MICROVISION, INC. Q1 FY2025 earnings call

• Automotive: Engaged in seven RFQs for automotive programs, facing challenges with OEM balance sheet concerns, but stronger balance sheet from recent financing improves position. • Industrial: Movia L sensor with onboard software has seen progress in customer evaluations, secured production commitment with ZF in France, and expects commercial wins. • Defense: Established a Defense Advisory Board, expects first system and product prototypes in 6-9 months, and will leverage existing hardware and software for sensor intelligence solutions. • Investor Day: Planning to host in Redmond next week, allowing interaction with technology offerings and demos. • Financials: Q1 R&D and SG&A expenses were $14.1 million, with non-cash charges, and ended the quarter with $69 million in cash and cash equivalents.

For the first quarter, revenues were $0.6 million, primarily driven by sales in the industrial verticals. The industrial segment's Movia L sensor with onboard perception software is in production and has seen progress in customer evaluations. Automotive has seven RFQs ongoing but with slow progress due to OEM focus shifts. Defense vertical is expanding with a Defense Advisory Board and expects first prototypes in 6-9 months.

• Line of sight to $30 million to $50 million in revenue over the next 12 to 18 months, primarily from industrial verticals. • Defense vertical is early days with no immediate revenue, but expected to provide clarity in upcoming events. • No fiscal year 2025 guidance provided, but focus on execution and expanding TAMs in defense and industrial.

• OEMs requiring strong balance sheets causing pauses in deals due to MicroVision's lean capital position. • Global trade rebalancing and tariffs potentially impacting timing and costs for customers. • Execution risks in securing commercial deals in automotive, industrial, and defense, including competition and software integration challenges.

Q: What are 2025 milestones to track?

A: Industrial: Signing commercial deals, announcing Mobia S. Defense: Subcontractor work with primes, early development agreements. Automotive: Pre-development contracts for future programs.

Q: Why will MicroVision succeed in defense after struggles in automotive and industrial?

A: Defense has multiple application avenues for technology, same technology can be applied, and smaller contracts with potential for growth. • Q: Would MicroVision be a LiDAR company or autonomous systems company?

A: Transitioning to a software solutions company based on hardware from LiDAR and integration of other technologies, offering higher value propositions in each segment. • Q: Why ask for more shares?

A: To have tools to work with partners, address OEM concerns about long-term viability, and compete with bigger players with increased authorized capital.