MicroVision: Wave of Change and Paradigm Shift Growth of 40,000% Plus

After 40 years of being on the cutting edge of technology, now I'm developing intelligence games and apps for brain fitness and cognitive skills development. 

However, my passion is investing in companies that ride the wave of change or bring about the paradigm shift; with an eye on the long term growth prospects of the company.

In the last 30 odd years that I have been investing, I have had my share of good fortune and misfortune. However, what’s important is the fact that I managed to secure my financial future and live today to talk about my strategy of investing in companies that ride the wave of change or bring about a paradigm shift. Some of these companies─ like Intel, Dell, Qualcomm, and Cisco─ have grown to be huge enterprises and have made their early investors over 10,000% or more since their inception.

A while back I wrote a post about my 14,000% profit experience with Intel during its growth phase from early 80’s to the end of Dot.com era in the year 2000. Here’s the link to that post…
http://mirro7.blogspot.com/2009/09/intel-i-made-over-14000-profit-since.html

I’m one of those old timers that invested in Intel during its early days as a company… in the early 80’s. I recall buying some shares for a total cost of $1,000 dollars. I had to liquidate all my position in Intel during the Dot Com bust of 2000… around May of that year. However, it was not all that bad, because I managed to sell pretty close to the all time high and I remember bragging about my good fortune and fortitude to have stayed the course to make over 14,000% profit… for a net gain of over $140,000 dollars including dividends and the stock splits.

The past performers in my portfolio have served well. However, these companies like Intel, Dell, Qualcomm, Cisco, and Microsoft are past their hyper growth phase and are now too big and are just slow earnings growth vehicles. No disrespect to these fine companies… it’s just that they don’t fit the “hyper growth” company model any more.

One of my stocks holding now, besides an options income portfolio, is MicroVision. Over the years, I have seen many ups and downs, but I still believe MicroVision has the makings of the next 40,000% profit producer in the next 3 to 5 years.

Here’s why…

On Wall Street, you often hear terms like “top dog” or “first mover” in the context of a growth stock presentation to institutional clients. It’s quite interesting really…

A "top dog" is a company that dominates its industry... and a "first mover" is a company with a technology or product so revolutionary that it disrupts an existing industry and creates an entirely new one.

On the rare occasion that you find a company that is both─ both a top dog and a first mover ─ the chances are pretty good that you've found your next big winner...

Just think of eBay in the online auction market... Amazon in the online retail market... Netflix in the Video Streaming and DVD-rental market… and Cisco in the router market… 3D Systems in the 3D printing market, etc.

These companies redefined the way business was done, launched entirely new industries, and continue to dominate those industries to this day. And you don't need me to tell you how handsomely they've rewarded shareholders along the way.

In order to find companies that will deliver truly life-changing investment returns, you have to find growth companies early in their life cycle and truly believe that they are indeed the ones to ride the wave of change or bring about the paradigm shift… with potential of sustained long term growth.

Before we talk about MicroVision (NASDAQ: MVIS) as the growth company of the future with a 40,000% profit potential, let’s first consider…

Is now really a good time to be buying growth stocks?

The fact is; it takes guts to make money in this market.

But here's some good news…

For one thing, our current economic conditions bear a striking similarity to the economic downturn of the early 1990s. And "growth” stocks can excel even if the broad market continues to stumble. In fact, the analysts expect better profit prospects for growth stocks than for value stocks.

Money for nothing...
We have to be realistic in our expectations when searching or investing in growth companies. The purpose of looking at the great companies listed above is not to show that growth investing is an all-win situation. Far from it!

The purpose of the illustration is to demonstrate how well great companies perform over a long period. If you can identify just one great company early, and then hold on for the long term, you can do pretty well for yourself.

Growth investing is highly volatile, and it will fray the nerves of those individuals with a low risk tolerance. Having said that, all investors should devote only a portion of their portfolio to growth stocks!!! For those traveling in the fast lane, an allocation of 30% of their portfolios might make sense. More conservative types should allocate at least 10% in order to provide a little juice for their investments. I'm the risk taker type, so I devote about 50% of my portfolio to growth.

MicroVision: Growth Stock with 40,000% Profit Potential

I believe MicroVision has the makings of the next 40,000% profit producer in the next 3 to 5 years. In order to become a very successful, profitable and huge company [in terms of market capitalization] you need the following prerequisites:

Management: with expertise, vision, support network, past record, communicative and persuasive skills and a will to succeed.

In my opinion, we have the best possible management with all the prerequisite attributes necessary for managing MicroVision at this stage of the company’s growth. Here’s a link for your review…

http://phx.corporate-ir.net/phoenix.zhtml?c=114723&p=irol-govmanage

Financially Sound: with money to support on-going operations, R&D expenditures, product development and commercialization.

According to the latest annual report for period ending May 2013, MicroVision had $9.2 million in cash and short term cash instruments. Looking at the financials, the company is burning about $3 million per Qtr. At this rate, the company has about 3 Qtr worth of cash… assuming no additional revenue from product sales, or contract payments, or stock options and warrants.

Since we already have a 35 lumen PicoP display module [currently sampling to over 40 major electronics firms globally] and SHOWwx product was launched [years ago] in the US, Europe and the Asia Pacific region… I would venture to say that most R&D expenses have already been incurred [almost $442 million to date]. And net profit from backlog sales could reduce the cash burn by $1million dollars per Qtr. That would stretch the available cash reserves to 4 Qtrs or so. It’s ironic, but the investors of the past have funded this massive R&D undertaking to-date. However, the current investors will reap the benefits and are assured the company has cash to fund the on-going operations, product development and embedded PicoP projector commercialization.

Here’s some links…
http://finance.yahoo.com/q/is?s=MVIS

http://eon.businesswire.com/news/eon/20130502005453/en/MicroVision/earnings/pico-projector

Disruptive Technology: that can bring about massive shifts in “technology paradigm” and “social paradigm”. Pico Projector Displays bring big screens to small devices. The Pico Projector or “PicoP Display Engine” can be embedded in mobile phones, tablets, laptop or similarly-sized mobile devices to enable up to 100inch full color projection display in HD resolution for applications such as streaming video, digital TV, high resolution pictures and surfing the net.

http://vimeo.com/68161792

Competitive Advantage: MicroVision has over 500 U.S. Patents issued and many more pending to protect its intellectual property… giving it a huge competitive edge.

http://www.youtube.com/watch?v=W1LqjunkWhE&feature=youtube_gdata

Technologically Feasible:  PicoP Display Engine technology is based on the proven and mature silicon MEMS laser scanning mirror technology. The company launched the world’s first laser based PicoP projector SHOWwx in the US in March of 2010.

http://www.microvision.com/about_microvision/index.html

Commercially Viable: REDMOND, Wash.--(BUSINESS WIRE)--Apr. 3, 2013-- MicroVision (NASDAQ: MVIS), a leader in innovative ultra-miniature projection display technology, today announced a development agreement with a prominent electronics company to incorporate MicroVision’s ground breaking PicoP® display technology into a display engine that could enable a variety of new products.

http://phx.corporate-ir.net/phoenix.zhtml?c=114723&p=irol-newsArticle&ID=1802951&highlight=

Market Size: The market for PicoP Display Engine is huge. The potential markets are automobiles, mobile phones, smartphones, laptops, tablets, iPods, iPhone, digital cameras, camcorders, personal mobile TVs, and the fashion eye-wear.

Here are some world-wide statistics...

New autos: sales for 2007 … 49 million units
http://www.metrics2.com/blog/2006/12/28/world_auto_sales_flat_in_2007_china_becomes_no3_re.html

New Mobile Phone Sales: for 2007… 1.15 billion units
http://www.itbusinessedge.com/item/?ci=29702

New Laptop Sales: for 2007 … 207 million units
http://www.pcworld.com/article/id,132861-pg,1/article.html

New “Tablets, iPods, iPhone, Digital Cameras and Camcorders”… over 300 million units

New Eye-wear Sale: for 2008… 1 billion units

Personal Mobile TV/Projectors… new market opens up with potential 200 million units

Technology and Business Partnerships: MicroVision has partnered with Pioneer Corporation of Japan; the biggest [financially], the most respected [for over 100 years] and the best in the business to design and manufacture its PicoP Display Engine for the automotive and consumer electronic markets.

Now what we need is a few more commercial business partners and OEM agreements for the PicoP Display Engine and Wearable Display product line. I am sure it will happen soon in the next six months and when it does happen the MVIS stock will run up the charts as we have never seen before.

MicroVision has the potential of being the “Top Dog” and the “First Mover” in the global PicoP projection market…

When investing in technology, always look for the “killer app”—yes, the software program, piece of hardware, product improvement or whatever—that makes the product stand out.

Take Internet browsers for example. Now, for a while there it took everyone some time to figure out what exactly an Internet browser was. Today, many of us can’t imagine what life was like before we had Google. These days, if you need information on any topic under the sun, you simply “Google” it! What would we ever do without Google?

When looking to buy the latest tech stock, investors [you] need to scrutinize the product and the unique ability it offers to its users. Google is a great example of a “killer app” that revolutionized the Internet.

