Weekly Fundamentals✅: $VUZI Corp was 🆙 over 30% today.

I've been talking about $VUZI since it was $9 b'cos of the capability to solve key problems across multiple verticals.

So here below was my thesis (maybe its why $ARK Invest bought? or $AAPL is investing here)

Thread👇:
This $VUZI thread contains of the following

1-5: Overview & industry use-cases
7 - Financials
8 - Industry
10 - Competitive advantages I believe makes $VUZI maintain a good position in the AR Market

*There are risks, but you'll need to be open-minded & be big picture minded*
1/ $VUZI

They design, manufacture, market and sell Augmented Reality (AR) Smart-Glasses display, wearable computing, AR optics technologies, display engines and products for the consumer and enterprise markets.

*No, this is a real product being used today, not a story stock*
2/ $VUZI -How it works:

The AR glasses have sensors & computers that enables the user to view, record and interact with video and digital content -> When viewed, they create virtual images that appear like computer monitor views & a real environment/ think $ZM-like on a glasses
3/ $VUZI Value Proposition:

- Multiple use-cases across where $VUZI is used today to connect surgeons and healthcare providers from Telemedicine to Warehouse; Manufacturing, Field Service, Training services etc.
- Massive increase in productivity for enterprises

More below:
4i/ $VUZI Healthcare uses:

- Enabling precision in surgeries and care delivery:

Some examples:
- It was used during Open Heart Surgery at the Chi-Mei Medical Center in Taiwan
- Knee surgeries at multiple hospitals in the US
- Used for virtual rounds and Physician training
4ii/ $VUZI In addition:

The University of Louisville School of Medicine, during the course of clinical trials utilized $VUZI glasses to enable over 320 students to receive a clinical shadowing which would have not been possible otherwise.
4iii/ $VUZI Customer Client list (These are just a few)

- Most of these healthcare clients started using them in 2019/20 as VR needs for hospitals increased as Covid accelerated key changes.

- Building a strong customer list:
5) $VUZI SaaS:

- $VUZI integrates with various communication software like $ZM and $CSCO which enables those telemedicine or virtual trainings

- They have invested significantly into their software/SaaS offering and investors can expect Recurring revenues from here later
6/ $VUZI Hardware

-They have a variety of customers within the OEM, Aerospace and Defense contractors space that are utilizing the software for production of engines or repairs that would have required having an in-person engineer.

There's much more Use-case, but I'll stop here
7/ $VUZI Financials:

• TTM Revenues: $10M: Growth from Q2: 40% -> Q3: 100% YoY Growth
• Mgmt preliminary results expecting Q4 Revs over 107% YoY
• Estimated 2021 Growth: 78%
• Cash: $52M
• Low-debt

* Valuation is off the roof but deservedly (I bought when it was better)
8/ $VUZI Industry:

• Markets&M Data estimates $77B market by 2025 driven by Healthcare; Retail and e-comm
• Ark Invest estimates the revenue from Virtual worlds will compound by 17% to $180B
•ARK forecasts that by 2030 the AR market could scale from under a $1B today to $130B
8i/ $VUZI Industry

Additional industry data here “We've seen a huge uptick in commercial interest in both virtual and augmented reality driven by the pandemic” – industry expert IDC.

Bottom line is this industry is big with a few players.

Read more:
businesswire.com/news/home/2020…
9/ $VUZI Competitors:

$FB, $GOOGL, $AAPL have been investing here bc'os of the big opportunity available

The most important thing is that $VUZI has found a niche by designing smart glasses for enterprise solutions like healthcare while, we know big tech is focused on consumer.
10i/ $VUZI Competitive Advantages:

- Market leader with a niche and 20yrs core competency within the enterprise markets in 5G & edge computing for key industries

- Over 184 significant patents & IP in key AR smart glasses technology and waveguides (Also why Intel owns a stake)
10ii) $VUZI Comps con'td:

- They have products positioned across all verticals for B2B & B2C markets while maintain a niche.
- $VUZI has production scale and customizability features based on industry
- Better pricing than Comps
- Product validations with huge customer wins
11/ Future Product-Line:

This is going to be the huge game-changer. They are working on perfectly normal glasses for consumers.
- It has Full-screen and phone LED videos connections
- Headphones capabilities
- Wireless connectivity
- Advanced projections
12/ $VUZI Ownership Structure:

- Mgmt owns over 10%
- Intel ($INTC) owns over 10%
- Significant insider buying and no-selling over last couple of months which brews mgmt confidence

* They've won CES awards for innovation btw '05 - 2021 and several tech. innovation awards
13/ $VUZI Risks:

- Competition from Big Tech is always one if they dabble into $VUZI niche
- More execution risks to attract more clients
- Reducing R&D costs to drive cash flow and sustainable margins overtime
- Time lag b4 Widespread adoption of AR
- Still small & growing
14/ $VUZI Bottom-line:

- AR is helping solve key problems
- They've created a core competitive niche in AR for enterprises & Healthcare w. significant patents
- Huge TAM
Me: Its High risk, high-reward as I started a small pos - They've *shown execution* which is key

Thanks :)
Interesting question @parth_ir on $VUZI vs $U

$U's is mostly focused on the VR & AR Gaming market (which is huge)

Meanwhile, $VUZI primarily caters to the enterprise market focusing on building AR Glasses for healthcare and others in the thread.

Every week, I write to Investors about upcoming companies with massive competitive advantages and secular tailwinds below.

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investianalystnewsletter.substack.com

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