Vuzix Completes Transition to Higher Volume Manufacturing Facilities

Vuzix® Corporation, a leading supplier of Smart Glasses, Augmented Reality (AR) and Virtual Reality (VR) technologies and products for the consumer and enterprise markets, is pleased to announce that the Company has completed the manufacturing transition of M300 volume production from the Company’s existing Tier-1 contract manufacturer in the USA to their operations in China.

The Vuzix team has worked closely with our manufacturing partner to overcome the initial production challenges and we have now successfully scaled operations, improved yields and lowered our cost profile of the M300.

The process of transitioning M300 production from the USA into China began during mid-second quarter of 2017 and was completed recently. The new M300 production units arriving from China have gone through and passed rigorous testing in both our contract manufacturer’s plant and secondly in Rochester, NY. The manufacturing rates are now quickly growing in-line with our planned production volumes. With the completion of the M300 production transition off-shore the Company is now on track to also realize approximately a 33% reduction in the product’s cost. Additionally, we have already seen production yield improvements over the previous operation and expect further yield increases as production levels ramp over the second half of 2017 and net costs decreasing even further.

“With the recent rollout of our OS 1.2 firmware update, the introduction of our full M300 accessory line and a reliable and steady flow of production arriving, Vuzix should be well positioned to deliver in volume to our enterprise customers over the second half of 2017”, said Paul Travers, President and Chief Executive Officer at Vuzix.