Microvision: Equity or Debt Financing to Stay as Going Concern

During the month of August 2010, Microvision raised $12.5 million dollars from Azimuth Fund in order to prepare the 3rd Qtr 2010 financial on a “going concern basis.

Here's what they said in the 10-Q filing for the 3^rd Qtr earning report...

“In August 2010, we received a report from our independent public accounting firm regarding the consolidated financial statements for the year ended December 31, 2009 that includes an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. Our financial statements have been prepared on a going concern basis.

In August 2010, we entered into a committed equity financing facility under which we may sell up to the lesser of $60.0 million or 17,771,901 shares of our common stock to Azimuth Opportunity, Ltd over a 24-month term. In September 2010, we raised $12.5 million through the sale of approximately 6.3 million shares of our common stock under this facility. As of September 30, 2010 we have the lesser of approximately $47.5 million or 11.4 million shares of common stock remaining available under the facility, though we may not be able to sell shares under the facility in the amounts desired or at all. Based on our current operating plan, we anticipate that we have sufficient cash and cash equivalents to fund our operations through April 2011.”

Now three months later, in November 2010, I would expect Microvision to address the “going concern basis” issue again... because they probably burned another $12 million dollars during the three months from August to November leaving them essentially at the same financial spot they were in August of 2010.

Today is December 12^th and so far we have not heard a thing about any additional funding from Azimuth or any other form of equity or debt financing. We did, however, hear about the Memorandum of Understanding [MOU] with Pioneer Corporation of Japan...

MicroVision and Pioneer to Jointly Commercialize Innovative Laser Display Products

Here's the link to the news...
http://www.businesswire.com/news/home/20101208005686/en/MicroVision-Pioneer-Jointly-Commercialize-Innovative-Laser-Display

According to the news on MOU with Pioneer...

REDMOND, Wash.--(BUSINESS WIRE)--MicroVision, Inc. (NASDAQ: MVIS), a leader in innovative ultra-miniature laser display technology, announced today that it has entered into a memorandum of understanding (MOU) with Pioneer Corporation, one of the top original equipment manufacturers (OEMs) of high-performance audio, video and computer equipment for the home, car and business markets, to develop, manufacture and distribute display engines and display engine subsystems for consumer and in-vehicle head-up displays (HUDs) using the MicroVision PicoP^® laser display technology.

“We believe that by combining our respective market and product development capabilities, and leveraging best practices in manufacturing, MicroVision and Pioneer can accelerate introducing next-generation laser display products while reducing the total cost for both companies in getting there.”

Earlier this year, the two companies executed a joint development agreement to develop two critical components of the PicoP display engine: a laser light source module using direct red, blue, and green lasers and a separate display engine subsystem based on MicroVision’s patented PicoP laser scanning technology. Both are key pieces of the next-generation PicoP display engine that will offer OEMs significant commercial advantages in price, size, power, and performance for embedded solutions ranging from cell phones and eyewear, to airplanes and automobiles.”

Now this is what I'm wondering, just like thousands of other Microvision investors...

This is almost middle of December, and since there is no news of SEC filings on any funding from Azimuth or any other entity; there's the risk of “going concern” statement from the independent accounting firm in the 10-K Annual Report... unless the funding issue has been addressed, in some shape or form, by the MOU and soon to be announced details of some equity stake in Microvision by Pioneer Corporation.

If Pioneer Corporation were to share cost of future development, manufacture and distribution of whatever CE products and modular components they have agreed to; and also take an equity stake in Microvision; that would explain the silence on the funding front.

However, if Pioneer shares the cost of future engagement with Microvision, but does not take an equity position, then there would be some need for additional funding... possibly from the Azimuth Fund facility.

At the most recent 3rd Qtr earnings conference call, Mr. Jeff Wilson, Microvision CFO addressed the $48 million funding that is still available from Azimuth… but left some of us wondering how that may play-out in view of current MVIS stock price that dropped sharply after the CC.

“The terms of Azimuth funding are quite complicated to say the least. However, one thing seems clear that with MVIS stock trading at $1.25 or lower, there may not be any funding available from Azimuth?

Does that mean Pioneer Corporation is our “knight in shining armor” coming to Microvision rescue?

It surely looks that way from what I hear.

However, even with some equity funding and future cost shared with Pioneer, there is the impact of low MVIS stock price on Azimuth funding to flow. Here’s what the terms of Azimuth funding say in the 8-K filing…

“Threshold Price” is the lowest price at which the Company may sell Shares during the applicable Pricing Period as set forth in a Fixed Request Notice (not taking into account the applicable percentage discount during such Pricing Period determined in accordance with Section 3.2); provided, however, that at no time shall the Threshold Price be lower than $1.25 per share."

Microvision's first draw was allowed to be up to 12.5 million, but the subsequent draws are not. Subsequent draw limits are tied to the price of the stock. Since MVIS is currently in the price group─ $1.75 to $2.00, the maximum fixed amount they can request is $2 million dollars per draw every three weeks.

Two million dollars every four weeks [including 5 days waiting period] is about $6 million a Qtr and that is not so bad when you consider that Microvision is able to share future development cost with Pioneer; and with some equity funding [from Pioneer] they can make the Azimuth funding facility last to the middle of 2011.

That's the good part of the story.

The bad part is...

If the price drops below $1.25, then they can't raise anything, and that's obviously bad.

When you have only $21 million in cash─ as of September 30, 2010, spend $3 to $4 million per month, but you can only raise a maximum of about $2 million per month─ with the stock price in $1.75 to $2.00 range, the math is simple to do. You would run out of cash by middle of 2011… even though there would theoretically still be cash left on the Azimuth funding deal.

Not that I think the BODs would let them get all the way down to zero before adopting creative sources of alternate funding [like Pioneer] or dramatically cutting cost before shutting things down.

I see future cost sharing with Pioneer... with some equity funding as well.  What I don't see is any efforts to dramatically cut costs... and that has me wondering why?

At this point, it seems that any dilutive financing is pretty much priced into the stock.

Now consider this...

What would happen if the company issued debt instead?

Or, even better, what if a “white knight” like Pioneer took an equity stake in the company as Walsin Liwa did in 2009.

“Microvision could very well be the phoenix that rises from the ashes once the last remaining negative event [financing] is behind them.”

[… to quote Paul Marganski at http://www.picopros.com/]

Anant Goel

Microvision: College Campus Marketing

Microvision recently announced a “back to college” promotion for its laser based PicoP projector SHOWwx… by reducing the list price down to $449 which also included the VGA dock.

After having made an extensive check with my contacts in the computer resellers community [from my past life] that sells consumer electronics gadgets to college students all over the US… I have to say that Microvision’s marketing effort is limited to a blurb about the price reduction offer on their web site… and that’s about it.

There are no signs of any marketing effort to promote or sell SHOWwx to the college students… other than an advertisement on the Microvision web site at…

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

College students represent, for many companies like Microvision, a valuable demographic. It's easy to understand why… because most young people are still shaping their brand loyalty, they usually have disposable income, and most are interested in trying new things. Unfortunately, marketing to college students can pose a challenge because they are immune to many classic methods of marketing. By injecting a little fun into the message and having the right attitude, campus marketing can bring your product or service a lot of attention.

Before you decide to launch your marketing campaign, be aware of the “Campus Solicitation” policy of each and every individual campus on your target list. Most colleges discourage aggressive solicitation of students, faculty, and staff on campus. These activities often disrupt campus routine, offend segments of the College community, and imply endorsement by the College of particular products, services, or ideas.