So What’s MicroVision “Killer App”?

It’s the “Disruptive Technology”; that can bring about massive shifts in “technology paradigm” and “social paradigm”.  What makes MicroVision’s PicoP Display Engine technology as "Killer app" in simple terms?

1. Always in-focus image that needs no adjustment when on the move or when moving to change the projected image size… due to inherent feature of laser projection.

2. Longer projection periods per battery charge… by switching-off the laser light source during periods of dark picture segments.

3. Cool to the touch and no waste heat generated… due to modulating lasers as light source.

4. Large projected images [up to 100”] in widescreen aspect ratio of 16:9.

5. High Definition 720P images at 35 lumen brightness… with pathways to high definition images at 50 lumen or more brightness in 2014.

6. Dramatic cost reduction [with huge profit margin improvements] as the laser light technology matures and economies of scale are achieved towards the end of 2013.  For example, synthetic green lasers [SGLs] were priced at around $120 each… whereas the diode green lasers [with higher light energy output and efficiency] are currently priced at $40 in small quantities.

7. Small physical size that starts out small and gets even smaller from one generation to the next. 

8. Social Change from the way we share information now to the way it will be shared in the future.

The PicoP Display Engine can be embedded in hundreds of different products representing a huge market share for entire product line-up. It has the potential of adding billions of new dollars to MicroVvision—expanding what I like to call the “halo effect” from the PicoP Display Engine to the rest of MicroVision product line of applications that are currently under development.

Yes, investing in technology can get complicated. Many advisers compare the stock price to the company’s earnings and cash flow, and then look at earnings growth trends and the company’s debt levels in comparison to its competitors. This is some in-depth analysis for the average investor!

Well, MicroVision has very little earnings and cash flow from current sales; so you have nothing to analyze. Consider yourself in good company: Billionaire Warren Buffet doesn’t invest in technology because he doesn’t understand the fundamentals of the business. That is why he has missed out on billions of dollars in potential profits from the likes of e-bay, Google and Apple. So, if you’re waiting for revenue and current cash flow from your MicroVision investment, there is none for all analytical purposes.

But that will change in the next 3 Qtrs: when the earnings report will show increasing sales of technology development contracts from 40 or so Consumer Electronics giants from US, Europe and Asia Pacific region.

When it comes to emerging technology from companies with small capitalization, don’t do what Warren Buffet does. Do your own DD and then take a small position in MicroVision for its emerging technology and huge profit potential in the next 3 to 5 years.

Is MicroVision ready for prime time and worthy of your investment dollars, consider this…

Five years from now in 2017, the stock could easily trade in the $1,200 to $1,500 range.

Here’s an educated projection…

• Worldwide Market Size: 2 billion units [mobile phones, laptops, smartphones, tablets, iPod, iPhone, iPad, camcorders, digital cameras, gaming devices, mobile TV/Projectors, and automobile HUD, etc.]

• Market Adoption Rate: 10% in 2017... 200 million units

• MicroVision Market share: very conservative 20% of 200 million units… 40 million units

• OEM price: $70 per PicoP Display Engine

• Revenue: $2.8 billion

• Net Profit Margin: 40%

• Net Profit: $1.12 billion

• EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization: $1 billion [with operating expenses at $120 million]

• Interest Expense: $0 million

• Interest Income: $0 million

• Tax: $200million

• Depreciation: non cash and very small

• Amortization: non cash and very small

• Net Operating Income: $800 million

• Earning Per Share: $20 on a fully diluted basis [40 million shares]

• Price Earning Ratio: 60 for a hyper growth company

• Price Per Share: $1,200 per share

Percent Gain based on current price of $3… over 40,000%

In my book, the “Risk” is insignificant [may be 2% per year interest in treasury bills as the lost opportunity] as compared to the potential of making over 400 times on your risk capital in the next 3 to 5 years.

Do your own diligence and don’t just think outside the box… see outside the box.

Anant Goel
Producer CEO - RKNet Studios
Mobile Apps for Fun and Cognitive Skills Development

Microvision: Announces Second Quarter 2010 Results

Press Release
August 05, 2010
04:00 PM Eastern Daylight Time

Quarterly Revenue Grows to $2.1 Million and Backlog to $20.1 Million

REDMOND, Wash.--(BUSINESS WIRE)--Microvision, Inc. (NASDAQ: MVIS), a leader in innovative ultra-miniature projection display technology, today reported its operating and financial results for the second quarter of 2010.

Operating Results
“I’m pleased to report that our ongoing investment to improve our production and supply chain capabilities resulted in a more stable and predictable flow of finished product in the second quarter,” stated Alexander Tokman, President and CEO. “We continue to see an increase in our green laser supply and smooth conversion of raw materials into finished goods. This strengthening of capacity will become increasingly important in the second half of 2010 as we plan to deliver larger volumes of PicoP®-based products to our customers to meet their strong demand.

“Our backlog grew to a record $20.1 million and includes a $3.4 million follow-on order from our initial OEM display engine customer. The demand for our PicoP-based products remains strong from both existing and new customers who are excited about the unique capabilities of our PicoP projection solution. In connection with our capacity increase during the second quarter, we have increased our global distribution points and continue to qualify additional distribution partners. Customer response to the SHOWWX™ laser pico projector has been very positive.

“Our future success will depend on our ability to anticipate consumer needs and rapidly innovate to bring new products to market leveraging the unique capabilities of our PicoP technology. With this in mind, we recently unveiled a 15-lumen, 720p HD-ready pico projector prototype. We have received a very enthusiastic response to the high resolution, brighter images from this prototype and believe that advancing our PicoP technology platform will continue to position us as a premier provider of customer-focused projection solutions,” concluded Mr. Tokman.

Financial Results
The following financial results are for the three and six months ended June 30, 2010, respectively, compared to the same period one year earlier.

Revenue was $2.1 million compared to $987,000 for the second quarter and $2.8 million, compared to $1.9 million for the first half. The company’s quarterly revenue grew from the first quarter of 2010 and year-over-year as higher volumes of PicoP-based products were shipped to customers.

Backlog was $20.1 million at June 30, 2010 compared to $854,000 at June 30, 2009. The backlog is composed almost exclusively of orders for the company’s PicoP embedded engine and its SHOWWX laser pico projector.

Operating loss was $11.1 million compared to $9.5 million for the quarter, and $20.6 million compared to $18.6 million for the first half. The increased operating loss was due to higher operating costs attributable to commercialization of the SHOWWX product.

Net loss for the quarter was $11.1 million, or $0.12 per share compared to $10.4 million, or $0.15 per share. Net loss for the six months was $20.2 million, or $0.23 per share compared to $19.3 million, or $0.28 per share.

Net cash used in operating activities for the six months was $22.3 million, compared to $16.3 million. The increase was attributable to a higher net loss and an increase in working capital requirements. The increase in working capital requirements reflected a combination of increased inventory of raw materials and subassemblies with long lead times as the company prepares to ship higher product volumes in the second half of the year to meet customer delivery requirements, and a higher accounts receivable balance due to the timing of product shipments during the quarter.

The company ended the quarter with $22.2 million in cash, cash equivalents and investment securities.

Management will discuss the company’s operating and financial results and current business operations in more detail during its conference call at 4:30 p.m. ET / 1:30 p.m. PT today.

Continues…

*****

Here’s the link to the full Press Release…
http://finance.yahoo.com/news/Microvision-Announces-Second-bw-2632688220.html?x=0&.v=1

Here’re some observations from the earnings report and the subsequent CC later in the evening…

Operating Results Observation:
• Improved production and supply chain capabilities resulted in a more stable and predictable flow of finished product in the second quarter. Return rates on the SHOWwx are now averaging 2.5%... well below the industry norms.

• Continue to see an increase in the synthetic Green Laser supply and smooth conversion of raw materials into finished goods.

• Strengthening of capacity in the second half of 2010 to meet strong customer demand.

• Backlog grew to a record $20.1 million and includes a $3.4 million follow-on order from the initial OEM for embedded PDEs customer.

• The demand for PicoP-based products remains strong from both existing and new customers.

• Capacity increase during the second quarter allowed Microvision to increase their global distribution points and they continue to qualify additional distribution partners.

• Customer response to the SHOWwx™ laser pico projector has been very positive.

• Microvision has received a very enthusiastic response to the high resolution, brighter images from the new 15-lumen, 720p HD-ready PicoP prototype.

The high end media product is expected to be released for the 2010 Christmas holiday shopping season and the follow-up order form this customer sort of confirms what CEO Tokman had said at the 1st Qtr CC.

• It appears Microvision sold about 5,000 SHOWwx… to arrive at the $2 million in product sales revenue.

• Green Laser Diodes are on the way. In the meantime, if done right, the synthetic Green Lasers have an embedded play… for the next 4-5 years. Here’s what CEO Tokman said in The Displayground Blog post…

“We have already begun to see availability of the first generation synthetic lasers increase. The next generation synthetic green lasers are expected to be more efficient and less expensive than their first generation cousins. We also anticipate that the direct green lasers targeted for introduction in the second half of next year may not reach desired performance and cost targets immediately. For these reasons, we believe that synthetic lasers could continue to remain a competitive alternative to direct green lasers for at least the first 4-5 years after diodes are introduced.”

