Vuzix continues to advance its enterprise and consumer AR smart glasses portfolio this week after an incredible Q3 and Q4 period.
Most recently, Vuaix has increased its collaboration with the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA), which expands the deployment reach of its M400 workplace AR smart glasses from the governmental organisation.
Paul Travers, President and CEO of Vuzix, explained:
With a nationwide presence encompassing hundreds of field and federal offices alongside affiliated agencies, OSHA is leveraging Vuzix’ advanced technology to optimize communication and documentation processes across its operations. This initiative aims to reduce response times, improve operational efficiency, and elevate workplace safety standards. We look forward to the opportunity to increase our level of engagement with OSHA going forward.
The move is massive for Vuzix. Having its product within a leading group like OSHA provides a fruitful avenue for investment and understanding of how AR can influence workplace procedures. The M400 device is ready for the OSHA working environment, providing immersive collaboration tools such as Zoom integration for optimising operational and safety efficiencies.
Vuzix notes that the increased OSHA partnership comes after Vuxiz spent roughly two years trialling the M400 device in OSHA settings, including worker training and refining the device for the use case. The move readied Vuzix to deploy the M400 for on-site inspection and collaboration between field personnel.
New M-Series Features
Vuzix recently upgraded its M400 portfolio, ahead of the OSHA expansion. In August, the company launched the M400 Xtreme Smart Glasses Kit, specifically designed to withstand extreme weather conditions. This new kit includes several enhancements, such as a lightweight and durable Xtreme Weather power bank. Both the power bank and the Xtreme Kit have an IP67 rating, indicating they are resistant to dust and water and can operate within a temperature range of 20°C to 45°C.
The Xtreme Kit is an all-in-one solution that Vuzix claims outperforms the All-Weather Kit in battery capacity and durability for harsh work environments. It features a headband designed for comfort during long shifts. Currently, Vuzix offers three smart glasses kits: the Xtreme Kit, the All-Weather Kit, and the Extended Wear Kit, each priced at $1,799.99.
Additionally, Vuzix has launched an upgraded version of the Android 13 operating system for its M400 smart glasses, further enhancing security for augmented reality wearables. This final version of Android 13 is now generally available and provides users with the highest level of security for head-worn devices. Android 13’s new software features include security updates, improved Wi-Fi networking, enhanced enterprise device management and permissions, and an updated Android API 33 for app developers.
Vuzix has announced the integration of Microsoft’s Intune, a cloud-based Mobile Device Management (MDM) service, to assist businesses in deploying hardware across their workforce. The integration will be implemented in Vuzix’s M-series of AR smart glasses, and the company has obtained official certification from the Intune provider. This initiative aims to support scaling and distribution efforts for customers already utilizing the MDM solution.
Tavers added:
Microsoft Intune is widely used around the world, especially among large organizations, and this certification removes a key deployment barrier for many IT departments. – This certification is a key development for Vuzix and, along with our recently announced support of Android 13, further differentiates the competitiveness and utility of our M-series smart glasses within the enterprise space.
Travers explained that Vuzix is seamlessly integrating the M-series AR smart glasses into the iTunes platform. This integration allows Vuzix customers to unify their XR hardware portfolio with a service that is already familiar to them. With iTunes integration, Vuzix customers can manage their M-series smart glasses, which includes supporting IT teams in handling device settings, security protocols, and application access.
Vuzix Uptick in 2024
Vuzix Corporation’s stock prices soared following the launch of its consumer-grade augmented reality AR smart glasses. The stock reached a 52-week high, hitting $2.52. This marks a significant turnaround for Vuzix, especially considering that in the second quarter of 2024, the company reported a staggering 77% decrease in total revenues, dropping to approximately $1.1 million from around $4.7 million the previous year. Additionally, Vuzix recorded an annual gross loss of $0.3 million for the second quarter of 2023.
Speaking in Q2 2024 Travers:
Vuzix underpinned key end-customer and strategic relationships within the enterprise, consumer, and defence markets centred 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. 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 per cent of their base salaries.
The news is intriguing, especially considering that Vuzix previously reported declines during their earnings call. The company clarified that this dip does not reflect its overall performance, and with Vuzix’s success in November, it is clearly on an upward trajectory.
According to Vuzix, the revenue decline is mainly due to a decrease in product sales, particularly of its M400 smart glasses. However, Vuzix notes that in 2023, product shipments were artificially high because of distribution in Asia, implying that the decline may not be as severe as the numbers suggest. Now that the OSHA partnership has expanded, the disappointing earnings call looks more and more like a blip amidst success.
Key points from the Q2 financial report include a 17 percent year-on-year decrease in research and development expenses and an 11 percent decrease in selling and marketing expenses. However, administrative expenses increased by approximately 5 percent in Q2.
Travers also noted:
“[Vuzix expects] to see top-line revenue improvement over the second half of 2024. 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.
Despite facing recent financial challenges, Vuzix, a multinational vendor of smart glasses, has secured a strategic investment of $20 million from Quanta Computer Inc., a global Fortune 500 company. The company reported a significant decline in revenue for the second quarter of 2024, primarily due to lower product sales, including its latest smart glasses.
However, Vuzix emphasized that product shipments in 2023 were supported by distribution efforts in Asia, which should not negatively impact the products or the overall business. Additionally, as Vuzix explores opportunities in the new consumer market, there is potential for increased capital from new buyers and adopters.
In 2025, Vuzix is set to continue its recent growth by entering the consumer smart glasses market with the launch of its Vuzix Z100 smart glasses. Priced starting at $499, these augmented reality wearables are designed to assist users with everyday tasks by providing an immersive heads-up display. The device can connect to both Android and iPhone users, delivering real-time information such as notifications, updates, and messages.
To enhance the user experience, Vuzix has developed a companion smartphone app called “Vuzix Connect.” This app connects to the Vuzix Z100 smart glasses, allowing real-time notifications. Recent updates to the app have introduced new features, including a teleprompter, a fitness application, Google Maps integration, and transcription and translation capabilities.
Travers said at the time, “The Z100 takes AI/AR smart glasses to the next level, providing individuals with a hands-free AI interface that is indistinguishable from a traditional pair of glasses. The Z100 is an attractive, lightweight, and cost-effective way to augment current workflows with AI optimization software inside a device that people will enjoy wearing all day, every day, and it is built and priced with the broad market white label customer in mind.”
