Market Overview

Vuzix's Accelerated Sales Ramp Should Continue In 2017

Share:
Vuzix's Accelerated Sales Ramp Should Continue In 2017
Related VUZI
Chardan Stays Bullish On Vuzix After Q2 Print
50 Biggest Movers From Yesterday

Following Vuzix Corporation (NASDAQ: VUZI) reporting Q4 revenue in line with the estimate, Chardan Capital’s James McIlree mentioned that new product launches are expected to drive the company’s growth through 2017.

The analyst maintained a Buy rating on the company, with a price target of $10.

Q4 And Beyond

Vuzix reported its Q4 revenue at $620,000, in line with the estimate, although gross margins missed expectations as the company continued to worth through the high cost production of iWear.

“The company has (wisely) chosen to exit the crowded consumer market and took a $1.1 million inventory charge on iWear and will lower ASP (average selling price) to $299 in order to move out the rest of its inventory over the coming quarters,” McIlree stated.

The analyst pointed out that the overall consumer market was currently crowded and continued to see product adoption issues, making it difficult for players in the space.

“Targeting the commercial and industrial market is likely to be much more lucrative for Vuzix since it is a leader in this space and product adoption is increasing,” McIlree went on to say, while expecting accelerated revenue ramp in 2017.

Related Link: Vuzix Provides Business Update and Reports Full Year and Fourth Quarter 2016 Financial Results

New Product Introductions

Vuzix’s M300 product has received certification from the requisite regulatory bodies in the U.S., Europe, Canada, Australia, New Zealand and India, and the shipping of production volumes has begun.

In addition, demand for M100 continues to be stable, despite the M300 launch, with signs of little cannibalization so far.

“iWear should be a modest contributor, as will NRE from Toshiba from the recently inked collaboration,” McIlree predicted, while expecting revenue of $10.2 million for 2017, with revnue of $1.5 million in Q1.

Latest Ratings for VUZI

DateFirmActionFromTo
Mar 2018Maxim GroupMaintainsBuyBuy
Jan 2018Maxim GroupMaintainsBuyBuy
Oct 2016Maxim GroupInitiates Coverage OnBuy

View More Analyst Ratings for VUZI
View the Latest Analyst Ratings

Posted-In: Chardan Capital Markets James McIlreeAnalyst Color Long Ideas Reiteration Analyst Ratings Tech Trading Ideas Best of Benzinga

 

Related Articles (VUZI)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
AAPLWedbushInitiates Coverage On310.0
DHTJP MorganUpgrades0.0
DISBarclaysUpgrades130.0
DXCMGoldman SachsUpgrades125.0
ORLYJP MorganUpgrades398.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Expect Further Upside In CoreCivic, GEO Group

OPEC's Biggest Threat: American Drivers?