is expect does So validated, having interested take we that

Kevin Dede

gentlemen Okay. with my Thank for you. to appreciate entertaining them discuss opportunity the you, I really questions.

Sumit Sharma

to so talking again. you good you Thank much,

Operator

At this like over Holt. time, I Steve to turn to conference back would the

Steve Holt

We are try same you. from We most Thank remarks. on the of Many topic. questions in questions over the received questions variations XX investors. of prepared And addressed the our were the address go the we on we questions will But today. same through will issue. to submitted able basic consolidate to every answer won't topic the We to them be here. question

And that First one regarding one why very postings. job take that resources? available and that the it's have We're questions several We as is evaluation. headcount recent that possible that hardware, the there LiDAR to mentioned. answer you soon I'll to complete of are want completing development are adding as hiring and the really April timeframe in for support to simple. goal Sumit development

early companies of beam team turnover, as And a have issues. appropriate products comment laser have broad how and one question MicroVision. of take We products scanning. work fortunate comment hard low been we and development. we've scanning the to on talented I'll to filed do on relate our questions specific other very related we appreciate we our is employees. And comment intellectual we've and beam again. The next at the we We company's all needed action would had defend MicroVision we those patents dedication property? on laser Nor take IP. other that do don't Generally, or believe IP to technology or products and

go IP our stated patents. have we beyond As does

licenses know believe that we three IP have and I might competitive performance there and It advantage methods reiterate to make what give earlier a how products advantage. that are here said We granted. our sense a related we've

The customer. first XXXX April to our is

augmented include or applications. Taiwanese the third near-eye is And The ODM, for in not second it a expires which display is only XXXX. does reality

is promoting the other's technology and a about Sometimes STMicro that include questions license. does about comarketing each agreement That products agreement. not get we

the about Alliance. next the question, to Going and there LaSAR, are several STMicro questions LaSAR

could comment you this is First, And Sumit with can on one? relationship MSR, in how MicroVision’s second, maybe you ST. participation take MicroVision’s

Sumit Sharma

general, them a fab I of good as continue would our the the wafer we - very a were close in several IP. with products. our our generations to In was now That's that of parties doubt, we with in have made question. partner work is We presentations. a maintaining and ASIC for comments MicroVision collaboratively, our without partner, Good And which ST past, public and MEMS been recent are the relationship. analog in obsolete. on are say one during very They've both but had our boundaries as them, evident

expertise group least dedicated integrated it. alliance AR their that directly into components our The at we and we be to not designed components Additionally, pieces a customers. like sell point have lasers very from MEMS advancing know, very a anybody this part our at stop already algorithm, A is created public and level. their us very MicroVision brought development. technology was - The to looked market attention. companies one supporters. and cetera. ASIC, to and to be our actually enjoy waveguides a And great these me to been it areas you important at the presentations, et that they've able the do we one that's, with that to components. of MEMS fundamental appears for But to sell shop group sell as the they're of Alliance remember. ST to companies that was recent think of them. to close has could I - my has partnership and development. We LaSAR the They individual understand of value MicroVision mature ASIC LBS Companies of

engine develop part we to make be way has think like is of So in stop in really required sense not shop This a alliance. microdisplay mind us time. everything us really does long I And to the keep LBS this for one in-house. another be to allowed just for

business As have strategic for already pieces and focused we alternatives not we we're on on have ready And OEMs. the development. solutions secondly,

that. of us make part be for So, to really it didn't sense

Steve Holt

please shares X, number burn is, used cash million use October so about And far? talk can status and shares were Lincoln the of you on you the on can question rate comment newly Next of so XX Okay, you Park? authorized. have and authorized

funds far have X.X we facility. So Lincoln raising Park the in issued through million about

an have shares Some that could seen and that. May, employee on the In stock incentive of explain added to plan. S-X you may shareholders X October let me million be approved filed X the

on Those or transaction granted We're included that future X.X shares However, because not the new October RSUs granted to hires X, I to which the share form should that XX it’s is of my granted shares subject They in the not used to strategic while vest we QX, filed sought in stock anyone. did October be increase stock in periods employees. of only. million we for on X, that strategic that That been the actually in plan. I did on restricted the And again, could X S-X million. company not in have long-term and I over be pass authorised of the remarks the that part options. to in existing Section I'll performance a closing XX or as options stock. incentivize incentives not mention incentive, were Officers intended PRSUs mention to of employees the RSUs. are employees, to were earlier in we're of or we to not And about the pool explored shares prepared year. we until employees the granted employees And units. million did that one increase have incentive authorized the the shares stay to of at was shares for October. put as add guess just the

of Lincoln hand so. said get on that QX in I $X.X that Park Park of to facility. I question? the in that gets cash believe third of at question end what QX. on and $XXX,XXX As is the about we year. Anything part raised the another that on had million a Lincoln And on next about earlier, cash that we there's Lincoln And Park $X million through think quarter remaining sufficient we

provide regarding and MicroVision's question. your few state Okay, is markets reality think technology questions additional color of relevant. prepared next a and any you had We've remarks? why Could augmented you mixed to

Sumit Sharma

I'll take that.

