Sony at Work on 6 inch Smart Phone?

Start looking for leaks!

AndroidHeadlines

"DigiTimes is reporting that Taiwanese ODMs have already begun work on a 6-inch Android smartphone for Sony, and that it could very well launch later this year. While Sony releases flagships like the Xperia Z2 and Xperia Z3 just six months apart from each other, with the lesser known, less popular devices, Sony often leaves a year or so between releasing newer products. We saw this with the Xperia Z1 Compact which launched at the end of 2013 and theXperia Z3 Compact launched towards the end of last year. As such, this sort of timeframe looks fairly solid for a follow-up to the Xperia Z Ultra and larger devices prove popular in Asia, so it could help them take the premium market in China and surrounding nations."

Sony Mobile aims to ship 38 million smartphones in FY2015, say sources

Daniel Shen, Taipei; Steve Shen, DIGITIMES [Tuesday 31 March 2015]

Sony Mobile Communications aims to ship 38 million smartphones in fiscal 2015 (April 2015-March 2016), down slightly from 39.2 million units shipped in the previous fiscal year, according to sources at Taiwan's handset supply chain.

The lower shipment target comes as the Japan-based vendor is still overhauling its handset business and has also shifted its focus to the mid-range to high-end segment, said the sources.

Despite the absence of new orders from Sony Mobile since the fourth quarter of 2014, Taiwan's ODMs have begun shipping some new models to the Japan-based vendor recently, including the Xperia E4 from Arima Communications, Xperia E4g from Compal Electronics and Xperia M4 Aqua from Foxconn/FIH Mobile.

In order to strengthen its cooperation with these ODMs, Hidehiko Teshirogi, senior vice president for product development and management at Sony Mobile, is scheduled to visit Taiwan in April, the sources noted.

Taiwan's ODMs are likely to be required to move upward to focus more on mid-range models instead of the previous focus on entry-level to mid-range products to cope with the policy shift at Sony Mobile, commented the sources.

For example, these ODMs have begun developing 6-inch large-size smartphones for Sony Mobile, added the sources.

DigiTimes

Cord-cutting Attitude? In MicroVision's Favor

From Motley Fool -- trust me. When this company gets on the Motley Fool Radar(and it will), it will go MUCH higher.

"After years of being ignored, cable cord-cutters and streaming-TV consumers are now more popular than the homecoming queen. Individual TV networks are offering, or soon will offer, streaming-only services to woo the cord-cutting lot. CBS' All Access and Showtime and Time Warner's HBO are joining incumbent Hulu Plus (collectively owned byComcast/NBCUniversal, 21st Century Fox, and ABC/Disney) to offer streaming content for a monthly fee."

Further down the article they state this:

Fortunately -- there will be new products on the way, and we know that SONY has an ace up their sleeve on this one.

One must also consider the "equipment costs" associated with the new product. While Dish's Sling TV only needs a computer and the Internet, Sony's offering requires users to have the PlayStation 3 or PlayStation 4 in order to get the service. The Wall Street Journal reported the service is set to come to iPads as well, but isn't available yet.

James Bond

It took a while for me to decide to make this a post rather than a foot-note on the digging page. The more I think about this, the better I like it and the more sense it makes.

First, PicoP is a Bond-like technology. I chatted with a couple of friends about this, and they immediately launched - as I did, into the potential for this, and how cool it would look in a Bond movie. Conference call on the wall, discussing strategy with a projected map, showing pictures of targets or important people in a group. All would be a perfect application of PicoP technology -- and behold,  James Bond is a movie produced by Sony. 

A marketing home-run would be if a James Bond style science-fiction technology were actually released to the public when the movie is announced?

I have no idea if this is actually what is going on. It would be very exciting if it were -- it would mean that we as stockholders are holding a hot item though. 

NOTE -- Release dates of MAY and November... if you're getting impatient... it might not be long at all.