• If a respectable customer places a large order, Microvision would certainly discuss with the synthetic Green Laser suppliers the possibility of increasing production.

Here’s my take on this subject…

Corning and Osram have a limited manufacturing capacity that’s capable of handling the currently forecasted product introduction volumes. However, with sufficient investment, they could expand the manufacturing capacity. This would represent up front capital cost and Microvision can't do it by itself.

Let me put it bluntly…

Assuming "Sony or Apple" places an order for 1,000,000 units spread over a year and deliverable starting say mid 2011… then Corning and Osram could invest into expanding their synthetic GL manufacturing capacity and provide the necessary product. The reason Tokman indicated a "respectable customer" is because they would be the ones to deal with the GL suppliers and guarantee the payment for this capacity increase. Having "Sony or Apple" as a customer pretty much guarantees that the order will not be cancelled just for the fun of it. I'm sure they already know the price point where it is worth upgrading manufacturing capacity… either for a large order from a "respectable customer" or a lot of small orders where the expected rate of default would still ensure a profit for the GL manufacturers.

• Microvision expects 5-7 green laser suppliers in 2011.

Financial Results Observation:
• Revenues for the 2nd Qtr were $2.1 million compared to $987,000 for the second quarter of 2009… and the growth on the year-over-year basis was from higher volumes of PicoP-based products that were actually shipped to customers.

For a company that launched laser based SHOWwx in September 2009, and announced the availability of the hottest consumer electronic product of this decade in March 2010, the Microvision management team was awfully quiet on all fronts of news with no visible signs of product promotions, marketing or sales.

With that in mind, and taking all the plausible scenarios into consideration, I was looking at $1,900,000 to $3,600,000 in recognized product revenues for the 2nd Qtr 2010.

As I said before; anything less than $1,900,000 in recognized product revenues would be the sign of poor sales… that are not necessarily held back by green laser availability. Current events and management changes taking place at Microvision pointed more to this revenue number than anything higher. With product revenues for the 2nd Qtr coming-in at $2 million and the backlog increased to $20.1 million… I’m not sure what to make of it and that is frustrating.

• Backlog was $20.1 million at June 30, 2010.

• The backlog is composed almost exclusively of orders for the PicoP embedded engine and its SHOWwx laser pico projector.

• Operating loss was $11.1 million for the 2nd Qtr.

• The increased operating loss was due to higher operating costs attributable to commercialization of the SHOWwx product.

• Net loss for the quarter was $11.1 million, or $0.12 per share compared to $10.4 million, or $0.15 per share.

• The increase in net loss was attributable to a higher net loss and an increase in working capital requirements. The increase in working capital is reflected by a combination of increased inventory of raw materials and subassemblies with long lead times─ as the company prepares to ship higher product volumes in the second half of the year, and a higher accounts receivable balance─ due to the timing of product shipments during the 2nd quarter.

• From the 2nd Qtr Income Statement; the Product Revenue was $2,015,000 with Cost of Product Revenue being $3,337,000. The costs to produce accessory pico projector units during the three months ended June 30, 2010 were substantially higher than product revenue. Cost of product revenue includes the direct and allocated indirect cost of manufacturing products sold to customers. Direct costs include labor, materials and other costs incurred directly in the manufacture of these products. Indirect costs include labor and other costs associated with operating the manufacturing capabilities and capacity.

• During the three months ended June 30, 2010, cost of product revenue included a lower of cost or market adjustment of $701,000 for inventory in stock at the end of the quarter.

• The overhead cost included in the cost of product revenue consists of the costs of procuring, inspecting and storing material, and facility and depreciation costs; and is allocated to inventory, cost of product revenue, cost of contract revenue, and research and development expense based on the level of effort supporting production or research and development activities.

• The cost of product revenue as a percentage of product revenue can fluctuate significantly from period to period, depending on the product mix and volume and the level of overhead expense.

• The company ended the 2nd Qtr with $22.2 million in cash, cash equivalents and investment securities.

My main issue with this Financial Report is NOT so much about hitting the low end of Product Revenues… but it is the negative profit margins that are frustrating.

Microvision used lots of fancy words to simply explain the inventory markdowns leading to negative profit margins… meaning that every time Microvision sells a product, it takes a small loss. Since there is no corporate guidance, and investor questions on this issue were brushed aside, this “negative margins” issue has been exploited by the opportunistic and unscrupulous short traders in relentlessly driving down the price of Microvision stock over the last few weeks… and that is very frustrating.

Continues with the next post…

Microvision: Investors Are Just Frustrated

Anant Goel

Microvision: Unveils Increased Brightness, 720p HD Ready Laser Pico Projector

Press Release
Source: Microvision
Monday May 24, 2010, 6:31 am EDT

REDMOND, Wa.--(BUSINESS WIRE)--Microvision, Inc. (NASDAQ:MVIS - News), a leading developer of ultra-miniature projection display products announced today that it plans to demonstrate a 720p HD ready laser pico projector at The Society For Information Display annual conference, May 25 – 27, at the Washington State Convention Center in Seattle, Washington.

The 720p prototype pico projector outputs 15 lumens of brightness while still maintaining its compact, low profile form factor, very similar to Microvision’s current WVGA product. The company plans a commercial product version of a 720p HD PicoP display engine in the second half of 2011.

The new 720p, higher brightness prototype highlights the capability of PicoP® technology to support new performance levels while still maintaining the compelling attributes of the existing PicoP platform, including:

• Infinite focus;
• Wide throw angle that offers an immersive visual experience;
• Superior brightness uniformity;
• High optical efficiency resulting in low power requirements;
• 5000:1 contrast ratio; and
• Vivid colors of up to 200% greater than standard broadcast television

“Microvision’s growing success is rooted in our ability to anticipate market needs and proactively innovate and push the limits of our technology to address them,” stated Alexander Tokman, president and CEO. “On behalf of our entire design team, I’m extremely proud to introduce the world’s first 720p laser pico projector demonstrator that fits in the palm of your hand.”

Mr. Tokman added: “Our customers are looking for best-in-class pico projection solutions and we believe that with our demonstrated ability to advance both resolution and brightness on our core PicoP platform, Microvision will continue to be recognized as the premier provider of customer focused solutions in this exciting new product category.”

In addition to the 720p demonstrator, Microvision also plans to showcase the following developer tools, product and application demonstrations at SID in Booth 1401:

Continues…

*****

Here’s the link to the Press Release…
http://finance.yahoo.com/news/Microvision-Unveils-Increased-bw-20446400.html?x=0&.v=1

The company demonstratd the 720p HD laser Pico Projector at SID Conference. In addition to that, Microvision showcased portable gaming, automotive and wearable display applications that were enabled by its current PicoP Display Engine technology.

The commercial opportunities presented by the 720p PicoP projector at 15 lumens of brightness; while still maintaining its compact, low profile form factor, is huge. The current WVGA product SHOWwx ─ at 848x480 resolution and 10 lumen brightness─ has awed the early adopters. The next generation products─ using 720p resolution and 15 lumen brightness PicoP Display Engines─ will surely delight the masses when introduced in the second half of 2011.

To fully appreciate the implications of going to 720p resolution at 15 lumens brightness in the next generation products; you have to own and use the current first generation SHOWwx… to be first amazed and awed.

To further appreciate the impact and value of 720p resolution at 15 lumen brightness; let’s review the history of broadcast to put the image resolution in proper perspective…

Back in the technological dark ages of the late 20th Century, NTSC television signals were broadcast in a resolution now called 480i… in the U.S., while the rest of the world had adopted differing standards.

"480" signifies the number of horizontal lines that make up a single frame of video. The "i" stands for "interlaced," which is a system that delivers a frame of video in two fields. Interlacing was adopted back in the 1950s to overcome limited transmission bandwidth. If you can remember that far back, all TV was broadcast over antennas.

Interlacing has never been a great solution because it does not offer the best image quality. In a movie theater, film is presented one full frame at a time, which is called progressive, or simply “p”.

Until high definition came on the scene, 480i─ now often labeled standard definition or SD─ was the way that every TV set in the U.S. worked. We lived with these NTSC standards for almost fifty years. As technology and marketing marched on, researchers, manufacturers and broadcasters took a two-pronged approach to producing a better quality video image.

First, they increased the resolution of the video signal and the TVs receiving them. Though there are many different choices in the ATSC standard, the two common resolutions are called 720 and 1080. Again, resolution is denoted by the horizontal lines in a frame. Instead of the old 480, these new standards produce 720 or 1080 horizontal lines. Actually, resolution is measured in both directions, vertically and horizontally. So, you may see them listed as 1280 x 720 and 1920 x 1080. If you do the math, these are both 16 x 9 formats.

[Note: ATSC is a set of standards developed by the Advanced Television Systems Committee for digital television transmission. ATSC replaced much of the analog NTSC television system in the United States on June 12, 2009 and will replace NTSC by August 31, 2011 in Canada.]

