Press Release Details

Mobileye Announces Fourth Quarter and Fiscal Year 2016 Financial Results

02/22/2017

JERUSALEM, Feb. 22, 2017 /PRNewswire/ --

Fourth Quarter 2016 Highlights:

  • Total revenue of $104.6 million, up 45.6% year-over-year
  • GAAP Net Income of $32.6 million; Non-GAAP Net Income of $51.4 million
  • GAAP fully diluted EPS of $0.14; Non-GAAP fully diluted EPS of $0.22
  • Generated GAAP net cash from operating activities of $52.8 million; Non-GAAP free cash flow of $50.3 million

Fiscal Year 2016 Highlights:

  • Total revenue of $358.2 million, up 48.7% year-over-year
  • GAAP Net Income of $108.4 million; Non-GAAP Net Income of $173. 3 million
  • GAAP fully diluted EPS of $0.46; Non-GAAP fully diluted EPS of $0.73
  • Generated GAAP net cash from operating activities of $161.6 million; Non-GAAP free cash flow of $150.5 million

(NYSE: MBLY) – Mobileye N.V., the global leader in Advanced Driver Assistance Systems and autonomous driving technologies, today announced financial results for the fourth quarter and fiscal year ended December 31, 2016.

"The fourth quarter marked a strong finish to 2016, which resulted in our ability to exceed revenue and profitability expectations for the full year," stated Ziv Aviram, co-founder, president and chief executive officer of Mobileye. "Strategically, we maintained our leadership position and extended visibility for Advanced Driver Assistance System technology with 12 new program wins across 11 automakers.  The Aftermarket division more than doubled revenue in 2016 and we expect continued growth in 2017.  Finally, our expanded product portfolio matched very well to customer demand for future vehicle technology, leading to five Level 3 and five Level 4 autonomous vehicle production program wins plus definitive REM™ mapping agreements with Volkswagen and BMW."

Fourth Quarter 2016 Financial Highlights

  • Revenue: Total revenue for the fourth quarter of 2016 was $104.6 million, compared to $71.8 million in the prior-year period. Within total revenue, original equipment manufacturing (OEM) revenue was $77.5 million, compared to $61.2 million in the prior-year period. EyeQ chip volume increased to 1,679 thousand units, compared to 1,308 thousand units in the prior-year period. EyeQ Average Selling Price (ASP) per unit for the fourth quarter of 2016 was $45.5, up from $44.7 during the same period last year. After market (AM) revenue contributed the remaining $27.0 million of total revenue for the fourth quarter of 2016, compared to $10.6 million in the prior-year period.

  • Net Income and Earnings per Share: GAAP net income for the fourth quarter of 2016 was $32.6 million, or $0.14 per diluted share. This compares to GAAP net income of $18.8 million or $0.08 per diluted share for the prior-year period. GAAP results include share-based compensation expense, net of tax, of $18.8 million for the fourth quarter of 2016, compared to $17.5 million for the prior-year period.

    Non-GAAP net income for the fourth quarter of 2016 was $51.4 million or $0.22 per share based on 238.0 million weighted average diluted shares outstanding.  This compares to non-GAAP net income of $36.3 million, or $0.15 per share based on 238.1 million weighted average diluted shares outstanding during the prior-year period. Non-GAAP net income excludes share-based compensation expense, and the applicable income tax effect. See the reconciliation information below for a more detailed discussion of this non-GAAP measure.

  • Cash and Cash Flow: As of December 31, 2016, Mobileye had cash and cash equivalents, restricted bank deposits, and marketable securities of $633.4 million, compared to $584.4 million as of September 30, 2016.

    Mobileye generated $52.8 million in net cash from operating activities for the fourth quarter of 2016, compared to $29.6 million for the prior-year period. Mobileye generated $50.3 million in non-GAAP free cash flow for the 2016 fourth quarter compared to $28.6 million for the prior-year period. Non-GAAP free cash flow represents GAAP net cash provided by operating activities minus capital expenditures. See the reconciliation information below for a more detailed discussion of this non-GAAP measure.

Fiscal Year 2016 Financial Highlights

  • Revenue: Total revenue for the fiscal year 2016 was $358.2 million, compared to $240.9 million in the prior-year period. Within total revenue, OEM revenue was $275.9 million, compared to $202.3 million for the fiscal year 2015. EyeQ chip volume increased to 5,963 thousand units, compared to 4,445 thousand units in the prior-year period. EyeQ ASP per unit for 2016 was $45.0, up from $43.9 during the fiscal year 2015. AM revenue contributed the remaining $82.2 million of total revenue for fiscal year 2016 compared to $38.6 million in the prior-year period.

