MicroVision, Inc. (MVIS), a company developing lidar sensors used in automotive safety and autonomous driving applications, has plummeted 19.02% in the premarket trading session and is trading at $7.28 at the time of the writing. The decline has come after the company reported Q3 losses. On Thursday, MVIS closed the day at $8.99 after surging 8.71% during regular trading hours.
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Why did MVIS decline?
In the late hours of Thursday, MVIS announced the results for the third quarter of the fiscal year 2021 which ended on 30th September 2021. The company had cash and cash equivalents of $125.13 million on 30th September. The total revenue generated by the company during the period was $0.71 million against $0.63 million for the same period of 2020. The total cost of revenue for the period was $10,000 against zero for the same period of 2020. The gross margin for the period was $0.72 million against $0.63 million for the same period of 2020. The total operating expenses were $10.79 million against $3.45 million for the same period of 2020. The net loss for the period was $9.38 million (or $0.06 per share) against $2.82 million (or $0.02 per share) for the same period of 2020.
Commenting on the results, Sumit Sharma, MVIS Chief Executive Officer said that the company has received encouraging responses from potential customers. With the positive response as well as strong financial performance, the company hopes to achieve success in future quarters.
Transition of CFO
On 20th October, MVIS announced the transition of Chief Financial Officer. The company said that Stephen P. Holt, Chief Financial Officer, will be retiring from the Company effective November 15, 2021. Holt would continue to serve as an advisor to the company during the first half of fiscal 2022 to ensure a smooth transition. On 15th November, Anubhav Verma will join the Company as Vice President, Chief Financial Officer and Treasurer. He would oversee all the finance-related operations at the company. Verma is a seasoned professional. Most recently, he served as the Senior Vice President, Finance at Exela Technologies.
Q2 2021 results
On 4th August, MVIS reported the financial highlights for the second quarter of fiscal 2021 which ended on 30th June. The company generated revenue of $0.7 million during the quarter. The net loss for the quarter was $15 million (or $0.09 per share). The cash used in the operations was $6.7 million. The company had cash and cash equivalents of $135.3 million on 30th June.
The future outlook for MVIS
During the last three months, MVIS has declined more than 30%. The prime reason for the decline appears to be the below-par performance during the quarter. But for the company, the forthcoming quarters would depict a change in the company’s strategy and would provide the investors with numerous dividends.