Slide 1: 3Q2023 Earnings Presentation
3Q2023 EARNINGS PRESENTATION NOVEMBER 9, 2023 1
Slide 2: Cautionary Note Regarding Forward Looking Statements
Cautionary Note Regarding Forward Looking Statements Certain statements included in this presentation may be considered forward-looking. All statements in this presentation that are not historical facts are forward-looking statements. Such statements involve known and unknown risks, uncertainties an
Slide 3: Call Participants and Agenda
Call Participants and Agenda Participants Agenda Paul Travers ➢ Introduction President and CEO ➢ Business review Grant Russell ➢ Financial review CFO and Executive Vice President Ed McGregor ➢ Closing Remarks Director of Investor Relations ➢ Q&A 3
Slide 4: Opening Remarks and 3Q2023 Comments
Opening Remarks and 3Q2023 Comments ➢ Lower than planned smart glasses sales primarily due to order placement timing associated with several larger channel partner deals; most are expected to close in the coming months or quarter ➢ Some OEM sales were also delayed by a few large corporations; we exp
Slide 5: Vuzix IP Drives Value Creation
Vuzix IP Drives Value Creation Waveguides & optical Vuzix micro displays IP Systems/White Label 346 Patents & Patents Pending Enterprise Products 5
Slide 6: The Big Picture – Relative Opportunity Size
The Big Picture – Relative Opportunity Size The AR smart glasses: 1B units/year Broad Waveguides & displays: $120B/year Market Vuzix 10% share revenue potential: Opportunity $12B/year Broad Market The AR smart glasses: 1M-5M units/year Enterprise TAM@$1000 ASP: $1B-$5B/year Market Vuzix 20% share re
Slide 7: Waveguide Comments
Waveguide Comments ➢ Vuzix waveguide mega factory is now operational ➢ Facility increases waveguide unit capacity, lowers manufacturing costs and utilizes more advanced processes ➢ Can make large format and direct view heads-up displays for in-vehicle use and other use cases ➢ INCOGNITO is a game-ch
Slide 8: Atomistic – A Brighter Future for AR
Atomistic – A Brighter Future for AR ➢ Still operating in stealth mode but making excellent against multiple key milestones ➢ Atomistic’s highly specialized fabrication equipment is nearing completion and is on track to be qualified in the coming months ➢ Atomistic’s website is now live and can be a
Slide 9: Smart Glasses Comments
Smart Glasses Comments ➢ Our current smart glasses pipeline is arguably our largest ever with key accounts across all key markets ➢ Beginning to see traction coming from emerging applications utilizing AI ➢ AI-enabled smart glasses can deliver rich new experiences to support education, e-commerce, h
Slide 10: OEM Comments
OEM Comments ➢ Vuzix has a growing list of companies under contract and opportunities in the queue with new and existing customers ➢ Our investments into new manufacturing and research equipment and enhanced production processes are beginning to yield fruit in the OEM portion of our business ➢ We co
Slide 11: Recap
Recap ➢ We feel that Vuzix is one of the outstanding leaders in the AR industry today as evident in multiple areas ➢ Vuzix has critical waveguide technology from design right through to a one-of- a-kind mega factory for high volume production at broad market enabling price points ➢ Vuzix has a major
Slide 12: 3Q2023 Operating Results
3Q2023 Operating Results 3Q2023 3Q2022 % Change Total Sales $2.18M $3.43M -36% Gross Profit $(0.24)M $0.87M nm Gross Margin (10.9)% 25.3% nm Total Expenses $11.19M $10.83M +3% Operating (Loss) $(11.43)M $(9.97)M -15% EPS (Loss) $(0.17) $(0.15) -13% 12
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights 9/30/2023 12/31/2022 Cash $38.0M $72.6M Current Assets $59.6M $91.2M Working Capital $54.5M $76.0M Long-Term Debt 0 0 Shareholder Equity $95.7M $116.7M 13
Slide 14: Q&A
Q&A