Microvision 2025 Q1 Earnings Misses Targets as Net Loss Widens 9.4%
Tuesday, May 13, 2025 6:28 am ET
3min read Microvision (MVIS) reported its fiscal 2025 Q1 earnings on May 12, 2025. The company missed expectations with quarterly revenue of $589,000, significantly below the forecasted $2.25 million. Despite cost reductions, guidance was in line, with anticipated revenue of $30-50 million over the next 12-18 months. This projection aligns with industrial sector opportunities, supported by strategic alliances. The company maintained current expense levels but is focused on capitalizing on potential revenue streams.
Revenue
Microvision experienced a 38.4% decline in total revenue for Q1 2025, reaching $589,000 from $956,000 in Q1 2024. Product revenue contributed $504,000, while license and royalty revenue added $85,000, collectively forming the total revenue.
Earnings/Net Income
Microvision's losses per share improved slightly, narrowing to $0.12 from $0.13 in the previous year. However, the net loss increased by 9.4% to $28.78 million. Despite the narrower EPS loss, the overall figures suggest continuing financial challenges.
Price Action
The stock price of Microvision declined by 3.97% on the latest trading day. Despite a 9.01% rise over the most recent full trading week, it has dropped 4.72% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing MVIS shares when revenues fall short and holding them for 30 days has shown potential for strong returns. Backtesting results indicated an annualized ROI of 70.7% and a profit factor of 2.14, suggesting that the strategy generates a profit of 2.14 units for every unit of risk. Over the backtesting period, 13 trades were closed, with a success rate of 38.46%. The average holding time was approximately 4 days and 14 hours, equating to about 0.24 trades per week. These findings underscore the strategy's ability to deliver substantial returns, surpassing traditional buy-and-hold approaches.
CEO Commentary
Sumit Sharma, CEO of Microvision, emphasized the slow progress in automotive RFQ opportunities due to OEMs' adjustments to supply chain challenges. He expressed optimism about the industrial segment, where the Movia L sensor has received positive evaluations. Sharma also noted ongoing efforts in the defense market and highlighted the company's improved balance sheet after the high-trail deal.
Guidance
Microvision projects $30 million to $50 million in revenue over the next 12 to 18 months, mainly driven by the industrial sector. The company has secured production commitments to meet expected demand and aims to maintain current expenses. Future updates on financial and business milestones will be provided as developments occur.
Additional News
Microvision recently strengthened its leadership team by appointing Glen DeVos, former CTO of Aptiv, as the new Chief Technology Officer. This strategic hire aims to enhance the company's product roadmapping and market strategy. In addition, Microvision formed a defense industry advisory board to explore revenue opportunities in defense technology and military sectors. These developments are part of Microvision's broader strategy to expand its footprint in the industrial and automotive markets, leveraging its integrated perception software to offer compelling solutions at attractive price points. The company continues to engage with global automotive OEMs and focus on strategic partnerships to drive future growth.
Revenue
Microvision experienced a 38.4% decline in total revenue for Q1 2025, reaching $589,000 from $956,000 in Q1 2024. Product revenue contributed $504,000, while license and royalty revenue added $85,000, collectively forming the total revenue.
Earnings/Net Income
Microvision's losses per share improved slightly, narrowing to $0.12 from $0.13 in the previous year. However, the net loss increased by 9.4% to $28.78 million. Despite the narrower EPS loss, the overall figures suggest continuing financial challenges.
Price Action
The stock price of Microvision declined by 3.97% on the latest trading day. Despite a 9.01% rise over the most recent full trading week, it has dropped 4.72% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing MVIS shares when revenues fall short and holding them for 30 days has shown potential for strong returns. Backtesting results indicated an annualized ROI of 70.7% and a profit factor of 2.14, suggesting that the strategy generates a profit of 2.14 units for every unit of risk. Over the backtesting period, 13 trades were closed, with a success rate of 38.46%. The average holding time was approximately 4 days and 14 hours, equating to about 0.24 trades per week. These findings underscore the strategy's ability to deliver substantial returns, surpassing traditional buy-and-hold approaches.
CEO Commentary
Sumit Sharma, CEO of Microvision, emphasized the slow progress in automotive RFQ opportunities due to OEMs' adjustments to supply chain challenges. He expressed optimism about the industrial segment, where the Movia L sensor has received positive evaluations. Sharma also noted ongoing efforts in the defense market and highlighted the company's improved balance sheet after the high-trail deal.
Guidance
Microvision projects $30 million to $50 million in revenue over the next 12 to 18 months, mainly driven by the industrial sector. The company has secured production commitments to meet expected demand and aims to maintain current expenses. Future updates on financial and business milestones will be provided as developments occur.
Additional News
Microvision recently strengthened its leadership team by appointing Glen DeVos, former CTO of Aptiv, as the new Chief Technology Officer. This strategic hire aims to enhance the company's product roadmapping and market strategy. In addition, Microvision formed a defense industry advisory board to explore revenue opportunities in defense technology and military sectors. These developments are part of Microvision's broader strategy to expand its footprint in the industrial and automotive markets, leveraging its integrated perception software to offer compelling solutions at attractive price points. The company continues to engage with global automotive OEMs and focus on strategic partnerships to drive future growth.
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