Augmented reality (AR) technologies and products supplier Vuzix is set to develop a customised waveguide-based optics engine for an unidentified US defence contractor.

An agreement has been signed by both parties but financial details have not been disclosed.

Under the first phase of the agreement, an upfront payment has been agreed by the sides. It also includes phase-gated development milestones and other payments.

Vuzix expects the first phase of the agreement to generate initial non-recurring engineering (NRE) revenue in the coming six months.

The following phases of the agreement are anticipated to generate more NREs.

Subsequently, the final product design will lead to mass production of the waveguide-based optics engine.

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By GlobalData

Vuzix president and CEO Paul Travers said: “We are excited to enter into this partnership and believe it represents a strong vote of confidence in our capabilities and recognition of our leading position within the waveguide optics technology space.

“Additionally, the agreement demonstrates how Vuzix is able to leverage our industry leading optics technology and partner with top US Defence contractors across a variety of vertical markets.”

A display engine is required for waveguides, which are high-quality, full-colour transparent optical structures. They are built from plastic or glass and used in near-eye augmented reality displays and lenses.

The company works with customers to build the product taking into consideration specifications such as size, light coupling, power consumption, resolution and more.

The display engine is lightweight and projects an image that is clear and can be seen only by the user.

In July 2012, the US Army Research, Development and Engineering Command awarded Vuzix with a multiphase contract for the development of a wide field of view (WFOV) see-through waveguide (STWG) system.