The simple formula is more lines of resolution = a higher quality (or we can call it a higher definition) image. Of course, nothing is simple in these HD days. The second factor in improving image quality is shifting the signal to a progressive format. Broadcasters have split on the idea of transmitting video progressively. Those who do, use the 720p format. Those who don't, opt for 1080i. Video experts, Joe Kane among many others, believe that progressive can out trump video resolution to the extent they prefer 720p over 1080i.

Of course, in the last few years, manufacturers are beginning to grace us with 1080p HDTVs. Which brings us back to the original question? If you have been following along with our HD calculus, the answer seems pretty obvious: “p” is better than “i”, and 1080 is higher than 720. No argument there… just give me the 1080p.

Well, here's the rub…

In the United States, 1080p over the air broadcasts still do not exist as of 2010; and all major networks use either 720p60 or 1080i60 encoded with MPEG-2. Satellite service providers though have many channels that utilize the 1080p/24-30 format… for example Direc TV, XstreamHD, and Dish Network.

If you mostly watch network television, and that includes ESPN HD and the premium channels like HBO HD, the best you will receive is 720p or 1080i.

Now, if your tastes run to high definition DVDs, then you will have better luck finding 1080p material in the stores. You may even see a lot of classic movies reissued in 1080p format now that the HD DVD / Blu-ray format war has been settled… with Blu ray taking the honors.

[All Blu-ray Disc and the now defunct HD DVD are able to hold 1080p HD content such as movies. Most movies released on Blu-ray Disc and HD DVD can produce a full 1080p High Defiition picture when the player is connected to a 1080p HDTV with an HDMI cable. However, the Blu-ray Disc video specification only allows encoding of up to 1080p24 signal.]

One more thing you should be aware of; and that is the native resolution. Almost every new HDTV will advertise that it handles 1080p, but that does not mean that its native resolution is 1080p. A 720p TV/monitor [or projector] can display 1080p sources. They just have to downscale the image.

Now if you think about it, content is available in a range of formats, 480i, 720p, 1080i, and 1080p. Your HDTV or HD projector can handle all of them through technical tricks of up-scaling or down-scaling and interlacing or de-interlacing. Not to mention how well it translates native 24 frames per second films to 30 frames per second video.

The theory of course is that a 1080p native resolution TV [or projector] will handle 1080p sources more cleanly than other lower native resolution TVs. But if the TVs [or projectors] are doing their job well, most non-hypercritical viewers will not be able to tell the difference between a 720p and a 1080p TV when watching 1080p programs.

The real test may, however, be how well a 1080p TV handles the more common lower resolution material?

One more consideration, 1080p is currently the leading edge technology… but for how long?

If you are buying an HDTV in the next few months, then supposedly purchasing a 1080p TV should future proof you for a little while!

But technology is on a roll, which feeds marketing's insatiable appetite for new products.

Expect your state of the art 1080p HDTV to be old news in the next year or two. True HD will be replaced by too good to be true Full HD… and that will morph into wallet busting eye popping Ultra HD.

You get my drift, yes?

In a year or so, I expect to hear Microvision coming out with 1080p resolution at 28 lumen brightness PicoP Display Engine; to support new performance levels while still maintaining the compelling attributes of the existing PicoP platform. 

It is then, that I expect the 1080p resolution and 28 lumens bright PicoP Display Engines to be at the heart of front end media projectors; and selling for a few hundred dollars to give the energy guzzling 1080p HDTVs the run for their money… or should I say: “run for their life”.

Anant Goel
[Long List of Credits]

http://www.wealthbyoptions.com/

Microvision: Patents Laser 3D Projector with PicoP Display Engine (Part 1)

3D TVs started to arrive in consumer electronic stores in early March to great fanfare, and consumers are intrigued...but are also curious. The big question, of course, is whether these new TVs can transport the 3D excitement from movie theaters to our homes.

Based on excitment generated by the first available HDTV models with 3D video capabilities, the answer is a resounding yes.

Research has shown that users prefer wide screen, high definition, 2D/3D motion pictures with fast refresh [without motion blur] and always in focus images for all forms of video [static, streaming, and broadcast] communications.

3D Content Meets 3D Laser Projector:

3D content is proliferating rapidly. Movies, games and increasingly live sports and concert videos are being filmed in 3D. One unique challenge facing this emerging category is the lack of in-home 3D displays. The 120Hz LCD panels and plasma screens typically require shutter glasses for viewing 3D content, but next generation display technologies employ passive 3D glasses… which are lighter weight, cost less and are more acceptable to the wearer.

Microvision's laser scanning PicoP Display technology platform enables 3D content in the home that is viewed through lightweight passive glasses… all without the purchase of a new, large, expensive flat panel monitor. Recently, in June of 2009, Ben Averch of Microvision made a presentation at the 2009 Projection Summit. His presentation addressed the burgeoning 3D content market and the unique value proposition for a mobile 3D laser projector…using Microvision’s PicoP Display Engine.

In March 2009, Microvision received a patent on laser PicoP based 3D projector. That means the laser PicoP Display Engine of today will have upward growth mobility to High Definition projection [first] and then to 3D projection using passive glasses. That’s an exciting growth road map for the little master of the pico projector domain.

Here’s the information on the patent…

Title: THREE-DIMENSIONAL IMAGE PROJECTION SYSTEM AND METHOD

Abstract:
An image projection system having an optical projector and a method for projecting an image. The image projection system enables viewing the images in three dimensions and securely viewing the images in a public forum. The image projection system may include a portable, handheld optical projector that is spaced apart from a display screen and that redirects an image signal to the display screen. The image signal is scattered by the display screen and transmitted to a viewer’s eyes through a set of eyewear worn by the viewer. The display screen preserves the polarization state of the image signal. The portable handheld optical projector may be a cellular phone, a personal digital assistant, a portable computer, or the like that includes one or more sets of light emission systems capable of projecting the image signal. The optical projector may be portable and handheld, or stationary or semi-stationary.

Here’s the link to the patent document…
http://www.freepatentsonline.com/20090079941.html

This is great news for the simple reason...

The next big thing that the display industry is going into is 3D. Look at the number of 3D movies coming out lately… they have dramatically increased. Here’re some quotes from the patent application…

3D Technology:

“In addition to displaying images in two-dimensions, projection display manufacturers have developed systems for displaying images in three-dimensions. One technique for creating three dimensional (“3D”) projection display systems is to create two separate monochromatic images…

Although these systems are inexpensive to implement, the color reproduction of the images is poor and the filters may not completely block the adjacent eye’s image, which causes ghosting. Further, the technique uses large immobile equipment to project the images.”

“Another technique for creating a 3D image is to project separate images having different polarization states…

This technique offers better color reproduction than the red-blue monochromatic technique, however the projection displays are large, stationary, expensive to implement, and, because about half the light is lost, inefficient.”

“Accordingly, it would be advantageous to have a three-dimensional display system and a method for displaying three-dimensional images that is; cost efficient to manufacture, makes efficient use of light, and may be either stationary or portable.”

“The portable handheld optical projector may be a cellular phone, a personal digital assistant, a portable computer, or the like that includes one or more sets of light emission systems capable of projecting the image signal. The optical projector may be portable and handheld, or stationary or semi-stationary.”

Microvision 3D Projector patent states…

“In accordance with another embodiment of the present invention, an image projection system comprises a light emission system and a scanning device, wherein the light emission system includes a plurality of light sources. For example, the light sources may be two sets of red-green-blue (“RGB”) lasers, where one set of lasers transmits light in a first polarization state and the other set of lasers transmits light in a second polarization state that is different from the first polarization state. Thus, this embodiment comprises two red lasers, two green lasers, and two blue lasers, where the red lasers emit light having different polarization states from each other, the green lasers emit light having different polarization states from each other, and the blue lasers emit light having different polarization states from each other. The light can be linearly polarized or circularly polarized. In the case of a linear polarization state, the light transmitted to one filter may be vertically polarized and the light transmitted to the other filter may be horizontally polarized. In the case of a circular polarization state, the light transmitted to one filter may be right circularly polarized and the light transmitted to the other filter may be left circularly polarized. It should be noted that the light may be coherent light or non-coherent light.

The light from one set of lasers is combined and redirected towards a display screen using a scanning device and the light from the other set of lasers is combined and redirected towards the display screen using the same scanning device as the first set of lasers or a different scanning device. The scanning device spatially modulates the light to vary the color and intensity of each pixel. The scanned beam displays are configured to slightly vary the content between the two two-dimensional images as they are projected into a viewer's eyes. The brain uses this difference in content to create an illusion of depth. More particularly, the light from one set of RGB lasers is in a first polarization state and the light from the other set of RGB lasers is in a second polarization state that is the opposite of the first polarization state. The light from all the lasers may be combined into a single light beam and spatially modulated in unison. Thus, all the light sources are scanned through the same angular extent. The three-dimensional image may be created by temporally delaying the video signal and modulating the intensity of each laser. The scattered light strikes eyewear worn by a viewer, wherein the eyewear includes a filter associated with the viewer's left eye and a filter associated with the viewer's right eye.

