Vuzix Corporation (NASDAQ:VUZI) Q4 2022 Earnings Call Transcript

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Paul Travers: There’s precious level versus of defense revenues in that $3.5 million, there’s precious level. Not all of it shipped in the fourth quarter either, though. These are programs that they’ll contribute throughout 2023. And the size of them range from $50,000 to $200,000 to $300,000 kinds of numbers.

Jack Vander Aarde: Got you. Okay. That’s helpful. And then it sounds like there is a follow-on and expansion order opportunity for, I guess, for all 4 of these particular customers.

Paul Travers: Yes. And by the way, the 4 is — we have a reasonably large number of defense companies that are coming to Vuzix either buying our standard waveguides and engines or having us build custom waveguides and engines for them. And we anticipate that this number will — it’ll — I don’t know if this account number will grow, I expect it will but more so the amount of business that we’re doing with these customers will grow through ’23.

Jack Vander Aarde: Okay. Great. And then just another follow-up question on the acquisition of Moviynt. Aside from the strategic perspective, which is — it’s a great addition, it looks like — it sounds like it’s also a low 7-figure revenue contributor to 2023. Can you maybe just — I know analysts asked a question on this, but can you just maybe talk about the seasonality of that business and particularly what you expect in the first quarter from that?

Paul Travers: It’s not really very seasonal. This is SaaS-based revenue. Once you start billing, it’s a quarterly revenue stream that comes in. So I don’t think it is seasonal at all, frankly. It does take time to implement in a new facility. So there’ll be engineering components that we will build for upfront. And those things come and go over time, but it’s engineering services and then SaaS-based revenues that just keep rolling. Just to elaborate a little bit more on that. These guys have been — every single place they’ve installed their stuff in has been a success, in fact, not just a success. It’s replacing many of the things that are in those facilities. And as they grow, the number of customers we expect to fully ramp through this year, that helps, not just this year. This is the beginnings, I think of — I mean you know how big supply chain is. I mean there’s a number of companies that could utilize this thing is pretty significant.

Operator: Thank you. We reach the end of our question-and-answer session. I’d like to turn the floor over to Paul for any further or closing comments.

Paul Travers : Thank you, Kevin. I would like to thank everyone for your interest and participation on today’s call. We look forward to speaking with you again in May when we report our Q1 2023 quarterly results. Have a nice afternoon, everybody. Thanks again.

Operator: Thank you. That does conclude today’s teleconference webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.

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