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 June 30, 2016.

"We are pleased with the second quarter financial results," stated Ziv Aviram, co-founder, president and chief executive officer of Mobileye. "More important, commercial and strategic achievements in Q2 capped a first half in which we secured new business at all levels, from ADAS through fully autonomous, as well as introduced innovative new products, such as Road Experience Management (REM).  In addition to winning new ADAS programs and new Tier-1 partnerships, we have begun an expansion of our value proposition by creating partnerships with automakers and others in order to bring fully autonomous driving to volume production within the next five years.  The BMW/Intel/Mobileye partnership is the first significant collaboration of this type and we anticipate others. Overall, we believe we have made important progress in advancing our strategy of securing a significant, long-term presence in all levels of autonomous driving." 

Second Quarter 2016 Financial Highlights

  • Revenue: Total revenue for the second quarter of 2016 was $83.5 million, compared to $52.8 million in the prior-year period.  Within total revenue, original equipment manufacturing (OEM) revenue was $64.4 million, compared to $43.6 million in the prior-year period. EyeQ chip volume increased 45.4% year-over-year to 1,409 thousand EyeQ units, compared to 969 thousand units in the prior-year period.  The EyeQ Average Selling Price (ASP) per unit for the second quarter of 2016 was $44.5, up from $43.7 during the same period last year.  After market (AM) revenue contributed the remaining $19.1 million of total revenue for the second quarter of 2016 compared to $9.2 million in the prior-year period.
  • Net Income and Earnings per Share:  GAAP net income for the second quarter of 2016 was $26.9 million, or $0.11 per diluted share. This compares to GAAP net income of $15.3 million, or $0.06 per diluted share, for the second quarter of 2015. GAAP results included share-based compensation expense, net of tax, of $14.4 million for the second quarter of 2016 compared to $8.3 million for the second quarter of 2015.
    Non-GAAP net income for the second quarter of 2016 was $41.2 million, or $0.17 per share, based on 237.7 million weighted average diluted shares outstanding.  This compares to non-GAAP net income of $23.6 million, or $0.10 per share, based on 237.8 million weighted average diluted shares outstanding during the second quarter of 2015. Non-GAAP net income excludes share-based compensation expense, and the applicable income tax effect. 
  • Cash and Cash Flow: At June 30, 2016, Mobileye had cash, cash equivalents, restricted cash and marketable securities of $543.1 million, compared to $510.2 million at March 31, 2016. 
    The company generated $37.8 million in GAAP net cash from operating activities for the second quarter of 2016 compared to $23.6 million for the second quarter of 2015. The company generated $33.0 million in non-GAAP free cash flow for the 2016 second quarter compared to $22.8 million for the comparable 2015 quarter.  Non-GAAP free cash flow represents GAAP net cash provided by operating activities minus capital expenditures.

A reconciliation of the non-GAAP financial measures to GAAP measures has been provided in the financial tables included in this press release. An explanation of the non-GAAP financial measures and how they are calculated is included below under the heading "Non-GAAP Financial Measures." The Company has updated the reconciliation of GAAP to non-GAAP net income in line with the recent Securities and Exchange Commission ("SEC") Compliance & Disclosure Interpretations ("C&DIs") and added to the reconciliation the applicable tax effect on share-based compensation expense, for all presented periods.

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 six months ended

  

For the three months ended
 

June 30,

  

June 30,
 

2016

  

2015

  

2016

  

2015

Revenue

$

158,685

  

$

98,408

  

$

83,478

  

$

52,827

Cost of revenue

  

38,953

    

25,605

    

20,405

    

13,570
                       

Gross profit

  

119,732

    

72,803

    

63,073

    

39,257
                       

Operating costs and expenses

                      
                       

Research and development, net

  

29,612

    

20,232

    

14,633

    

10,505

Sales and marketing

  

7,294

    

6,979

    

3,563

    

3,483

General and administrative

  

28,883

    

15,887

    

14,629

    

8,230
                       

Total operating expenses

  

65,789

    

43,098

    

32,825

    

22,218
                       

Operating profit

 

53,943

    

29,705

    

30,248

    

17,039
                       

Interest income

  

2,388

    

688

    

1,217

    

513

Financial income (loss), net

  

(262)