In accordance with another embodiment of the present invention, privacy in a public forum may be provided by the image projection system. The eyewear worn by the viewer is configured to decode polarized light. The light can be linearly polarized or circularly polarized. The portable handheld source of electromagnetic radiation projects an image in a first polarization state and an inverse image in a second polarization state that is complementary to the first polarization state. The viewer wearing the eyewear can filter one set of images seeing only the desired content transmitted by the portable handheld source of electromagnetic radiation, whereas others see a “white image” on the display screen. Thus, the viewer can view projected images that are of a personal nature or confidential while others are prevented from viewing or decoding the images. Alternatively, privacy in a public forum can be achieved by using eyewear that is synchronized to the polarization states of the light.”

The display screen is a polarization preserving screen. Thus, the light striking display screen and the light scattered by display screen have the same polarization state. In accordance with one embodiment, display screen comprises a microlens array coated with a layer of aluminum. In accordance with another embodiment, display screen comprises a surface having a silver finish. Suitable screens may be available from Da-Lite Screen Company, Warsaw, Ind., 46581.

Eyewear set comprises of a frame having bow, temples, and filters that transmit images to the left and right eyes. Filters are configured to decode polarized light. The polarized light can be linearly polarized light or circularly polarized light. Filters comprise a quarter-wavelength plate laminated to a polarizer. It should be noted that the type of plates laminated to polarizer are not limitations of the present invention. For example, plates can be waveplates, polarizer filters, combinations of polarizers, combinations of waveplates, polarizing optics, or the like. In addition, the polarization transmission characteristics of filters are not limitations of the present invention. Filters may be configured to decode vertically or horizontally polarized light or right or left circularly polarized light. Techniques for coupling plates to polarizers are known to those skilled in the art.

Here’s what I think…

The PicoP Display Engine will first go with High Definition images and then progress to 3D projection. That looks like the growth path for the next 2 to 3 years with huge revenue growth potential.

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

Microvision: Color Eyewear Development Program

Now that Microvision has commercially launched its laser PicoP projector SHOWwx in the US market; and that the initial shipments have begun in earnest, the inquiring minds want to know: “Now what?”

From what I hear, the focus has now increased in scope to embrace additional five areas with varying levels of priority and resource allocation…

• PicoP Display Engine modules for embedded applications,

• High Definition and brighter pico image initiative,

• Color Eyewear product development,

• 3D projector and light weight passive polarized 3D glasses development,

• New PEK modules and development support for multitude of third party applications.

I promise to pass on the information, on each of the above subjects, as it becomes available to me… or when it has gathered some critical mass to become worthy of further discussion.

So, here we go with our first subject that seems to be coming back to life after sitting on the back burner for almost six months…

First, here’s the link to Microvision Eyewear Development Program that I found on the Internet…
http://www.microvision.com/pdfs/program_brief.pdf

Note the key statement…

“Microvision and its business partners are developing see-through personal Color Eyewear for mobility applications that will extend the usability of mobile devices transforming the user experience.”

Microvision Color Eyewear Product alone is worth billions in [high margin] revenue for the company.

This is why…

Paradigm Shift: Another Microvision product that will change the way we view our world.

Ultimate Mobility: Allows you to engage with the world and your personal mobile content at the same time.

Extend the Usability of Mobile Devices: to further enhance and transform user experience.

Ultimate Social Networking Tool: Allows you to keep in constant contact with social networks… without having to pull your mobile phone out of your pocket.

Next Generation of Color Eyewear: that is not only fashionable but also elevates the user experience.

Ultimate in Private Viewing: of information for business [like teleprompter], networking and entertainment.

Ultimate in High Definition Image Quality: High Definition images in 1080i or beyond… limited only by the pixel size of laser light source.

Immersive Virtual Experiences: in 2D or 3D using Microvision’s Color Eyewear equipped with Augmented Reality

Market Size: Multi-billion dollar worldwide market… no doubt.

Competition: None to speak of at this time.

Timing: Coming soon… in 2011 or there about. Timing of commercial product release to the global market is the only wild card in the deck.

Program Funding: by Lockheed Martin sub-contract…

Here’s this statement from Press Release of July 13th, 2009…

“Microvision is very pleased to work with Lockheed Martin to advance the development of see-through eyewear displays in support of the DARPA ULTRA-Vis program…”

“… By designing Microvision’s ultra-miniature PicoP Display Engine and our thin Substrate Guided Relay (SGR) Optics into a wearable display, we have the potential to bring battery operable, low-profile, see-through, full-color eyewear displays to users.”

“DARPA has created the ULTRA-Vis program to bring tactical see-through heads-up information to ground soldiers in order to increase their safety and situational awareness in urban environments, the company said. When integrated to an information management system, Microvision said its eyewear display could enable users to receive visual commands, view geo-registered iconic representations, and receive other full-color image content overlaid on their view.

Here’s the link…
http://www.tradingmarkets.com/.site/news/Stock%20News/2418318/

When you add the billions of dollars revenue potential from the PicoP Display Engine and PicoP Projector market to the “Color Eyewear” market… there is no better conclusion than: “Microvision has the potential of becoming a multi-billion dollar enterprise no doubt”.

Will Microvision stock [Nasdaq: MVIS] be a $500 stock in year 2014 remains to be seen… however all the signs are pointing that we are heading in the right direction and smart money is taking position as we speak?

We, as investors, can be part of this paradigm shift that has the potential of extraordinary financial gains during the “change” process that may spread over a few years… and is underway already.

Anant Goel
(This blog entry represents only the author’s opinion of Microvision as an investment vehicle)

http://www.wealthbyoptions.com/

Pico Projectors Hit the Commercial Market

That is the title of a trade journal article published by Electronics Weekly…

Pico projectors hit the commercial market
Richard Wilson
Tuesday 16 March 2010 11:18

Pico projectors are set for a massive jump in shipments during the next four years as they hit a number of commercial markets including mobile phones, according to analyst iSuppli.

Shipments will rise to more than three million units in 2013, up from less than 50,000 units in 2009.

In the middle of last year, Texas Instruments demonstrated 3D-ready projectors and lamp-free data projectors based on the company's DLP chip technology.

The chip uses an array of millions of micro-mirrors which can be switched at high speed, which enables the simultaneous display of left-eye and right-eye images required for the brain to create a 3D picture.

It is the rapid refresh rate of the DLP chip which supports 3D viewing.

According to TI, as many as 30 manufacturers will have projectors on the market soon, including BenQ, InFocus, LightSpeed, Mitsubishi, Optoma, Sharp and ViewSonic.

Continues…

*****

After reading this article, I could not help wonder if this was a trade journal article on the subject of pico projectors or an infomercial for Texas Instruments, Samsung, Mitsubishi and other advertisers of Electronics Weekly.

First, here’s the link to the article that I’m talking about…
http://www.electronicsweekly.com/Articles/2010/03/16/48208/pico-projectors-hit-the-commercial-market.htm

This article is so superficial in its coverage that it not only lacks depth but also the breadth in its coverage. What surprised me most were the many inaccuracies in the article and shockingly there was no mention of Microvision that launched the world’s first laser based PicoP™ projector SHOWwx in September of 2009… and most recently, on March 8th, Microvision started selling their laser based pico projector to the US customers.

Don’t you think it is shocking to see that the main author [Richard Wilson] and iSuppli projection analyst Sanju Khatri wrote this article about pico projectors but completely ignored the existence of Microvision and its laser pico projector SHOWwx? I’m sure you know, like the millions of Internet savvy global consumers do, that Microvision’s laser pico projector SHOWwx won the CES 2010 “Last Gadget Standing” award in January… and the MacWorld 2010 “Best of Show” award in February.

Microvision’s Laser/MEMS based PicoP Display Engine technology exists today and beats the competition from 3M [LED/LcoS technology] and TI [LED/DLP technology] in most all respects.

First take a look at quality of the projected images from SHOWwx and then look at its specifications… and you will see why Microvision’s Laser/MEMS based PicoP projector is so much better than the competition.

Here’s the link to SHOWwx video clip…
http://www.youtube.com/watch?v=LQMmMzV3WD0

Here’s the side by side comparison with the competition…
http://myfotospace.my.funpic.de/Comparison-of-PicoP.png

Here’s the list of differentiating features of SHOWwx…
http://www.microvision.com/showwx/specs.html

In the embedded market space, I don’t see any of the competitors coming close to Microvision in this race… not even Taxes Instruments with their power guzzling million-micromirrors based pico projector. The likes of 3M and Displaytech will never get down to acceptable levels of size, power, waste heat, auto-focus and cost requirements… as they will have the “gating issues”. Pico projectors that use million micromirrors or LcoS panels [with lenses and optics] just can’t cut the mustard in terms of physical size, power, waste heat, auto-focus and cost.

I’m sure there will be many players in the pico projection space... like Displaytech with FLCOS, 3M with LcoS, and TI with DLP technologies.

However, no matter how you slice-it or dice-it, Microvision has, in my opinion, no competition in the laser based “embedded” pico projection space... not TI… and certainly not 3M.

