MicroVision Inc (MVIS) 2020 Q1 法說會逐字稿

Greetings. Welcome to MicroVision First Quarter 2020 Financial and Operating Results Conference call. (Operator Instructions) Please note, this conference is being recorded.

問候。歡迎參加 MicroVision 2020 年第一季財務與營運績效電話會議。 （操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to Lindsey Stibbard. You may begin.

我現在將會議交給 Lindsey Stibbard。你可以開始了。

Thank you. Good afternoon, and welcome, everyone, to MicroVision's First Quarter 2020 Financial and Operating Results Conference call.

謝謝。下午好，歡迎大家參加 MicroVision 2020 年第一季財務與營運績效電話會議。

Joining me on today's call are Sumit Sharma, Chief Executive Officer; and Steve Holt, Chief Financial Officer. The information in today's conference call includes forward-looking statements, including statements regarding exploration of strategic alternatives; sale of our product verticals or technology; sale or merger of the company managing costs; completing a strategic transaction; maximizing shareholder value; expected customer orders; future royalties; progress under and benefits of existing contracts and license agreements and the negotiation of future agreements; customer product launches; advantages of our technology; litigation; business execution; projections of future operations and financial results; availability of funds; product development applications and benefits; availability and supply of product and key components; commercialization of our technology; market opportunities and future demand; effect of approvals of proposals contained in our proxy statement dated April 3, 2020; as well as statements containing words like opportunity, potential, possibly, intend, confident, believe, goals, focus, paths, expects, plans, will, could, would, likely, resulting, and other similar expressions. These statements are not guarantees of future performance. Actual results could differ materially from the future results implied or expressed in the forward-looking statements. We encourage you to review our various SEC filings, including our Annual Report on Form 10-K filed on March 12, 2020, proxy statement documents and other SEC filings made from time to time in which we discuss risk factors associated with investing in MicroVision. These risk factors could cause results to differ from those implied or expressed in our forward-looking statements. All forward-looking statements are made as of the date of this call. And except as required by law, we undertake no obligation to update this information.

與我一起參加今天電話會議的還有執行長蘇米特夏爾馬 (Sumit Sharma)；和首席財務官史蒂夫霍爾特。今天的電話會議中的資訊包括前瞻性陳述，包括有關探索策略替代方案的陳述；銷售我們的垂直產品或技術；出售或合併公司管理成本；完成戰略交易；股東價值最大化；預期客戶訂單；未來的特許權使用費；現有合約和許可協議的進度和好處以及未來協議的談判；客戶產品發布；我們的技術優勢；訴訟;業務執行；對未來營運和財務表現的預測；資金的可用性；產品開發應用與優點；產品和關鍵部件的可用性和供應；我們的技術的商業化；市場機會和未來需求； 2020 年 4 月 3 日股東委託書中所載提案獲得批准的效力；以及包含機會、潛力、可能、打算、自信、相信、目標、焦點、路徑、期望、計劃、意願、可能、會、可能、結果和其他類似表達的陳述。這些陳述並不是對未來業績的保證。實際結果可能與前瞻性陳述中暗示或表達的未來結果有重大差異。我們鼓勵您查看我們的各種SEC 文件，包括我們於2020 年3 月12 日提交的10-K 表格年度報告、委託書文件以及我們不時提交的其他SEC 文件，其中我們討論了與投資MicroVision 相關的風險因素。這些風險因素可能導致結果與我們的前瞻性陳述中暗示或表達的結果不同。所有前瞻性陳述均自本次電話會議日起作出。除非法律要求，我們不承擔更新此資訊的義務。

The financial numbers presented on the call today are included in our press release and in the 8-K filed today. Both are available from the Investor Relations section of our website. This conference call will also be available for audio replay in the Investor Relations section of MicroVision's website at www.microvision.com.

今天電話會議上提供的財務數據包含在我們的新聞稿和今天提交的 8-K 中。兩者均可從我們網站的投資者關係部分取得。本次電話會議也將在 MicroVision 網站 www.microvision.com 的投資者關係部分提供音訊重播。

And now I'd like to turn the call over to Sumit Sharma. Sumit?