Here’s one idea that is most cost effective and incorporates all of the best of breed ideas in one place…

• Hire a company that specializes in collegiate marketing. Many years ago, I worked with this company called “New Age Marketing”. In my humble opinion, they are the best in the business. Check them out…

http://www.collegiatepromotions.com/cpfeatured.html

You don’t have to create the viral networking buzz yourself… these guys will do it for you in the most cost effective manner.

One other thing that you may consider…

• Partnering with the School

Piggyback on the excitement around college sports events. Football game days at many schools─ Ohio State, Alabama and USC, for example─ are massive undertakings, attracting 100,000 fans to the stadium and thousands more to the surrounding neighborhood. Establishing an official promotional partnership can be expensive, but valuable. Your company could purchase ad space in the stadium. To capitalize on the opportunity without an official license… you must arrive on campus few hours before kickoff and engage the thousands of excited students walking around.

Enter into an agreement with the university to provide goods to students at a low cost. If they have your product in hand, they will learn to turn to you in the future. For example, according to Marguerite Reardon at Wired Magazine, Duke University spent $500,000 to purchase discounted Apple iPods in an attempt to assess their usefulness in higher education. Apple gave 1,650 Duke Freshmen the devices, helping the school and helping Apple expand its market share.

The College or recognized student groups occasionally invite vendors to fulfill particular campus objectives. The Director of Student Life must provide written approval to such vendors to grant exceptions to solicitation policies. Student groups must guarantee the availability of the products that their sponsored vendors sell. These sales must be cleared in writing in advance with the Director of Student Life, and when an athletic team is involved, with the Director of Athletics. No outside organization may proselytize, distribute, or sell products without direct sponsorship of a student organization recognized by the College Student Government or an administrative office.

Here’re some thoughts on doing the marketing to college students on your own…

• Colleges provide sellers with a captive audience full of hungry buyers. College campus advertisements are successful in reaching large numbers of people due to the dense population of students and staff that frequent campus buildings. There are a number of ways that you can effectively advertise on a college campus. By engaging in some creative ad placement, you can increase the success of your business and introduce your product to a whole new group of consumers.

• Print Marketing: Tailor your print marketing to the mindset present in most young people. Instead of putting together ads with lots of tiny words, spend a little extra money with the printer to ensure that your ads have striking images. Think about it; "got milk?" is only two words, but is an ad campaign everyone knows. If nothing else, include a link to your website to take advantage of the increasingly digital lifestyle of the student. Indeed, you should place the signs on outdoor billboards around campus. More important, post them on billboards inside, especially near administrative offices. Thousands of bored students stream past the registrar’s office, and your ad could catch their eye.

• Quad Posting Boards: Many colleges and universities feature a central posting board in their campus quad or other open area. This board contains flyers, student postings and campus event reminders. Advertise your product by placing a flyer on this message board amongst the other messages. Many students peruse this board regularly, so placing your flyer here will surely get you some views.

• Hire enthusiastic young people: to prowl the campus with flyers. Better yet, have them distribute free T-shirts with your product message in vivid colors. Young people are more likely to stop if another young person is flagging them down. Have your employees wear brightly colored T-shirts and make sure they are enthusiastic, above all else.

• Hire some students: to go around to dorms and put flyers up on bulletin boards or stuff mailboxes.

• Put an ad: in the school newspaper.

• Place an ad: on the college radio station.

• Send your flyers: to fraternities, sororities, athletic groups, etc… especially at school "party" times.

One thing that you must not do; is hire yet another “Director of Campus Marketing”… only to fire him/her a year or two later for lack of generating any tangible sales revenue.

Anant Goel

Microvision: Initial Reviews of Laser PicoP Projector SHOWwx

On March 24th, Microvision launched its first laser PicoP projector SHOWwx for sale from its on-line store…
http://www.microvision.com/displayground/

Sales of this DVD quality and focus free laser projector have been quite brisk without any visible signs of advertising or promotional effort… indicating a broad based demand; from those that are aware of this pico projection as the emerging new technology that seems to have arrived in full bloom this spring.

I received my Limited Edition SHOWwx a few days ago and shared the pico projection experience with my friends, family and some total strangers.

Here’s my personal experience with Limited Edition SHOWwx…

The packaging is First Class, including a solid high quality 12x16" shiny black box that says "Image by PicoP" in silver letters. All the accessories are in their own quality boxes and they all rest on black grass like packing material. It also includes a Limited Edition SHOWwx Laser Pico Projector Certificate of Authenticity signed by Alexander Tokman… the CEO of Microvision. I was very impressed as to the very upscale quality of the packaging. It tells me that Microvision is a quality company with a quality product included in the box.

The metallic blue color SHOWwx was nicely packed compactly in its own compartment. A chrome plated insignia “SHOWwx Limited Edition” graced on the top half of the laser projector. I quickly read thru the few pages of instructions and safety manual to familiarize with the fine nuances of this feather weight machine that boasts of up to 100” projection display under certain ambient light conditions.

I inserted the battery in the SHOWwx as instructed in the manual and charged the battery for a few hours till the orange light turned green. When I first turned it on, it displayed my name in the lower right hand corner which was pretty cool. I walked around the house projecting various size images up and down the ceiling to walls to the hard wood floor. What an experience… feeling like a kid in the candy store! The highlight of this experience culminated in the fairly dark entertainment center in my finished basement.

Over 100” vivid color and focused image on the white wall just had one response from my 10 year old son… WOW!

One of the main usages that I had planned for SHOWwx was to watch streaming sports and You Tube videos. But, I still have not yet figured out how to enable the external monitor/projector on my HP Pavilion laptop. I tried the FN+F5 key combination the laptop instructions recommended; but that didn't work so I'll keep working on that.

The next thing I wanted to use SHOWwx was to hook it up to my portable DVD player and watch big screen movies in the entertainment center of the basement. Since my portable DVD player has 9" screen, it handles and travels well but I wanted a bigger screen to watch the movies. Surprisingly, even though SHOWwx comes with 4 different cables the one I needed was not included. So, I had to buy the proper male to male RCA video cable for $5 at the local Radio Shack

I hooked it up to my portable DVD player and found I had to press a switch that made my DVD screen go dark but produced a picture on the SHOWwx. The colors were bright and vivid and there were no green lines on the top or bottom of the screen when playing “Star Wars” on the DVD. The picture is certainly brighter when the screen size is 40” diagonal… but is still very sharp at 80” diagonal. Like most projectors the SHOWwx works best in a dimly lit or dark room… just like in a theater. The battery charge was good enough to last over 110 minute… before I had to go looking for the spare that came with the Limited Edition SHOWwx.

Paul Anderson did a very nice experiment with the SHOWwx battery run time that you should take a few minutes to look at…
http://mvisblog.blogspot.com/2010/03/my-showwx-experiment.html

Overall, I think it works great and the unit is so light you could easily carry it in a shirt pocket although mine came with a nice heavy duty carrying case with an "X" (for SHOWwx) on it that easily clips-on to your belt.

The only obvious improvement I would recommend; is to include an on-board SD memory card… for downloading and using digital content without having to attach SHOWwx to a host device.

With my personal experience set aside…

Initial reviews of SHOWwx and its projection image quality are coming-in from the first adopter users of the Limited Edition and the Commercial Edition product that was just recently shipped over the last few days.

If you are willing to accept the good with the bad, here’s a collection from a diverse group of people that have had a chance to look at the SHOWwx image projection in real life setting:

• “Tremendous product! This pico projection communicates the giddy excitement that awaits those who see and play with the PicoP for the first time. Such a bright, clear, colorful image from such a tiny device is hard to accept at first, as it contradicts one's prior experiences. Those guys were getting happy feet just like I did the first time I saw the PicoP in action. Microvision technology is going to OWN the high quality end of these emerging product categories.”

