This week, enterprise AR technology leader Vuzix Corporation announced its second-quarter results for 2024. The report highlights how Vuzix’s total revenues decreased by a massive 77 percent in Q2 to roughly $1.1 million. Year-on-year, Vuzix’s revenue was approximately $4.7 million. Moreover, Vuzix recorded a $0.3 million overall year-on-year gross loss for Q2 2023.
Paul Travers, the President and CEO of Vuzix, said that in the second quarter of 2024, “Vuzix underpinned key end-customer and strategic relationships within the enterprise, consumer, and defense markets centered around business opportunities that are expected to have a meaningful impact on both our balance sheet and top-line revenue growth over the back half of 2024 and into 2025.”
According to Vuzix, the lower capital is due to a drop in product sales – notably its M400 smart glasses. However, Vuzix notes that in 2023, product shipments were inflated due to Asian-based distribution, potentially highlighting how the decrease may not be as fatal as the figures show.
Travers also added:
At the same time, we have reduced our annual cost structure going forward by $8M as compared to 2023 through headcount reductions, tighter cost controls and a voluntary and widely adopted salary reduction program that offers staff, directors and management restricted stock or stock options in lieu of foregoing up to 50 percent of their base salaries.
Other notable elements of the Q2 financial report include a 17 percent year-on-year expense decrease in research and development and an 11 percent decrease in selling and marketing expenses. On the other hand, administrative expenses increased by approximately 5 percent in Q2.
Travers also noted that Vuzix expects “to see top-line revenue improvement over the second half of 2024.” According to the CEO, Vuzix also has “a number of enterprise accounts that are on a path to volume deployment of our smart glasses and solutions within their operations to deliver improved productivity, lower onboarding times and fewer errors.”
Travers explained:
Our OEM business opportunities remain robust; we have a backlog of business to deliver against and we expect at least one of our defense contractors and one of our commercial enterprise customers to move into production later this year. On the waveguide manufacturing front, we will continue to implement process improvements as we prepare to ramp production to support underlying demand from partners and the broader markets.
Vuzix Launches M400 Xtreme Smart Glasses
This news comes after Vuzix Corporation introduced the M400 Xtreme smart glasses kit, which was created to withstand extreme weather conditions. The new smart glasses kit enables various features, such as the latest lightweight and long-lasting Xtreme Weather power bank.
Both the power bank and the M400 Xtreme also have IP67-rated protection against dust and water and are operable in temperatures ranging between 20°C to 45°C. The M400 smart glasses have already been ‘widely adopted’, according to the leading smart glasses supplier Vuzix.
The M400 Xtreme kit is an out-of-the-box solution that Vuzix believes is an improvement upon the M400 All-Weather Kit regarding the battery capacity, harsh workplace environments, and a headband designed for long shifts.
Vuzix has created a limited-time Collaboration Package offer to increase smart glasses uptake in remote and challenging conditions. It provides free access to some of its augmented reality communications, including Vuzix Video Conferencing for Zoom.
Such tools allow users to launch and join meetings quickly and easily and share video streams through the M400 smart glasses using clients’ video conferencing applications. Vuzix listed all three M400 smart glass kits for the same price of $1,799.99.