現在我想把電話轉給 Sumit Sharma。蘇米特？

Thank you, Lindsey. Good afternoon, everyone. MicroVision is at an important inflection point in our history. In the future, Laser beam scanning modules will enable our 4 product verticals to solve some of the hardest problems in the consumer and automotive industries. We have advanced the technology to this inflection point as well as demonstrated our capability to commercializing it into volume.

謝謝你，林賽。大家下午好。 MicroVision 正處於我們歷史上的重要轉折點。未來，雷射光束掃描模組將使我們的 4 個產品垂直領域能夠解決消費和汽車行業中的一些最棘手的問題。我們已經將該技術推進到了這個拐點，並展示了我們將其商業化的能力。

We currently have our modular products in top tier North American OEM device that is shipping to end customers under our April 2017 contract. We were ready to launch an interactive display module in an OEM product in 2020. We developed a consumer LiDAR platform that would allow interested OEMs to possibly get their product to market in 2021, and also could enable an automotive solid-state LiDAR solution in the next 2 years.

目前，我們的模組化產品已安裝在北美頂級 OEM 設備中，並根據 2017 年 4 月的合約運送給最終客戶。我們準備在2020 年在OEM 產品中推出互動式顯示模組。我們開發了一個消費級LiDAR 平台，使感興趣的OEM 能夠在2021 年將其產品推向市場，並且還可以在汽車中啟用固態LiDAR 解決方案。未來2年。

However, given the impact of the COVID-19 pandemic on the global economy, decreasing consumer demand and the delay of an expected OEM product launch in 2020, we have shifted our focus to exploring strategic alternatives, including a sale of part or all of the company. I would like to clarify with an example. Acquiring one or more product verticals may be more appealing than acquiring the entire company for certain interested parties.

然而，考慮到 COVID-19 大流行對全球經濟的影響、消費者需求的下降以及預計 2020 年 OEM 產品推出的推遲，我們已將重點轉向探索戰略替代方案，包括出售部分或全部公司。我想用一個例子來澄清。對於某些有興趣的各方來說，收購一個或多個垂直產品可能比收購整個公司更具吸引力。

We have retained Craig-Hallum as financial advisers to help expand our reach globally and to work with the company to evaluate potential transactions and maximize shareholder value. We believe our laser beam scanning technology is appealing and could provide cost-effective solutions to enable solid-state LiDAR for consumer and automotive applications in the near future, and could also provide a path to a wider field of view and low power microdisplay modules for augmented and mixed reality headset products.

我們聘請 Craig-Hallum 擔任財務顧問，以協助擴大我們的全球影響力，並與公司合作評估潛在交易並最大化股東價值。我們相信，我們的雷射光束掃描技術很有吸引力，可以提供經濟高效的解決方案，在不久的將來為消費者和汽車應用提供固態雷射雷達，還可以為更寬的視野和低功耗微顯示模組提供一條途徑。增強和混合實境耳機產品。

We took several actions with the goal to provide us with an appropriate financial runway to complete such transactions. In our last call, I shared our actions to reduce expenses, including a 60% reduction of our workforce.

我們採取了多項行動，旨在為我們提供適當的財務跑道來完成此類交易。在上次電話會議中，我分享了我們為減少開支所採取的行動，包括裁員 60%。

We have completed an agreement with our April 2017 customer to transfer responsibility for component production and to sell production assets without selling any intellectual property.

我們已於 2017 年 4 月與客戶達成協議，轉移組件生產責任並出售生產資產，但不出售任何智慧財產權。

We also raised cash through the Lincoln Park Equity Facility, received funds from the Paycheck Protection Program of the 2020 CARES Act, suspended all bonus payments for current or past cycles company-wide, payment of board fees, and the base salary for executives has been reduced by approximately 30%.

我們還透過林肯公園股權融資機制籌集了現金，從2020 年CARES 法案的薪資保護計劃中獲得了資金，暫停了全公司範圍內當前或過去週期的所有獎金支付，支付了董事會費用，並且高管的基本工資已被取消。減少約30%。

We continue to look at additional ways to reduce our expenses and manage cash. Based on these actions, we expect to have sufficient cash to continue through Q4 2020 as we seek a strategic transaction.