    

(434)

    

(423)

    

160
                       

Profit before taxes on income

  

56,069

    

29,959

    

31,042

    

17,712
                       

Taxes on income

  

(7,284)

    

(4,546)

    

(4,174)

    

(2,437)
                       

Net income for the period

$

48,785

  

$

25,413

  

$

26,868

  

$

15,275
                       

Basic and diluted income per share:

                      

Basic

$

0.22

  

$

0.12

  

$

0.12

  

$

0.07

Diluted

$

0.21

  

$

0.11

  

$

0.11

  

$

0.06
                       

Weighted average number of  Ordinary shares (in thousands)

                      

Basic

  

219,148

    

216,287

    

219,332

    

217,362

Diluted

  

237,325

    

237,417

    

237,709

    

237,837

MOBILEYE N.V.

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

(in thousands, except per share data)
                       
 

For the six months ended

  

For the three  months ended
 

June 30,

  

June 30,
 

2016

  

2015

  

2016

  

2015
               

GAAP  net income (loss) as reported

$

48,785

    

25,413

  

$

26,868

    

15,275
                       

Non-GAAP adjustment

                      

Expenses recorded for Stock based compensation

                      

Cost of revenues

  

19

    

10

    

12

    

5

Research and development

  

5,236

    

3,871

    

2,895

    

2,036

Sales and marketing

  

117

    

1,031

    

63

    

608

General and administrative

  

22,164

    

11,563

    

11,461

    

5,752

Total Stock based compensation

  

27,536

    

16,475

    

14,431

    

8,401

Income tax effect

  

(334)

    

(117)

    

(60)

    

(53)

Total adjustment

  

27,202

    

16,358

    

14,371

    

8,348
                       

Non-GAAP net income

  

75,987

    

41,771

    

41,239

    

23,623
                       

Non-GAAP net income per share

                      

Basic

$

0.35

  

$

0.19

  

$

0.19

  

$

0.11

Diluted

$

0.32

  

$

0.18

  

$

0.17

  

$

0.10
                       

Weighted average number of shares (in thousands)

                      

Basic

  

219,148

    

216,287

    

219,332

    

217,362

Diluted

  

237,325

    

237,417

    

237,709

    

237,837
 

MOBILEYE N.V.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(U.S. dollars in thousands)
           
 

June 30,

  

December 31,
 

2016

  

2015

Assets

          

Current assets

          

Cash and cash equivalents

$

190,456

  

$

152,692

Marketable securities

  

99,908

    

59,394

Trade account receivables, net

  

38,610

    

23,706

Inventories

  

45,922

    

42,676

Other current assets

  

13,863

    

14,817

Total current assets

  

388,759

    

293,285
           

Long-term assets

          

Marketable securities

  

249,713

    

260,982

Property and equipment, net

 

16,854

    

11,031

Severance pay fund

 

11,211

    

9,863

Other assets

  

3,142

    

2,453

Total long-term assets

  

280,920

    

284,329
           

Total assets

$

669,679

  

$

577,614

Liabilities and shareholders' equity

          

Current liabilities

          

Accounts payable and accrued expenses

$

28,334

  

$

24,593

Employee related accrued expenses

  

6,639

    

5,341

Other current liabilities

  

17,240

    

13,322

Total current liabilities

  

52,213

    

43,256
           

Long-term liabilities

          

Accrued severance pay

  

14,080

    

12,020

Long-term liabilities

  

7,321

    

6,864

Total long-term liabilities

  

21,401

    

18,884
           

Total liabilities

  

73,614

    

62,140
           

Shareholders' equity

          
           

Share capital

  

2,566

    

2,558

Additional paid-in capital

  

606,293

    

577,212

Accumulated other comprehensive income (loss)

  

942

    

(1,775)

Accumulated deficit

  

(13,736)

    

(62,521)

Total shareholders' equity

  

596,065

    

515,474
           

Total liabilities and shareholders' equity

$

669,679

  

$

577,614

MOBILEYE N.V.