Microvision’s laser PicoP Display Engine will lead the rat pack because of the following:

• Small form factor that allows room to add additional built-in functionality. The competition starts-out big and can only get bigger.

• Power consumption will always be the differentiating factor. Two to three hours of use between battery charges is always more desirable than the ones that last an hour or less. Extra power pack(s) in the standalone version will make the competition at par with Microvision’s SHOWwx... but there is a high probability that the user will opt for longer run on batteries. How often do you remember scrambling for a power pack when you need one?

Microvision’s PicoP Display Engine produces virtually zero heat due to lasers being used as the light source and also due to on/off switching of lasers during dark image segments. Competing pico projection technologies of others produce enough waste heat to cook eggs... sunny side up for sure.

• “A wide angle view means that Microvision’s PDE can show a wider screen at closer distance!” This is a very important differentiation as compared to the “rest” in the market. With Microvision's PDE you get…

"A wider image [80 inch from 7 feet away, for example] from a close distance… the image is brighter and sharper… colors are more vibrant… and the image is always in focus."

• Laser based PicoP Display Engines will always have projected image in focus… regardless of the distance [from the screen] or mobility of the projector itself. Try focusing a projector every time you move [with the projector] or change the distance from the screen to change the size of the image.

• Microvision’s PDE has better image quality and is sharper [per lumen] as compared to other projectors using “diffused” light sources the competition is using. The use of diffused light source, like lamps or LED, causes the “torch effect”… where the image is brighter in the center with darker outside.

• One other problem the panel display based pico projectors have is the black outline for each pixel that shows up in their images. Laser based PicoP Display Engine do not have that problem and as such projected images will always be brighter and sharper.

• Microvision’s PDE can go from 12” to 200” diagonal image size. None of the competitor has [so far] been able to match what Microvision is offering.

• Microvision’s PDE projects bright and vivid color with 5000:1 contrast ratio.

• Microvision’ PDE projects bright and vivid color images without motion blur because of its inherent fast refresh feature from laser light source.

• Microvision’s PDE has better resolution [at 848x480] as compared to the competing technologies from 3M and TI.

• Microvision’s PicoP Display Engine is progressing nicely on upwards pathway to higher brightness of 20 lumens using the second generation green laser [G-2000] from Corning.

After the CEATEC 2009 expo, engadget had this to say about the first generation SHOWwx…

"We stopped at Microvision booth at CEATEC in order to take a look at what makes the world's first laser based pico projector so special and we can honestly say that the picture was pretty stunning."

Here’s the link engadget report…
http://www.engadget.com/2009/10/06/video-microvisions-laser-based-show-wx-pico-projector-shines-a/

Now just imagine what their comments would be like when they see the second generation SHOWwx [and PDEs for embedded applications] with 20 lumens of brightness and HD resolution.

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

Microvision: Personal Mobile TV/Projectors

It is my belief that in the coming short years all sorts of video devices and services will dominate our communications, collaboration, networking, entertainment and learning world… and smartphones, mobile TVs and pico projectors will play a major role.

Mobile TVs for business or personal entertainment are no more a vision of the future… but indeed the reality of the future that is already here.

This is what ABIresearch has to say...

“The mobile TV market is a dynamically evolving convergence of the media, mobile communications, and consumer electronics industries. It consists of a global ecosystem of content providers, service providers and retailers, network operators, and network and device equipment vendors. The mobile TV ecosystem collectively provides an end-to-end, information and entertainment (“infotainment”) service over wireless networks to end-users in mobile environments. The mobile TV market has tremendous long-term promise as a next-generation infotainment experience. It will emerge over the next few years to grow to a value of more than $50 billion by 2013.”

Here’s the link to a reasearch report by ABIresearch...
http://www.abiresearch.com/research/1000842-Mobile+Broadcast+Video+Services

Free mobile TV [on a cell phone] is very popular in many countries in the Asia/Pacific region, specifically Japan and South Korea. However, despite the large number of viewers, these advertiser-supported offerings have problems generating sufficient revenues… but that is not going to change the eventual adoption of mobile TV by the millions.

Currently, mobile TV in the US is not as poplar as it is Asia/Pacific region. Any new effort to promote Mobile TV is likely to run into skepticism, in view of the adoption rate for subscription mobile TV so far and competition. MobiTV Inc., a company based in Emeryville, Calif., has been offering a service that uses conventional cellphones.

MobiTV has around 8 million mobile users. Flo TV, a new startup by Qualcomm, has not disclosed the number of mobile users. MobiTV uses a carrier's data network; Flo TV, a television spectrum and is considered as the desirable technology.

Mobile TV Has Bright Future

As it is with any new technology or service, the product must first find the need and then fulfill it in the most compelling and cost effective way. Here are four very powerful consumers need that, when marketed strategically, can change the mobile TV adoption here in the US and globally…

1. Demand for Mobile TV:

Every survey of mobile TV viewers that I’ve seen lists sports as one of the most popular categories. There are a huge number of sports fans around the world, obviously, and most — if not all — prefer to watch events live.

It’s a major reason why some people subscribe to mobile TV.

ESPN has become a mobile information powerhouse, including transmitting some 63 million mobile alerts every month and receiving more than nine million unique viewers on its mobile Web site, whose traffic is increasing 78 percent annually, according to FierceMobileContent.com

Here’s the link…

http://www.fiercemobilecontent.com/story/espn-opens-its-mobile-playbook/2009-08-31?utm_medium=nl&utm_source=internal

Smartphones are responsible for 70 percent of the mobile Web traffic, with BlackBerrys at the top of the list, the article says. But the Apple iPhone also represents a major opportunity. To this, now you can add the Qualcomm’s FLO TV available today [November 13th] at Amazon, Best Buy, Radio Shack and other select retailers. Just in case you missed the recent buzz about Qualcomm’s FLO TV, it is a pocket-sized personal mobile TV that is strictly for watching TV on the go.

FLO TV Personal Television, as the product is called, is expected to be offered by retailers this holiday season at a suggested price of $250. Qualcomm also will offer its own programming service, with packages expected to cost $5 to $15 a month.

This is what CES 2010 write-up says about Qualcomm's FLO TV...

"Qualcomm’s FLO handheld television offers users instant access to live and time-shifted content, including CBS Mobile, CNBC, Comedy Central, Fox News, MSNBC, MTV, NBC 2Go and Nickelodeon. The $250 device weighs just over five ounces and features a 3.5-inch QVGA touch-screen display."

"Pro: FLO TV renders high-quality video without streaming, buffering, or downloading by tapping into an advanced national mobile television network. The FLO also features a long-life battery that provides over five hours of viewing time and approximately 300 hours on standby."

"Con: The FLO will most likely appeal only to television addicts. In addition, the handheld TV is competing against cheaper portable DVD players and netbooks capable of streaming Hulu and other digital content."

"Recommendation: Flo is the perfect choice for individuals who prefer to watch high-quality videos and live television shows without buffering delays."

Mobile TV is Huge Opportunity… but there are challenges:

2. Free Mobile TV:

Free mobile TV that is financially supported by advertising may help with the adoption rates. However, there is a strong case in favor of “pay for content” mobile TV…

John Zehr, ESPN’s digital media senior vice president of product and product development, views cellular “as a major growth area for us, and importantly, people seem more likely to pay for content on mobile than they are for the PC, so that opens up additional opportunities.”

John Fletcher, an analyst at the market-research firm SNL Kagan, estimates MobiTV subscribers will reach seven million this year, or about 2% of all U.S. cellphone users. He estimates FLO will have about 350,000 users, or a fraction of a percent.

Mr. Fletcher notes that Americans have tended to shy away from buying conventional portable TVs, which have the advantage of free content over FLO's paid offering.

But Bill Stone, FLO TV's president, says it offers an array of content that is available on cable TV but not over-the-air broadcasts. A bigger hurdle, he argues, is that people simply aren't aware of its offerings. By going direct to the consumer, FLO TV has "a lot more control over our destiny and our messaging," Mr. Stone said.

3. Dedicated Mobile TV:

One advantage for a dedicated device is that TVs tend to be a shared resource where cellphones are seen as personal, Mr. Stone added. Parents and kids, might hand a TV back and forth as different kinds of shows air, he said.

Qualcomm, though now known for chips, has had forays in hardware before. The San Diego-based company offered its own cellphones early in its history. Last November, Qualcomm announced that it had developed a design for a home computing device that uses its cellphone chips rather than PC components.

Now consider this…

A personal TV with 3.5 inch diagonal screen is great for personal viewing on the go and its dedicated feature also allows it to be shared between parents and kids, for example. However, the creator at Qualcomm may not realize the bigger picture impact of this dedicted Peronal TV on the traditional TVs in a household… if and when a laser pico projector is embedded for large screen HD viewing.

Can you imagine the impact of this tiny dedicated Personal TV/Projector that can offer all the functionality of a traditional large screen TV plus gives you mobility, transferability, private and public viewing option and at lower cost of overall ownership… that is cheaper to own and cheaper to operate.

