Microvision: Oppenheimer Initiates Coverage (Report Update February 8, 2010)

On December 11th, Oppenheimer initiated coverage of Microvision with a “Perform” rating and also published an analyst’s report.

Oppenheimer defines their “Perform” rating as...

“Stock expected to perform in line with S&P 500 within the next 12 – 18 months.”

Here’s the link to my two part post on the subject…
http://mirro7.blogspot.com/2009/12/microvision-oppenheimer-initiates.html

On February 8th, Oppenheimer published a ten page report update…

http://f1.grp.yahoofs.com/v1/oEaRS45DzWrf776_EvDxFdQxDCDKAxpUt-kPuLlAFvD8X4pGQvzvIwHqu5SjjCcOzoGxeJr8_SXxFGRHVugyKt7siylf/MVIS_OPP_0210.pdf

In depth reading of this report update is certainly recommended. However, here’s the summary…

EQUITY RESEARCH

COMPANY UPDATE

February 8, 2010
TECHNOLOGY/APPLIED TECHNOLOGY

Microvision, Inc.
Green Lasers Ramping Up

SUMMARY
Last Friday brought a bit of good news about the availability of green lasers, the key gating factor for the production ramp of Microvision's pico projector. The news was delivered during an Investor Day event held by Corning (GLW, $18.05, O), currently the world's only supplier of green lasers. Corning had missed a number of ramp-up targets over the course of 2009, but now appears on track and is currently producing 1K green lasers per week and still growing. As such, green laser availability should not pose a roadblock for our current MVIS volume estimates, which target 8K unit in 1Q10 and 83K units for FY10.

KEY POINTS
• Corning also noted that it is currently working on a second generation green laser, which will double its output to 20 lumens from 10 lumens. Corning does not see the quantum dot laser technology as a competitive threat, as its efficiency and brightness remain low.

• Bottom line: while we believe the value proposition of the ShowWX and the PicoP embedded module still need to prove themselves in the market, it appears component availability is set to become less of a gating factor near term.

EQUITY RESEARCH
COMPANY UPDATE

Oppenheimer

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From what I hear, we are still on track to launch SHOWwx for the US market in March of 2010.

Anant Goel
http://www.wealthbyoptions.com/