Vuzix shares plummeted 26% following the announcement of wider-than-expected Q3 losses, with a decline of 17% for the week and a staggering 60% drop in the past year. Vuzix reported a loss of $11 million in Q3, with sales falling short of last year's...
Troy D. Hanson
November 13, 2023
Vuzix, the smart-glasses manufacturer, saw its shares plummet by 26% to $1.94 following the announcement of wider-than-expected third-quarter losses. The stock closed the week with a 17% decline, and has experienced a staggering 60% drop over the past year. BTIG analysts responded to the news by downgrading Vuzix stock from Buy to Neutral.
In the third quarter, Vuzix reported a loss of $11 million, or 17 cents a share, compared to a loss of $9.5 million, or 15 cents a share, in the same period last year. Analysts had anticipated a loss of $9.7 million, or 16 cents a share. Furthermore, sales for the quarter totaled $2.2 million, falling short of last year's $3.4 million and missing the projected $4.7 million.
The decline in third-quarter sales was primarily attributed to delays in customer orders and reduced sales of the M400 smart glasses. Despite these challenges, Vuzix remains optimistic about its future, stating that its outlook for the remainder of 2023 and beyond is positive. The company has also implemented changes aimed at reducing operating costs by up to 20%.
In a recent development, Vuzix disclosed that it has received additional follow-on and new design orders from three Tier-1 aerospace and defense contractors with whom it collaborates. While the revenue generated from these orders falls within the mid six-figure range, Vuzix anticipates further non-recurring engineering orders in subsequent phases from these partners.