When a company releases its quarterly results then more often than not, its stock moves one way or another and that is what happened with the Microvision, Inc. (NASDAQ:MVIS) stock on Thursday. The MicroVision stock got pummelled on Thursday after the company announced its financial results for the second fiscal quarter.
The financial results did not please the market and soon enough the stock started tanking. The MicroVision stock lost as much as 25% as investors started selling off the stock t a fair clip. In this regard, it should be noted that the computer vision firm has been looking for a buyer for many months now and had made an announcement to that effect earlier on in 2020.
The company’s revenues for the second fiscal quarter nosedived by as much as 50% to hit $600,000 and that proved to be a major setback for the bottom line as well. MicroVision suffered a loss of as much a $2.3 million for the quarter and that worked out to loss per share of $0.02.
On the other hand, the company’s cash balance at the end of the quarter stood at $7.8 million. The company is involved in the development of lidar technology solutions that are then used for automotive applications and also for products related to augmented reality.
The Chief Executive Officer of the company Sumit Sharma released a statement with regard to the company’s immediate plans. He said that the company is exploring a range of strategic initiatives in order to extract maximum value for the shareholders and it is being assisted by Craig-Hallum Capital Group LLC in this endeavor.
Some of the options that MicroVision is exploring include sales of certain products, merger, outright sale, or investment from interested parties. The fall in the share price on Thursday and it remains to be seen if it can claw back some of the losses on Friday. On the other hand, investors could consider keeping an eye on the developments surrounding MicroVision in the coming weeks. If the company does manage to get an investor or a buyer for the business, then it could boost the stock significantly.
Over the years, the company financed its operations through capital raises but that is now looking like an increasingly move since sales have been poor. Sharma also cited an article that revealed that there was a strong interest in MicroVision from bidders. Investors should note that the company has stated that it has enough cash in hand to see it through the end of 2020.
Earlier on in the week, the MicroVision stock had in fact rallied strongly and went up by as much as 27%. The rally could have come about due to a report on Dealreporter that suggested that the company was considering offers from entities that might be willing to buy it.
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