• “The projected image is from iPod Touch that has a resolution of 483 by 320 pixels. SHOWwx has a resolution of 848 by 480 pixels. If you liked the image at 483x320 pixels [iPod Touch] just imagine how awesome the image would look at 848x480 pixels.”

• “Even at the $549 launch price this product is amazing value and I for one will probably be buying several.”

• "...the amazing thing about this projector, it's not a shitty DLP or LCD based light engine... it's a scanning LASER!!!"

• "Because it's a beam of light from lasers it's always in focus, incredibly bright and the lasers have an immense lifetime..."

• "The Microvision laser projector seriously impresses me (and come on, you know how cynical I am!) but I'm not at all excited by those little DLP projectors that are just hitting the market... they are built on an old technology that isn't translating to the mobile world very well at all..."

• I have seen the videos of this product image. What I notice is so much better image quality in real life. It's worth mentioning a few facts:

1. Due to the slight difference between the refresh rate of video camera and the laser scan lines on the Microvision projector; the video image appears to flicker… which does not happen in "real life" and is a side-effect of recording projected image with a camera.

2. Most digital cameras don’t handle the low ambient light recording well and therefore don’t do the SHOWwx pico projector any favors... but the video images still look amazing!

• “Needless to say, I absolutely LOVE this product."

• "Yeah - Dad's mad about this, but I have to admit the demo was excellent. No focusing and a massive clear image created from a handset-sized device. Imagine sharing your images at a party on a wall...”

• “This unit outperforms the comparable Optoma unit and the actual projector is about 2/3rd of the size of an iPhone."

• “Those guys were stunned. I love to see the reaction of tech junkies like me.”

• “Just get me some big fat orders and I'll be happy.”… Obviously from someone who desperately wants to work for Microvision in the sales department.

• “You might mention that the flickering on the screen doesn't show when you're using the projector live. And yeah, I want one . . .”.

• “It is almost laughable now how the "green laser supply" issue has been blown out of all proportions by so many others. A serious public company with serious business doesn't require reading a bunch of tea leafs or put out a bunch of rumor fodder.”

• “Go back and look at all the posts for the last 8 years about how many "this is it" posts on a tea leaf reading have been pronounced and how many have come true?”

• “He could have been referring to a couple of large corporations with sales forces that have inquired about purchasing a number of units when available. However, I think they would want on-board memory so they can load-up a presentation without a second device hooked-up.”

• “Looks a lot better than the Pico Pocket Projector I reviewed a couple of months ago. Looking forward to buying SHOWwx with on-board memory in the near future!”

• “Brilliant! The fact that it's non-focus is the best part.”

• “… I think the SHOWWX is fantastic and everyone will want one when they find out about it.”

So there you have it, comments from those enamored with PicoP… those with inquisitive minds… and those who are skeptics.

Be careful with what you wish for!

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

Microvision: Viral Marketing Channel Strategy at Work

I don’t think I’m alone in saying that …

“Viral Marketing is a valid distribution channel in this Internet age and should be part of every company’s product and services marketing strategy.”

In case of Microvision, the concept of creating VIP membership is in effect the company’s viral marketing strategy... and it is already in place.

The viral effect will come into more aggressive play once the VIPs [about 10,000 of us] get our SHOWwx PicoP projectors. Each one of us has at least 100 people in our center of influence. So, over 1 million people [10,000 x 100 = 1,000,000] will get to know SHOWwx first hand from us... the VIPs. And those 1 million people have, I'm sure, 50 people in their center of influence. Well, now that’s 50 million people that would come to know about SHOWwx and Microvision... the company behind this amazing laser PicoP projection technology.

In about six months there could be over a billion people that have been touched by SHOWwx… and have also come to know about Microvision.

Here’s another example of super-charged viral marketing at work…

One gentleman investor of Microvision, Mr. Henderson, bought his SHOWwx laser PicoP projector from Spain and paid a premium for it. Now that is the act of a highly motivated investor who wanted to, as part of his due diligence, see the product first hand to continue or not, I guess, with his investment in the MVIS stock.

In summary, this is what he did after he received his SHOWwx in the mail…

“He received his SHOWwx from the distributor in Spain yesterday or the day before. He then single handedly produced a You Tube video of his experience with SHOWwx and then published it over the Internet for us to experience and share his enthusiasm.”

A picture speaks a thousand words. So, without further ado, here’s the link to the video…

http://www.youtube.com/watch?v=LQMmMzV3WD0

That's an example of highly motivated and focused viral marketing. In this case, Mr. Henderson has gone beyond his center of influence [of say hundreds] to touch tens of thousands on the Internet.

Bravo Mr. Henderson, you just set the viral marketing rolling in the second gear.

At this stage, Microvision can further enhance this viral marketing strategy by adding the following programs to its marketing arsenal...

• An affiliate program to embrace thousands of web site owners... by offering a 3% commission on such web site originated sales.

• An "opt-in" e-mail marketing campaign to a few hundred million... similar to the e-mail that was sent to VIPs recently.

• Sign-up network marketers like "Market America" that has over 500,000 networking sales reps.

That's a good start to viral marketing channel... and it doesn't have to cost much to implement.

Results could be wildly huge… in terms of product demand created and the enhanced margins opportunity due to limited intervention by the middlemen.

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

Microvision: SHOWwx Laser PicoP Projector Launched in the US

Press Release
Source: Microvision, Inc.
Monday March 8, 2010, 6:30 am EST

Microvision SHOWWX Laser Pico Projector Available for Sale to U.S. Customers

Special Limited Edition Bundle Available Today

REDMOND, Wash.--(BUSINESS WIRE)--Microvision, Inc. (NASDAQ: MVIS), a leading developer of ultra-miniature projection display products announced today the opening of its web store for U.S. customers for the SHOWWX™ laser pico projector. Microvision is introducing two product offerings in the U.S. -- the Standard Edition SHOWWX and the Limited Edition SHOWWX promotional bundle.

Web Store Opens for U.S. Sales of the Standard Edition SHOWWX on March 24

Microvision plans to begin taking on-line orders through its web store at 12 noon, EST, starting on March 24th for its award-winning SHOWWX laser pico projector. The "Made for iPod®" SHOWWX laser pico projector Standard Edition comes with accessories and an optional VGA dock to connect to a variety of mobile devices. The iPhone®-sized Standard Edition is priced at $549.

Special One Time Limited Edition SHOWWX Bundle Promotion Begins Today

To celebrate the introduction of the world’s first laser pico projector based on Microvision’s PicoP® technology in the United States, Microvision is offering U.S. customers a one-time opportunity to purchase a special Limited Edition SHOWWX bundle. The Limited Edition SHOWWX bundle is for the technology enthusiast and ultra-mobile media connoisseur. This special bundle comes with a personalized splash screen bearing the name of its owner, SHOWWX with 'Limited Edition' insignia, certificate of authenticity and a SHOWWX VGA dock plus other accessories not included with the Standard Edition. The Microvision web store with details about the Limited Edition SHOWWX bundle will open starting today at 12 noon, EST, www.microvision.com/showwx. The SHOWWX Limited Edition bundle is priced at $999.

The SHOWWX is the world’s first laser-based pico projector that delivers premium image quality generated by Microvision's PicoP® laser projection technology. Features include a native resolution of WVGA (848 X 480), ultra-simple plug-and-play use, fiddle-free infinite focus, very high-contrast ratio, and bright vivid colors generated from ultra-miniature laser light sources. Users simply connect the SHOWWX to any mobile device with TV or VGA out (iPod, laptop, etc.) and project DVD-quality images from a mobile device, up to 200” across, depending on the ambient light.