我們繼續尋找其他方法來減少開支和管理現金。基於這些行動，我們預計在 2020 年第四季我們尋求策略交易時將擁有足夠的現金。

MicroVision's intellectual property includes over 450 issued and pending patents. However, that does not tell the whole story of the value of our intellectual property, which includes trade secrets and proprietary knowhow. In addition to the patents, we have key algorithms in closed-loop and phase locked MEMS control, laser controls, machine learning software, proprietary processes in MEMS fabrication, automated manufacturing capital equipment and a library of hardware design as part of our intellectual property, which we believe comprises the deepest body of work globally in laser beam scanning technology.

MicroVision 的智慧財產權包括 450 多項已發布和正在申請的專利。然而，這並不能說明我們智慧財產權的全部價值，其中包括商業機密和專有技術。除了專利之外，我們還擁有閉環和鎖相 MEMS 控制、雷射控制、機器學習軟體、MEMS 製造專有製程、自動化製造資本設備和硬體設計庫等關鍵演算法，作為我們智慧財產權的一部分，我們相信它包含了全球雷射光束掃描技術領域最深入的工作。

Laser beam scanning is key to enable high-volume, low-cost, solid-state LiDAR products in a market, which is seeing a lot of interest from major OEMs who are poised to deliver augmented reality, interactive display, consumer, and automotive LiDAR products.

雷射光束掃描是在市場上實現大批量、低成本固態 LiDAR 產品的關鍵，主要 OEM 廠商對此表現出了濃厚的興趣，他們準備提供擴增實境、互動式顯示、消費類和汽車 LiDAR產品。

Let me now address our upcoming Annual Shareholder Meeting on May 19, which will be a virtual online meeting this year because of the COVID-19 pandemic. Specifically, I would like to discuss one key shareholder portfolio that I believe is vital to our efforts to enhance shareholder value.

現在讓我在即將舉行的 5 月 19 日年度股東大會上發言，由於新冠肺炎 (COVID-19) 大流行，今年的會議將採取虛擬線上會議的形式。具體來說，我想討論一個關鍵股東組合，我認為這對我們提高股東價值的努力至關重要。

Proposal 3 asks shareholders to approve a reverse stock split, if necessary, to remain listed on the NASDAQ Global Market. Approval of Proposal 3 provides a company with needed flexibility, which is important in light of our effort to complete a strategic transaction, including a sale or merger of the company. There are 2 key points I would like to highlight to support approval of this proposal.

提案 3 要求股東在必要時批准反向股票分割，以維持在納斯達克全球市場的上市地位。提案 3 的批准為公司提供了所需的靈活性，這對於我們完成策略交易（包括公司出售或合併）的努力非常重要。我想強調兩個要點來支持該提案的批准。

First and foremost, approval of Proposal 3 will provide the company with the necessary tools to maintain liquidity and value of our investors' shares. Delisting would make MicroVision less appealing to institutional investors and limit the pool of potential investors, which would make it more difficult for our investors to obtain a quote or sell their shares. As we explore potential transactions, it is very important to maintain liquidity of our investors' shares.

首先也是最重要的是，提案 3 的批准將為公司提供必要的工具來維持投資者股票的流動性和價值。退市將降低 MicroVision 對機構投資者的吸引力，並限制潛在投資者的數量，這將使我們的投資者更難獲得報價或出售其股票。當我們探索潛在交易時，保持投資者股票的流動性非常重要。

Secondly, Proposal 3 provides flexibility, enhancing our ability to consider and possibly facilitate a tender offer or exchange of shares in the event of a sale or merger, which are among the opportunities we're exploring to maximize shareholder value.

其次，提案 3 提供了靈活性，增強了我們在出售或合併時考慮並可能促進要約收購或股份交換的能力，這是我們正在探索的實現股東價值最大化的機會之一。

MicroVision's Board of Directors, of which I am a member, understand that some shareholders may be reluctant to approve this proposal. However, we believe, for the reasons I just mentioned and others noted in our proxy, it is in our best interest as shareholders to approve this key proposal.

我是 MicroVision 董事會成員之一，他們了解到有些股東可能不願意批准這項提案。然而，我們相信，出於我剛才提到的原因以及我們在代理書中指出的其他原因，批准這項關鍵提案符合我們作為股東的最佳利益。

Additionally, 2 leading independent proxy advisory firms, Institutional Shareholder Services, ISS, and Glass Lewis, both recommended that MicroVision shareholders vote For Proposal 3 to approve a reverse stock split, as well as to vote For Proposal 2 to approve an increase in the number of authorized shares of common stock.

