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This statistic highlights Microvision Inc.’s Revenue by Segment from Q1 2016 onwards, till the latest quarter, reported on a quarterly basis and split across Contract revenue, License and royalty revenue, and Product revenue segments.
Microvision’s revenue increased from $0.63 million in Q3 2020 to $0.71 million in Q3 2021, marking a 12.36% growth on a year-on-year basis. It decreased by 3.75% between Q2 2021 and Q3 2021.
Microvision Inc.’s revenue is further bifurcated into the following segments:
|Segment||Q3 2020||Q2 2021||Q3 2021||Contribution in Q3 2021|
|License and royalty revenue||$0.53||$0.74||$0.71||100%|
(All figures are in millions, except percentages)
License and royalty revenue
Revenue from license and royalty agreements is referred to as license and royalty revenue. If the nature of the license granted is a right-to-use license, reflecting functional intellectual property with significant standalone functionality, Microvision Inc. recognizes revenue on upfront license fees at a point in time.
The license provided is a right-to-access license representing a symbolic intellectual property that excludes significant standalone functionality. They will record revenue from sales-based royalties depending on the quantity of royalty-bearing products sold or otherwise distributed in quarterly reports submitted by the customer under the terms of the agreement.
The license and royalty revenue category supplied the entire revenue to the company in Q3 2021. On a year-over-year basis, it climbed from $0.53 million in Q3 2020 to $0.71 million in Q3 2021, representing a 33.20% rise. The rise was mostly due to this move, which resulted in royalty revenue rather than product sales, with a cost of product revenue being recognized for this arrangement.
Microvision’s product sales are recorded under Topic 606 when the product is shipped to the customer. They view each individual item’s sale to be a single performance obligation. Due to the timing of product orders from customers, product shipments, production restrictions, and component and raw material availability, their quarterly product income may fluctuate significantly.
Due to the cessation of product shipments in March 2020 in relation to the transfer of manufacturing to the client, product revenue for Q3 2021 was lower than for the same period in 2020.
Contract revenue comes from the sale of prototype units and evaluation kits based on our PicoP® scanning module. They record revenue only when the deliverable is accepted under contracts with significant client acceptance conditions. Revenue is determined by when they enter into a contract, the value of the contracts they have signed into, and the availability of technical resources.
Reduced maintenance contract activity with the customer and no prototype shipments contributed to a decline in contract revenue in Q3 2021 compared to the same time in 2020. On September 30, 2021, and 2020, the contract backlog, which included orders for prototype units and evaluation kits, was nil.
About the company
MicroVision, Inc. is a corporation based in the United States that specializes in laser scanning for projection, 3D sensing, and picture capture. MicroVision’s display technology projects and/or captures images using a micro-electrical mechanical system (MEMS) scanning mirror with red, green, blue, and infrared lasers, optics, and electronics. Original equipment manufacturers (OEMs) such as STMicroelectronics license the company’s goods. It is listed on the NASDAQ stock exchange and is traded under the ticker symbol MVIS.
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