Companies that manufacture large screen LCD and Plasma TVs should not only be concerned but really worry about their future. I don’t think these TV and glass plate manufacturers realize the future impact on their business model from faster adoption rates of dedicated mobile TVs that have embedded HD laser pico projectors.

4. Low Energy Cost of Operating Mobile TV:

Another aspect of dedicated Personal TV/Projector is the low power requirement of less than 5watts. PicoP display engine embedded in all things digital and built into Personal TVs and projectors may just extend our resources [financial and natural] and save the planet Earth from slow death. For example, the biggest energy guzzlers on this planet are big screen TVs.

News from October, 2009 says it all…

California appears poised to be first to ban power-guzzling big-screen TVs
The LosAngeles Times
By Marc Lifsher
October 14, 2009

“Reporting from Sacramento - The influential lobby group Consumer Electronics Assn. is fighting what appears to be a losing battle to dissuade California regulators from passing the nation's first ban on energy-hungry big-screen televisions.”

Here’s the link to the news…
http://www.latimes.com/business/la-fi-bigtvs14-2009oct14,0,4908205.story

The energy problem is not just in California… it’s a world-wide problem that needs addressing now before the planet destroys itself with too much “carbon footprint” or due to lack of “energy” to fuel and feed the world’s 6 billion population. Energy conservation, in a big way, is coming soon to every single US state… and it’s just the matter of time. Electric brown-outs and rationing is in our near future... that is if we, as a nation, do not make an aggressive and collective effort to conserve.

Talking about conservation...

The use of PicoP display engines in dedicated Personal TVs and projectors that give us high definition; large screen; always in focus display at a fraction of power [less than 5watts] may just be the answer to our worldwide energy problem… where a billion or so TVs suck the energy out of planet in exchange for a few hours of wide screen HD entertainment.

I’m sure you will agree that Microvision’s PicoP display technology is disruptive [of a mega proportion] and of a nature that could cause dramatic shift in “technology paradigm” and the “social paradigm” around the world.

Specifically, for the third world countries, for example, the technology paradigm shift would be…

“20inch energy guzzling TVs replaced with a Personal TV/Projector with external speakers, at HD resolution image projection of up to 80 inches on any surface…always in focus…at miniscule power usage of less than 5watts… and at about $599 US dollars.”

The Personal TV/Projector market in the developing countries is over 1 billion worldwide with an adoption rate ten times bigger than you can hope for the embedded Mobile phone market. Consider this…

• Total population of India and China is over 2.8 billion and growing. Considering an average household size of 5 [for India] and 4 [for China] you have about 650 million households. Ironically, the current Mobile phone market in India and China is also about 700 million. Assuming that the middle-class [only] can afford a Mobile phone then there are 700 million households that fall in the middle class category in India and China.

• Assuming that a household that can afford a mobile phone can certainly afford [and own] a Television. Therefore, in India and China there are at least 700 million TVs. The middle class in India and China is growing at a 10% rate per year. To this growth, you add the rest of the third world and Eastern European countries [for 300 million TVs] and you have potentially 1 billion TVs market world-wide that is looking for low power consuming, high resolution and large screen experience of a Personal TV/Projector.

If Microvision [and an OEM partner like Qualcomm] can mass produce a Personal TV/Projector with external speakers, at up to 80inch projection at HD resolution and consume no more than 5watts of power… you have a billion households worldwide as your potential customers… with an adoption rate of ten times higher than that of PicoP embedded Mobile phone. This is a huge market with tremendous financial rewards for the slow and steady hand that can deliver on the promise of Personal TV/Projector to the energy starved world of ours.

Not only that, the low power requirement of the Personal TV/Projector may just extend our resources [financial and natural] and save the planet earth from slow death.

Unlike the US and other western countries, electric power in highly populated countries like India, China, Eastern Europe and other third world countries is in extreme short supply. Not everyone has electricity and those that do have… face constant brown-outs and rationing. With the world energy supply dwindling, and costs rising dramatically, the electricity is a precious commodity.

Here’s a wish list Personal TV/Projector based on Microvision’s laser based PicoP display engine…

Personal Mobile TV/Projector Model 60:

FEATURES:

• Low power requirement… less than 5watts for Personal TV/Projector

• DVD quality display larger than on a 60″ widescreen TV

• Easy setup — just plug, load and play

• No focus adjustment required

• Built-in handle and carrying case included

The ultimate Personal TV/Projector that delivers all the big-screen drama, sound and excitement you desire — just plug, load and play.

It works with any blank wall or screen and projects DVD movies larger than on a 60-inch widescreen TV.

Model 60 sets up easily— all you need is an electrical outlet. There are no additional cables or equipment to hook up. It features a convenient strap and soft, cushioned carrying case so you can take the show on the road. And, it delivers natural colors and bright, vibrant images with 1-chip, MEMS Laser technology.

It displays a 60-inch, widescreen image from just 5 feet away, or a 100-inch image from just 8 feet away.

SELLING FEATURES: Low power, high definition, always –in-focus, rich colors, short throw ratio, fast refresh, and wide screen multi-media experience.

The worldwide market for such a low power consuming laser based Personal Mobile TV/Projector is huge.

Microvision and Qualcomm have the technology and supply chain partners up and down the line. All they need is the vision and resolve to aggressively work together to pursue this market themselves or do it in collaboration with their global distribution and OEM partners.

While you are thinking about it...
Please go and vote your 25 votes, as many times as you like, for Microvision’s SHOWwx at the CES 2010 contest.

Here’s the link...
http://www.microvision.com/displayground/?p=1297#comments

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

Microvision: Partners with Intel to Showcase Advances in PC Gaming Technology (Part 3)

This is what Ben Averch of Microvision said in his post at Microvision blog The Displayland....

“As you can see from the video above, Microvision has designed a unique handheld first-person shooter projection game controller prototype that uses the PicoP display engine to project images on any surface. Using the infinite focus capability of the PicoP display engine, combined with a motion sensing module, it’s now possible to play video games on multiple surfaces, all while tracking your character’s point of view in 3D space.”

Here’s the link...
http://www.microvision.com/displayground/?p=1277#more-1277

First of all, it is important to note that the worldwide market for video games exceeds $50 billion and Microvision is addressing, to start with, the first-person shooter game sub-genre.

There are several video game genres (vague categories) based on their gameplay interaction rather than visual or narrative differences. A video game genre is defined by a set of gameplay challenges. They are classified independent of their setting or game-world content. For example, an action game is still an action game, regardless of whether it takes place in a fantasy world or outer space.

Here’s a list of video game genres...
1. Action Games
2. Action-adventure Games
3. Aventure Games
4. Role-playing Games
5. Simulation Games
6. Sports Games
7. Strategy Games
8. 3D Interactive Projection Games?????

A shooter game [an Action Game genre] focuses primarily on combat involving projectile weapons, such as guns and missiles. They can be divided into first-person and third-person shooters, depending on the camera perspective.

First-person shooter (FPS) is a video game genre which centers the gameplay around gun - and projectile weapon- based combat through the first person persoective; i.e., the player experiences the action through the eyes of a protagonist [the player]. Generally speaking, the first-person shooter shares common traits with other shooter games, which in turn fall under the heading Action Games.

From the Action Game genre's inception, advanced 3D or pseudo-3D graphics elements have challenged hardware development. But that may change soon, with the arrival of always-in-focus pico “projection game controller” from Microvision.

Ben goes-on further to say...

“At Intel Extreme Masters, we’ll be putting this prototype projection game controller into the hands of some of the world’s best gamers, playing the ultra-realistic combat simulation PC game “Operation Flashpoint: Dragon Rising”. We think the PicoP gaming application is an exciting new way to take first-person shooter games to the next level of interactivity and immersion, and it will be great to hear first hand what championship-level gamers think about it.”

Like most shooter games, first person shooters involve an avatar [alter ego], one or more ranged weapon, and a varying number of enemies. Because they take place in a 3D environment, these games tend to be somewhat more realistic than 2D shooter games, and have more accurate representations of gravity, lighting, sound and collisions. First person shooters played on personal computers are most often controlled with a combination of a keyboard and mouse. This system is often considered superior to that found in console games, which frequently use two analog sticks, one used for running and sidestepping, the other for looking and aiming. It is common to display the character's hands and weaponry in the main view, with a head up disply showing health, ammunition and location details. Often, it is possible to overlay a map of the surrounding area.

But all that is about to change; with the introduction of Microvision’s projection game controller...

Here’s the news...

Microvision Demo’s Projection Game Controller

http://www.techgadgets.in/gaming/2009/12/microvision-demos-projection-game-controller/
[Link may not work]

At the end of the article, it says...

“The projector game controller may unleash a new genre of gaming”

Keep an eye on the history books; Microvision is on its way to write the next few pages of the future. Here’s the link to The History of Computer Games...

http://www.statemaster.com/encyclopedia/History-of-computer-games#The_2000s

In closing, I must re-state...

“Microvision’s weapon-styled projection game controller will offer gamers an insight of a new technology that projects a follow-you-anywhere video image upto 200-inch via a handheld game controller.”

Interestingly, you don’t need green lasers to produce the first generation of “projection game controllers”.

Ready, set, go... let the games begin!

