Vuzix Stock Slides After Reporting Q1 Below Street Expectation

Vuzix Corp VUZI reported a first-quarter sales decline of 36.1% year-over-year to $2.5 million, missing the consensus of $3.4 million.
The decrease reflected lower sales of Vuzix smart glasses products, a decline of 37% Y/Y.
The gross margin contracted to 26% from 28% in 1Q21.
The loss from operations widened to $10.41 million, compared to $9.15 million a year ago.
EPS was $(0.16), below the consensus of $(0.15).
The net cash operating loss after adding back non-cash items was $5.7 million, compared to a loss of $3.8 million in 1Q21.
As of March 31, 2022, Vuzix held cash and cash equivalents of $113.3 million and an overall working capital position of $126.6 million.
The management stated that the OEM side of the business is seeing growing demand and follow-on orders from new and existing defense customers and consumer electronic OEMs for head-worn waveguides and display engines and should positively impact the second quarter.
“Our outlook for 2022 remains quite positive despite continuing and challenging supply chain, geopolitical, and economic uncertainties. Adoption of smart glasses over the course of the year is expected to again accelerate with existing customer repeat orders, and in some cases, we anticipate significant new opportunities from new programs,” commented Chief Executive Officer and President Paul Travers.
Price Action: VUZI shares are trading lower by 13.50% at $3.85 during the post-market session on Tuesday.
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