ROCHESTER, N.Y.—Vuzix Corporation (NASDAQ: VUZI), a supplier of smart glasses and augmented reality (AR) technologies and products, has announced first-quarter results for 2024. For the quarter ended March 31, 2024, total revenues decreased by 52 percent to $2.0 million versus $4.2 million for the comparable period in 2023, the company stated. The decrease in total revenues was due to lower product sales and specifically reduced unit sales of M400 smart glasses. Engineering services revenues were $0.2 million for the first quarter as compared to nil for the same period the prior year.

"In Q1 2024, Vuzix continued to work toward expanding and deepening relationships within the enterprise, consumer and defense markets," said Paul Travers, president and chief executive officer of Vuzix. "An increasing number of potential customers are indicating they embrace the unique competitiveness of our solutions and our core technology and have confirmed their interest in implementing solutions using our technologies.

“At the same time, we have implemented and are taking further proactive measures to reduce our cost structure by up to 35 percent in the aggregate by the end of Q2 going forward, as measured against our 2023 comparable operating expenses,” he continued. “Further investments in capital equipment and licenses have been scaled back by more than 90 percent as compared to comparable spending levels in the 2023 and 2022 fiscal years."

Other key highlights from the financial report include the following:

  • Overall gross loss was $0.1 million for the quarter as compared with a gross profit of $0.9 million or 21 percent of revenue for the same period in 2023.

  • Research and development expenses were $2.7 million for the quarter compared with $3.1 million for the comparable 2023 period, a decrease of approximately 11 percent.

  • Selling and marketing expenses were $2.2 million for the quarter compared with $2.5 million for the same period in 2023, a decrease of approximately 13 percent.

  • General and administrative expenses for the quarter were $4.1 million compared with $5.1 million for the first quarter of 2023, a decrease of approximately 20 percent.

  • Net loss decreased slightly for the quarter to $10.0 million compared with a net loss of $10.2 million for the comparable period in 2023.
The cash net loss, excluding working capital changes, a non-GAAP measure, was $6.5 million for the first quarter of 2024 versus $5.4 million for the comparable 2023 period, the company stated. As of March 31, 2024, the company maintained cash and cash equivalents of $16.5 million and an overall working capital position of $29.2 million.

Travers said, "Our overall outlook for 2024 remains positive, with good potential for top line improvements over the balance of this year. We have a well-defined book of business with identified opportunities representing large potential deals with cornerstone customers for enterprise smart glasses products and solutions. We have a number of enterprise accounts that are approaching a critical mass in their operations with our smart glasses, resulting in improved productivity, lower onboarding times and fewer errors.”