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Vuzix: Up Close And Personal

Summary

Q1 is over and the second half of 2016 that is set to feature impressive growth begins in less than 90 days.

iWear manufacturing issues experienced in Q4 and Q1 are contained to the iWear and unrelated to the M300 launch in June.

Vuzix's lineup of products of today and tomorrow (M300, M3000, B3000, iWear and waveguides) position the company for impressive growth over 2H of 2016.

Vuzix (NASDAQ:VUZI) delivered surprisingly weak revenue results in Q4 that were significantly below my expectations. Although, Q4 results were underwhelming, it is far too soon to throw in the towel on this exciting augmented reality opportunity, as growth will prevail in the back half of 2016 behind the launch and availability of a lineup of new products.

I had an opportunity to sit down with Vuzix CEO Paul Travers last Friday to test drive and handle several Vuzix products of today and tomorrow. Additionally, the visit provided me additional comfort that the current manufacturing issues associated with the iWear headphones will not be repeated with the launch of the M300 coming up late in Q2.

The iWear product although it sells for just $499 is fairly complex to manufacture and the product design is a complete overhaul from its predecessor the Vuzix wrap. On the other hand, the design of the M300 is very similar to the M100 and the complexity associated with the display of the iWear video headphones does not apply to the M300.

For these reasons, I expect the issues that recently cropped up related to the manufacturing of the iWear to be contained to the iWear and will not be an issue as Vuzix ramps manufacturing of the M300 with the company's new Tier-1 contract manufacturing partner in the coming weeks.

My attempt at the PS4 while wearing the iWear video headphones (Image Source Wall Street Forensics)

I was...


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