From PCAdvisorUK

"First, among the chaos of the recent hacked accounts at Sony Pictures, emails between CEO Michael Lynton and executive vice president of consumer marketing George Leon have allegedly been unearthed that leak details about the upcoming Xperia Z4. Not only is it rumoured that it will it be a product placement in the upcoming James Bond movie, but that James Bond actor Daniel Craig and director Sam Mendes will have some input on its design.

The emails mention phones rather than a single phone (backing up the theory that we shall also see Music and dual-SIM versions - see below), with release dates of not March, but May and November. It's also alleged that Daniel Craig could net $5m simply for posing with the Sony Xperia Z4. This is backed up by fansite Xperia blog which says Sony is planning a Summer release."

From Xperia Blog

"Then there is the fact that we have not seen any leaks of any kind for the Xperia Z4 so far (apart from the Bond product pitch, which doesn’t really count). We understand the recent model that passed through the FCC is likely to be a mid-range device. Whilst, SONY has tightened up on the leak front, we find it very hard to believe that we would not see anything given that MWC is just over a month away."

A New Apple TV & Roku 4 -- UPDATED

READ THIS FIRST:

I don't think the first mass-market PicoP-enabled device is going to be an Apple TV. I don't like spiking on rumors - especially unfounded ones. What you are reading here is my own due-diligence that remains open for others to read. (When I started this it was literally a place for me to contain my research so I wouldn't lose it. I was quite surprised that it gained a following.) 

Whatever investment decisions you make, you do on your own. And I do not think that AppleTV is going to be the first mass-market PicoP device.

*     *     *     *     *     *     *     *     *     *     *     *     

There is suddenly a LOT of reporting on a potential new Apple TV device coming to the market this summer. As a MicroVision investor this can't be ignored. Even if we're dubious that we'll be included, it is a possibility, however remote.

There is a particular reason to keep this on watch... at some point, someone will make a portable "DVR / TV-tuner / portable media / PicoP" device. I say this only because it's so logical that someone has to do it. Description HERE

( You can get a 1 terrabyte flash drive that's slightly larger than a cell-phone. Double it, and you could put a PicoP enabled projector, tv tuner and web cast device inside as well. -- then your whole season of Breaking Bad fits in your pocket, purse or overnight bag. )

Roku4 & Apple TV

Apple / Sony Timeline -- Apple and SONY do already work together (background)
Sony SMALLEST TV Tuner


KimKomando 

"Sources are saying that Apple is reading a new Apple TV for launch. It won't just be a video-streaming box like the current Apple TV, but will function as an entertainment centerpiece.

Hardware-wise, the new Apple TV is expected to have similar specs to the current iPad. So it's no surprise that it's also expected to run iOS apps (similar to the way Google's gadgets can run Android apps) and included Siri voice control. It might even include Apple's HomeKit framework for controlling your smart appliances.

There's no word on pricing, but I wouldn't be surprised if Apple put it back at the $100 price point with the old Apple TV serving as the "budget" option. Most likely Apple will make an official announcement in June at its World Wide Developer Conference. When it does, I'll let you know.

MacRumors

Apple plans to announce its next-generation Apple TV set-top box at its annual Worldwide Developers Conference in June, according to BuzzFeed News. The report, citing sources familiar with the plans, claims that the new Apple TV will be a "significant overhaul" of the streaming TV box...

FastCompany

In June, the Apple TV set-top box will reportedly get a substantial refresh, according to BuzzFeed. The updated device, which will be unveiled at the Worldwide Developers Conference (WWDC) in June, is expected to sport the usual boost in specs: a faster chip, more storage, and presumably a different external design.

GuardianLV

The technology company will be debuting its new release, with its sleeker design, brand new operating system, and added features in San Francisco, at the upcoming World Wide Developers Conference this June. Included in its update is Siri voice support, increased storage in addition to the 8GB currently on its systems, and an A8 processor to match its popular sister product, the iPhone 6 and 6 Plus.

BGR

According to John Paczkowski, who has been deadly accurate with Apple product reveals in the past, Apple is going to unveil the next-generation Apple TV set-top box at WWDC this June, where it will also show off some brand-new features that we’ve never seen on an Apple TV box before.

