Vuzix Corporation (NASDAQ:VUZI) Q3 2018 Earnings Conference Call Transcript

Nov 08, 2018 • 04:15 pm ET

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Vuzix Corporation (NASDAQ:VUZI) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, greetings and welcome to the Vuzix Third Quarter 2018 Financial Results and Business Update Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this call is being recorded.

Now I'd like to turn the call over to Andrew Haag, Managing Partner at IRTH Communications. Mr. Haag, you may begin.

Executive
Andrew Haag

Good afternoon everyone. Welcome to the Vuzix third quarter 2018 financial results and business update conference call. With us today are Vuzix's CEO, Paul Travers, and CFO, Grant Russell.

(Forward-Looking Cautionary Statements)

Today's call may include non-GAAP financial measures. When required, reconciliation to the most directly comparable financial measure, calculated and presented in accordance with GAAP, can be found in the company's Form 10-Q quarterly filings at sec.gov, which is also available at vuzix.com.

I will now turn the call over to CEO, Paul Travers, who will give an overview of the company's third quarter 2018 financial results and business outlook for 2018. Paul will then turn the call over to Grant Russell, Vuzix's CFO, who will provide an overview of the third quarter operating results. Paul Travers will follow Mr. Russell by providing closing remarks. We will then open the call for Q&A after management's update. Paul?

Executive
Paul Travers

Thank you, Andrew. Hello everyone and thank you all for joining our call today to discuss the company's third quarter 2018 financial results and business outlook for 2018. It is a very exciting time at Vuzix more so than at any point in our history. Customer adoption and large scale deployment of smart glasses in enterprise are gaining momentum and we expect this trend to continue to grow and frankly accelerate. The timing for each new broader deployment is not here to gauge just yet, but without doubt, they are occurring more and more often.

The enterprise shift towards using smart glasses as a productivity tool of choice has made good strides through 2018 and Vuzix is well positioned to continue riding and leading this wave. The buzz on consumer AR glasses also continues to build as more and more industry leaders talk up the space. It is interesting to note that there are several new players that have entered the consumer market, and yet due to form factor, high pricing and other technical issues, no one player has captured the eyes of the future user like Vuzix has.

Finally, optical waveguides are becoming the technology of choice for most diverse AR applications, and here again, Vuzix is well positioned to lead. Our addressable market for our technology and products has expanded over the past year and now encompasses enterprise, B2B with M300 Smart Glasses and enterprise B2C with M300, and primarily Blade Smart Glasses, consumer side with the Blade Smart Glasses and OEM waveguide-based opportunities in white labels, and following the recent amendment of our non-compete agreement with Six15, we can include major defense suppliers, primarily around waveguide-based systems from HUDs and aircraft