Vuzix Corp.’s return to profitability was short-lived as the company posted a net loss and decreased revenues in the third quarter.
The designer and manufacturer of video eyewear reported its results Monday afternoon. The company posted a net loss of $1.18 million, compared with a net loss of $920,000 during the same period year ago. Vuzix posted a net income for the second quarter of $3.8 million, which was up from a net loss of $900,000 in 2011.
For the third quarter 2012, Vuzix posted sales of $760,000, down from $1.24 million a year ago. The company attributed the decrease in sales to limited working capital that preceded the sale of its Tactical Display Group in June. Vuzix officials said the limited working capital resulted in supply chain delays for components to build new products to match sales demand.
Due to the sale of TDG and Vuzix’s efforts to manage costs, operating expenses for the quarter were $1.18 million, compared with $1.45 million a year ago. As a result, net loss from continuing operations was $1.12 million versus $1.32 million the previous year.
As of Sept. 30, the company’s cash and cash equivalents totaled $172,000, down from $413,000 at the end of 2011. The company’s total assets were $2.5 million, compared with $5.8 million at the end of 2011.
“The transition from our defense activities to the commercial side of our business has taken us some time but we are seeing great signs of success and are very excited with the growth opportunity ahead of us,” said Paul Travers, president of Vuzix, in a statement. “I am pleased with our ability to manage overall costs and improve gross margin which should allow for stronger bottom line performance once we ramp up sales of our new products.”
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