Mystery Port -- UPDATED

Something worth paying attention to: I have no idea what this is or what it means.

It's interesting, because if a case-based or "sled" accessory using PicoP were created, a separate port for the projector would be an optimal. Wireless connections take time to established, and are vulnerable to interference.

With a wired connection a PicoP projector could be "instant on" which would be fantastic for picture sharing.

Very interesting something, but not anything for sure.

These may well be USB3 ports -- which should be appearing in the new Apple MacBook as well.

TWO leaked photos of two different phone brands have "mystery ports on them.

"The leaks also suggest the inclusion of a mysterious port located at the bottom of the device, adjacent to the more predictable USB port. The hole is roundly elongated."  Here

A port next to the microUSB on the bottom of the smartphone is the biggest mystery in the unannounced Xperia Z4. With the 3.5mm audio jack sitting on top of the device, we are yet to find out what purpose will the element follow.

This Xiaomi Mi 5 Image (not yet released as well, has a similar sized port in a similar location.)


From Android Authority

Watching Nintendo

Not sure what's here, but this is interesting. Hearing that they would be going completely mobile with gaming was very intriguing (but not post-worthy) That they would come up with a whole new console (and that they hint at merging console & mobile) that's really interesting.

If they are planning an arrival on the market in 2016 -- we could get more hints and an announcement/reveal soon. (Apple Watch took six months.)

Yesterday at a Game Stop, I spoke to one of the employees and mentioned being able to play games from a portable console projecting on the wall. He instantly said "I'd pay a thousand bucks for that!"

Portable gaming is going to be bit. We'll watch this.

Techradar

That piece of hardware is codenamed the "NX" according Nintendo boss Satoru Iwata, who underlined the fact that Nintendo is still in the dedicated console market, despite it branching out into mobile.

"Because now we have decided on how we will make use of smart device, we have come to hold an even stronger passion and vision for the dedicated video game system business than before."

Iwata added: "Let me confirm that Nintendo is currently developing a dedicated game platform with a brand new concept under the development codename 'NX'"

Wired

Since then, Nintendo refuses to say even a little bit more about NX, other than the fact that it is built around “a brand-new concept.” From the company that brought us the Virtual Boy, this tells us absolutely nothing. So of course, in the absence of information, there’s been tons of speculation as to what it might be.

We actually do have more information, though, that can guide us in the right direction.

Historically, Nintendo’s handheld and home console development teams were always separate, creating totally different types of game machine. The fact that the home and portable machines were such different pieces of technology had recently begun to prove very frustrating to Nintendo. Iwata said in a presentation to investors in March 2014 that while Nintendo wanted to port Wii games to the Nintendo 3DS, or bring Nintendo 3DS titles to the Wii U, it found that because the architectures were so different, it required “a huge amount of effort.”

Nintendo going Mobile

Lenovo?

There's a bit of news in this article from Seeking Alpha that could be huge. I have requested confirmation because I am still doubtful that it is real, but it's here. 

THIS ARTICLE HAS CHANGED. I see that as affirming that the LENOVO claim is false.

That in no way diminishes the enormous recent improvements in the visible fundamentals of Microvision.

MicroVision Deja Vu

Summary

• Recent news should constitute a fundamental change in how investors value Microvision.
• Validation of the company's technology is similar to a historical event for another company I cover.
• The two situations are compared and contrasted with an eye towards developing a clearer picture for Microvision valuation going forward.

Whereas other mobile projectors can cost several hundred or even thousands of dollars, Microvision's projector is already being showcased in Lenovo's Yoga 2 Pro tablet, which retails at $470 for the entire device. Comparison to other tablets from Lenovo leads one to believe that the projector is adding well below $100 to the retail price.

Various Price Targets

I will update this as I find more, but thought it would be good to compile some price targets of Microvision. Some are my own. 

If you submit your own price target or know of a publicly listed price target, please comment.



My quick rough estimate is based on the following formula. 

