Chardan: Watch Wearable Maker Vuzix Into CES

Vuzix Corporation (NASDAQ: VUZI) has recently raised $14 million in an equity offering. The company is heading into the CES (Consumer Electronics Show) with a robust balance sheet as well as “a broad and expanding product line,” Chardan Capital Markets’ James McIlree said in a report. He maintains a Buy rating on the company, with a price target of $10.

Following the equity raise, financing risk for Vuzix has dissipated for at least 12 months, allowing the company to “focus on product and market development of its industry leading portfolio,” McIlree noted.

Product Line

Vuzix has made significant progress in the development of its M300 product, and its volume shipments in the United States and Europe would likely drive revenue growth next year.

“The company believes the market for the M300 is “at least” 10 times larger than the M100 and the roll-out of the M300 will be much faster than the M100 because of the greater reach of the company’s distribution and a more evolved ecosystem of applications,” McIlree wrote.

The analyst estimated the installed base of M100 at about 5,000 units, which means that a size of ten times for M300 would be about 50,000 units, equating to more $60 million.

Vuzix is scheduled to launch the M3000 and Blade 3000 in 2017. Both these products use the company’s “waveguides,” “which enable a form factor more akin to eye-glasses, and we believe this will unlock a significantly larger market than the M300,” McIlree added.

The upcoming CES event will be held in Las Vegas from January 5 through 8.

Image Credit: By The Conmunity - Pop Culture Geek from Los Angeles, CA, USA (CES 2012 - Vuzix) [CC BY 2.0], via Wikimedia Commons