  • Net Income and Earnings per Share: GAAP net income for the fiscal year 2016 was $108.4 million or $0.46 per diluted share. This compares to GAAP net income of $68.5 million or $0.29 per diluted share for the fiscal year 2015. GAAP results include share-based compensation expense, net of tax, of $65.0 million for the fiscal year 2016 compared to $44.4 million for the fiscal year 2015.

    Non-GAAP net income for the fiscal year 2016 was $173.3 million or $0.73 per share based on 238.0 million weighted average diluted shares outstanding. This compares to non-GAAP net income of $112.9 million, or $0.47 per share, based on 237.9 million weighted average diluted shares outstanding during the fiscal year 2015. Non-GAAP net income excludes share-based compensation expense, and the applicable income tax effect. See the reconciliation information below for a more detailed discussion of this non-GAAP measure.

  • Cash Flow: Mobileye generated $161.6 million in net cash from operating activities for the fiscal year 2016 compared to $100.9 million for the fiscal year 2015. Mobileye generated $150.5 million in non-GAAP free cash flow for the fiscal year 2016 compared to $95.8 million for the fiscal year 2015. 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." Mobileye has updated its reconciliation of GAAP to non-GAAP net income taking into account recent Securities and Exchange Commission ("SEC") Staff guidance 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 Standard Time (U.S. time) today (Wednesday, February 22, 2017) to review the company's financial results for the fourth quarter and fiscal year ended December 31, 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 May 22, 2017.

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 more than 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 reasons 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. Our share-based compensation expense is mostly a non-deductible expense;
  • 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 fluctuations in 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                        

Seth Potter

CCO / SVP                        

ICR, Inc.

Dan.Galves@mobileye.com

Investors@mobileye.com

 

 

 

MOBILEYE N.V.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share data)














For the year ended


For the three months ended


December 31,


December 31,


2016


2015


2016


2015

Revenue

$

358,162



240,872


$

104,581



71,819

Cost of revenue


87,307



61,420



25,071



17,657













Gross profit


270,855



179,452



79,510



54,162













Operating costs and expenses
























Research and development, net


65,259



43,393



18,086



11,635

Sales and marketing


17,416



12,811



6,034



3,020

General and administrative


67,241



45,509



18,704



18,842













Total operating expenses


149,916



101,713



42,824



33,497













Operating profit


120,939



77,739



36,686



20,665













Interest income


5,083



2,888



1,356



1,170

Financial income, net


(582)



(917)



(359)



(325)













Profit before taxes on income


125,440



79,710



37,683



21,510













Taxes on income


(17,070)



(11,260)



(5,083)



(2,686)













Net income for the period

$

108,370



68,450



32,600



18,824













Basic and diluted income per share:












Basic

$

0.49


$

0.31


$

0.15


$

0.09

Diluted

$

0.46


$

0.29


$

0.14


$

0.08













Weighted average number of  ordinary shares (in thousands)












Basic


220,124



217,362



221,150



218,679

Diluted


238,018



237,857



237,951



238,054

 

 


MOBILEYE N.V.

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

(in thousands, except per share data)














For the year ended


For the three months ended


December 31,


December 31,


2016


2015


2016


2015











GAAP  net income as reported

$

108,370



68,450


$

32,600



18,824













Non-GAAP adjustment












Expenses recorded for share-based compensation












Cost of revenues


46



26



13



8

Research and development


12,216



8,016



3,491



2,145

Sales and marketing


706



1,277



295



(107)

General and administrative


52,634



35,650



15,180



15,732

Total share-based compensation


65,602



44,969



18,979



17,778

Income tax effect


(647)



(568)



(198)



 

(286)

Total adjustment


64,955



44,401



18,781



17,492













Non-GAAP net income


173,325



112,851



51,381



36,316













Non-GAAP net income per share












Basic

$

0.79


$

0.52


$

0.23


$

0.17

Diluted

$

0.73


$

0.47


$

0.22


$

0.15













Weighted average number of shares (in thousands)












Basic


220,124



217,362



221,150



218,679

Diluted


238,018



237,857



237,951



238,054

 

 


MOBILEYE N.V.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(U.S. dollars in thousands)