*****

Here’s the link…
http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100308005609&newsLang=en

Microvision’s concept of selling “Limited Edition” for much higher margins is a stroke of genius.

First, the difference between the cost of Limited Edition [at $999] and the Commercial Edition [at $549] is only three hundred dollars… after you back out the cost of additional features and accessories bundled with the Limited Edition SHOWwx laser PicoP projector.

For extra three hundred dollars, you get the SHOWwx laser projector weeks sooner than the Commercial Edition product. That in itself is worth the extra three hundred dollars to someone that must have access to the competing product [from Microvision]… because few weeks matter a lot in a high profile marketplace when billions in market share are at stake.

In other words, the targeted customer for the higher priced Limited Edition is not you and me─ the cost conscious consumer, but it’s the deep pocketed competition and supply chain partners of Microvision. And then of course there will be the foreigners loaded with cheap US dollars, MVIS investors, tech media companies, consultants and sales executives with laptops, and the basket full of tech junkies. To this list you can also add thousands of tech connoisseurs worldwide.

Here’s why it is such a brilliant idea…

• With so much anticipation building over the last 3 years; in and around the Microvision supply chain partners that they would be the first ones who would use cheap US dollars to get their hands on the Limited Edition… as soon as they can get it… and not weeks later, just for the sake of saving three hundred dollars.

• Microvision competition will jump on the opportunity to buy one “pronto” to take it apart to see what it is that would become their worst nightmare in the near future. If you are a smart competitor [to Microvision] you would want to see your competition’s product right away… and not weeks later, just for the sake of saving three hundred dollars when there are billions at stake.

Limited Edition at $999 will be a huge success… a sell out.

Most of the buyers [so it seems] are the competition, the supply chain partners of Microvision, the foreigners loaded with cheap US dollars, and then there are many MVIS investors, some from the tech media companies, consultants and sales executives, and tech junkies worldwide.

Sales are brisk and picking-up momentum.

How long does it take to sell-off 500 Limited Edition units… really?

 After the earnings conference call, we expect to hear additional good news shortly… like in weeks, in the words of Alex Tokman.

Then there is additional good news in the offing… like in couple of short months.

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

Microvision: US Launch of SHOWwx in Late March or Early April

That’s the rumor up and down the supply chain.

Currently, so it seems, the emphasis is on shipping everything to full fill back orders from the existing customers… such as Mint Wireless, Uniden and Vodafone.

SHOWwx shipments in 2009 were very small and the quantities shipped blatantly fly foul in the face of publicly stated [or projected] quantities that we were made to believe. I don’t know how AT plans on covering his tracks to justify grossly misstated projections for quantities… but then again, he doesn’t have to because projections are just that─ projections.

I wish Microvision management comes clean with whatever it is; or was; or was said or done… just get-on with business at hand and move forward from this day onwards.

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

Microvision: Announces March 2010 Launch of Laser Projector SHOWwx in the US Market

Microvision CEO Alex Tokman announced March 2010 as the launch date for its laser based PicoP projector SHOWwx in to the US market. He also indicated that Microvision will sell them from its own corporate website rather than collaborate with an OEM at this time.

You can watch this interview of January 7th at the following link…
http://www.microvision.com/displayground/

Microvision had officially launched SHOWwx into the Asia/Pacific region in September of 2009 followed by Europe /Spain soon thereafter. As we all know, the green laser supply and its price has been the major issue all along and it made sense that the small available quantities be introduced in relatively smaller markets… especially in those regions of the world where Microvision can fetch the maximum pricing leverage due to weak dollar.

As for the US market, it is huge and is also the home to thousands of Microvision’s VIP members. In other words, Microvision has a very large captive market for its initial production of SHOWwx using green lasers from Corning and Osram. Corning was able to produce very limited quantities of green lasers in 2009… but with Osram coming on board in February of this year, the green laser supply should improve dramatically.

Having said that, the next question that begs answering is the reasons for Microvision selling the SHOWwx into the US market on its own rather than through an OEM?

Here’re some thoughts to ponder…

Years ago Microvision decided to focus on the lasers as the source of light for their PicoP Projectors. By doing so the management embarked on a very complex project that involved a myriad of challenges, issues, risks and problems.

When a problem is fearsomely complex, the best thing you can do is take Thoreau’s advice: “Simplify, simplify, simplify.” At the same time, though, one should remain aware of Einstein’s advice: “Things should be made as simple as possible, but not simpler.”

It is a reasonable simplification, to reduce all of the big-picture markets for PicoP projectors to the development and marketing of PDE [PicoP Display Engine] to the OEMs, and let the OEMs add frills [and complexity] to arrive at the final consumer product. However, there may be currently an OEM acceptance issue with that approach due to:

• The lack of interest [or vision] on the part of OEMs to embrace the Microvision’s PicoP Display Engine at this stage;

• The potential fear of cannibalization of the DLP based lamp/LED projectors currently sold by the major OEMs;

• The politics of the market place where the competition [like 3M and Texas Instruments] have deeper pockets and well entrenched relationships.

Lack of vision can destroy [albeit slowly] even the mightiest of the companies, for example:

Kodak could have stayed king of the imaging hill, but they chose to ignore digital as a mere fad.

Polaroid went bankrupt and it is widely believed to be the result of the failure of its senior management to anticipate the effect of digital cameras on its film business.

Boeing allowed a labor strike to deprive it of the last good year it will probably enjoy for some time to come.

And poor old Ford may actually have a tough-minded visionary at the helm, but it is an auto manufacturer in a year when that is simply the wrong business to be in.

Can you imagine the fate of the supply chain companies associated with any of the above dinosaurs… well, may be not those of Boeing?

So, any company [like Microvision] that is waiting on the major OEMs [that lack vision] for its market development [and survival] is in it-self lacking vision… by not introducing consumer product(s) that are strategically aligned to the targeted market. Meaning the target market, at this stage, being the “stand alone accessory” PicoP Projector SHOWwx?

I may be wrong, but I get the feeling that Microvision management is not waiting around for the OEMs to make their move; and is approaching the US market for stand alone accessory PicoP projector SHOWwx on its own.

That’s an excellent move considering the relative ease of developing [and servicing] the US market and the pricing advantage of selling directly to consumers at much higher net margins.

There are, however, some considerations that must be addressed seriously before embarking on such a journey. I’m sure Microvision has addressed these at great length and has arrived at its marketing plan for the US. However, we are not privy to Microvision plans so it’s fair to discuss them here in a tone as if something that should be addressed.

Create a 360-degree experience for the consumer:

The PicoP brands [stand alone or embedded] need to match the right product to the right consumers and then connect with them meaningfully at every point of contact. The "360-degree experience" includes everything from packaging, design, and marketing, distribution to after-market support… including programs to help customers discover product benefits, end-of life recycling programs, and user support executed with the care of a concierge service, rather than with the complication and delay of an overwrought bureaucracy.

I wish there was another example besides Apple to demonstrate a successful 360-degree experience, but Apple nails it every time. They do not try to be everything to everybody. Packaging is elegant. The product is beautifully designed. Set-up is simple. Support is available… with room for some improvement here. Messaging is consistent and clear at every touch point.

