ROCHESTER, N.Y., Jan. 17,
2024 /PRNewswire/ -- Vuzix® Corporation (NASDAQ:
VUZI), ("Vuzix" or, the "Company"), a leading supplier of smart
glasses and Augmented Reality (AR) technology and products, today
announced the immediate commencement of an expansive cost reduction
program and its preliminary fourth quarter 2023 revenues.
Commencement of Cost Reduction Program
Vuzix today announced that it will be focusing its efforts on
select AR smart glasses products, technology development and its
OEM business. As such, the Company is implementing
efficiencies, including a significant cost reduction program, that
are designed to better streamline operations.
"We are focused on the alignment of our resources to better
serve our key product and technological opportunities and the
interests of our shareholders," said Paul
Travers, President and Chief Executive Officer. "These
proactive steps will reduce our cost structure and improve our
operating results, while concurrently allowing us to continue to
invest in new technologies and products and maintain our high
standard of customer service and support."
"Our focus is on improving the ability to deliver on more
breakthroughs in OEM products and services, as well as the
realization of related technology investments. As a result, we've
identified opportunities to reduce or discontinue investments in
certain areas while maintaining our investment and focus on
initiatives that should deliver the most impact long-term. These
organizational changes will include reductions of our global staff
across all major areas of our business, including Sales and
Marketing; General and Administrative; Research and Development;
and Manufacturing Overhead," Mr. Travers continued.
"We anticipate that these proactive actions will result in a
reduction of our cash annual operating expenses of approximately
$8 million or 25%, once fully
implemented. Looking forward, these collective actions should help
us to improve our operating margins and significantly reduce cash
losses, even during challenging demand environments while certain
markets continue their slow but consistent evolutions," Mr. Travers
concluded.
These broad-based cash cost reduction measures are expected to
result in a material operating result contribution in 2024.
Preliminary Fourth Quarter 2023 Revenue
Vuzix today also announces its preliminary revenues for the
fourth quarter ended December 31,
2023. Fourth quarter revenue is expected to be approximately
$2,100,000. Total product sales for
Q4-2023 rose by 36% over Q3-2023, reflecting continuing commercial
demand for Vuzix' AR smart glasses. Offsetting this improvement was
a 72% sequential decline in realized engineering services.
Mr. Travers further commented, "We have long discussed the
lumpiness of smart glasses orders and engineering services. We are
very optimistic about Vuzix' long-term prospects, including our
increasing focus on our core technology for OEM and white label
programs. The Company currently has the largest OEM
engineering services and related products order book in its history
and realizing the revenue from it is related to timing on
deliveries and hitting certain milestones. The changes
announced today are in line with our goal to deliver shareholder
value as the AR smart glasses industry grows and we continue to
execute on our focused strategy."
Vuzix' fourth quarter revenue results are preliminary and
unaudited and subject to change in connection with the completion
of Vuzix' quarterly and year-end closing process and review
procedures. As a result, these preliminary results may differ from
the actual results that will be reflected in Vuzix' consolidated
financial statements for the quarter ended December 31, 2023, which are expected to be
released when the Company files its Annual Report on Form 10-K with
the SEC within the next 60 days.
About Vuzix Corporation
Vuzix is a leading designer, manufacturer and marketer of Smart
Glasses and Augmented Reality (AR) technologies and products for
the enterprise, medical, defense and consumer markets. The
Company's products include head-mounted smart personal display and
wearable computing devices that offer users a portable high-quality
viewing experience, provide solutions for mobility, wearable
displays and augmented reality, as well OEM waveguide optical
components and display engines. Vuzix holds more than 350 patents
and patents pending and numerous IP licenses in the fields of
optics, head-mounted displays, and augmented reality Video Eyewear
field. Moviynt, an SAP Certified ERP SaaS logistics solution
provider, is a Vuzix wholly owned subsidiary. The Company has won
Consumer Electronics Show (or CES) awards for innovation for the
years 2005 to 2024 and several wireless technology innovation
awards among others. Founded in 1997, Vuzix is a public company
(NASDAQ: VUZI) with offices in: Rochester, NY; Oxford, UK; Munich,
Germany; and Kyoto and
Tokyo, Japan. For more
information, visit the Vuzix website, Twitter and Facebook
pages.
Forward-Looking Statements Disclaimer
Certain statements contained in this news release are
"forward-looking statements" within the meaning of the Securities
Litigation Reform Act of 1995 and applicable Canadian securities
laws. Forward-looking statements contained in this release relate
to the Company's preliminary Q4-2023 revenue, the size and
effectiveness of the Company's cost reduction program, future
technologies and products, and among other things the Company's
leadership in the Smart Glasses and AR display industry. They are
generally identified by words such as "believes," "may," "expects,"
"anticipates," "should" and similar expressions. The risks and
uncertainties include, but are not limited to, the following: the
actual costs, timing and benefits of the cost reduction activities
described above; and other risks detailed from time to time in the
company's filings with the Securities and Exchange Commission. We
undertake no special obligation to update any forward-looking
statements, whether in response to new information, future events
or otherwise. Readers should not place undue reliance on such
forward-looking statements, which are based upon the Company's
beliefs and assumptions as of the date of this release. The
Company's actual results could differ materially due to risk
factors and other items described in more detail in the "Risk
Factors" section of the Company's Annual Reports and MD&A filed
with the United States Securities and Exchange Commission and
applicable Canadian securities regulators (copies of which may be
obtained at www.sedar.com or www.sec.gov). Subsequent events and
developments may cause these forward-looking statements to change.
The Company specifically disclaims any obligation or intention to
update or revise these forward-looking statements as a result of
changed events or circumstances that occur after the date of this
release, except as required by applicable law.
Media and Investor Relations Contact:
Ed McGregor, Director of Investor
Relations
Vuzix
Corporation
ed_mcgregor@vuzix.com
Tel: (585) 359-5985
Vuzix Corporation, 25 Hendrix Road, West Henrietta, NY 14586 USA,
Investor Information – IR@vuzix.com
www.vuzix.com
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SOURCE Vuzix Corporation