January 12, 2015
A local company has been making headlines and catching the eye of technology giants. Vuzix is headquartered in Rochester, NY and is the leading supplier of video eye-wear products across multiple markets. Vuzix caters its devices to both consumers and workplaces, largely targeting field technicians and factory workers.
Many companies view wearable devices as the next technology growth area. A couple of weeks ago Intel paid $24.8 million for a 30% stake in Vuzix. Intel is looking to penetrate the wearable market much like its rival Google. Mike Bell, Intel's general manager of new devices, said, "...Our plan is to partner with the best people, and have them teach us." As evidenced by the near $25 million investment Intel sees Vuzix as one of those people.
Just this week Vuzix secured a licensing deal with another tech giant, Nokia, to incorporate mapping and navigation apps in its smart glasses. Nokia's mapping service will increase customer satisfaction and efficiency.
Not long ago we saw Google come out with a radical idea called Google Glass. Despite being first to market, the product has struggled to find a place with consumers or businesses. Unlike Google Glass, Vuzix has a clear focus on who their target market is. If this local company can keep its sights on its target market and continue improving product offerings, it should result in increased revenues and strong long-term growth.
Ethan Wade, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).