OREANDA-NEWS. Mobileye N.V., the global leader in Advanced Driver Assistance Systems and autonomous driving technologies, today announced financial results for the quarter ended March 31, 2016.

"Our first quarter results highlight consistently solid performance on the current business and continued investment into recently-announced innovative technologies," stated Ziv Aviram, Co-founder, President and Chief Executive Officer of Mobileye. "Our EyeQ4 chip is achieving excellent performance ahead of its official launch on already sourced programs for 2018, while we are in advanced development of our fifth generation EyeQ chip planned to be launched in 2020, an accelerated upgrade cycle. We expect to expand REM mapping technology to more OEMs and are forming new partnerships to introduce fully autonomous driving capabilities on the roads. Mobileye's commitment to innovation and its ability to develop and introduce best-in class technologies, both hardware and software, position us to play a major role in ADAS and autonomous driving."

First Quarter 2016 Financial Highlights

  • Revenue: Total revenue for the first quarter of 2016 was $75.2 million, compared to $45.6 million in the prior-year period.  Within total revenue, original equipment manufacturing (OEM) revenue was $61.4 million, compared to $36.6 million in the prior-year period. EyeQ chip volume increased 62% year-over-year to 1,322 thousand EyeQ units, compared to 817 thousand units in the prior-year period.  The EyeQ Average Selling Price (ASP) per unit for the first quarter of 2016 was $44.2, up from $43.7 during the same period last year.  After market (AM) revenue contributed the remaining $13.8 million of total revenue for the first quarter of 2016 compared to $9.0 million in the prior-year period.
  • Net Income and Earnings per Share:  GAAP net income for the first quarter of 2016 was $21.9 million, or $0.09 per diluted share. This compares to GAAP net income of $10.1 million, or $0.04 per diluted share for the first quarter of 2015. GAAP results include share-based compensation expense of $13.1 million for the first quarter of 2016 compared to $8.1 million for the first quarter of 2015.

Non-GAAP net income for the first quarter of 2016 was $35.0 million, or $0.15 per share, based on 236.9 million weighted average diluted shares outstanding.  This compares to non-GAAP net income of $18.2 million, or $0.08 per share, based on 237.0 million weighted average diluted shares outstanding during the first quarter of 2015. Non-GAAP net income excludes share-based compensation expense. 

  • Cash and Cash Flow: At March 31, 2016, Mobileye had cash, cash equivalents, restricted cash and marketable securities of $510.2 million, compared to $476.1 million at December 31, 2015. 

The company generated $32.5 million in net cash from operating activities for the first quarter of 2016 compared to $21.5 million for the first quarter of 2015.  The company generated $30.4 million in free cash flow for the 2016 first quarter compared to $18.8 million for the comparable 2015 quarter.  Free cash flow represents net cash provided by operating activities minus capital expenditures.

About Mobileye
Mobileye N.V. is the global leader in the development of computer vision and machine learning, data analysis, localization and mapping for Advanced Driver Assistance Systems and autonomous driving.  The Company's technology keeps passengers safer on the roads, reduces the risks of traffic accidents, saves lives and has the potential to revolutionize the driving experience by enabling autonomous driving.  The Company's proprietary software algorithms and EyeQ® chips perform detailed interpretations of the visual field in order to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris and other obstacles.  The Company's products are also able to detect roadway markings such as lanes, road boundaries, barriers and similar items; identify and read traffic signs, directional signs and traffic lights; create a Roadbook™ of localized drivable paths and visual landmarks using REM™; and provide mapping for autonomous driving.  The Company's products are or will be integrated into car models from 25 global automakers.  The Company's products are also available in the aftermarket.

 

MOBILEYE N.V.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share data)
                       
 

For the three months ended

            
 

March 31,

            
 

2016

  

2015

            

Revenue

$

75,207

  

$

45,581

            

Cost of revenue

  

18,548

    

12,035

            
                       

Gross profit

  

56,659

    

33,546

            
                       

Operating costs and expenses

                      
                       

Research and development, net

  

14,979

    

9,727

            

Sales and marketing

  

3,731

    

3,496

            

General and administrative

  

14,254

    

7,657

            
                       

Total operating expenses

  

32,964

    

20,880

            
                       

Operating profit

 

23,695

    

12,666

            
                       

Interest income

  

1,171

    

175

            

Financial income (loss), net

  

161

    

(594)

            
                       

Profit before taxes on income

  

25,027

    

12,247

            
                       

Taxes on income

  

(3,110)

    

(2,109)

            
                       

Net income for the period

$

21,917

  

$

10,138

            
                       

Basic and diluted income per share:

                      

Basic

$

0.10

    

0.05

            

Diluted

$

0.09

  

$

0.04

            
                       

Weighted average number of  Ordinary shares (in thousands)

                  

Basic

  

218,962

    

215,182

            

Diluted

  

236,938

    

236,969

            
                       
                       
                       
 

MOBILEYE N.V.