Pick the right distribution channel:

Market research has revealed that consumers are overwhelmed and confused at retail stores like Circuit City… no doubt a contributing factor in its recent bankruptcy filing. People they tracked on "shop-along" research trips found it impossible to discern the meaningful difference between, say, a $40 mouse and a $70 one, let alone penetrate the chaos that is the flat-screen TV section. Navigating the many dozens of options marketed with buzzwords like "plasma," "digital," or "720p LCD" was daunting, and many potential customers left the store without making a purchase. So the industry can add "loss of sale" to their return losses as well.

Research shows that shoppers frequently visit manufacturer Web sites for information… but rarely make the purchase decision based solely on that information. They used third party sources such as CNET, customer reviews on Amazon or the advice of their peers before making the buying decision. It's no surprise, then, that there is little-to-no brand loyalty. Except, of course, for Apple who has succeeded in translating geek-speak, like "120GB," to terms anyone can understand, like "30,000 songs."  The consumer electronics industry needs to stop talking tech-speak and start speaking in terms that mean something to the rest of us consumers.

If Microvision is marketing the PicoP Display Engines to OEMs, its distribution channel choice is obviously the partnered OEMs. However, if Microvision is also considering the introduction of a stand alone accessory PicoP projector like SHOWwx on it own, it needs to seriously evaluate its choice for distribution channel(s) selected for a consumer product addressing the mass market. Each distribution channel has its unique pros and cons and requires an extensive study that is beyond the scope of this post. However, the most important features involve the optimization of the following desirables…

• Cash flow and margins… credit card sales from company [and affiliate] web sites provides advance cash payment [and better margins] as against 30-day delayed accounts receivables from distributors and retailers. As an Amazon drop-ship retailer the company can have the best of all scenarios… on-line retailing power and credibility of Amazon… customer reviews on Amazon… better margins for the company… advanced credit card payment to the company… control over customer service and support… and consistent and clear messaging to the mass consumers.

• Push marketing… company [and affiliate] web sites coupled with e-mail campaigning are much more effective in the introductory phase push marketing than distributors and retailers.

• Pull marketing… third party review sources [like CNET] and retailers [like Amazon] are much more effective in advance stage pull marketing than distributors and retailers.

• Customer support & service… distributors [like Ingram Micro] and retailers [like Circuit City] are not really known for the type of customer service and support that is conducive to customer loyalty or customer satisfaction. RMAs, re-stocking and re-selling is an expensive process due to mishandling and neglect.

• Consistent and clear messaging… company web site, affiliate web sites and retailer Amazon web site allow the company better control over consistent and clear messaging to the mass consumers.

Tell Your Customer the Truth…

If products do make it to the customer home, many don't make it past the out-of-box experience. Not everyone is an early adopter with an appetite (or tolerance) for splashing around a sea of tech-speak to deal with hours-long product set-up guided by confounding directions, little-to-no customer support, and lots and lots of wires.

Well, that’s all I could muster on a sunny afternoon… while we patiently wait for more announcements and answers about production quantities of green lasers and shipments of SHOWwx to current OEMs and the Mobile phone customer Vodafone.

I’m sure Microvision brass has the answers, and has its reasons for keeping quite on the subject.

Day to day it's hard to see where it will end, but I think we are going to be fine and at the end of the day the MVIS investor will come out whole.

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

Microvision: Pico Projector Commercial Ads

While reading news from this morning about Microvision’s pricing of 3.3 million additional shares, I ran into this article…

Microvision release range of Pico-projector Ads for SHOWwx
By Ben Robinson on Thursday, November 26th, 2009 at 2:23 PM PST In Accessories, The Digital Life

Microvision, which is a company that makes Pico-projectors, has released a series of Ads for it’s Show WX product on YouTube , covering a wide variety of social situations – even including two ladies who are out on the town!

In case you are thinking ‘WTF?’, Pico-projectors are portable projector units, that are touted as being the next big thing in Mobile – literally INside them! I’m not so sure if that’s going to happen on a wider scale as it bulks out the mobile device – but I can definitely see the allure of a small projector, IF it produces good quality. Microvision is one of the leaders in that field.

But enough of that – let’s check out some Ads – one embed below, and then some links for you:

Continues with links to five ads…

*****

Here’s the link…
http://www.intomobile.com/2009/11/26/microvision-release-range-of-pico-projector-ads-for-show-wx.html

I looked at those ads and my first reaction was: “these are over two years old and someone should really take them off the air… they are so cheesee and silly”.

I’m not the only one with those thoughts. Here’re some more comments that I have gathered to share with you…

• I hope the quality of creative is not typical of future efforts. Pretty weak, I think, and don’t do justice to the product. Better this than nothing? I'm not sure about that.

• These ads are maybe 2 years old with old prototype of MVIS pico projector...

• I would hope that someone would remove these; they do not do justice to the current SHOWwx. They are filled with wrong information, even to the simple eye.

• Elevator Pitch @ 30 seconds ShowWX he is pointing downward, @ 36-38 seconds his device is in color and the presentation is in Black/White, and the best for last @ 40-41 seconds look at the ShowWX he is holding it backwards with the cable coming out of the top. This very edited stuff and really should not be here.

• They are concept videos. Not intended to be 'real'. Thought that was obvious.

• "...Thought that was obvious..." With a date of 26 November 2009 and the statement "Microvision has made 5 new pico projector ads", why would it be obvious?

• Obviously mediocre, I agree, but "concept videos" don't have to be mediocre, just unpolished. What's more, I've been following Microvision closely for well over two years and this is the first time I've seen them. Still, thanks to invinonveritas for explaining that the videos are, in fact, dated material; that's reassuring to know but less reassuring is the fact that they're still out there posing as current ads, "concept" or otherwise.

• But the statement is in error. These are old videos that were posted to the Microvision about 2 years or so ago. The fake nature of the samples is clear to me - sorry, but if you can't spot cheap special effects, that's not something anyone but you can change.

• "The fake nature of the samples is clear to me." They are not fakes at all. They're just bad, a fact which is not in dispute. If they're old too, that doesn't detract from the fact that they're bad, and that Microvision, if it chooses to promote itself in such a manner in the future, had better do much better. Just as I could have done better by making a portion of its so-called "public" offering available to existing retail investors.

• http://www.microvision.com/pico_projector_displays/application_scenarios.html
Thought I posted this earlier, but it does not appear to have arrived.

• FWIW, I can second that the "new" videos are old as I remember watching them on the MVIS website over a year ago, and don't know how much longer they could have been on the site before I had found them.

• These videos should be taken-off the air.

• No man down under like this stuff.

• I will admit, that pisses me off watching that....damn it Microvision.

Here’s what I summarize, after having read dozens of comments…

“Take out the drama and just focus on mobility, physical size, image size, image resolution and quality, vivid colors, brightness of laser light source, focus feature, the low power usage, fast refresh rates, 8 point font text readability, short throw ratio [like watching movies on the ceiling], no heat, long laser life and contrast ratio.”

In other words, you can use all the various settings and scenarios… but focus on the features… with emphasis on those features that differentiate your product from the competition.

We know what lamp based projectors are all about and what their applications, benefits, features and limitations are? To embrace the pico projectors to our list of gadgets that enhance mobility is a relatively small leap of vision… since we already know all about bulky projectors. It’s like going from desktop PC to the notebook PC… where the notebook PC opens-up a whole lot of applications and possibilities. Besides, for over a year now, the pico projectors from TI/DLP and 3M/LcoS have been on the market selling from dozens of retail outlets.

You don’t need to spend money or commercial time, to educate the consumer on the benefits and possible applications of pico projectors. Consumer is well aware of the projectors and understands the mobility feature of pico projectors quite well. Besides, competition has been educating the consumer for over a year now. Just because SHOWwx pico projectors is not yet released in the market place does not mean pico projectors don’t exist.

