This week, Vuzix Corporation’s stocks skyrocketed following the launch of its consumer-grade AR smart glasses. The news is curious, as earlier, Vuzix saw declines during their earnings call. The company highlighted that the dip did not reflect the overall performance of the company, and clearly, with Vuzix’s November success, the firm is skyrocketing and doing very well.
Vuzix’s stocks reached a 52-week high, with the AR smart glasses solutions provider’s stock price reaching $2.52. A significant turnaround for Vuzix: during its second-quarter results for 2024, the company’s total revenues decreased by a staggering 77 per cent to approximately $1.1 million. In comparison, the previous year’s revenue was about $4.7 million. Additionally, Vuzix reported an annual gross loss of $0.3 million for Q2 2023.
Paul Travers, CEO, said in the second quarter of 2024:
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.
Despite the challenging Q3 period, Vuzix is poised for success leading into the new year. Forecasts expect consumer AR smart glasses to rise in popularity. With the firm’s veteran history, Vuzix could be front and centre to take the market by storm.
A Tough Q3
According to Vuzix, the decrease in capital is attributed to a drop in product sales, specifically its M400 smart glasses. However, Vuzix points out that in 2023, product shipments were inflated due to Asian-based distribution, suggesting that the decline may not be as severe as the numbers indicate.
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% 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 those of its latest smart glasses.
However, Vuzix emphasized that product shipments in 2023 were bolstered by distribution efforts in Asia, which should not adversely affect the products or the overall business. Furthermore, as Vuzix explores opportunities in the new consumer market, there is potential for increased capital from new buyers and adopters.
New Hardware from Vuzix
The news comes as Vuzix took 2024 by storm with a volley of new products. In August, Vuzix launched the Xtreme Smart Glasses Kit, specifically designed to endure extreme weather conditions. This new kit features several enhancements, including a lightweight and durable Xtreme Weather power bank. Both the power bank and the Xtreme Kit are rated IP67 for dust and water resistance 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 surpasses the All-Weather Kit in battery capacity and durability in harsh work environments. It includes 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, all three priced at $1,799.99.
Vuzix is entering the consumer smart glasses market by announcing the general availability of their Vuzix Z100 smart glasses. Starting at $499, these AR wearables are designed to assist with everyday tasks by providing an immersive heads-up display. The device can connect to a user’s Android or iPhone to deliver real-time information, including notifications, updates, and messages.
To enhance the user experience, Vuzix has developed a companion smartphone app called ‘Vuzix Connect.’ This application connects to the Vuzix Z100 smart glasses, enabling real-time notifications. Recent updates to the app have introduced new features such as a teleprompter, a fitness application, Google Maps integration, as well as translation and transcription capabilities.
Paul 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.
Vuzix has recently announced the integration of Microsoft’s Intune, a cloud-based Mobile Device Management (MDM) service, into its M-series of AR smart glasses designed for business use. This integration has received official certification from the Intune provider and aims to enhance scalability and distribution efforts for customers already using the MDM solution.
“Microsoft Intune is widely used around the world, especially among large organizations, and this certification removes a key deployment barrier for many IT departments,” noted Travers.
Travers explained that Vuzix has successfully integrated the M-series AR smart glasses with the iTunes platform. This integration enables customers to unify their XR hardware portfolio with a widely used service among the company’s clients. The Intune integration allows Vuzix customers to manage the M-series smart glasses more effectively, assisting IT teams in handling device settings, security protocols, and application access.
Additionally, Vuzix has released an upgraded version of the Android 13 operating system for its smart glasses, significantly improving security for augmented reality wearables. This final version of Android 13 is now publicly available and offers users the highest level of protection for head-worn devices.
The new features of Vuzix’s Android 13 software include various security updates, improved Wi-Fi networking capabilities, enhanced enterprise device management, and updated permissions. It also incorporates Android API 33 for app developers.