此外，兩家領先的獨立代理諮詢公司——Institutional Shareholder Services、ISS 和 Glass Lewis，均建議 MicroVision 股東投票支持提案 3 以批准反向股票分割，並投票支持提案 2 以批准增加數量普通股的授權股數。

For those not familiar with ISS and Glass Lewis, both firms are widely recognized as leading independent institutional proxy advisory firms in the United States. And their analysis and recommendations are relied upon by hundreds of major institutional investment firms, mutual funds, and fiduciaries throughout the world.

對於不熟悉 ISS 和 Glass Lewis 的人來說，這兩家公司都被廣泛認為是美國領先的獨立機構代理商顧問公司。他們的分析和建議受到全球數百家主要機構投資公司、共同基金和信託機構的信賴。

On behalf of our employees and Board of Directors, I'm proud of the body of work done over more than 20 years to get to this inflection point.

我代表我們的員工和董事會，對 20 多年來為達到這一轉折點所做的工作感到自豪。

Despite the current state of global economy headwinds, we believe we have prepared MicroVision with sufficient cash to continue through Q4 and complete a strategic transaction, including a merger or sale.

儘管當前全球經濟狀況不利，但我們相信我們已經為 MicroVision 準備了足夠的現金，可以在第四季度繼續進行並完成策略交易，包括合併或出售。

I'll now turn the call over to Steve, our CFO, who will discuss the financial side of our business. Steve?

我現在將把電話轉給我們的財務長史蒂夫，他將討論我們業務的財務方面。史蒂夫？

Thank you, Sumit. Good afternoon, everyone. For the first quarter, revenue was $1.5 million with approximately $1.2 million of product revenue, $212,000 of royalty revenue and the balance from contract revenue. The product revenue was from our April 2017 customer. I'd like to note that first quarter results were impacted by decreased production associated with the coronavirus. Production was stopped for an additional week after the Lunar New Year in February. And then when production started, it was at a lower rate due to a shortage of manufacturing personnel at the contract manufacturer.

謝謝你，蘇米特。大家下午好。第一季收入為 150 萬美元，其中約 120 萬美元的產品收入、212,000 美元的特許權使用費收入以及合約收入餘額。產品收入來自我們 2017 年 4 月的客戶。我想指出的是，第一季的業績受到了與冠狀病毒相關的產量下降的影響。二月農曆新年後，生產又停工一週。然後，當生產開始時，由於合約製造商的製造人員短缺，產量較低。

In comparison, last quarter, we recognized $4.6 million of revenue with about $4.1 million in product revenue and the balance in contract and royalty revenue.

相較之下，上季我們確認了 460 萬美元的收入，其中約 410 萬美元為產品收入，其餘為合約和特許權使用費收入。

First quarter cost of revenue was $1.4 million, which included $168,000 in write-offs of materials and other items related to our interactive display product. The resulting gross profit was $70,000. In comparison, gross profit was $1.2 million in Q4.

第一季的收入成本為 140 萬美元，其中包括與我們的互動式顯示產品相關的材料和其他項目的沖銷 168,000 美元。由此產生的毛利為 70,000 美元。相比之下，第四季的毛利為 120 萬美元。

In March, we completed an agreement with our April 2017 customer in which the customer took over production of components. From March going forward, MicroVision will receive a royalty for each component shipped by the customer. Royalties that are due to MicroVision will be credited against the prepayment made by the customer. When the prepayment is exhausted, the customer will begin making cash payments for royalties due.

今年 3 月，我們與 2017 年 4 月的客戶簽訂了一項協議，由該客戶接管零件生產。從三月開始，MicroVision 將為客戶運送的每個組件收取版稅。應付給 MicroVision 的特許權使用費將記入客戶支付的預付款中。當預付款用完後，客戶將開始以現金支付應付的特許權使用費。

At the end of Q1, the prepayment stood at $9.3 million. There is no potential scenario that we see where MicroVision would be required to repay any portion of the $9.3 million prepayment. This $9.3 million is on the balance sheet as a contract liability. ASC 606, the new revenue standard, requires that companies estimate and disclose the timing of when those liabilities are expected to be recognized. This information will be found in the revenue recognition footnote in the 10-Q that we will be filing. Our current estimate is that approximately $1.4 million of the $9.3 million will be recognized over the remainder of the year.

