Vuzix Corporation · NASDAQ:VUZI
Vuzix — Roth Conference 2014
36 slides from Vuzix's conference presentation, Mar 10, 2014
Slide 1: Roth Presentation
Roth Presentation March 10, 2014
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: Trading Snapshot
Trading Snapshot • Ticker: (OTCQB) VUZI • Price (03/5/14): $3.05 • 52 Week Range: $1.75-$8.03 • Avg. Volume (90 day): 70,693 • Shares Outstanding: 10.21 million • Market Cap: $31.14 million • Fiscal Year End: December 31 3
Slide 4: Vuzix Background
Vuzix Background • Founded 1997 - World Wide Operations • Leading supplier of Wearable display technology • Cornerstone IP and Patent Portfolio - 33 patents and 15 patents pending • Employees - 35 total with 11 engineering staff • Award Winning Technology and Design - Immersive Viewing, Virtual Real
Slide 5: Executive Management
Executive Management • Paul J. Travers – Founder and President and Chief Executive Officer; has more than 25 years experience in the consumer electronics field, and 20 years experience in the virtual reality and virtual display fields • Grant Russell – Chief Financial Officer; has over 30 years expe
Slide 6: Mobility - Enterprise to Entertainment Needs a New Smart Device
Mobility - Enterprise to Entertainment Needs a New Smart Device Business first and eventually consumer Email – 1972 1983 Text msg – 1992 1990 Internet www – 1995 1980s 2000 Cloud connected apps from AR to gaming 1994 to now 2012 ABI Research forecasts More than 75 million of the wearable computing t
Slide 7: Smart Glasses
Smart Glasses • The Solution - Video glasses afford big screens in a compact, wearable package - Wearable interactive displays with private viewing anytime, anywhere - The perfect hands free mobile phone display screen • The Challenges - Make them like regular eyeglasses - Make them HD, smart and se
Slide 8: Current Line of Video Eyewear
Current Line of Video Eyewear • Wide Screen Video Glasses - 75 inch virtual screens - New all digital HDMI electronics - Full 3D Blue-ray support • Virtual Reality Glasses - Includes head tracker • Limited by technology to standard definition CES Industry Award-Winning Products Last 10 Years 8
Slide 9: Next Gen Video Head Phones
Next Gen Video Head Phones • Demoed at CES 14 and won two awards • HDMI 3D and streaming WiFi ready • Designed for PC, Console, Smartphone • 720P - highest resolution with largest FOV at 55+ degrees (Front row of theater) • AR & VR Application ready with tracking, audio, microphone, camera • High pr
Slide 10: In 2014 Our Products Got Smart!
IN 2014 OUR PRODUCTS GOT SMART! 10
Slide 11: Smart Glasses will Gain Traction in Enterprise First
Smart Glasses will Gain Traction in Enterprise First We believe: • Monocular products aren’t fashionable and so won’t fit for average consumers, but will for business • No killer or compelling apps over modern smart phone/tablet t0 attract mass market • Good ROIs can be demonstrated in enterprise (p
Slide 12: Smart Glasses – M Series for Enterprise
Smart Glasses – M Series for Enterprise • M100 – first commercially available smart glasses • Winner of CES 2013 Innovations Award • Smart & powerful computing device • Native Android OS – can run thousands of existing apps or custom apps • WQVGA display & 1080p camera • Headband or safety glass mou
Slide 13: Smart Glasses Standalone Computer or Cloud Connected
Smart Glasses Standalone Computer or Cloud Connected Native HMD Apps run on M100 Cooperative Apps run on Smartphone Related Apps run on Standalone Enterprise Apps – Works with 1000’s of existing users NEED open O/s. Smartphone and M100 apps. Easy to modify & support. Designed to connect with Bluetoo
Slide 14: Since the M100's Short Introduction:
Since the M100’s Short Introduction: 14
Slide 15: …. And Growing
…. And Growing • Partnerships from streaming video to sales channels and the developer community 15
Slide 16: Supported with Tools from World leaders in AR software
Supported with Tools from World leaders in AR software • Wikitude and Metaio with over 100,000 active developers 16
Slide 17: A Growing List of Top Customers
With a growing a Growing List of top 500 Customers • 100+ global/fortune 500 companies have purchased M100 Smart Glasses • Including: Transportation, Retailers, Telco's, Refiners, Medical, Manufacturing, Warehousing, Airlines, Automotive, etc… • In some cases programs are rolling out and in others t
Slide 18: Solutions with real ROIs – Order Picking with M100
Solutions with real ROIs – Order Picking with M100 www.smartpick.be 18
Slide 19: Solutions with real ROIs – Warehouse picking
Solutions with real ROIs – Warehouse picking 19
Slide 20: SAP and Vuzix - The future of Field Service
SAP and Vuzix - The future of Field Service http://www.youtube.com/watch?v=UlpGDrSmg38 20
Slide 21: Thousands of developers for enterprise to prosumer