(10% of previous years worldwide smartphone sales * Likely income/unit) / Float @ P/E of 80.

Last years smart-phone sales: 1,200,000,000  (Reference)
Likely income/unit $12 (based on a non-explicit comment at Stockholder meeting "educated guess")
Shares outstanding: 44,500,000 (Adjust this as the number changes)
PE ratio of 80 (moderate PE ratio for a growth company.)

you do the math...

Previously Here:

Oculus Market Cap Comparison

What is Microvision Worth?


From TrimbathCreative

As I've described before, my rule of thumb for estimating the value of a deal is a price to sales ratio of 6. Based on that, MicroVision's market cap should be worth an extra $87M; which would have been about an 85% increase in MVIS. Adding in the previous $8M deal and the market cap is $135M, about 10% below the closing market cap. That valuation assumes zero value from any of the other possibilities. I don't place a zero value on those possibilities.

More Component Orders

We can say categorically now, that further dilution is off the table.* 

This order is more than a year of the standard burn rate of cash.

MicroVision is IN THE BLACK and will show a PROFIT for this financial year.* 

The component order is only a part of the total income to MicroVision that will come from this order. There will also be license fees and royalties.

REDMOND, Wash.--(BUSINESS WIRE)--

MicroVision, Inc. (MVIS), a leader in innovative ultra-miniature projection display technology, today announced it has received orders totaling $14.5 million for components for its Fortune Global 100 customer. 

MicroVision plans to begin shipment of components for these orders in the second half of 2015 and expects fulfillment to continue into 2016. MicroVision and its Fortune Global 100 customer recently entered into a licensing agreement whereby MicroVision granted a non-exclusive license to its patented PicoP® display technology to the Fortune Global 100 company. The components MicroVision is selling to its customer are expected to be incorporated into display modules the Fortune Global 100 has developed. MicroVision will also be entitled to royalty payments upon any sales by its customer of the display modules. MicroVision is currently fulfilling component orders received in the second half of 2014 for this same customer.

* Please remember you are reading something that is my opinion and for my own notes.

Market Capitalization Comparison: Oculus Rift

Price targets & ultimate valuations of the company and the stock.

Today's comparison: Oculus Rift.

Bought by Facebook for 2 Billion dollars.

MicroVision shares at 2 Billion: $44.94

Comparison to PicoP:

Both are display technologies. Oculus Rift is designed primarily for gamers. It does not allow (yet) interaction with the real world at the same time as with the image it generates.

PicoP technology allows large screen projection nearly anywhere. This technology enables a big screen display in your pocket.

Simplified Market size potential. 

I'm using a "simplified market size potential." There's great interest in keeping comparisons simple & meaningful. If we see all the details, we'd probably get lost in them.

Oculus: assume they sell one for EVERY game console sold: 11,500,000 (4/13-4/14)
PicoP: assume they sell to 10% of of smart phones sold: 130,000,000 (2014)

That would be market potential for PicoP technology 11.3 times more units than Oculus Rift.

MicroVision shares at 11.3 times Oculus: $507.86

Companies WILL pay for future earnings.  

This is why I have bought MicroVision stock and WILL be holding it.

Reference links:
Oculus Rift purchased by Facebook
Oculus VR
Game Console Sales 2013-2014

2,000,000,000 / 44,500,000 = 44.94

Oculus to Ship in early 2016 (new york times blogs)

Faster than Ever Away from Traditional TV

Verizon to launch Streaming TV service


From Washington Post

All part of the massive improvement in the ecosystem for MicroVision's PicoP. The change will be incredibly profound when those streaming services can be watched and shared easily on big screens with portable devices.

Traditional television watching is declining faster than ever as streaming services become a mainstream feature in American homes, according to new research by Nielsen.

Adults watched an average of four hours and 51 minutes of live TV each week in the fourth quarter of 2014, down 13 minutes from the same quarter of 2013, according to Nielsen’s fourth-quarter 2014 Total Audience Report. Viewing was down six minutes between the fourth quarter of 2013 and 2012. And between 2012 and 2011, viewing time actually increased for live TV.

