MICROVISION, INC. Q2 FY2025 earnings call

Commercial Agreements - Automotive: Increased engagement with automotive OEMs with reformulated RFQs; a new architecture to be introduced at IAA in Munich in September offers a wider operational design domain and cost competitiveness. - Industrial: Final stages of several engagements; introduced an aftermarket lidar product for retrofitting into existing forklift fleets; targeting MOVIA S safety sensor for mass market in industrial space. - Defense: Significant opportunity to collaborate with prime contractors; plan to demonstrate an autonomous swarming drone system in the first half of next year, leveraging sensor fusion and autonomy software. ### Financial and Partnerships - Achieved full integration with NVIDIA's DRIVE AGX platform. - Progress in industrial AGV/AMR market with production commitment to ZF in France. - Added Scott Goldstein to Advisory Board; bolstered sales and business development teams. - Financials: Q2 2025 R&D and SG&A expenses were $14.1M (including noncash charges); cash and cash equivalents stood at $91.4M; extended runway into 2027 due to recent financings.

In the second quarter of 2025, MicroVision reported revenues of $0.15 million, with the industrial vertical driving this revenue. No specific breakdown of revenue contribution percentages for each product segment was provided beyond the industrial focus.

- Anticipates industrial revenues to materially impact in the second half of 2025 and continue into 2026. - Expect automotive OEM RFQs to be completed before the end of 2025, though sourcing timing may shift; launch timings for automotive products remain as early as 2028. - Plans to demonstrate autonomous swarming drone system in the first half of next year in the defense vertical.

- Uncertainty around global tariffs and manufacturing exposure, though MicroVision is well-positioned with its French manufacturing partner. - OEM sourcing timing and volume commitments can be unpredictable. - Competition from other lidar companies with different product strategies and market approaches.

Q: Jesse Sobelson asked about industrial pipeline visibility and specific use cases/customer traction, and when it would materially impact revenue.

A: Sumit said industrial focus is on AGV/AMRs, with a retrofittable bolt-on solution for existing forklifts, and revenues expected in second half of 2025 and 2026.

Q: Casey Ryan asked about expanding the industrial segment definition.

A: Sumit explained focusing on high-volume cherry products in factory automation and warehouses, and developing channels to attack these segments.

Q: Anubhav Verma asked about the status of industrial OEMs evaluating technology and order delays.

A: Sumit said there's no delay in decision-making, with OEMs in deep evaluation of integration into their systems.

Q: Casey asked about competing with existing lidar players in industrial.

A: Glen DeVos said MicroVision competes on technology cost advantage, harsh environment compatibility, size/power, tailored solutions, and bolt-on systems.

Q: Question about military pivot and dilution.

A: Sumit and Anubhav said it's not a pivot but expanding with partnerships, and dilution will be managed through partnering rather than full autonomous solution development.

Q: Question about 7 RFQs.

A: Sumit and Glen said RFQs are OEMs reformulating requirements, with focus on cost-competitive solutions for automotive.

Q: Question about outdated technology.

A: Sumit and Glen said MicroVision is evolving products by breaking problems down, keeping cost and integration in mind, with a robust hardware and software road map.

Q: Question about evolving from lidar to autonomous systems.

A: Anubhav said it's about partnering to provide sensor suite and software stack for mission-specific applications, not full autonomous solution development.

Q: Question about debt payments and financing.

A: Anubhav said MicroVision has adequate cash to make September payments, and will optimize capital raising to avoid excessive dilution.

Q: Question about military revenue opportunities.

A: Sumit said it starts with partnerships, demonstrating technology, and expanding from there, with strategic importance outweighing immediate revenue quantum.