December 31,


December 31,


2016


2015

Assets






Current assets






Cash and cash equivalents

$

277,996


$

152,692

Marketable securities


121,534



59,394

Trade account receivables, net


43,324



23,706

Inventories


57,016



42,676

Other current assets


15,998



14,817

Total current assets


515,868



293,285







Long-term assets






Marketable securities


230,696



260,982

Property and equipment, net


18,333



11,031

Severance pay fund


12,606



9,863

Other assets


2,877



2,453

Total long-term assets


264,512



284,329







Total assets

$

780,380


$

577,614

Liabilities and shareholders' equity






Current liabilities






Accounts payable and accrued expenses

$

39,415


$

24,593

Employee related accrued expenses


6,860



5,341

Other current liabilities


12,374



13,322

Total current liabilities


58,649



43,256







Long-term liabilities






Accrued severance pay


16,228



12,020

Long-term liabilities


7,091



6,864

Total long-term liabilities


23,319



18,884







Total liabilities


81,968



62,140







Shareholders' equity












Share capital


2,590



2,558

Additional paid-in capital


650,697



577,212

Accumulated other comprehensive income


(724)



(1,775)

Accumulated (deficit) Surplus


45,849



(62,521)

Total shareholders' equity


698,412



515,474







Total liabilities and shareholders' equity

$

780,380


$

577,614

 

 

MOBILEYE N.V.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 (in thousands)














For the year ended


For the three months ended


December 31,


December 31,


2016


2015


2016


2015

Cash flows from operating activities












Net income for the period

$

108,370


$

68,450


$

32,600


$

18,824

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












Depreciation


4,089



3,312



1,146



848

Exchange rate differences


(162)



(192)



427



(171)

Accrued severance pay


4,208



2,670



955



1,062

Loss (gain) from marketable securities


(78)



311



(110)



138

Share-based compensation


65,602



44,969



18,979



17,778

Gain from severance pay fund


(223)



(87)



(223)



(87)

Changes in assets and liabilities:












Trade accounts receivables, net


(19,618)



(7,900)



1,683



2,506

Other current assets


(1,116)



(1,730)



(975)



(2,424)

Inventories


(14,340)



(25,050)



(3,201)



(7,218)

Other long-term assets


(424)



(1,146)



505



(374)

Account payables and accrued expenses


14,448



6,232



4,129



(4,581)

Employee-related accrued expenses


1,519



1,380



309



651

Other current-liabilities


(948)



7,583



(3,173)



816

Long-term liabilities


227



2,052



(261)



1,782

Net cash provided by operating activities


161,554



100,854



52,790



29,550













Cash flows from investing activities












Change in restricted and short-term deposits


(118)



(700)



2



(8)

Proceeds from maturities / sales of marketable securities


125,468



166,991



51,131



22,332

Purchase of marketable securities


(156,193)



(456,377)



(54,517)



(24,939)

Severance pay fund


(2,379)



(1,807)



(679)



(564)

Purchase of property and equipment


(11,017)



(5,065)



(2,524)



(924)

Net cash used in investing  activities


(44,239)



(296,958)



(6,587)



(4,103)













Cash flows from financing activities












Grant of Non-recourse loan


(1,450)



-



-



-

Repayment of Non-recourse loan


1,450



-



-



-

Exercise of options


7,967



8,769



1,084



667

Net cash provided by financing activities


7,967



8,769



1,084



667













Increase (decrease) in cash and cash equivalents


125,282



(187,335)



47,287



26,114













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


152,692



339,881



230,890



126,476

Exchange rate differences on cash and cash equivalents


22



146



(181)



102

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

$

277,996


$

152,692


$

277,996


$

152,692





































 

 

MOBILEYE N.V.

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

(in thousands)














For the year ended


For the three  months ended


December 31,


December 31,


2016


2015


2016


2015









GAAP net cash from operating activities as reported

$

161,554


$

100,854


$

52,790


$

29,550













Capital Expenditures


(11,017)



(5,065)



(2,524)



(924)

Non-GAAP Free Cash Flow


150,537



95,789



50,266



28,626









































































MOBILEYE N.V.

SUPPLEMENTAL INFORMATION (UNAUDITED)

(in thousands)














For the year ended


For the three  months ended


December 31,


December 31,


2016


2015


2016


2015











OEM Revenue

$

275,938


$

202,287


$

77,547


$

61,243

Aftermarket Revenue


82,224



38,585



27,034



10,576

Total Revenue

$

358,162


$

240,872


$

104,581


$

71,819

























Number of EyeQ units (in thousand)


5,963



4,445



1,679



1,308

EyeQ average selling price per unit

$

45.0


$

43.9


$

45.5


$

44.7

 

 

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SOURCE Mobileye N.V.