截至第一季末，預付款項為 930 萬美元。我們認為 MicroVision 不會被要求償還 930 萬美元預付款中的任何部分。這 930 萬美元以合約負債出現在資產負債表上。新收入準則 ASC 606 要求公司估計並揭露預計確認這些負債的時間。這些資訊可以在我們將提交的 10-Q 的收入確認腳註中找到。我們目前的估計是，930 萬美元中的約 140 萬美元將在今年剩餘時間內確認。

Operating expenses were $5 million in the first quarter compared to $4.5 million in the fourth quarter. First quarter operating expenses included approximately $100,000 in charges related to the reduction in workforce that we announced in February. There were also other nonrecurring expenses and credits in the quarter. Because the last 2 quarters have had some nonrecurring expenses and credits, we think it's useful to share our forecast for operating expenses for the second quarter. We forecast our second quarter operating expenses to be in the range of $3 million to $3.5 million.

第一季營運費用為 500 萬美元，而第四季營運費用為 450 萬美元。第一季營運支出包括約 10 萬美元的與我們 2 月宣布的裁員相關的費用。本季還有其他非經常性費用和貸項。由於過去兩個季度有一些非經常性費用和貸項，因此我們認為分享我們對第二季營運費用的預測很有用。我們預計第二季營運費用將在 300 萬美元至 350 萬美元之間。

For the first quarter, our net loss was $4.9 million or $0.04 per share. This compares to a loss of $3.3 million or $0.03 per share in the fourth quarter.

第一季度，我們的淨虧損為 490 萬美元，即每股虧損 0.04 美元。相比之下，第四季虧損 330 萬美元，即每股虧損 0.03 美元。

For the first quarter, cash used in operations was $5.4 million, which compares to cash used in the fourth quarter of $4.3 million.

第一季營運中使用的現金為 540 萬美元，而第四季使用的現金為 430 萬美元。

We ended the first quarter with total cash and cash equivalents of $2.3 million. During the quarter, we raised $1.5 million from the Lincoln Park Capital facility that we established in December of 2019.

第一季結束時，我們的現金和現金等價物總額為 230 萬美元。本季度，我們從 2019 年 12 月建立的林肯公園資本設施籌集了 150 萬美元。

Since the end of the quarter, our cash balance has improved. As Sumit mentioned, in April, we secured $1.6 million of funding under the Payroll Protection Plan. We also used our equity facility with Lincoln Park Capital to raise another $6.2 million. So that as of today, our cash balance is approximately $9.1 million. Given our current expense rate, we believe this cash balance will fund operations through the fourth quarter.

自本季末以來，我們的現金餘額有所改善。正如 Sumit 所提到的，4 月份，我們根據薪資保護計畫獲得了 160 萬美元的資金。我們也利用林肯公園資本 (Lincoln Park Capital) 的股權融資再籌集 620 萬美元。因此，截至今天，我們的現金餘額約為 910 萬美元。鑑於我們目前的費用率，我們相信這筆現金餘額將為第四季度的營運提供資金。

Now I'd like to turn to NASDAQ compliance. Our request for a 6-month exemption to the $1 minimum bid price requirement was granted, and the company had until June 9 to regain compliance. On April 16, in response to the COVID-19 pandemic, NASDAQ announced temporary relief from the continued listing bid price and the market value listing requirements through June 30, 2020. The effect of the NASDAQ action extends the company's time period for compliance with the bid price listing requirement to August 24, 2020.

