Vuzix is receiving an investment from Quanta Computer. Quanta is making a $20 million investment into Vuzix, with the funding coming in three tranches. The first tranche of $10 million involves the purchase of Vuzix common stock, while the second and third tranches, each worth $5 million, will be tied to specific milestones and consist of Series B Preferred Stock. The money is being invested to up Vuzix’s waveguide production capabilities and its work on AR and AI-based smart glasses.
Vuzix has faced financial challenges in recent quarters. In its Q2 2024 financials, Vuzix revealed a 77% decline in total revenues, dropping from $4.7 million in Q2 2023 to $1.1 million. This decrease is largely due to lower sales of the M400 smart glasses. Despite this, Vuzix noted that product shipments in 2023 were higher than usual due to increased distribution in Asia, suggesting the decline may not be a long-term issue.
In response to these challenges, Vuzix has reduced its annual cost structure by $8 million through staff reductions, tighter cost controls, and a salary reduction program. The company also reported YoY decreases in research and development (17%) and selling and marketing expenses (11%), though administrative expenses increased by 5%.
Vuzix’ CEO, Paul Travers, has said that partnerships across enterprise, consumer, and defense markets could help improve the company’s financial performance in the latter half of 2024 and beyond. The company is also claiming growing interest in its smart glasses, with several enterprise accounts moving toward larger-scale deployment.
