Vuzix Corp (NASDAQ: VUZI) stock fell over 6.5% on 16th March, 2021 (as of 10:24:38 UTC-4 · USD; Source: Google finance) after the company posted lower than expected results for the fourth quarter of FY 20. There was an overall gross profit of $1.5 million for the quarter ending December, 2020, before a $0.8 million inventory reserve for obsolescence, as compared to gross profit of $0.2 million for the same period in 2019, before a $4.6 million inventory reserve for obsolescence. Net cash operating loss after adding back non-cash adjustments for the fourth quarter of 2020 was $2.3 million, as compared to the prior period’s equivalent loss total of $4.0 million.
At the end of December, 2020, the Company maintained cash and cash equivalents of $36.0 million and an overall working capital position of $42.0 million. On a pro forma basis and excluding 2021 year-to-date operational cash burn, the cash and cash equivalents position as of March 15, 2021 stands at $60.4 million.VUZI in the fourth quarter of FY 20 has reported the adjusted loss per share of 9 cents, while reported the adjusted revenue growth of 116.91 percent to $4.23 million in the fourth quarter of FY 20.
The company expects to achieve significant year-over-year comparative revenue growth in the first quarter and throughout 2021, on the back of the growing success of our M-Series and Vuzix Blade Smart Glasses across key market verticals that include healthcare, field service, manufacturing and warehouse and logistics, as well as expected contributions from the OEM business group. Meanwhile, due to significant warrant exercises since December 2020, the revenue growth and product development objectives this year will be fortified by the strongest balance sheet in our company’s history.
On the other hand, the company has announced that it has participated in a private seed investment round by Ox Fulfillment Solutions (formerly Oculogx). The investment round in Ox was led by MaC Venture Capital and Cortado Ventures and included a minority investment from Vuzix. Ox plans to use the funding to invest in partnerships and help expand its operations to assist more large retail firms in supply chain optimization using machine learning. The company is looking forward to partnering and supporting their smart glasses hardware business needs as they begin to scale their solution into brick-and-mortar stores in the coming quarters.