現在我想談談納斯達克合規性。我們提出的 6 個月豁免 1 美元最低投標價格要求的請求獲得批准，該公司必須在 6 月 9 日之前重新遵守規定。 4 月 16 日，為因應 COVID-19 大流行，納斯達克宣佈在 2020 年 6 月 30 日之前暫時免除繼續上市投標價格和市值上市要求。納斯達克行動的效果延長了公司遵守投標價格掛牌要求截至2020年8月24日。

In order to evidence compliance with the bid price requirement, the company must evidence a closing bid price of at least $1 per share for a minimum of 10 consecutive business days. Note, the time extension to address NASDAQ's listing requirements does not change the timing of the company's Annual Shareholder Meeting scheduled for May 19, 2020, nor does it change the nature of the proxy proposals Sumit discussed. It simply gives the company more time to meet the minimum bid price listing requirement before effecting a reverse split, if such a split is approved by the company's shareholders. So if the company were to regain compliance and the proposal for a reverse stock split were to pass, the Board would have discretion to effect a reverse stock split based on the then current stock price.

為了證明遵守收購價格要求，公司必須證明至少連續 10 個工作日的收盤收購價格至少為每股 1 美元。請注意，滿足納斯達克上市要求的時間延長不會改變公司定於 2020 年 5 月 19 日舉行的年度股東大會的時間，也不會改變 Sumit 討論的代理提案的性質。如果這種分割得到公司股東的批准，它只是讓公司有更多時間在進行反向分割之前滿足最低投標價上市要求。因此，如果公司重新合規且反向股票分割提案獲得通過，董事會將有權根據當時的股價進行反向股票分割。

The company also received formal notice from NASDAQ on April 8, 2020 that for 30 consecutive business days, the market value of the company's listed common stock was less than $50 million, which is the minimum market value required for continued listing on NASDAQ. The company had 180 calendar days, or until October 5, 2020, to regain compliance with the requirement. However, the NASDAQ action on April 16 also extends the company's time period for compliance with the market value listing requirement to November 27, 2020. During this period, the company can regain compliance if the market value of the company's listed common stock is at least $50 million for a minimum of 10 consecutive business days.

公司也於2020年4月8日收到納斯達克正式通知，連續30個工作日，公司上市普通股市值低於5000萬美元，這是在納斯達克繼續上市所需的最低市值。該公司有 180 個日曆日（即 2020 年 10 月 5 日之前）重新恢復符合要求。不過，4月16日納斯達克的行動也將公司符合市值上市要求的期限延長至2020年11月27日。在此期間，如果公司上市普通股的市值至少為至少連續10 個工作日5,000萬美元。

Let me conclude by reiterating what Sumit said. We believe approval of the proxy proposals are important to maintain our listing on the NASDAQ Global Market, and are needed to support our ongoing efforts to maximize shareholder value as we continue to discuss strategic opportunities with other companies.

最後，我要重申蘇米特所說的話。我們相信，批准代理提案對於維持我們在納斯達克全球市場的上市非常重要，並且在我們繼續與其他公司討論戰略機會時，也需要支持我們不斷努力實現股東價值最大化。

I will now turn the call back over to Sumit for a few comments before we open the call to questions.

現在，在我們開始提問之前，我將把電話轉回給 Sumit，徵求一些意見。

Thank you, Steve. Before we open the call to questions, I would be remiss if I didn't thank our hard working employees and partners for continuing to work, in many cases remotely during the COVID-19 pandemic. Finally, I would like to reiterate our commitment and sense of urgency to implement strategic alternatives that we believe will maximize shareholder value.

謝謝你，史蒂夫。在我們開始提問之前，如果我不感謝我們辛勤工作的員工和合作夥伴繼續工作（在許多情況下在 COVID-19 大流行期間遠距工作），那就是我的失職。最後，我想重申我們對實施策略替代方案的承諾和緊迫感，我們相信這將最大限度地提高股東價值。

Thank you. We will now open the call for questions.

謝謝。我們現在開始提問。

(Operator Instructions) I will now turn the call back over to Sumit Sharma for any closing remarks.

（操作員指示）我現在將把電話轉回 Sumit Sharma 以聽取結束語。

Thank you, operator. In closing, I want to once again thank our employees, business partners and our stockholders for their continued support. And we encourage you to vote for the proxy proposal discussed on the call. I look forward to giving you an update on our progress in the future. Thank you.

謝謝你，接線生。最後，我要再次感謝我們的員工、業務夥伴和股東的持續支持。我們鼓勵您投票支持電話會議中討論的代理提案。我期待著向您通報我們未來的進展。謝謝。

This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，此時您可以掛斷電話了。感謝您的參與。