At the same time, more homes turned to online video, with 40 percent of U.S. homes subscribing to a streaming service such as Netflix, Amazon Instant Video or Hulu compared with 36 percent in the fourth quarter of 2013, according to Nielsen. Netflix is by far the most popular streaming service, in 36 percent of all U.S. homes, and Amazon Instant Video is in 13 percent of homes.

The trends have rattled the entertainment industry, with broadcast and cable networks scrambling to take on new competitors on the Web. Cable networks have seen steep ratings declines, which got much worse in the last six months of 2014. Cable ratings among adults fell 9 percent in 2014, three times the rate of decline over 2013, according to Michael Nathanson, an analyst at Moffett Nathanson research.

“It’s hard to ignore our belief that technology is disrupting viewer consumption of linear network programming,” Nathanson wrote in a recent research note.

In response, companies such as HBO, NBC and CBS are launching their own streaming services. The moves could unleash a fast demise of the cable and satellite industries that have fed TV networks with licensing fees.

March 10 2015 Conference Call

Link to Conference Call

MicroVision Announces 2014 Operating Results with Strong Momentum Heading Into 2015

Company sets goal for significant year-over-year growth in 2015 from commercialization of its patented PicoP^® display technology

REDMOND, Wash.--(BUSINESS WIRE)--Mar. 10, 2015-- MicroVision, Inc. (NASDAQ: MVIS), a leader in innovative ultra-miniature projection display technology, today announced its 2014 operating and financial results and an overview of its 2015 business objectives.

2014 Operating Results

2014 was a year of significant accomplishments for MicroVision. Progress was made on each of its stated goals for the year, positioning the company for growth in 2015. The goals for 2014 were to:

• Complete development with Fortune Global 100 customer, support customer with commercialization efforts and supply key components
• Build pipeline of consumer and automotive OEM opportunities for MicroVision’s go-to-market partners that are providing display engines incorporating PicoP^® display technology
• Ramp supply chain for high volume production of MicroVision components in the second half of 2014.

Below are specific accomplishments related to the 2014 goals.

Fortune Global 100

The company completed the development effort with its Fortune Global 100 customer for a display module incorporating MicroVision PicoP^® display technology. This development effort was a major area of focus for MicroVision in 2014. Additionally, the Fortune Global 100 customer contracted with MicroVision in October for $1.5 million in support services to enable commercialization of the module. In the third and fourth quarters of 2014 MicroVision received orders totaling nearly $3.8 million for components to support early commercialization activities. Fulfillment of those orders began in Q4 2014 and continues into 2015.

Recently MicroVision announced it is licensing its PicoP display technology and will supply components to the Fortune Global 100 customer for that company’s display modules. The completion of this license agreement marks the culmination of two years of collaboration between the two companies and is a milestone achievement in MicroVision’s transition to its ingredient brand licensing business model.

Pipeline of Opportunities for Partners

Several successes were achieved in building a pipeline of opportunities for MicroVision’s go-to-market partners, including the market introduction at CES 2015 of two consumer products incorporating PicoP display technology. MicroVision targeted key OEMs and major retailers in the United States and Asia to introduce them to the opportunity pico projection presents in a world where consumers are progressively turning to mobile for media consumption.

To engage OEMs and retailers, MicroVision produced market development tools and executed a series of direct consumer studies to create a comprehensive design-in “tool kit” and market data that present the value proposition and demonstrate the advanced capabilities of display modules incorporating PicoP display technology. Specific market milestones included:

• Korean OEM Celluon formally launched two products at CES 2015 incorporating PicoP display technology, PicoPro and PicoAir. The company has begun selling its products, which have garnered many favorable reviews.
• Several companies MicroVision worked with throughout 2014 on design-in of display modules were privately demonstrating products incorporating PicoP display technology at CES 2015 to their prospective customers and retail outlets.
• MicroVision announced in 2014 that it is collaborating with a second electronics brand on the Fortune Global 500 list on an innovative smartphone product and made significant advancements on display module development.
• In the automotive segment, MicroVision delivered prototype HUD units to a major vehicle OEM and a global Tier One supplier. Those customers are evaluating the PicoP display technology based HUD systems.
• MicroVision delivered custom display modules to a leading global logistics company for deployment in one of its facilities in the United States.

