U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended September 30, 2003
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to .
Commission File Number 0-21221
MICROVISION, INC.
(Exact Name of Registrant as Specified in Its Charter)
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Washington |
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91-1600822 |
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(State or Other Jurisdiction of Incorporation |
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(I.R.S. Employer Identification No.) |
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19910 North Creek Parkway, Bothell, Washington 98011-3008 |
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(Address of Principal Executive Offices) (Zip Code) |
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Registrant’s telephone number, including area code: (425) 415-6847 |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ý Yes o No
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). o Yes ý No
As of November 7, 2003, 21,437,000 shares of the Company’s common stock, no par value, were outstanding.
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PART I |
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FINANCIAL INFORMATION |
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Item 1 - |
Financial Statements (unaudited) |
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Consolidated Balance Sheets as of September 30, 2003 and December 31, 2002 |
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Consolidated Statements of Cash Flows for the nine months ended September 30, 2003 and 2002 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
Microvision, Inc.
(In thousands)
(Unaudited)
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September 30, |
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December 31, |
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Assets |
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Current Assets |
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Cash and cash equivalents |
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$ |
4,149 |
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$ |
9,872 |
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Investment securities, available-for-sale |
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2,069 |
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5,304 |
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Accounts receivable, net of allowances of $109 and $109 |
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1,362 |
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1,315 |
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Costs and estimated earnings in excess of billings on uncompleted contracts |
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936 |
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1,073 |
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Inventory, net |
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612 |
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747 |
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Other current assets |
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1,805 |
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2,348 |
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Total current assets |
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10,933 |
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20,659 |
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Property and equipment, net |
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6,057 |
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7,672 |
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Restricted investments |
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1,269 |
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1,356 |
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Receivables from related parties, net |
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1,823 |
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2,043 |
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Other assets |
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374 |
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537 |
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Total assets |
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$ |
20,456 |
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$ |
32,267 |
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Liabilities, Minority Interests and Shareholders’ Equity |
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Current Liabilities |
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Accounts payable |
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$ |
1,314 |
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$ |
1,462 |
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Accrued liabilities |
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5,527 |
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4,309 |
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Current portion of research liability |
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1,652 |
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— |
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Billings in excess of costs and estimated earnings on uncompleted contracts |
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51 |
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230 |
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Current portion of capital lease obligations |
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73 |
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84 |
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Current portion of long-term debt |
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68 |
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63 |
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Total current liabilities |
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8,685 |
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6,148 |
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Research liability, net of current portion |
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— |
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1,025 |
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Capital lease obligations, net of current portion |
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45 |
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94 |
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Long-term debt, net of current portion |
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117 |
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169 |
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Deferred rent, net of current portion |
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128 |
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192 |
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Other long-term liabilities |
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4 |
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— |
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Total liabilities |
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8,979 |
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7,628 |
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Commitments and Contingencies |
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— |
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— |
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Minority Interests |
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2,852 |
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7,223 |
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Shareholders’ Equity |
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Common stock and paid-in capital, no par value, 31,250 shares authorized; 17,807 and 15,154 shares issued and outstanding |
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158,804 |
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147,058 |
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Deferred compensation |
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(990 |
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(1,490 |
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Subscriptions receivable from related parties |
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(166 |
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(166 |
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Accumulated other comprehensive income |
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37 |
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121 |
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Accumulated deficit |
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(149,060 |
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(128,107 |
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Total shareholders’ equity |
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8,625 |
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17,416 |
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Total liabilities, minority interests and shareholders’ equity |
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$ |
20,456 |
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$ |
32,267 |
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The accompanying notes are an integral part of these financial statements.
3
Microvision, Inc.
Consolidated Statement of Operations
(In thousands, except earnings per share data)
(Unaudited)
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Three months ended September 30, |
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Nine months ended September 30, |
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2003 |
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2002 |
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2003 |
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2002 |
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Revenue |
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$ |
2,565 |
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$ |
4,186 |
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$ |
10,613 |
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$ |
12,724 |
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Cost of revenue |
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1,499 |
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1,919 |
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5,109 |
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5,925 |
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Gross margin |
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1,066 |
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2,267 |
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5,504 |
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6,799 |
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Research and development expense (exclusive of non-cash compensation expense of $252 and $253 for the three months and $755 and $753 for the nine months ended September 30, 2003 and 2002, respectively) |
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5,524 |
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5,433 |
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18,403 |
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18,762 |
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Marketing, general and administrative expense (exclusive of non-cash compensation expense of $292 and $197 for the three months and $706 and $610 for the nine months ended September 30, 2003 and 2002, respectively) |
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3,615 |
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3,904 |
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12,286 |
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12,786 |
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Non-cash compensation expense |
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544 |
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450 |
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1,461 |
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1,363 |
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Total operating expenses |
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9,683 |
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9,787 |
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32,150 |
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32,911 |
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