So, please cut the drama and get to the benefits and features… using the various settings and scenarios to accentuate the differentiating features. This way, you will not only get your message across in the least amount of commercial time, but also the consumer will remember the enhanced features of SHOWwx by associating them to the various real life situations and settings.

These five SHOWwx commercials as mentioned here─ and at the Microvision web site are childish, boring, overbearing and done in a very amateurish manner.

Not something that you would expect from a world class company.

Here’s an example of a professionally done pico projector commercial that gets the message out loud and clear… neat… clean… no drama… no spoon feeding… all facts and a lot left to the imagination.

Click on the YouTube streaming video at the bottom of the article…
http://www.notebooks.com/2009/11/30/take-a-pico-at-these-portable-pico-projectors/

Cinemin Swivel got it right... I have to admit.

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

Microvision: Vodafone is the first Mobile Phone Carrier as Customer for the Laser Based PicoP Projector SHOWwx

Here’s the news from this morning and is translated from Spanish…

VODAFONE SPAIN LAUNCHES PICO PROJECTOR "SHOWWX" - MICROVISION

The pico Projector "SHOWWX" is an innovative portable laser projector for large projected images when connected to the mobile phone or PC or laptop.

The business and professional customers Vodafone can have this innovative device from 289 €. It will also be available through the Points Program and will be marketed jointly with the smartphone Mini Nokia N97.

Madrid, December 1, 2009 - Vodafone Spain launches Pico projector SHOWWX, an innovative hand portable projector Microvision Inc. (Nasdaq: MVIS), a global leader in innovative ultra-miniature devices for projection and image capture products for mobility applications.

The peak SHOWWX projector uses a revolutionary technology based device laser that projects images of large, bright and alive, who are always focused, regardless of projection distance.

The accessory is a portable projector easy to use and simple management for Users who want to watch and share spontaneous mobile TV, movies, photos, presentations and other content. Customers can use their pocket projector anywhere and connect it to your mobile phone output video, to your laptop or netbook, the computer or to other music devices as MP3'sy with other devices that have video output or VGA functionality and share the experience of a large screen for business presentations on anytime, anywhere. Depending on the ambient light, the size of images projects can range from 12 to 200 ".

New customers can have this innovative device from 289 (without i.v.a.). Customers also will be available through the Points Program, for example for a client with 1200 points, will be available for 247 € (this price includes permanence). Also be marketed jointly with the smartphone Mini Nokia N97.

Alexander Tokman, Microvision President and CEO commented: "We are very proud that Vodafone Spain SHOWWX marketed to their customers. We believe that SHOWWX truly provide a visual experience upgraded to Vodafone customers and an important factor for value added functionality of their mobile devices".

"The introduction of peak SHOWWX Microvision's laser projector in Spain represents a great opportunity for Vodafone to offer value to our customers to improve their experience with their mobile devices, "explained Ignacio Roman, Director of Terminals Business Unit for Spain and Portugal Vodafone.

View images at: http://www.flickr.com/photos/vodafone_es

Here’s the link to Vodafone web site…
http://www.vodafone.es/conocenos/sala-prensa/notas-prensa/2009/1dic09(3).jsp

Here’s the link to Spanish version pdf file at the Vodafone web site…
http://www.vodafone.es/conocenos/sala-prensa/notas-prensa/2009/att00045046/NP_VODAFONE-PICOPROYECTOR(1dic09).pdf

This is what Microvision had to say at this early in the morning…
http://twitter.com/microvision

Now there is a post at Microvision blog site The Displyground...

Vodafone Spain Launches Microvision’s SHOWWX Laser Pico Projector
http://www.microvision.com/displayground/?p=1249#respond

Well, there you have it.

The news we have been waiting for, while getting all beat-up and bruised by the Wall Street Wizards that gobbled up 11 million shares of Microvision at $3:00 over the Thanksgiving week.

All we got for Thanksgiving was belly-full of turkey and plenty of margin calls for leftovers.

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

Microvision: Asia-Pacific Region Distributor and OEM Partner

Microvision announced its 3rd Qtr earnings conference call a few days ago, and it was scheduled for Thursday, October 22nd… after the market close.

However, early in the morning of October 22nd, Reuters issued the following news item…

Mint Wireless Limited Signs Distribution Agreement With Microvision Inc.; Receives Initial Order From Uniden Corporation
Thursday, 22 Oct 2009 03:40am EDT

“Mint Wireless Limited announced the signing of an exclusive distribution agreement with Microvision Inc. (Microvision) to distribute a PicoP display engine enabled accessory pocket projector to select Asia Pacific countries. This agreement follows Mint Wireless Limited’s recently announced strategic partnership and supply agreement with Uniden Corporation (Uniden), where Mint Wireless Limited is the exclusive supply partner for a select range of technology products to Uniden’s Australian and New Zealand markets. Mint Wireless Limited has received an initial purchase order from Uniden for an OEM version of Microvision’s pocket projector and will manage the supply, marketing and distribution of the Uniden OEM pocket projector for the Australian and New Zealand markets.

*****

Here’s the link to this news…
http://www.reuters.com/finance/stocks/keyDevelopments?rpc=66&symbol=MVIS.O×tamp=20091022074000

Immediately after the Reuter news, Matt Nichols had the following post at Microvision’s blog The Displayland…

Mint Wireless And Uniden Start The Ball Rolling

“As our launch partners begin their own marketing programs we stated previously that they would initiate their own communications announcements to reveal their name. The first announcement from a partner just showed up on the Australian Stock Exchange newswire at 6:39 p.m., Sydney time, October 22.

Microvision’s Asian distribution partner, Mint Technology, through its parent company Mint Wireless Limited (ASX: MNW), issued the following press release revealing that the global OEM that will private label Microvision’s laser pico projector is Uniden Corporation of Japan.”

Continued…

Here’s the link to the full post…
http://www.microvision.com/displayground/?p=1198

So there you have it... the names of Asia-Pacific region distributor and the global consumer electronics OEM... for Microvision's laser PicoP projector SHOWwx.

Microvision’s Asia-Pacific region distributor is Mint Wireless and the global consumer electronics OEM is Uniden Corporation.

Obviously the Microvision investors didn’t like the names in the news and the stock price plunged to $4.66 early in the morning to make the low of the day [from $5.28] and closed the day at $5.07. Then at the conference call, after the market close, Alex Tokman, CEO of Microvision, decidedly tried to dodge the questions regarding green laser supply from Corning. I don’t think the investors liked the [wishy-washy] answers to green laser supply issue either.  And that, in my opinion, set the stage for further decline in MVIS stock price that came about the next day on Friday… when the stock went down further and closed the day at $4.39.

The stock price action before and after the conference call [CC] is not surprising when you consider…

• Many MVIS investors were expecting global consumer electronics firms like Sony or LG Electronics as the OEM partner of Microvision that was announced on October 8th, 2009… without naming any names at the time. Many of us and that include me, speculated on the OEM partner’s name and wrote pages to arrive at the conclusion that it could be either Sony or LG Electronics. When we finally heard the name “Uniden Corporation”, we were disappointed… because most of us are not familiar with Uniden as a household name in the US.

• Also the undisclosed name, of the Asian distributor [from October 8th press release], was finally disclosed as “Mint Wireless” at the same time the OEM’s name "Uniden" became a public knowledge. Again, some of us were disappointed because we were expecting some big name global distributor… and not some company named “Mint” from Asia.

