Microvision Inc (MVIS)MVIS

Microvision Inc. (MVIS) Overview:

Company Profile:

History and Background:

Microvision Inc. (MVIS) is a pioneer in the development of micro-electro-mechanical systems (MEMS) based display and sensing technologies. Founded in 1993, the company has a rich history of innovation, developing the world's first fully integrated laser scanning projector in 1997.

Core Business Areas:

Currently, Microvision focuses on three core business areas:

• Interactive Display Solutions: Microvision's PicoP® technology is a miniature projection system enabling interactive displays for various applications, including automotive head-up displays (HUDs), consumer electronics, and industrial equipment.
• PicoP® Automotive LIDAR: Microvision's proprietary lidar technology offers high-performance, low-cost solutions for autonomous vehicles.
• Integrated Waveguide Displays: Microvision is developing next-generation waveguide display technology for augmented reality (AR) applications.

Leadership Team:

• David Allen, Chief Executive Officer: A seasoned technology executive with over 30 years of experience, leading Microvision since 2021.
• Anoop Shah, Chief Technology Officer: A distinguished engineer with over 2 decades of experience in display and lidar technologies.
• Sudhakar Rao, Chief Financial Officer: An accomplished finance professional with extensive experience in public and private companies.

Top Products and Market Share:

• PicoP® Display Engine: This miniature projector is used in various applications, including automotive HUDs, pico projectors, and near-eye displays. Microvision estimates a market share of around 20% in the automotive HUD segment.
• PicoP® Automotive LIDAR: Microvision's lidar technology is currently undergoing testing and development for various automotive applications. Market share is yet to be established.

Total Addressable Market:

The total addressable market for Microvision's technologies is vast and spans:

• Automotive HUDs: This market is expected to reach $23.5 billion by 2028.
• Consumer Pico Projectors: The global market for pico projectors is estimated to reach $2.5 billion by 2028.
• Automotive LIDAR: The global market for automotive lidar is projected to reach $10.5 billion by 2028.
• AR/VR Displays: The global market for AR/VR displays is expected to reach $9.5 billion by 2027.

Financial Performance:

Recent Financial Statements:

• Revenue: $10.7 million (2022)
• Net Income: -$123.2 million (2022)
• Profit Margin: -1048.5% (2022)
• EPS: -$2.10 (2022)

Year-over-Year Comparison:

• Revenue: Increased by 103% compared to 2021.
• Net Loss: Increased by 100% compared to 2021.

Cash Flow and Balance Sheet:

• Cash and Equivalents: $13.5 million (2022)
• Total Debt: $0 (2022)

Dividends and Shareholder Returns:

• Dividend History: Microvision has not paid dividends in its history.
• Shareholder Returns: 5-year cumulative shareholder return is -92.5%.

Growth Trajectory:

• Historical Growth: Revenue has grown significantly in recent years, fueled by increasing demand for its PicoP® technology.
• Future Growth: Microvision expects continued growth driven by the adoption of its lidar technology in the automotive industry and the expansion of its display business.

Market Dynamics:

• Industry Trends: The increasing demand for automotive safety and convenience features is driving the adoption of HUDs and lidar systems.
• Demand-Supply Scenario: The demand for Microvision's technologies is outpacing supply, leading to potential growth opportunities.
• Technological Advancements: Microvision is constantly innovating and developing new technologies to stay ahead of the competition.

Competitors:

• HUDs: Continental, Garmin, Bosch, Denso, Nippon Seiki
• LIDAR: Velodyne, Luminar, Quanergy, Innoviz Technologies
• AR/VR Displays: Sony, Microsoft, Google, Apple

Competitive Advantages and Disadvantages:

Advantages:

• First-mover advantage in MEMS display and lidar technology
• Strong intellectual property portfolio
• Experienced management team

Disadvantages:

• Limited manufacturing capacity
• Lack of profitability
• Intense competition

Potential Challenges and Opportunities:

Challenges:

• Scaling up production to meet increasing demand
• Maintaining profitability in a competitive market
• Successfully commercializing its lidar technology

Opportunities:

• Expanding into new markets and applications
• Developing strategic partnerships with automotive and technology companies
• Leveraging its intellectual property to generate licensing revenue

Recent Acquisitions (Last 3 Years):

• 2021: Acquired Infineon Technologies AG's Display Business for €130 million. This acquisition expanded Microvision's display technology portfolio and provided access to a global manufacturing network.
• 2021: Acquired Ibeo Automotive Systems GmbH for €105 million. This acquisition added lidar technology and expertise to Microvision's portfolio.

These acquisitions strategically positioned Microvision as a leader in the automotive display and lidar markets.

AI-Based Fundamental Rating:

Rating: 7/10

Justification:

Microvision has strong technology, a growing market, and a strong management team. However, the lack of profitability and intense competition pose significant challenges. The rating reflects the company's potential for growth but also acknowledges the risks involved.

Sources and Disclaimers:

• Microvision Inc.: https://www.microvision.com/
• MarketsandMarkets: https://www.marketsandmarkets.com/
• Statista: https://www.statista.com/

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making any investment decisions.