Vuzix Corp. (VUZI) Misses Q3 EPS by 1c, Revenues Miss

Vuzix Corp. (NASDAQ: VUZI) reported Q3 EPS of ($0.13), $0.01 worse than the analyst estimate of ($0.12). Revenue for the quarter came in at $2.78 million versus the consensus estimate of $3.16 million.

"Our third quarter 2020 revenue grew 140% over the comparable 2019 period largely due to our core enterprise smart glasses business. The worldwide coronavirus outbreak has impacted the day-to-day operations of many enterprise customers across numerous market verticals, including healthcare, manufacturing, logistics and field service, and has furthered adoption and overall acceptance of smart glasses within business operations. We delivered a record $2.7 million of Vuzix smart glasses in the quarter, an increase of 156% year-over-year and up 15% sequentially over our previous record achieved in our second quarter of 2020, primarily driven by both follow-on orders from existing customers and interest from new customers to support their business operations. Healthcare, including telemedicine and telehealth solutions related to patient care, training and surgery, as well as supporting healthcare companies like medical device manufacturers that have active equipment installations in hospitals and medical facilities, continued to be an important new business segment for Vuzix in the quarter," said Paul Travers, President and CEO of Vuzix.

"The third quarter was also an active period for our OEM business group; we negotiated an engineering services project with a new major defense company that commenced in early October along with phase 2 project work with an existing major defense company. We are also working actively on advancements of our next generation near eye waveguide and micro-display technologies," continued Mr. Travers.

Management Outlook

"The COVID-19 Pandemic has become a catalyst for much broader acceptance of enterprise smart glasses, resulting in shorter evaluation periods and increased customer adoption," said Mr. Travers. "The healthcare, field service and manufacturing sectors, which were all important growth contributors in our third quarter, continue to show strength and we expect these segments to remain robust growth drivers for the Company over the remainder of 2020 and beyond. To this point, our fourth quarter is off to a great start with October sales of smart glasses being the highest single month of such sales we've ever recorded. As a result, today we believe we are in a strong position to deliver continued smart glasses revenue growth in our fourth quarter."

"We are equally optimistic about our OEM and Engineering Services business as we are now working on deliverables against five active programs. These programs collectively represent more than $700,000 of contractual commitments, a substantial portion of which we expect to realize as revenue during our fourth quarter. Additionally, we anticipate advancing some of these programs towards supply and production agreements of our customized waveguide-based HMDs and HD display engine products in the near future," added Mr. Travers.

For earnings history and earnings-related data on Vuzix Corp. (VUZI) click here.

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