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

Microvision Announces Pricing of Public Common Stock Offering

Press Release
Source: Microvision, Inc.
On 9:41 am EST, Thursday November 19, 2009

REDMOND, Wash.--(BUSINESS WIRE)--Microvision, Inc. (NASDAQ: MVIS - News), a global leader in light scanning technologies, today announced the pricing of an underwritten public offering of 6.7million shares of its common stock at a price to the public of $3.00 per share. Microvision has granted the underwriters a 30-day option to purchase up to an additional 1.0million shares of its common stock to cover over-allotments, if any. Microvision expects to receive net proceeds, after deducting the underwriting discount and estimated offering expenses, of approximately $18.7million from the offering, or $21.5million if the underwriters exercise their over-allotment option in full. Oppenheimer & Co. Inc. and Thomas Weisel Partners LLC are the joint book-running managers and Craig Hallum Capital Group LLC is acting as co-manager for the offering. The offering is expected to close on November 24, 2009, subject to customary closing conditions.

Microvision intends to use the net proceeds of the offering for general corporate purposes, including, but not limited to, working capital and capital expenditures.

The securities described above are being offered by Microvision pursuant to registration statements on Form S-3 previously filed and declared effective by the Securities and Exchange Commission (SEC). This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in the offering. The offering may be made only by means of the prospectus supplement and the related prospectus relating to the proposed offering, copies of which may be obtained, when available, from Oppenheimer & Co. Inc., Attention: Syndicate Prospectus Department, 300 Madison Avenue, 4th Floor, New York, NY, 10017, by telephone at (212) 667-8563, or via email at EquityProspectus@opco.com.

Continues…

*****

Here’s the link to the news from this morning…
http://finance.yahoo.com/news/Microvision-Announces-Pricing-bw-160646938.html?x=0&.v=1

The market reaction to additional 7.7 million shares issued, assuming over-allotment option is exercised, to raise $21.5 million in funding has been lot more violent then the 10% dilution [from additional shares] would suggest. To the naked eye the dilution looks like 10% from additional shares. However, when you look at the offering price of $3, a discount of 27% from the closing stock price of $4.11, it makes sense why the stock would drop so much… almost approaching the $3 dollar mark.

That is the management sin of doing a secondary public offering at deep discounts, like 27%, and then pays $1.6 million in fees to secure funding. Obviously, I’m not aware of the circumstances or reasons for the kind of a deal that the management made with Investment Bankers [and brokers] involved. However, one thing is for sure, that the existing shareholders have been diluted─ more than what the management intended to do, but also the unsuspecting shareholders were left at the mercy of unscrupulous financial wizards from Openheimer, Thomas Weisel, and Craig Hallum. And by that I mean the unscrupulous ways of stock manipulation and shorting against the anticipated delivery of stock [6.7 million to 7.7 million shares] from Microvision treasury.

That’s the American Investment Banker, Venture Capitalist and a Broker at work to rip out the heart and soul of a young and promising company in exchange for maximizing their take of the loot. You guessed it! The deep discount of 27% and $1.6 million in fees was, obviously, not enough.

Is that the American way?

I guess so…just look around you and you will see who caused the systemic global financial meltdown… Lehman Brothers, Merrill Lynch…etc… etc.

I’m sure you get the picture…

“The good old boy network of financial wizards at Wall Street”

Isn’t it?

We know that given the opportunity, the Investment Bankers and Brokers would do what we suspect them to do to make an extra buck. What we don’t know, however, is how naïve and financially unsophisticated the current management at Microvision really is?

It seems like, that the MVIS stock has been manipulated by shorting [from $5.70 to $3.70 in two week period] coming into the announcement of public offering and then covering the short position [from $3.15 to $3.27] after the announcement. The only entities that can do this sort of manipulation would be the parties involved in the public offering. Assuming that Microvision management kept a lid on the details of public offering… the only other parties to the deal would be Oppenheimer, Thomas Weisel and Craig Hallum Capital.

At the close of the day, on November 19th, the MVIS closed at $3.27 [down 84 cents for over 20% down] on a trading volume that is over 7.35million shares [representing about 10% of the float].

What a mess!

Microvision management could have been much smarter in how they handled the secondary public financing of the company. It does not take a rocket scientist to sell 7.7 million shares at 27% discount and pay $1.6 million in fees to raise $21.5 million in total… assuming the option to 1 million shares over-allotment is exercised.

Looking at how 7.35 million shares traded on November 19th, the day of announcement, it is apparent that a “Stock Rights Offering” to existing shareholders could have been easily subscribed. Stock rights offering is a very common practice in London financial markets [and Asian countries] and is the most preferred mode of financing among conservative and financially savvy CFOs/CEOs.

Do a Google search on "Rights Offering" and you will find hundreds of companies doing it... right here in the US. A stock rights offering is a very basic and simple way of funding... something that the 40+ year old CFOs/CEOs find too simplistic in light of their shining MBA's and Six Sigma Black Belt certifications.

Over the last two years, all the financing that has taken place at Microvision makes you wonder about the financial savvy and financial negotiating skills of that in-charge.  These are very blunt and critical words… but I say it as I see it. As an investor in MVIS stock, with hard earned money on the line, I don’t think I need to be pussy footing around the financial management savvy of the current management and worry about their fragile feelings.

So, having said all that, which sounds more like venting my frustration, where we go from here?

First, let me advise you to do your own due diligence. And if you’re due diligence tells you to hold your position in MVIS and possibly add at these discounted price level... then do so?  Because that’s exactly how I feel in-spite of all that has taken place over the last two trading days.

Next, the bottom line, as I see it, and then a few words to explain why I feel that way…

“Microvision story is very compelling and it remains the opportunity of a lifetime… there is no doubt about that. Personally, I would hold my current position─ except for what I may have to sell to cover my margin calls, and then in the future add to my position when and if my finances permit me to do so.”

I am certainly disappointed in the management’s handling of this public offering… that exposed the unsuspecting retail investors to the unscrupulous ways of Wall Street wizards. I am not surprised that this offering has had such a negative impact on the MVIS stock price. When a company gives 27% discount to the Wall Street wizards, you would expect the stock price to eventually gravitate towards that offering price… $3 dollars in this case.

In my humble opinion, the long-term outlook for this company has not changed. I say “my humble opinion”, because the market action of November 19th and the resultant financial impact on portfolio valuations can make even the strongest of believers question in what they truly believe… a sure sign of humility.

In hindsight, maybe there was a better way to do the financing. Maybe there was a better way to manage the SHOWwx launch. Maybe there was a better way to announce the OEM partner names. Maybe there was a better way to announce the purchase order from the global mobile phone carrier.

That’s just too many “maybe”… but then again I'm not with the company, so I really don't know what’s causing this muted enthusiasm while giving away the store at below wholesale prices.

I don’t think that Microvision's management is inept, or trying to compromise the interests of the company or the shareholders, and I certainly don't think they have any ulterior motives. If I thought that, I would not have invested in this company for the long term and just traded for quick profits… or just sold every share and walked away. If anyone here truly thinks that's the case, I would encourage them to do the same.

Pico projection technology has a big future, and Microvision's laser PicoP display technology is the best platform for delivering applications to an enormous global market.

Additional capital was needed… there is no doubt about that. Now Microvision has that capital… at least for the next year or so.

It is disappointing to see the many thousands of dollars in portfolio value disappear in the short term.  However, the long term potential and the opportunity of a lifetime stays intact.

Consider this…

• Stock prices go down as well as up─ and we had a nice ride up, from 77 cents to $5.70, and now a rough ride back down to $3.32.

• Stock prices may resume again when we hear that Osram has started shipping the green lasers in quantities, product is being sold by Mint, Uniden, Vodafone [name not yet officially disclosed], and as we start to get some more information about the embedded version of laser PicoP display engine and its applications.

• The fundamental story has not changed. Microvision has the killer app for consuming mobile content, and all signs point to that market expanding at a huge pace.

• We're not there yet, as evidenced by the continuing need to raise funds, but we're headed in the right direction as we get closer every day.

Some of us, I’m sure, are still sitting on a huge gain for the year. The extra profits that we had after the late August run-up, and before the recent drop from $4.11 to $3.32, is the value that was in the portfolio that you didn't have back in early August.  When the portfolios swell in value, the gains feel great…and the losses make you anxious, but I have a lot of confidence that we haven't seen the last of the gains.

So that's my take on the current funding… and a few words of comfort from experience.

Excessive dilution, stock shorting and manipulation are all very sickening… but it's something we have to deal with and learn to understand as the ways of the Wall Street West.

You and I can criticize management for the way the public offering, to raise $21.5 million in funding, was done but none of us really knows the full story.

So, give the management the benefit of the doubt, do some due diligence, and look at the future potential of Microvision stock investment with a fresh perspective.

If you see, what I see… you should hold your current position and add to it at these low prices… if and when your finances permit you to do so.

[If some of the words look a bit familiar towards the end... then you have read Paul Anderson post on Yahoo Message Board... just like I did.  Our writing style is not much different... so here is the credit to you Mr. Anderson before you get bent out of shape.]

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