Vuzix Reports Wider-Than-Expected Third-Quarter Losses

Vuzix, the smart-glasses manufacturer, experienced a significant decrease in its stock value as it reported larger losses for the third quarter of this year than anticipated. The company's shares dropped by 15% to $2.65 during midday trading, reaching a new 52-week low of $2.50 earlier in the session. Overall, Vuzix's stock has fallen by 41% over the past 12 months. This decline led BTIG analysts to downgrade Vuzix's stock rating from Buy to Neutral.

In terms of financial performance, Vuzix revealed a quarterly loss of $11 million, equivalent to 17 cents per share. This is an increase from the $9.5 million loss, or 15 cents per share, reported during the same quarter last year. According to analysts polled by FactSet, the expected loss for this quarter was $9.7 million, or 16 cents per share. Additionally, Vuzix recorded sales of $2.2 million for the quarter, compared to $3.4 million last year and falling short of analysts' expectations of $4.7 million.

One of the contributing factors to this decline in sales was the delays in customer orders and sales of Vuzix's M400 smart glasses. However, the company remains positive about its outlook for the remainder of 2023 and into 2024. Vuzix is implementing changes that aim to reduce operating costs by up to 20%.

Recently, on October 16th, Vuzix announced that it has received and partially fulfilled additional follow-on and new design orders from three Tier-1 aerospace and defense contractors that it has been collaborating with. The revenue generated from these original equipment manufacturer (OEM) orders falls within the mid six-figure range. Vuzix also expects to receive additional non-recurring engineering orders for subsequent phases from some of these contractors.

Overall, despite the current challenges faced by Vuzix, the company remains focused on taking steps to improve its financial performance and capitalize on future opportunities in the market.