Shares of MicroVision (NASDAQ:MVIS) have gotten decimated today, down by 25% as of 2:30 p.m. EDT, after the company reported disappointed second-quarter earnings. The computer vision specialist continues to look for a buyer after it said earlier this year that it was hoping to sell itself.
Revenue in the second quarter got cut in half to $600,000, which resulted in a net loss of $2.3 million, or $0.02 per share. The computer vision company, which develops lidar technology for augmented reality and automotive applications, finished the quarter with $7.8 million in cash on the balance sheet.
"With the assistance of our financial advisor, Craig-Hallum Capital Group LLC, we continue to explore strategic alternatives to maximize the value of MicroVision for our shareholders, including the sale of a product vertical, strategic investment, or potential sale or merger of the Company," CEO Sumit Sharma said in a statement.
MicroVision has historically funded its operations with capital raises and sales are drying up, leading it to explore a sale. The company disclosed earlier this year that it failed to secure customer orders for 2020 delivery, causing it to reduce its head count by approximately 60%.
On the conference call with analysts, Sharma confirmed that MicroVision is engaged in negotiations with potential suitors that have expressed interest in buying the company, but it is not providing specific comments since those talks remain ongoing and are highly confidential.
Addressing a recent article published by MergerMarket speculating about "strong interest from bidders," Sharma commented:
I would like to clarify that we are engaged in discussions with certain potentially interested parties who are at various stages of diligence. We do not plan to make public statements about any bids or potential transactions unless and until an appropriate agreement is reached. I can share that a focused group of Top Tier OEMs and technology companies are engaged in exploring and potentially pursuing strategic alternatives, which could include a sale or merger of the Company, acquisition of one or more product verticals, strategic investment, and acquisition or licensing of our intellectual property.
MicroVision says it has enough cash to fund operations through the end of the year.