ROCHESTER, N.Y. , May 17, 2012 /PRNewswire/ -- Vuzix Corporation (TSX-V:VZX, OTC:BB: VUZI, FMB: V7X) ("Vuzix" or, the "Company"), a leader in the design and manufacture of Video Eyewear products that provide users with portable high quality viewing experiences, today reported its first quarter results for the period ending March 31, 2012 . Unless otherwise indicated, dollar amounts referred to herein are references to United States dollars. No regulatory authority has approved or disapproved the information contained in this news release.
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For the first quarter period ending March 31, 2012 , revenue was $2,851,392 as compared to $4,073,109 for the same period last year, a decrease of 30.0%. A net loss of $844,483 or $0.0032 per share was reported for the three month period ending March 31, 2012 , versus a loss of $420,306 or $0.0016 per share in the same period of 2011. The gross margin declined to 39.1% in the first quarter 2012 against 41.7% in the first quarter of 2011, caused primarily by the reduction of higher margin defense product sales as a percentage of total revenues. Defense products represented 48.7% of revenues in the quarter versus 78.3% in the same quarter in 2011. Total operating expenses for the first quarter ending March 31, 2012 were $1,571,657 versus $1,825,853 for the same period of 2011, representing a saving of $254,196 .
Paul Travers , President, commented, "We have implemented various cost saving strategies including the consolidation of our office and R&D spaces, as well as further personnel reductions. We continue to be very focused on achieving cost reduction and improving our efficiencies. Our continuing liquidity issues, growing negative working capital base, and high interest costs on our debt, continue to constraint our ability to take advantage of opportunities and improve our operating results. The Company continues to be in noncompliance with EBITDA covenants with both of its senior lenders, however these lenders for now continue to work with the Company. Until our liquidity issues are addressed, we will continue to be limited in what we can achieve to grow its business and leverage our technology advances. In addition to exploring options with respect to new debt borrowing and equity financings, the Company is also pursuing the sale of certain assets to fund its operations and reduce debt."
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