Press Release Details

Mobileye Announces Second Quarter 2016 Financial Results

07/26/2016

JERUSALEM, July 26, 2016 /PRNewswire/ -- 

Second Quarter 2016 Highlights:

  • Total revenue of $83.5 million
  • GAAP Net Income of $26.9 million; Non-GAAP Net Income of $41.2 million
  • GAAP fully diluted EPS of $0.11; Non-GAAP fully diluted EPS of $0.17
  • Generated GAAP net cash from operating activities of $37.8 million; Non-GAAP free cash flow of $33.0 million

(NYSE: MBLY) – 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.

Mobileye Logo

"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.

Quarterly Conference Call

Mobileye will host a conference call at 8:00 a.m. Eastern Time (U.S. time) today (Tuesday, July 26, 2016) to review the company's financial results for the second quarter ended June 30, 2016.  A live Webcast of the conference call will be accessible from the Investor Relations section of Mobileye's website at http://ir.mobileye.com.  An archive of the Webcast will be available through October 24, 2016.

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.

Forward-Looking Statements

This press release contains certain forward-looking statements.  Words such as "believes," "intends," "expects," "projects," "anticipates," and "future" or similar expressions are intended to identify forward-looking statements.  These statements are only predictions based on the Company's current expectations and projections about future events.  You should not place undue reliance on these statements.  Many factors may cause the Company's actual results to differ materially from any forward-looking statement, including the risk factors and other matters set forth in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 20-F for the year ended December 31, 2015.  The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.

Non-GAAP Financial Measures

In this release, we provide financial information that has not been prepared in accordance with GAAP. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors as a supplement to GAAP measures. We believe that these non-GAAP financial measures also provide additional tools for investors to use in evaluating our ongoing operating results and trends and in comparing our financial results with those of other companies in our industry, many of which present similar non-GAAP financial measures to investors. 

Non-GAAP financial measures should not be considered in isolation from, or considered as an alternative to, operating income (loss), net income (loss), earnings per share or any other measure of financial performance calculated and presented in accordance with GAAP. Our non-GAAP measure may not be comparable to similarly titled measures of other organizations because other organizations may not calculate non-GAAP measures in the same manner. You are encouraged to evaluate these adjustments and the reason we consider them appropriate.  A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

Non-GAAP net income (loss). To arrive at our non-GAAP net income (loss), we exclude share-based compensation expense and the applicable income tax effect from our GAAP net income (loss). We believe that this non-GAAP measure is useful to investors in evaluating our operating performance for the following reasons:

  • We believe that elimination of share-based compensation expense and the applicable income tax effect is appropriate because treatment of this item may vary for reasons unrelated to our overall operating performance;
  • We use this non-GAAP measure in conjunction with our GAAP financial measure for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and
  • We believe that this non-GAAP measure provides better comparability with our past financial performance, facilitates better period-to-period comparisons of operating results and may facilitate comparisons with similar companies, many of which may also use similar non-GAAP financial measures to supplement their GAAP reporting.

Non-GAAP free cash flow. We define non-GAAP free cash flow as GAAP net cash provided by operating activities minus capital expenditures. Non-GAAP free cash flow is important to reflect the cash that can allow us to pursue business strategies and opportunities and fulfill our goals. A limitation of using non-GAAP free cash flow versus the GAAP measure of net cash provided by operating activities as a means of evaluating our company is that non-GAAP free cash flow does not represent the total increase or decrease in the cash balance from operations for the period because it excludes cash used for capital expenditures during the period.  Management compensates for this limitation by providing information about our capital expenditures on the face of the cash flow statement.

From time to time, we may also provide guidance regarding projected Non-GAAP Net Income (Loss) on an aggregate and per share basis.  We cannot provide a reconciliation of our projected non-GAAP Net Income (Loss) to projected GAAP Net Income (Loss) for any future period due to the fluctuations of our stock price, which impact share-based compensation.  Therefore, the information necessary for a quantitative reconciliation is not available to us without unreasonable efforts.

Company Contact:

Dan Galves


CCO / SVP


Dan.Galves@mobileye.com


 

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













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SOURCE Mobileye N.V.