Vuzix Corp. (VUZI) stock prices were down by 8.13% as of the market closing on May 10th 2021, bringing the price per share down to USD$17.29.
New Record
The company reported having set a new record on May 10th, 2021 for the sales of smart glasses. As customers continued to place more substantial and more frequent order for VUZI’s proprietary Smart Glasses, the company reported sales of USD$3.8 million.
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Product Portfolio Performance
As compared to the same time period of the previous year, M400 Smart Glasses sales tripled, with the company seeing an expanding scope of use cases emerging from all round the globe. Vuzix Blade Smart Glasses were also up, with sales having experienced a year-over-year increase of 54%. This number is attributable to the demonstrable ROI enjoyed by enterprise customers using Blade, thanks to its stereo audio, autofocus camera, and rating features that are now an industry-standard generating increasing usage an interest.
Solid Liquidity Position
With the company having consolidated its liquidity position with equity offerings earlier in 2021, VUZI has further strengthened its financial position with the exercising of outstanding warrants. Their balance sheet is highly promising with pro forma cash of approximately uSD$145 million as of April 1st, 2021. This offers the company the resources needed to fund projected growth and planned product development, while also allowing them to expand their product portfolio through potential strategic initiatives.
Year-over-Year Improvement
The USD$2.4 million increase in sales of Vuzix smart glasses products translated into a 177% year-over-year increase. This has largely contributed to the USD$3.9 million reported for the three-month period ended March 31st, 2021, as compared to the USD$1.5 million reported for the same period in the prior year.
Gross Profits and Margins
Overall gross profit for the three months ended March 31st, 2021 was up USD$1 million dollars from the USD$0.1 million reported for the same period in 2020. Product gross margins before overheads and other items averaged 47% of sales in 2021 so far, a 2% increase from the prior year’s period. Overall gross margin in the period was also significantly higher than the prior year, reported at 28% versus the 5% reported a year before. This is largely due to fixed overhead costs being absorbed over a significantly larger revenue base.
Future Outlook for VUZI
With a strong liquidity position and a promising financial track record, VUZI is poised to capitalize on the development of its product portfolio. Current and potential investors are hopeful that the company will be able to sustain its recent growth trajectory and usher in significant and sustained increases in shareholder value.
