Vuzix Corporation (NASDAQ: VUZI) announced Friday it has received a follow-on order from a major US defense contractor to further develop a customized waveguide-based head-worn AR Display Engine.
This order represents the second phase of the development effort, which was first announced in March 2020.
On the news, Vuzix’s stock recently traded higher by 8.3% to $5.07 a share in New York.
Phase 2 will generate additional non-recurring engineering (NRE) revenue in the lower six-figure range for Vuzix over the coming months, with potentially further NREs in subsequent phases before a possible customer acceptance of a final product design that could lead to an eventual production program.
"We are very pleased with the progress we continue to make with this major US defense contractor as we pursue a production opportunity with them," said CEO Paul Travers in a statement.
"OEM custom waveguide-based projects such as this represent a profitable vehicle for leveraging our extensive optical expertise and IP and we look forward to announcing further developments with this firm as this project proceeds."
Vuzix, based in Rochester, New York, is a leading supplier of smart glasses and augmented reality (AR) technologies.
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