Market seems to be saying "Show us the money"....
Vuzix has been around for 20 years, albeit with 6 different names by my count. In that time they've never achieved net profits, and have racked up an accumulated deficit of over $100 million....if the 4th qtr continues at the same rate as the firs 3 they'll be over $120 million by my reckoning when the 10K comes out in March.
Up to now it seems to me the market has been willing to give the company the benefit of the doubt. I've only been watching this company since Aug/Sept of 2016. In that time I've seen a lot of seemingly big announcements with easily recognizable names.
-Wounded Warrior, Blackberry, SAP, H-E-B, Powershelf, DHL, GoPro, Amazon, Toshiba, Oracle and most recently of course Verizon.
Add on a trophy case full of CES awards and countless partnerships and pilot projects.....just based on this information I don't think a person would be wrong to think Vuzix would have quarterly revenues of at least tens of millions and annual revenues in the hundreds of millions.
Instead, in the MRQ it was a pathetic $1.9 million which was a drop from the 2018 second quarter's $2.6 million. Going backward sequentially quarter over quarter on revenue to the tune of 25% does not inspire confidence.
I could be wrong, but it seems to me the market is looking to see proof now....this Verizon news has done nothing to help the PPS, unlike all the Alexa/Blade hype back in January of this year that saw the PPS go up over $11. Its the old "fool me once" bromide...although with Vuzix and its MC it strikes me that the market is still fooled by forward looking and non-material hype.
I think the only hope now is a buyout, without one I wouldn't be surprised to see Vuzix change its name a 7th time.
If you want to taste the fruit, you have to go out on a limb. But if you wait for the herd to move out on the limb....the branch tends to snap.
