Vuzix Reports Double Digit Revenue Growth in Q 3 2022.

ROCHESTER, N.Y: Vuzix(r) Corporation (NASDAQ: VUZI) ("Vuzix" or the "Company"), a leading supplier of Smart Glasses and Augmented Reality (AR) technologies and products, today reported its third quarter results for the period ended September 30, 2022.

"During the third quarter, we achieved both sequential and year-over-year double-digit total revenue growth despite numerous headwinds," said Paul Travers, President and CEO. "We made strong progress in the quarter in terms of product development, technology advancement and new business engagements. On the OEM side of our business, we are now in discussions with many new potential defense, consumer electronics and enterprise customers who are interested in our waveguide and display engine solutions. At the same time, larger deployment opportunities for our smart glasses among key enterprise customers continue to expand both in number and visibility within the warehousing and logistics, automotive, pharma and healthcare verticals. Lastly, and subsequent to the close of Q3, we are also very pleased to have completed the acquisition of Moviynt, a key part of our strategy toward becoming more of a software solutions provider in certain vertical markets."

The following table compares condensed elements of the Company's unaudited summarized Consolidated Statements of Operations data for the three months ended September 30, 2022 and 2021, respectively:

For Three Months Ended September 30

($000s except per share amounts)

2022

2021

Sales:

Sales of Products

$ 2,538

$ 3,019

Sales of Engineering Services

889

-

Total Sales

3,427

3,019

Total Cost of Sales

2,559

2,623

Gross Profit

868

396

Gross Profit %

25 %

13 %

Operating Expenses:

Research and Development

3,441

3,397

Selling and Marketing

1,981

1,653

General and Administrative

4,854

5,463

Depreciation and Amortization

510

246

Impairment of Patents and Trademarks

48

8

Total Operating Expenses

10,834

10,768

Loss from Operations

(9,965)

(10,372)

Total Other Income (Expense)

488

(116)

Net Loss

(9,477)

(10,488)

Loss per Common Share

$ (0.15)

$ (0.17)

Third Quarter 2022 Financial Results

For the three months ended September 30, 2022, total revenues increased by 14% to $3.4 million versus $3.0 million for the comparable period in 2021. Driving the increase in total revenues were engineering services revenues related to our waveguides and display engine solutions.

There was an overall gross profit of $0.9 million or 25% of revenues for the three months ended...