Slide 1: 2Q2023 Earnings Presentation
2Q2023 EARNINGS PRESENTATION AUGUST 8, 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 2Q2023 Comments
Opening Remarks and 2Q2023 Comments ➢ 2Q2023 revenue of $4.7M rose Vuzix Quarterly Revenue 56% YOY and 12% sequentially $5M ➢ Record 2Q2023 smart glasses $4M sales of $4.4M, up 51% YOY $3M ➢ 2Q2023 OEM revenue of $0.3M $2M with the number of engagements continuing to expand $1M ➢ Remain bullish on f
Slide 5: Smart Glasses Comments
Smart Glasses Comments ➢ The trend toward enterprise-wide rollouts among F100 companies remains exciting AI ➢ Numerous existing accounts are expected AR to continue their roll out plans in 2H23, especially in warehousing & logistics ➢ Continued expansion of Vuzix’ global sales Visual search channel
Slide 6: OEM Comments
OEM Comments ➢ Many opportunities in the queue with both new and existing customers ➢ US-based ODM and OEM recognition by the market continues to expand ➢ Vuzix’ competitive advantages include fast turnaround times, broad solution flexibility, high volume capacity and a competitive cost structure ➢
Slide 7: OEM Comments – Con't
OEM Comments – Con’t ➢ The ability to produce large format waveguides should open up new markets for large format “heads-up” displays for use in conventional vehicles/aircraft cockpits ➢ In the consumer AR market, receiving strong interest from customers spanning fashions brands, telecoms, social me
Slide 8: Patents, Patents Pending & Trade Secrets
Patents, Patents Pending & Trade Secrets ➢ Vuzix’ IP portfolio is steadily expanding ✓ Now 325+, up 50%+ over the last 24 months ➢ Patents and patents pending cover a broad range of technologies: ✓ Eyewear product designs, including Ultralite ✓ Waveguide designs and fabrication ✓ Optical coupling an
Slide 9: Waveguide Comments
Waveguide Comments ➢ New 12K ft² waveguide production facility is soon to be operational: ✓ Required power infrastructure has been installed ✓ Waveguide production equipment is being moved in and qualified ➢ Broad in-house capabilities: ✓ Specification to design ✓ Mold production ✓ Replication ✓ Tes
Slide 10: µLEDs: Leading Suppliers & Atomistic
µLEDs: Leading Suppliers & Atomistic ➢ Industry players remain challenged to design and produce acceptable RGB µLEDs ➢ Vuzix has established working relationships with several of the industry’s most advanced vendors through both partnerships and investments ➢ Atomistic with its very novel approach i
Slide 11: Recap
Recap ➢ Vuzix is one of the outstanding leaders in the AR industry today and it is evident in multiple areas: ✓ Our business is seeing expanding top line growth ✓ Vuzix has one of the fastest growing enterprise product solutions in the market ✓ Vuzix has critical waveguide technology from design thr
Slide 12: 2Q2023 Operating Results
2Q2023 Operating Results 2Q2023 2Q2022 % Change Total Sales $4.69M $3.01M +56% Gross Profit $0.97M $0.27M +266% Gross Margin 20.7% 8.8% +135% Total Expenses $10.58M $10.27M +3% Operating (Loss) $(9.61)M $(10.00)M +4% EPS (Loss) $(0.14) $(0.16) +13% 12
Slide 13: Balance Sheet Highlights
Balance Sheet Highlights 6/30/2023 12/31/2022 Cash $48.6M $72.6M Current Assets $68.3M $91.2M Working Capital $61.5M $76.0M Long-Term Debt 0 0 Shareholder Equity $103.2M $116.7M 13
Slide 14: Q&A
Q&A