ROCHESTER, N.Y.—Vuzix Corporation (NASDAQ: VUZI), a supplier of smart glasses and augmented reality (AR) technologies, has reported its financial results for the third quarter ended September 30, 2024. For the three months ended September 30, 2024, total revenues decreased by 36 percent to $1.4 million, compared with $2.2 million for the same period in 2023. According to the company, the decline was the result of a 28 percent decrease in smart glasses products sales and a 51 percent decrease in engineering services revenues as compared with the prior year's quarter.

"During the quarter, Vuzix made meaningful advancements across key areas, including its partnership with Quanta Computer, which delivered the first $10 million tranche of a $20 million multi-phase equity investment," said Paul Travers, president and CEO of Vuzix. "This collaboration is expected to accelerate the development and scaling of next-generation AI smart glasses, expanding Vuzix' reach into the growing OEM market. The company also continued to scale its waveguide manufacturing capabilities and feels it has a significant competitive advantage given its industry-leading cost efficiency."

He added, “At the same time, cost discipline remains a cornerstone of Vuzix' strategy. The company achieved a 28 percent year-over-year reduction in quarterly cash operating expenses during the third quarter, enhancing financial efficiency and extending its operational runway.”

The company reported an overall gross loss of $0.26 million for the three months ended September 30, 2024, as compared with a gross loss of $0.24 million for the same period in 2023. The 9 percent increased gross loss was the result of lower revenues and planned reduced smart glasses production to absorb many of the company's relatively fixed manufacturing overhead costs.

Research and development expense was reported as $2.3 million for the three months ended September 30, 2024, compared with $2.9 million for the comparable 2023 period, a decrease of approximately 20 percent. General and administrative expense for the third quarter of 2024 was $4.3 million, compared with $4.5 million for the comparable 2023 period, a decrease of approximately 3 percent.

The net loss for the three months ended September 30, 2024 was $9.2 million, compared with a net loss of $11.0 million for the prior-year period.

For the third quarter of 2024, total cash operating expenses was $4.7 million versus $6.7 million for the comparable 2023 period, a reduction of 28 percent. As of September 30, 2024, the company maintained cash and cash equivalents of $14.3 million and an overall working capital position of $26.5 million.

"Both our enterprise smart glasses and broad market OEM pipeline prospects continue to expand. The defense and security sectors remain promising as well, as Vuzix has advanced its collaboration with Thales Corporation, a global leader in aerospace and defense. This project highlights the versatility and performance of Vuzix' advanced optical technology in mission-critical head-mounted display applications as Thales moves toward production-ready deployment," said Travers.

Travers continued, "Vuzix is making significant progress in its transition to an expanded OEM-driven model while continuing to support enterprise markets. Our partnership with Quanta and advancements in waveguide manufacturing position us to meet the growing demand for scalable, high-performance smart glasses. CES 2025 will mark a pivotal moment as we unveil co-developed AI smart glasses concepts with OEM partners, further demonstrating the versatility and innovation of our technology."