Since the rise of augmented reality (AR) for business and commercial use, Vuzix and its line of enterprise-focussed smartglasses have come to prominence. The company has now announced its financial results for the third quarter of 2017.
The attention being devoted to AR applications and hardware appears to be paying off for Vuzix, with the company reporting a 141% increase in revenue compared to the same period in 2016. Its line of smartglasses is doing particularly well, hitting the milestone of over $1m for the first time, representing a 171% increase from the same time last year, and a 45% increase from Q2 of 2017.
The company is also reporting gains in revenues from its engineering services area, an increase associated with its work for Toshiba for a project which is expected to complete sometime in the fourth quarter of 2017, which will result in an estimated $221,000 of revenue for Q4 as the new product is moved into production for Toshiba some time in 2018. The opening of the offstore manufacturing plant for the M300 smartglasses line has proved beneficial, allowing for improved gross margins on sales of that product.
“We saw direct product gross margin improvements from our flagship enterprise device, the M300 in the third quarter compared to the second quarter of 2017. And while our third quarter smart glasses sales were impacted by limited supply of inventory due to some manufacturing challenges related to the M300, the Company achieved record quarterly smart glasses product revenue despite these headwinds,” said Paul Travers, President and CEO of Vuzix. “The manufacturing challenges have been addressed by our offshore contract manufacturer and their production line is now producing M300s in high volume. During the third quarter, we continued to leverage our industry leading optics and wearable display technology and added a third Tier-1 consumer electronic customer. This new Tier-1 customer is working with us to develop a consumer product using Vuzix waveguides and projector engines that is unrelated to smart glasses.”
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