Please ensure Javascript is enabled for purposes of website accessibility

Why MicroVision Stock Skyrocketed Today

By Evan Niu, CFA - Mar 12, 2021 at 1:42PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The automotive lidar specialist reported fourth-quarter earnings results.

What happened

Shares of MicroVision (MVIS 3.56%) have skyrocketed today, up by 17% as of 12:50 p.m. EST, after the company reported fourth-quarter results. MicroVision continues its march toward commercializing its technology and generating product revenue.

So what

MicroVision recognized $395,000 in licensing and royalty revenue in the fourth quarter, and incurred nearly $4 million in operating expenses. That resulted in an operating and net loss of approximately $3.6 million, or $0.02 per share. The company, which is developing lidar sensors for the automotive industry, has been making progress toward commercialization in recent months, achieving various milestones related to partnerships with customers.

Green stock chart going up

Image source: Getty Images.

"Over the past year we have made important progress advancing our automotive LiDAR development, bolstering our balance sheet, building the strength of our team, and adding expertise to our Board of Directors while exploring strategic alternatives," CEO Sumit Sharma said in a statement. "I expect that the A-Sample hardware and benchmarked data, for demonstration to interested parties, will be available in the April 2021 timeframe."

Now what

MicroVision's cash burn for Q4 was $4.2 million, and the company currently has 53 employees. Cash burn in the first quarter is forecast at $5 million to $5.5 million as MicroVision spends money on components while continuing to develop its first-generation long-range lidar sensor. The company finished Q4 with $16.9 million in cash, but then raised an additional $61.4 million in cash from stock offerings in January and February.

Separately, MicroVision also said that its general counsel, David Westgor, is retiring after working at the company for over 15 years.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

MicroVision, Inc. Stock Quote
MicroVision, Inc.
$3.35 (3.56%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.