UPDATE 1-Microvision signs up large customer for pico projector

* Says order tied to deal with Asian distribution partner

* Customer likely to be from Taiwan or Korea: analyst

* Shares rise as much as 7 pct (Recasts; adds analyst comments, updates share movement)

By Saqib Iqbal Ahmed

BANGALORE, Oct 8 (Reuters) - Microvision Inc (MVIS.O) signed an initial purchase order with a consumer electronics original equipment manufacturer (OEM) to private label the portable projector maker's plug-n-play device, sending its shares up as much as 7 percent.

The order for the device, a pico projector that beams video or images from a mobile phone to any surface, is tied to a recent marketing and distribution agreement with an Asian distribution partner, the company said without naming the OEM.

"We believe this to be a large OEM based in the Asian market, likely Taiwan or Korea," Canaccord Adams analyst Jonathan Dorsheimer said.

Microvision, which competes with Texas Instruments Inc TXN.N and Light Blue Optics Ltd, faces a challenge because of the limited supply of green lasers, a key component of its pico projector, Dorsheimer said.

"Getting a partner in Asia who can private label and utilize their distribution channel is an important component, so that when Microvision gets the supply of the lasers, they will be able to address a broader market," he said.

Shares of Redmond, Washington-based Microvision were trading up 4 percent at $5.45 in afternoon trade Thursday on Nasdaq. They had earlier touched a high of $5.58. (Reporting by Saqib Iqbal Ahmed; Editing by Maju Samuel and Pradeep Kurup)