• At the conference call, several times the same question about “quantities of green laser” supply from Corning was asked and Alex Tokman answered it in the same vague manner [more or less]… its hard to say and that he wasn’t sure. We all know how important the green laser supply quantities are to the successful launch of Microvision’s first laser PicoP projector SHOWwx.  So, it is not surprising that each and every individual participating in the Q&A session asked the same question [in different ways]… about the quantities of green lasers that would be available to Microvision in 2009 and 2010.

Here’s the link to the transcript of 3rd Qtr conference call…
http://www.mvisbuzz.com/2009/10/conference-call-notes.html

• At one point during the Q&A session, the Analyst from Morgan Stanley took a dig at Alex Tokman when he said: “At some point you're going to have to give the analyst community something to feed on and do their reports. I'm looking forward to that day.”

• For a few years now, I've been watching the investor anticipation and high hopes leading into quarterly conference calls only to feel let down after each event. It looks like that the analysts have also caught on and don't much partake in Q&A sessions anymore…as they don’t seem to get what they are looking for information on supply quantities of green lasers at this stage of product launch and Microvision's sales channel growth.

Considering the above, a first blush knee jerk action best describes the investor response to the news… about Mint Wireless and Uniden… and lack clear understanding of comments made by Alex Tokman, on green laser supplies for 2009 and 2010.

In my humble opinion, the investor selling on the news is reactionary; because of lack of information about the two big name companies from the Asia-Pacific region. Let’s first talk about Mint Wireless and Uniden, and then we will discuss the lack of understanding the comments on green laser supply issue. The price of MVIS stock will take care of itself when we are better informed and had some time to digest the information.

Here we go…
• Microvision has clearly stated their distribution strategy as…

“The Company plans to distribute its accessory pico projector product through three sales channels: OEM branded products, Microvision branded products sold through international distributors and Microvision direct sales through its on-line store. Microvision has signed several marketing and distribution agreements with international distributors in Asia and Europe to launch Microvision branded and private labeled versions of the laser pico projector. Microvision expects to begin product shipments in the next several weeks.”

Here’s the link to the press release…
http://finance.yahoo.com/news/Microvision-Announces-bw-2654236991.html?x=0&.v=1

• First, note the statement…

“… three sales channels: OEM branded products, Microvision branded products sold through international distributors and Microvision direct sales through its on-line store.”

That clearly means, we should see several OEM partners worldwide branding Microvision products… a white label sale where the OEM puts their Logo and does its own marketing, sales, and support. The first market that Microvision has opened is the Asia-Pacific region. And the first OEM in the Asia-Pacific region is Uniden Corporation for example. Uniden is a global consumer electronics OEM with over $40 billion in sales and is a household name in the Asia-Pacific region. Not only that, Uniden has extensive reach and depth in other global markets like Europe and the Americas… including the US.  But their engagement in this specific instance, is for the Asia-Pacific region... and they came to the table through Mint Wireless as the Asian distributor/sales agent.

Consider this...
I bought my Uniden cordless phone system, here in the US, in 2007 from Costco... after having done some research looking for best of the breed. In the Asia-Pacific region, my friends and family tell me that Uniden is a very well known and respected brand name. Microvision has done well teaming-up with Uniden as its first global consumer electronics OEM. Granted, they are not Sony or LG Electronics... but that may happen soon after when green laser supply picture changes.

Here’s more information on Uniden and some well known competition…

Uniden Corporation
http://wrightreports.ecnext.com/coms2/re...

Motorola, Inc.
http://wrightreports.ecnext.com/comsite5...

Nokia Corporation
http://wrightreports.ecnext.com/comsite5...

For those who may not know, Uniden is a pioneer of many electronic gadgets brought to the market…

o 1st to manufacture a cordless phone
o 1st to offer voice scramble security
o 1st to introduce selectable channels
o 1st to introduce caller identification
o 1st to introduce a completely digital phone & digital answering machine
o 1st to introduce a 900 MHz analogue cordless phone into Australia.
o 1st to introduce 5.8 GHz Digital Spread Spectrum cordless phones into Australia
o 1st to introduce Wideband DECT Technology into Australia
o 1st to introduce 3D Mapping into Car Navigation for Australia
o 1st to introduce XDECT Technology into Australia.

Uniden is the world's largest manufacturer of wireless communication products and the world's leading cordless phone manufacturer.

• Now look at the statement again…

“… three sales channels: OEM branded products, Microvision branded products sold through international distributors and Microvision direct sales through its on-line store.”

That clearly means we should see several international distributors worldwide selling branded products with Microvision Logo and the distributor doing the marketing, sales, and support. The first market that Microvision has opened for its branded product is the Asia-Pacific region. And the first distributor in the Asia-Pacific region is Mint Wireless for example. Mint Wireless is a well know distributor of consumer electronics products in the Asia-Pacific region.

Here’s information on Mint Wireless and also the distribution agreement with Microvision…

“Mint Wireless Limited (http://www.mnw.com.au/) is an ASX listed technology company focused on providing mobile payment solutions (http://www.mint-wireless.com/) and the development and management of consumer technology products and services. Mint is a developer and leading distributor of innovative consumer technology products to many of Australia and New Zealand’s largest retailers and online e-tailers.”

Here’s the link to the agreement with Microvision…
http://www.mnw.com.au/images/ASX%20Announcement/20091022_Mint_signsexclusivedistribution_agreementwithMicrovisionandreceivesinitialorderfromUnidenFINAL.pdf

Mint Wireless is not really a distributor in the way we think here in the US. In the context of their relationship with Microvision, they may act like a sales agency [very common practice in the Asia-Pacific region] working off a small percentage commission like 3% to 5%.

Their mission is more like helping Microvision [as an agency] open the doors to OEMs and help book sales. One such door they have opened for Microvision is Uniden. Mint Wireless also buys product for its own account and certainly does issue a PO in its own name. If you look at their size [in terms of revenues] they are only $12 million dollars from the Australia/New Zealand region. However, with Uniden contract in hand and working as agents for Microvision, they hope to bring-in high margin revenue with little cost exposure.

• Now let’s move on to the next part of the statement…

“Microvision has signed several marketing and distribution agreements with international distributors in Asia and Europe to launch Microvision branded and private labeled versions of the laser pico projector.”

This clearly tells me, without a doubt, that there will be more regions in the world, like Europe and the Americas, which will be opened in the near future. I expect to hear, on a monthly basis, the names of more global consumer electronics OEMs for white labeled products and regional distributors for Microvision's branded products.

• Now back to the first part of the statement one more time…

“The Company plans to distribute its accessory pico projector product through three sales channels: … and Microvision direct sales through its on-line store.”

That tells me, we should soon see an on-line Microvision store selling Microvision brand laser PicoP projectors… including the SHOWwx and its derivatives.

I hope that helps, to clarify the way business is being done and who the household name players are in the Asia-Pacific region.

Not only that, I hope this post has helped you clear-up the marketing and distribution strategy that has been adopted by Microvision for its stand alone accessory PicoP projector SHOWwx.

Stay tuned for Part 2 to this post… which would cover the green laser supply issue as part of the post titled: Microvision: 3rd Qtr Earnings Conference Call – October 22nd, 2009.
 
The journey to “Image by PicoP” ubiquity has just begun… and we are on the roll.

As Matt Nichols from Microvision said…

“Mint Wireless and Uniden Start the Ball Rolling”

It’s a roll… meaning a little push is all it takes to continue gathering momentum.

Be part of this momentous journey and not just watch the caravan pass you by.

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

Microvision: What’s Your Mass Consumer Product Strategy?

Finally, on September 30th, Microvision announced its first purchase order and shipment of its long waited PicoP projector… a consumer product named SHOWwx.