          

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

          

(in thousands)

          
                       
 

For the six months ended

  

For the three months ended
 

June 30,

  

June 30,
 

2016

  

2015

  

2016

  

2015

Cash flows from operating activities

                      

Net income for the period

$

48,785

  

$

25,413

  

$

26,868

  

$

15,275

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

                      

Depreciation

  

1,867

    

1,618

    

997

    

831

Exchange rate differences

  

(262)

    

(577)

    

309

    

(1,241)

Accrued severance pay

  

2,060

    

1,528

    

798

    

1,208

Loss (gain) from marketable securities

  

(28)

    

168

    

7

    

135

Share-based compensation

  

27,536

    

16,475

    

14,431

    

8,401

Changes in assets and liabilities:

                      

Trade accounts receivables, net

  

(14,904)

    

(7,609)

    

(5,398)

    

(118)

Other current assets

  

814

    

1,839

    

(1,360)

    

3

Inventories

  

(3,246)

    

(9,665)

    

(5,544)

    

(6,420)

Other long-term assets

  

(689)

    

(706)

    

(432)

    

(659)

Account payables and accrued expenses

  

2,856

    

9,076

    

2,609

    

4,260

Employee-related accrued expenses

  

1,298

    

843

    

291

    

(765)

Other current-liabilities

  

3,918

    

6,399

    

4,203

    

2,318

Long-term liabilities

  

209

    

282

    

(26)

    

392

Net cash provided by operating activities

  

70,214

    

45,084

    

37,753

    

23,620
                       

Cash flows from investing activities

                      

Change in restricted and short-term deposits

  

(7)

    

25

    

(7)

    

25

Proceeds from maturities / sales of marketable securities

  

34,701

    

129,675

    

11,278

    

126,443

Purchase of marketable securities

  

(60,953)

    

(357,730)

    

(36,840)

    

(247,988)

Severance pay fund

 

(1,197)

    

(837)

    

(626)

    

(476)

Purchase of property and equipment

  

(6,805)

    

(3,521)

    

(4,755)

    

(809)

Net cash used in investing  activities

  

(34,261)

    

(232,388)

    

(30,950)

    

(122,805)
                       

Cash flows from financing activities

                      

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

  

 

-

    

 

-

    

 

-

    

 

(28,000)

Non-recourse loan

 

(1,450)

    

-

    

(1,450)

    

-

Exercise of options

  

3,150

    

6,866

    

1,152

    

1,863

Net cash provided by (used in) financing activities

  

1,700

    

6,866

    

(298)

    

(26,137)
                       

Increase (decrease) in cash and cash equivalents

  

37,653

    

(180,438)

    

6,505

    

(125,322)
                       

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

  

152,692

    

 

339,881

    

 

184,029

    

284,331

Exchange rate differences on cash and cash equivalents

  

111

    

204

    

(78)

    

638

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

$

190,456

  

$

159,647

  

$

190,456

  

$

159,647
   

MOBILEYE N.V.

  

RECONCILIATION OF GAAP NET CASH FROM OPERATING ACTIVITIES TO NON-GAAP FREE CASH

FLOWS (UNAUDITED)

  

(in thousands)

  
                         
 

For the six months ended

  

For the three months ended

  
 

June 30,

  

June 30,

  
 

2016

  

2015

  

2016

  

2015

  
                 

GAAP net cash from operating activities as reported

 

$

 

70,214

  

 

$

 

45,084

  

 

$

 

37,753

  

 

$

 

23,620

  
                         

Capital Expenditures

  

(6,805)

    

(3,521)

    

(4,755)

    

(809)

  

Non-GAAP Free Cash Flow

  

63,409

    

41,563

    

32,998

    

22,811

  
                         
                                         

MOBILEYE N.V.

SUPPLEMENTAL INFORMATION (UNAUDITED)

(in thousands)
                       
 

For the six months ended

  

For the three months ended
 

June 30,

  

June 30,
 

2016

  

2015

  

2016

  

2015
                   

OEM Revenue

$

125,797

  

$

80,200

  

$

64,357

  

$

43,635

Aftermarket Revenue

  

32,888

    

18,208

    

19,121

    

9,192

Total Revenue

$

158,685

  

$

98,408

  

$

83,478

  

$

52,827
                       
                       

Number of EyeQ units (in thousand)

  

2,731

    

1,785

    

1,409

    

969

EyeQ average selling price per unit

$

44.4

  

$

43.7

  

$

44.5

  

$

43.7