ROCHESTER, N.Y., Nov. 20, 2012 /PRNewswire/ -- Vuzix Corporation
(TSX-V: VZX, OTC:BB: VUZI, FMB: V7X) ("Vuzix" or, the "Company") a
leader in the design and manufacture of Video Eyewear products that
provide users with portable high quality viewing experiences, today
reported its financial results for the three and nine month periods
ending September 30, 2012. Unless
otherwise indicated, dollar amounts referred to herein are
references to United States
dollars.
(Logo: http://photos.prnewswire.com/prnh/20110518/MM04932LOGO
)
On June 15, 2012, Vuzix sold its
Tactical Display Group business ("TDG"). As such, the financial
results of those operations have been classified and presented as
Discontinued Operations and have been excluded from the Company's
financial results from Continuing Operations for the periods being
reported.
For the three month period ended September 30, 2012, gross sales from continuing
operations amounted to $756,495
versus $1,241,134 during the
corresponding period in 2011. The 39 percent decrease in sales was
primarily attributable to the Company's limited working capital
preceding the TDG sale and the resulting supply chain delays for
components to build product to match sales demand, particularly on
the newer product lines in our third quarter. Due to the Company's
sale of its TDG business unit, and ongoing efforts and focus on
managing costs, operating expenses from continuing operations
during the third quarter of 2012 decreased by 18 percent to
$1,181,107, compared to $1,447,288 during the same period last year. As a
result, net loss from continuing operations during the third was
$1,116,023 versus $1,320,758 during the third quarter of 2011.
For the nine month period ended September
30, 2012, gross sales from continuing operations amounted to
$2,517,222 versus $2,917,829 during the corresponding period in
2011. Operating expenses for continuing operations decreased 16% to
$3,676,916, from $4,384,066 during the nine month period, leading
to a net loss of $3,351,090 versus a
loss of $4,099,630 during the nine
month period in 2011.
Net Loss inclusive of Discontinued Operations for the third
quarter of 2012 was $1,181,079 versus
$920,553 in the same period in 2011.
For the nine-month period ending September
30, 2012 the Company reported Net Income inclusive of
Discontinued Operations of $1,738,937
versus a Net Loss of $2,268,399 in
the same period in 2011. Included in Net Income for the nine months
ending September 30, 2012 was a Net
Gain on Sale of Discontinued Operations of $5,837,607.
"The transition from our defense activities to the commercial
side of our business has taken us some time but we are seeing great
signs of success and are very excited with the growth opportunity
ahead of us," noted Paul Travers,
President of Vuzix. "I am pleased with our ability to manage
overall costs and improve gross margin which should allow for
stronger bottom line performance once we ramp up sales of our new
products. We are excited about the growth prospects of our business
and will continue to be very visible and a major contender in the
smartphone accessory market."
Forward-Looking Statements Disclaimer
Certain statements contained in this 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, among other
things, the Company's financial position, new products and the date
they may be commercially available, the Company's ability to
capitalize on new opportunities, and other statements that may
project or imply future results, events, performance or
achievements. They are generally identified by words such as
"plans," "seeks," "believes," "may," "expects," "anticipates,"
"should'" and similar expressions. 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 from
those projected in the Company's forward-looking statements due to,
among other things, our ability to raise necessary capital;
government regulation of our technologies; our ability to enforce
our intellectual property rights and protect our proprietary
technologies; the timing of new product launches; delays in product
development; and dependence on third parties for certain key
components. These risk factors and others are 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 on Form 10-K 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.
About Vuzix Corporation
Vuzix is a leading supplier of Video Eyewear products in the
consumer, commercial and entertainment markets. The Company's
products, personal display devices that offer users a portable high
quality viewing experience, provide solutions for mobility,
wearable displays and virtual and augmented reality. Vuzix holds
over 48 patents in the Video Eyewear field. The company has won 13
Consumer Electronics Show Innovation Awards and several wireless
technology innovation awards, among others. Founded in 1997, Vuzix
is a public company (TSX-V:VZX, OTC:BB: VUZI, FMB: V7X) with
offices in Rochester, NY,
Oxford, UK and Tokyo, Japan. For more information visit
www.vuzix.com.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For further press information, please contact:
Vuzix Corporation
75 Town Centre Drive
Rochester, NY 14623 USA
Investor Information
IR@Vuzix.com
Tel: +1 (585) 359-7562
Vuzix.com
Facebook.com/Vuzix
Twitter.com/Vuzix
SOURCE Vuzix Corporation