Samuel Rae Blog | Vuzix Corp (NASDAQ:VUZI) Signs New Partnerships And Contracts | Talkmarkets
Currency Trader, Author/Journalist

Samuel is a currency trader, retail investor, author and contributor to a number of the leading trading market publications, including Futures Magazine, FX Trader Magazine, Master Investor and Spreadbet Magazine. 

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Vuzix Corp (NASDAQ:VUZI) Signs New Partnerships And Contracts

Date: Monday, August 14, 2017 12:12 PM EDT

At a time when most tech stocks are struggling, insiders at Vuzix Corp (NASDAQ:VUZI) are signing major contracts. Thanks to deals with Intel, Toshiba, DHL, BlackBerry and John Deere, the Augmented Reality ("AR") products developer will soon earn millions in new client revenue. Deals announced this summer will see Vuzix supplying smart glasses to a number of Fortune 500 companies, both as an engineering partner and an equipment supplier.

One deal, with DHL's supply chain, is already generating revenue for the company. Vuzix was DHL's main smart glasses supplier during its recent AR tests, which assessed possible applications of AR in warehouse operations. The tests were hailed by the company as a major success, yielding average productivity increases of 15%. As a result, DHL is now increasing the use of smart glasses and vision picking at its warehouses.

The DHL deal was a major breakthrough for Vuzix. Another development deal with Toshiba is expected to bring in over $1 million in revenue, creating a distribution channel that could sell thousands of glasses every year starting in 2018. In addition, Vuzix began recently working with Ubimax to deliver custom versions of its M300 headsets to John Deere and WS Kunststoff-Service. Finally, a new partnership with BlackBerry was announced just days ago around Vuzix's M300 smart glasses and BlackBerry's enterprise software users.

These new partnerships underscore Vuzix's unique market strategy. The company develops products for consumer and enterprise customers, but has placed particular emphasis on the latter. This is one of the company's key differentiators. In its marketing, Vuzix has consistently emphasized its products' usefulness in remote support, warehouse logistics, telemedicine and manufacturing settings. This is in sharp contrast to other AR and wearable tech developers, which prioritize the consumer segment of the market.

Vuzix Enjoys Strong AR Industry Growth

The past two years have seen major growth in the AR and wearable tech markets. Private investors have made than 225 venture capital investments, valued at $3.5 billion total, in this sector. These investments include 'seed' funding for small startups as well as second and third stage investments for growing companies.

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