Ramping of Supply Chain

The delivery of MicroVision specific components to its engine manufacturing partners is an integral part of the company’s business model and revenue stream. MicroVision made solid progress to ramp to volume production capability in the second half of 2014. The company established baseline production capacity and began shipments of components to its Fortune Global 100 customer in Q4.

2014 Financial Results

Following aggressive cash management, MicroVision reduced year-over-year operating loss by 13% with reduction seen in each quarter in 2014 compared to the same quarter the previous year. The company also began a transition from development revenue to product and license revenue with a majority of fourth quarter 2014 revenue coming from products and over two-thirds of the backlog comprised of component orders expected to be fulfilled in the first half of 2015.

MicroVision reported the following financial results for the fourth quarter and year ended December 31, 2014.

• Annual revenue of $3.5 million in 2014, compared to $5.9 million in 2013. Revenue for the fourth quarter of 2014 was $ 0.7 million, compared to $1.2 million for the same quarter in 2013.
• Reduced operating loss to $ 13.2 million for 2014, compared to $15.1 million in 2013, and $3.4 million for the fourth quarter of 2014 compared to $3.9 million for the same quarter in 2013.
• Net loss for the year of $18.1 million, or $0.44 per share, compared to $13.2 million, or $0.47 per share for the prior year and $3.3 million, or $0.08 per share, compared to $2.4 million or $0.08 per share for the same quarter a year ago. The 2014 net loss includes a $5.0 million non-cash loss on the exchange of warrants in the first quarter.
• Maintained cash used in operations at $13.0 million in 2014, compared to $12.7 million for 2013, reflecting the company’s continued focus on managing cash use.

As of December 31, 2014, backlog was $5.1 million and cash and cash equivalents were $8.3 million. This cash balance is exclusive of the license fee MicroVision is expecting later this month from its recently announced license agreement.

2015 Objectives and Outlook

“2015 is expected to be a transformational year for MicroVision. We expect to achieve significant year-over-year growth by focusing attention on making our customers successful whether providing high quality components or assisting them with their go-to-market efforts,” said Alexander Tokman, president and CEO of MicroVision.

MicroVision’s key goals for 2015 build on the momentum from 2014 and include:

• Support the Fortune Global 100 customer with display module commercialization
• Develop new OEM/channel opportunities for display engine manufacturing partners that are incorporating PicoP display technology
• Increase supply capacity for key components
• Achieve significant year-over-year growth through component sales and licensing of PicoP display technology
• Evolve technology platform to offer enhanced features and capabilities for a compelling roadmap for licensees of PicoP display technology.

Questions and Answers:

Key points (so far.)

1) DGL pricing is approximately the same as the cost of other lasers

2) 90% of recent efforts/resources was dedicated to the SONY project. (This frees up resources)

3) MicroVision's business model will leverage sales forces of partners

4) Celluon overwhelmed with orders for PicoAir and PicoPro
5) Significant power/brightness advantage with MEMS and lasers
6) .... brightness that people wouldn't expect. (will QUOTE this comment when I can.)

SUMMARY

Seeking Alpha


The transcript of the full call is available there. I've simply highlighted some points that seem to be key.

Key timelines that your customers are trying to hit?

Alexander Tokman - President and CEO

Because most of the customers we’re dealing with right now are selling it globally. Each region has its own preferential time. In North America, it's Christmas time. In Asia, it's could be Chinese New Year or summertime where they launch the product. So there is not really a specific time and it depends on the region.

What types of end-user products that you are seeing?