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (UNAUDITED)

(in thousands, except per share data)
                       
 

For the three months ended

            
 

March 31,

            
 

2016

  

2015

            
                   

GAAP  net income as reported

$

21,917

    

10,138

            
                       

Non-GAAP adjustment

                      

Expenses recorded for Stock based compensation

                      

Cost of revenues

  

7

    

5

            

Research and development

  

2,341

    

1,835

            

Sales and marketing

  

54

    

423

            

General and administrative

  

10,703

    

5,811

            

Total adjustment

  

13,105

    

8,074

            
                       

Non-GAAP net income

  

35,022

    

18,212

            
                       

Non-GAAP net income per share

                      

Basic

$

0.16

  

$

0.08

            

Diluted

$

0.15

  

$

0.08

            
                       

Weighted average number of shares (in thousands)

                      

Basic

  

218,962

    

215,182

            

Diluted

  

236,938

    

236,969

            
                       

MOBILEYE N.V.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands)
           
 

March 31,

  

December 31,
 

2016

  

2015

Assets

          

Current assets

          

Cash and cash equivalents

$

184,029

  

$

152,692

Marketable securities

  

72,797

    

59,394

Trade account receivables, net

  

33,212

    

23,706

Inventories

  

40,378

    

42,676

Other current assets

  

12,437

    

14,817

Total current assets

  

342,853

    

293,285
           

Long-term assets

          

Marketable securities

  

250,303

    

260,982

Property and equipment, net

 

16,110

    

11,031

Severance pay fund

 

10,816

    

9,863

Other assets

  

2,710

    

2,453

Total long-term assets

  

279,939

    

284,329
           

Total assets

$

622,792

  

$

577,614

Liabilities and shareholders' equity

          

Current liabilities

          

Accounts payable and accrued expenses

$

28,739

  

$

24,593

Employee related accrued expenses

  

6,348

    

5,341

Other current liabilities

  

13,037

    

13,322

Total current liabilities

  

48,124

    

43,256
           

Long-term liabilities

          

Accrued severance pay

  

13,282

    

12,020

Long-term tax liabilities

  

7,099

    

6,864

Total long-term liabilities

  

20,381

    

18,884
           

Total liabilities

  

68,505

    

62,140
           

Shareholders' equity

          
           

Share capital

  

2,562

    

2,558

Additional paid-in capital

  

592,105

    

577,212

Accumulated other comprehensive income (loss)

  

224

    

(1,775)

Accumulated deficit

  

(40,604)

    

(62,521)

Total shareholders' equity

  

554,287

    

515,474
           

Total liabilities and shareholders' equity

$

622,792

  

$

577,614

MOBILEYE N.V.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 (in thousands)
             
 

For the three months ended

  
 

March 31,

  
 

2016

  

2015

  

Cash flows from operating activities

            

Net income for the period

$

21,917

  

$

10,138

  

Adjustments to reconcile net income to net cash provided by operating activities:

            

Depreciation

  

870

    

787

  

Exchange rate differences

  

(571)

    

664

  

Accrued severance pay

  

1,262

    

320

  

Loss (gain) from marketable securities

  

(35)

    

33

  

Share-based compensation

  

13,105

    

8,074

  

Changes in asset and liabilities:

            

Trade accounts receivables, net

  

(9,506)

    

(7,491)

  

Other current assets

  

2,174

    

1,836

  

Inventories

  

2,298

    

(3,245)

  

Other long-term assets

  

(257)

    

(47)

  

Account payables and accrued expenses

  

247

    

4,816

  

Employee-related accrued expenses

  

1,007

    

1,608

  

Other current-liabilities

  

(285)

    

4,081

  

Long-term liabilities

  

235

    

(110)

  

Net cash provided by operating activities

  

32,461

    

21,464

  
             

Cash flows from investing activities

            

Proceeds from maturities / sales of marketable securities

  

23,423

    

3,232

  

Purchase of marketable securities

  

(24,113)

    

(109,742)

  

Severance pay fund

 

(571)

    

(361)

  

Purchase of property and equipment

  

(2,050)

    

(2,712)

  

Net cash used in investing  activities

  

(3,311)

    

(109,583)

  
             

Cash flows from financing activities

            

Cash received in respect of withholding taxes related to exercise of options

  

-

    

28,000

  

Exercise of options

  

1,998

    

5,003

  

Net cash provided by financing activities

  

1,998

    

33,003

  
             

Increase (decrease) in cash and cash equivalents

  

31,148

    

(55,116)

  
             

Balance of cash and cash equivalents at the beginning of the period

  

152,692

    

339,881

  

Exchange rate differences on cash and cash equivalents

  

189

    

(434)

  

Balance of cash and cash equivalents at the end of the period

$

184,029

  

$

284,331

  

MOBILEYE N.V.

RECONCILIATION OF GAAP NET CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOWS (UNAUDITED)

(in thousands)
                       
 

For the three months ended

            
 

March 31,

            
 

2016

  

2015

            
                   

GAAP net cash from operating activities as reported

$

32,461

  

$

21,464

            
                       

Capital Expenditures

  

(2,050)

    

(2,712)

            

Free Cash Flow

  

30,411

    

18,752

            
 
 

MOBILEYE N.V.

SUPPLEMENTAL INFORMATION (UNAUDITED)

(in thousands)
                       
 

For the three months ended

            
 

March 31,

            
 

2016

  

2015

            
                   

OEM Revenue

$

61,440

  

$

36,565

            

Aftermarket Revenue

  

13,767

    

9,016

            

Total Revenue

$

75,207

  

$

45,581

            
                       
                       

Number of EyeQ units (in thousand)

  

1,322

    

817

            

EyeQ average selling price per unit

$

44.2

  

$

43.7