Late by a few months from the original─ self-imposed─ launch schedule, the final consumer product, all wrapped and tied, left the loading dock destined for the far away lands of Asia… the home of Microvision’s first Asian Marketing and Distribution partner.

Interestingly, some of you may have caught another tit bit of news from the October 2nd blog post, by Matt Nichols of Microvision, at the company’s official blog site The Displayland.

Yes, Virginia we have some European distribution also coming on board shortly…

Here’s what Matt Nichols said…

“This is what I can tell you. Our very first shipments have already gone to Asia, as we are currently focused on fulfilling the first orders and shipments through our recently announced Asian distribution partner. We’ve also announced that we’ve signed marketing & distribution agreements in Europe. We can’t tell you the specific details yet as our partners first want to manage their product launch communication plans. When the details do become public, if you live in the geographic areas that the first shipments are available you might be able to scoop up some… “

Here’s the link for those interested in reading the full post…

http://www.microvision.com/displayground/
[The one you want is titled… “Launch, ship…and ‘when can I get a SHOWwx?]

In summary, the purchase orders are in and the product is finally going out to land in the hands of consumers. And that raises the next question in our minds… the stakeholders [investors, partners, and consumers] of Microvision.

Microvision: What’s Your Consumer Product Strategy?

I’m sure Microvision has one in place and there is ample evidence of how well it has worked so far. The term “Consumer Product Strategy” may mean different things to each one of us and may even depend on who “devised” it who will “manage” it.  What’s important to the stakeholders, however, is what it means to the creator and the implementer… Microvision?

So, why not we just ask them in a polite and consultative manner?

We will just do that, and here we go…

Gentlemen:

Consumer Electronics (CE) companies in the US last year lost $14 billion in re-box, re-stock and re-sell the returned items eroding the industries ability to attract and the retain loyal customers. Quite a high price to pay… for a problem that has a solution.

In May 2008, The Wall Street Journal reported that 11%-20% of all electronics goods were returned. The top reason…

The products “didn’t meet expectations.”

This becomes especially distressing given the current decrease in spending on consumer electronics. Data from MasterCard Advisor’s retail service showed holiday sales for this sector plummeted 26% from 2007. To survive the market shifts long-term, CE companies like Microvision need to view this extraordinarily challenging period as an opportunity to innovate, to fix what is already considered broken, and revamp their business strategies… specially for introducing mass consumer products on a global basis. It’ll take a lot more than blanketing the media with clever ads.

In all probability, Microvision has a great mass consumer product marketing strategy… and is doing all the right things. However, as Microvision is not in the market with any of its PicoP products, it is not easy to gauge its mass consumer product strategy. Since the paint is still not dry, here are four recommendations to consider…

Know your customer in product design:
The problem at the heart of the industry today is that most CE companies still design for their original, early adopter geek audience. Tech geeks drove the development of the CE industry when it was new and there was a steep adoption curve. But, now that grade school students and hockey moms carry iPhones, consult their GPS for driving directions, and bank online, Microvision needs to do more than rely on consumer curiosity to stay alive. The digital lifestyle is no longer one-size-fits-all, and today’s impatient and fickle mass consumer expects more than the complicated, unsatisfying out-of-the box experiences that have become an industry norm lately.

Create a 360-degree experience for the consumer:
Your PicoP display brands [SHOWwx or embedded] need to match the right product to the right consumers and then connect with them meaningfully at every point of contact. The “360-degree experience” includes everything from packaging, design, and marketing, distribution to after-market support… including programs to help customers discover product benefits, end-of life recycling programs, and user support executed with the care of a concierge service, rather than with the complication and delay of an overwrought bureaucracy.

I wish there was another example besides Apple to demonstrate a successful 360-degree experience, but Apple nails it every time. They do not try to be everything to everybody. Packaging is elegant. The product is beautifully designed. Set-up is simple. Support is available… with room for some improvement here. Messaging is consistent and clear at every touch point.

Pick the right distribution channel:
Market research has revealed that consumers are overwhelmed and confused at retail stores like Circuit City… no doubt a contributing factor in its recent bankruptcy filing. People they tracked on “shop-along” research trips found it impossible to discern the meaningful difference between, say, a $40 mouse and a $70 one, let alone penetrate the chaos that is the flat-screen TV section. Navigating the many dozens of options marketed with buzzwords like “plasma,” “digital,” or “720p LCD” was daunting, and many potential customers left the store without making a purchase. So the industry can add “loss of sale” to their return losses as well.

Research shows that shoppers frequently visit manufacturer Web sites for information… but rarely make the purchase decision based solely on that information. They used third party sources such as CNET, customer reviews on Amazon or the advice of their peers before making the buying decision. It’s no surprise, then, that there is little-to-no brand loyalty. Except, of course, for Apple who has succeeded in translating geek-speak, like “120GB,” to terms anyone can understand, like “30,000 songs.” The CE industry needs to stop talking tech-speak and start speaking in terms that mean something to the rest of us consumers.

If Microvision is marketing the PicoP display engine to OEMs, its distribution channel choice is obviously the partnered OEMs. However, if Microvision is also considering the introduction of a Stand Alone accessory PicoP projector [SHOWwx] on its own, it needs to seriously evaluate its choice for distribution channel(s) selected… for the consumer product for the mass market. Each distribution channel has its unique pros and cons and requires an extensive study that is beyond the scope of this post. However, the most important features involve the optimization of the following desirables…

• Cash flow and margins… credit card sales from company [and affiliate] web sites provides advance cash payment [and better margins] as against 30-day delayed accounts receivables from distributors and retailers. As an Amazon drop-ship retailer the company can have the best of all scenarios…
• on-line retailing power and credibility of Amazon
• customer reviews on Amazon
• better margins for the company
• advanced credit card payment to the company
• control over customer service and support
• and consistent and clear messaging to the mass consumers.

• Push marketing… company [and affiliate] web sites─ coupled with e-mail campaigning─ is much more effective in the introductory phase push marketing than distributors and retailers. However, the distributors and retailers do give you the benefit of “baptized” by quick “immersion” effect.

• Pull marketing… third party review sources [like CNET] and retailers [like Amazon] are much more effective in advance stage pull marketing than distributors and retailers.

• Customer support & service… distributors [like Ingram Micro] and retailers [like Circuit City] are not really known for the type of customer service and support that is conducive to customer loyalty or customer satisfaction. RMAs, re-stocking and re-selling is an expensive process due to mishandling and neglect.

• Consistent and clear messaging… company web site(s), company direct marketing, affiliate web sites and retailer Amazon web site allow the company better control over consistent and clear messaging to the mass consumers.

Tell Your Customer the Truth:
If your products do make it to the customer home, many don’t make it past the out-of-box experience. Not everyone is an early adopter with an appetite (or tolerance) for splashing around a sea of tech-speak to deal with hours-long product set-up guided by confounding directions, little-to-no customer support, and lots and lots of wires.

The Magellan GPS navigation system, for example, begins with a jumble of parts. Setup requires about half a day. Mac users learn late in the process that setup requires a PC. Meanwhile, the “Roomba” robot cleaner packaging promises it will “clean routinely so you don’t have to.” The Roomba itself, however, requires cleaning and maintenance after each use, making it more suitable for the gadget freaks who love to endlessly tweak their technology than the suburban housewife to whom it is marketed, who’s looking for hassle-free cleaning convenience.

"You must clearly communicate what your products do, what they are all about and who they are intended for."

Well, that’s all she wrote today.

I’ll get back to you as soon as I realize that you are still awake or I have missed any more pointers.

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