Alexander Tokman - President and CEO

Sure. There are several types of products actually. We can’t specify it because this would shed light on something that people ask us not to discuss publicly into their outlook but the companion products are part of the portfolio. They are obviously working with smartphone manufacturer. We obviously are working with several companies who want to introduce simpler version aftermarket head-up displays. Also, there are applications that related to home and that are not your traditional projection applications.

Q: What about the relationship built on our technology with a world-class sponsor? 

Alexander Tokman - President and CEO

Sony makes it a lot more exciting for us. We always believed that the success in this market for us is not going to be from trying to work with hundreds of people at the same time, but rather take the vital few market makers who can go and use their expanded marketing and sales arm and promote this technology the way it should be promoted to be successful with consumers. Obviously, Sony is one of the companies that can do this. And this is why we're very excited about it. 

So the valuation point is simply that if they didn't believe in this market opportunity, we would have not gone this far. They've invested a significant amount of money into this proposition. What they've given us is a fraction of what they are investing because they truly believe that there's something special about this emerging market and once the success is shown, we believe that there will be many copycats who would join -- like pigs of the trough. 

We put 90% plus of our resources in past two years to make Sony a successful, 90% plus. If we did not do this, we would have not been successful. So, we have to manage cash and we’d have to focus on vital few. Now that we transition and we've done a lot of heavy lift to support our Fortune Global 100 customer, we have resources become available for other opportunities.

As we start selling components and receive licensing revenue from our customer selling their display modules to everybody, we obviously are going to have more revenue and more margin and we’ll be able to invest more into the technical development resources and to expand our base so we can focus on more opportunities, yes.

Q: Now when you look at the competitive landscape and you look at Lycos and you also look to DLP, there are significant advantages as a lumen output increases? Could you talk a little bit to that and show where we stand in that competitive edge?

Alexander Tokman - President and CEO

Sure. One of the fundamental advantages we have for any application to require miniaturization and low power consumption is due to the fact we use lasers and MEMS versus let say panels and the LEDs. So our ability to increase brightness without any significant increase in power is what separates us.

For example, when the projector is very large, we don’t have real advantage on power, but when the requirements for the projection system to be very small, we actually have significant advantage. At low brightness, we slightly differentiated and as brightness increases from 10 lumens to 100 lumens, our differentiation on power increases exponentially.

Unidentified Analyst

Now as you start to look at higher lumen output, are there limitation to the start or are you seeing that the current, I think, 32 lumens is what Celluon is coming out with. Let say if you looked at the 50 to 60 lumen area, is that doable without any major obstacles that need to be overcome?

Alexander Tokman - President and CEO

Yes.

Unidentified Analyst

Okay. And component wise? Go ahead.

Alexander Tokman - President and CEO

... at CES under NDA we showcased to customers in Vegas some of the roadmap activities that we have about increasing brightness to the levels that people would never expect us to get.

Alexander Tokman - President and CEO

it is exciting, because you’re replacing three or four MicroVision business development, marketing and sales people with several thousands that Fortune Global 100 has. 

Unidentified Analyst

Okay. And when it relates to cost of digital green lasers, at one time there were 5x of the reds and blues. How close are we coming in line with the cost of the other colors right now?

Alexander Tokman - President and CEO

Very close, Tom, very, very close. It was 20x actually when we started in 2010 and now it’s almost even.

Unidentified Analyst

Excellent. Good. Congratulations on great milestones this year. Looking forward to seeing additional products, I have got the Celluon projector and I am amazed that the quality and the ability of it to be able to -- always being focused and beautiful colors. So thanks for the work.

The way the agreement is structured without going into specific details is that Fortune Global 100 customer would sell these modules internally and externally.

it's related to scanned beam display technology that we license to them. It's not related to a number of patents, but it’s related to instantiation of the technology at that time.

 Ooyala, for example, a leader in reporting digital video trends, year-over-year smartphone and tablets use more than doubled showing 114% increase.

We believe that solutions that with MicroVision's PicoP display technology are poised to enable truly differentiated end-user experience that are not attainable from other technologies. And there’s a lot to be excited about.