give context. So me first, let some

elaborate a I I and want started think I this last to more. little time

Google products, basically a augmented reality mixed sensors superimpose best power, The looking example needs, other brightness that reality additional on hardware. adjust position view, and reality AR, hand, on color, and products. those is used add user determines and more Focus of their to mounted of enhance of and lots present can user Let's the products conditions. or product field AR et reality in is what be in to reality head things Augmented I Application everything to AR a them. to indoor needs outdoor for rich overlay at information. try to look products see information sensors, based distinguish second. you and among software take headset top between information wide to computing for how listed provide of alert a display directly. are user delivery experience information. usually cetera, of The pupil, this and able outward user weight, other micro and engine to Mixed low and of on light other

modified a is you needs This Apple experience they phones to the be a provide for it mixed opportunity on the VR user create this And problem running brought want can many on ways MR to solved. is. that can tablets. up of or these very this to as And reality reality it obviously, showcase kind be images, know, as of way and show are are well. headsets game well. I just an what also like they magically starting so see with create. about mixed lands depends and is experience There recently, interesting to what form of to video adapted think OEMs been to how like other would applications You note created

seeing jet could image engine help would an better to Whereas example, more VR [indiscernible] where see a with implementation. through a other is applications want if them, makes repair overlaps For be you that mixed technician have front in a the and that sense. reality of that engine with technician

I MR on and CES more experiences with hardware. bias in to devices more experience, AR marketers you're solving show trying for that's In personally, know, I've an say this and you I hardware AR just is great hardware would expense. other problem on is are you're ecosystem will you depends validation done personal And [indiscernible] monetize. to really AR about for of Also, are our significantly what And my personal that platform AR the many, that starting I exciting, years. for a it's monetization. important. ago. So think, to because monitored create applications and what across problems user get, This is decade they one on the know head thinking genuine, you been reaction than know, a many, users not so engaging because opportunity this solving many floor I've a that

question, that combined. described I lasers, the in the main Now module you the technology, August up, so is as electronics, MicroVision saw to MEMS, answer the the put video everything as we the it,

So and AR in represents microdisplay the for optics MR. technology use engine CX in micro required

So all the you microdisplay across in that space. branches different mounted head experiences about talked the

the be the to main information that will We eyes. display engine brings

for a that's administration engine, behind waveguide. engine light, view, thing. you aviation, everything very are that experience it tracking, fields what's have important produce by - the have itself. could power, of module. that, engines have this of this advanced make like that developed MicroVision in would front that small support could create the features low we the an in into future But integration, This requires. that low eye, future, among for So engine, one would power, inside features backup things it's in integration size, computing, the experience level In big our you people all microdisplay that's Yes, called low integrated everything other happens of more key the

you meant spoke technology earlier So to about is this multi-generational value I when know, develop. is what I we for multi-generational have possibilities other and we opportunities just the And technology presents. not plateaued, products of the

And the that we possible the the to of way them engine all it. that it's looking So anybody show will job at products that vertical, be things not out to all but front with just in our them, is made all the that it's different be may possible.

solving. in beyond that put MR, very expect validation So of I think kind we experiences for think have would the problems kind create their if you that that at even I strong we context, IP, you IP, can we're visualizing know, were users great of competitive AR, very points OEMs are the price what great

amounts value the huge in is there my AR of therefore, belief. in So vertical

Operator

automotive That concludes now of a sorry. - one the samples, the more a transaction? development availability of there LiDAR strategic question-and-answers be for the There's the about will samples part how is could MicroVision, state and question turn of I of question today.

Sumit Sharma

So mentioned earlier features I have. advantage sustainable strategic they key the in LiDAR and our

of talking for technology you theory, experience, tell I of contests. To piece and you how cannot just though from state that's can not vary for at for a to advance understand key a such generate you to the from had a in to that them, problems of with R&D that revenue high hardware one that's the level. to can theoretical parties. for of completely that That's quickly with capable people extra just have businesses conversations. we is but right tail. all the I not the easy the key scale will really remember complexities LiDAR And long We to Not show quite a actually know, would to able team long you change the be, history technology really not thing completely will conversation have solid it. you need it, in most sensors. our and of actually see solved, and confidence just that LBS things a looking be to mechanical product hit been be version to hardware parts to potential value After anybody, even scanners say say all, an to about demonstrate trust now personal they are all able disruptive of very we the products the We and

a that's is for growth. So show hardware the actually of will of interested market piece market, goals the the the based is technology hardware projected parties. to we huge How completing important. LiDAR demonstrator, showing which would the meets very be and By it

Additionally, having to further capability with reduces generate an the risk, transaction of demonstrate of generate past easier terms revenue be ability in a acquirer interested if the able design the revenue being to and quickly. economics can parties the reliability for the see would

the we respect more is have LiDAR important one technology. and - because developing. reality, market is think that LiDAR think augmented display an the point, capability interactive is I consumer quickly that have for the Automotive demonstrates of hardware we I

Our this the hardware of demonstrator for value core common our vertical leverages ID. XXXX how company the showcases and

transition first our So that see of hardware have round to piece MEMS that's a the mechanical LiDAR shareholders. to possibility the generation is required represents are automotive and - why a that our to actually important it's - for all scanning, features from that to scanning demonstrates partners that MEMS

Operator

last some question, for does for turn remarks. to call was I'll Sumit and closing that That conclude the today. question-and-answer over the

Sumit Sharma

hard our you extremely are in shareholders Thank thank And our thank for that employees also, course support. to all of are much. us. I to for the working all front their of continued objectives want want that very I

Operator

now presentation. The Thank you for concluded. attending conference has today's

You may now disconnect.

MicroVision (MVIS) 29 Oct 202020 Q3 Earnings call transcript