Microvision Inc. (NASDAQ:MVIS) Q2 2019 Earnings Conference Call - Final Transcript

Jul 18, 2019 • 05:00 pm ET

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Microvision Inc. (NASDAQ:MVIS) Q2 2019 Earnings Conference Call - Final Transcript

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Q & A
Analyst
Operator

[Operator Instructions]

The first question comes from Mike Malouf with Craig-Hallum Capital Group. Please go ahead.

Analyst
Mike Malouf

Great. Thanks, guys, for taking my questions. If we could just focus a little bit on the change in the Class 1 lasers. Obviously, we always thought 3R was safe, but maybe you can give us a little more color with regards to why they wanted to go to Class 1? And what kind of trade-offs do we have with Class 1? You say it's not as -- it's as bright, but are there any other trade-offs with regards to size or with regards to cost or anything else that we should know about? Thanks.

Executive
Perry M. Mulligan

So, I think, Mike, historically, we've talked about to our customers, and we're focused on the Class 3R product launch, because it was the fastest time to market. As the customer reviewed our product opportunities and use cases, the excitement grew and the notion of trying to potentially larger launches became more evident. Class 1 simply makes it easier to deploy a global solution. Both are safe, but Class 1 simply allows them to get to more countries sooner easier. So from that perspective, that's the difference in the Class 1 and Class 3R kits. Did that answer your question?

Analyst
Mike Malouf

Yeah, I just wanted to know if there is any trade-offs with regards to cost or size or such.

Executive
Perry M. Mulligan

At this point in time, we believe that we can adopt the solutions required into our hardware module and don't expect it to have a significant impact on costs, or other performance issues.

Analyst
Mike Malouf

Okay. Great. Good. All right. And then, and so was this a real hang-up between launching this year and launching next year? Was it just a shift in the need to Class 1?

Executive
Perry M. Mulligan

I just want to -- I'd answer it slightly differently, Mike. I think that unchecked the Class 3R product was ready to launch. I think that as people reviewed the potential of this being truly a market impact, a market leader, an important aspect of the market portfolio, Class 1 became a question that when answered, really sort of opens up a larger opportunity for us. So I don't think it's a sticking point. I don't think it was an impediment. I think it was an increased opportunity.

Analyst
Mike Malouf

Got it. Okay, great. And then a question on the April 17 product. You expect orders this month, this month being just within the next couple of weeks, I guess, or did you say orders this quarter?

Executive
Perry M. Mulligan

We expect the orders to be shipping this month for the April 2017 contract, and that's it. [Speech Overlap] balance of the year.

Analyst
Mike Malouf

That's great. And then -- and when do you think we'll have some visibility on exactly what product that's going into?

Executive
Perry M. Mulligan

Well, we have not been able to comment historically on the customer's launch plan. I don't believe that's been formalized and I can't make any comment on it, Mike. So I don't -- I can't answer