Thousands of developers for enterprise to prosumer Real Time, Hands Free, Info on Tap, Image/Video 21 streaming, Scan Code Reading and More…
Slide 22: A Day in the Life of Cloud Connected You…
A Day in the Life of Cloud Connected You… Images: Siddharth Vanchinathan http://sidv.co/author/sid/ 22
Slide 23: Competition – All Using Conventional Optics
Competition – All Using Conventional Optics • Market has been constrained by bulky appearance, poor ergonomics and technical limitations of optics • No company dominates, but Vuzix optics will finally achieve form factors and price points needed for the mass market Conventional Optics for Video View
Slide 24: Vuzix Technology – IP for Smart Glasses
Vuzix Technology – IP for Smart Glasses • Over $35 million invested – Vuzix IR&D and US Government - Q1 2014 Navy Research labs $750 Phase II • A strong IP portfolio consisting of more than 33 patents and 15 patents pending with other key technology licenses • Key technical competitive differentiato
Slide 25: Vuzix Proprietary Waveguide Optics
Vuzix Proprietary Waveguide Optics • Waveguides are a revolutionary way of moving light - Image is injected into a 1.4mm thin waveguide like a fiber optic - Not bent through bulk material like conventional optics • Provides a significant improvement in - Mass, cost, volume, simplicity and optical pe
Slide 26: Vuzix first waveguide solution M2000AR for enterprise
Vuzix first waveguide solution M2000AR for enterprise • First waveguide based solution • Ruggedized for industrial applications • 720p display and 1080p camera • M2000AR – currently HDMI connection • Programmable electronic shutter adjusts for indoor/outdoor use • HDMI version just was released late
Slide 27: Smart Glasses – B Series for Enterprise and Consumer
Smart Glasses – B Series for Enterprise and Consumer • First binocular fashion-wear smart glasses • Hands-free operation by voice and gesturing • Run apps onboard or on a paired Android or iOS device • qHD displays and 1080p camera • Wireless connectivity with integrated power • True eyeglass stylin
Slide 28: To Recap: In 2014 it's all going Smart Glasses and HD
To Recap: In 2014 it’s all going Smart Glasses and HD Going From Bulky Football Helmets to Fashionable Glasses Smart Glasses – B Series HD Gaming/Viewing Smart Glasses – M Series 2014 Forward A Step Change in Technology 2000 – 2012 Bulky Legacy Solutions 28
Slide 29: Going to Market Globally
Going to Market Globally • US – Direct and major national distributors • EMEA – Distributors in 30+ countries • Web store with fulfillment and warehouses in US, UK, EU, and Japan • Apple.com in over 22 countries (JP and EU) • Exploring new market sectors and geographic licensing 29
Slide 30: Vuzix 2014 Objectives
Vuzix 2014 Objectives • Adding features for M100 industrial user: • Nuance based Voice control Local and 44 languages (user customizable) • Touch-less 3D gesturing control (works with gloves) • Certified safety glass mounting options (medical to plant) • Expanding developer community with participat
Slide 31: Vuzix 2014 Objectives
Vuzix 2014 Objectives • Bringing up volume manufacturing of M100 in China in Q2 • Support sales of > 1000 M100s per month, with lots of extra capacity for growth • Great opportunities to further cost reduce • Bring up volume waveguide manufacturing facilities in Rochester - Now 5x improvements over
Slide 32: Historical Balance Sheet
Historical Balance Sheet Sept 30, 2013 Dec 31, 2012 ASSETS Cash $ 2,569 $ 66 Accounts Receivable 164 171 Inventory & Prepaids 728 973 Current Assets 3,461 1,210 Net Fixed Asset & Intangible 1,069 1,216 TOTAL ASSETS 4,531 2,426 Current Liabilities 3,697 5,151 Long-term Debt 254 3,484 Derivative Liabi
Slide 33: Q3-2013 Financial Data
Q3-2013 Financial Data Sept 30, Sept 30, 2013 2012 Total Sales $1,778 $2,517 Cost of Sales 934 1780 Gross Margin 844 737 Operating Expenses 3,569 3,285 EBITDA -2,725 -2,548 Loss from Continuing Operations -3,010 -2,940 Interest, Derivative Valuation, Taxes & Discount Amort -1,440 -411 Net Loss from
Slide 34: Capitalization Table
Capitalization Table Average Exercise As of Sept 31, Security Price 2013 Common Shares - Outstanding Currently – 9,541,153* Preferred Stock – – Convertible Debt (none) – – Warrants - Outstanding $2.87 7,207,075* Options - Outstanding $9.49 215,504 Fully Diluted 16,963,732 Recent Events: • 694,300 wa
Slide 35: Vuzix Investment Highlights
Vuzix Investment Highlights • Acknowledged as one the world leaders in Smart Glasses, established over the last 20 years, and at the front end of market opportunities in the billions of dollars • A clear vision of the important role that mobile displays will play in the future • Strong R&D plan to c
Slide 36: Thank You
www.vuzix.com VU ZIX View the Future Thank You