Mobileye Announces Second Quarter 2015 Financial Results

Aug 06, 2015, 06:00 ET from Mobileye N.V.

JERUSALEM, Aug. 6, 2015 /PRNewswire/ --

Second Quarter 2015 Highlights:

  • Total revenue of $52.8 million, up 57% year-over-year
  • Non-GAAP net income of $23.7 million
  • Non-GAAP fully diluted EPS of $0.10
  • Generated $22.8 million in free cash flow

(NYSE: MBLY) – Mobileye N.V., the global leader in the development of vision and data analysis for Advanced Driver Assistance Systems and autonomous driving, today announced financial results for the quarter ended June 30, 2015.

"The second quarter demonstrated continued strong performance, highlighted by new EyeQ3 launches and increased demand for existing programs," stated Ziv Aviram, co-founder, president and chief executive officer of Mobileye.  "During the quarter, we saw further support for regulatory implementation of ADAS and continued customer interest in the adoption of autonomous driving. Looking forward, Mobileye will continue to develop innovative technologies to maintain our leadership position and benefit from the accelerating autonomous industry trends."

Second Quarter 2015 Financial Highlights

  • Revenue: Total revenue for the second quarter of 2015 was $52.8 million, an increase of 57% compared to $33.7 million in the prior-year period.  Within total revenue, original equipment manufacturing (OEM) revenue was $43.6 million, compared to $28.8 million in the prior-year period.  After market (AM) revenue contributed the remaining $9.2 million of total revenue for the second quarter of 2015 compared to $4.9 million in the prior-year period.
  • Net Income and Earnings per Share:  GAAP net income for the second quarter of 2015 was $15.3 million, or $0.06 per diluted share. This compares to GAAP net income of $0.2 million or approximately breakeven on a per share basis for the second quarter of 2014. GAAP results included share-based compensation expense of $8.4 million for the second quarter of 2015 and $11.0 million for the second quarter of 2014. Non-GAAP net income for the second quarter of 2015 was $23.7 million, or $0.10 per share, based on 237.8 million weighted average diluted shares outstanding.  This compares to non-GAAP net income of $11.2 million, or $0.05 per share, based on 216.5 million weighted average diluted shares outstanding during the second quarter of 2014. Non-GAAP net income excludes share-based compensation expense. 
  • Cash, restricted bank deposits, marketable securities and cash flow: At June 30, 2015, Mobileye had cash and cash equivalents, restricted bank deposits, and marketable securities of $422.2 million, compared to $426.2 million at March 31, 2015.  The company generated $23.6 million in net cash from operating activities for the second quarter of 2015 compared to $23.4 million for the second quarter of 2014.  The company generated $22.8 million in free cash flow for the 2015 second quarter compared to $20.0 million for the comparable 2014 quarter.  Free cash flow represents 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."

Quarterly Conference Call Mobileye will host a conference call at 7:00 a.m. Eastern Daylight Time (U.S. time) today (Thursday, August 6, 2015) to review the company's financial results for the second quarter ended June 30, 2015 and to provide guidance for the remainder of fiscal 2015.  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 November 4, 2015.

About Mobileye Mobileye N.V. is the global leader in the development of vision and data analysis for Advanced Driver Assistance Systems and autonomous driving. Our 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.  Our 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. Mobileye's products are also able to detect roadway markings such as lanes, road boundaries, barriers and similar items, as well as to identify and read traffic signs and traffic lights. Our products are or will be integrated into car models from 23 global automakers including BMW, Ford, General Motors, Nissan and Volvo.  Our 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 our current expectations and projections about future events.  You should not place undue reliance on these statements.  Many factors may cause our actual results to differ materially from any forward-looking statement, including the risk factors and other matters set forth in Mobileye's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 20-F for the year ended December 31, 2014.  Mobileye 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 We have provided in this release 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 (losses) 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 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 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 EPS. To arrive at our non-GAAP EPS, we divided the non-GAAP net income by the sum of the number of our outstanding ordinary shares during the relevant period and the number of ordinary shares resulting from the conversion of all of our outstanding class shares into ordinary shares with no liquidation preference on a one-to-one basis as set forth in our articles of association. Immediately prior to our IPO on August 1, 2014, all outstanding class shares were converted into ordinary shares.

Free cash flow. We define free cash flow as net cash provided by operating activities minus capital expenditures. 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 free cash flow versus the GAAP measure of net cash provided by operating activities as a means of evaluating our company is that 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 and the limited availability of historical stock price information due to our recent IPO, which impact share-based compensation.  Therefore, the information necessary for a quantitative reconciliation is not available to us without unreasonable efforts.

Company Contact: Yonah Lloyd Chief Communications Officer / SVP Business Development yonah.lloyd@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,

2015

2014

2015

2014

Revenue

$

98,408

$

69,302

$

52,827

$

33,653

Cost of revenue

25,605

17,375

13,570

8,565

Gross profit

72,803

51,927

39,257

25,088

Operating costs and expenses

Research and development, net

20,232

16,785

10,505

8,164

Sales and marketing

6,979

5,462

3,483

2,620

General and administrative

15,887

41,525

8,230

10,674

Total operating expenses

43,098

63,772

22,218

21,458

Operating profit (loss)

29,705

(11,845)

17,039

3,630

Interest income

688

718

513

333

Financial income (loss), net

(434)

33

160

319

Profit (loss) before taxes on income

29,959

(11,094)

17,712

4,282

Taxes on income

(4,546)

(8,276)

(2,437)

(4,093)

Net income (loss) for the period

$

25,413

$

(19,370)

$

15,275

$

189

Basic and diluted income (loss) per share:

Amount allocated to participating shareholders

 

-

 

-

 

-

(159)

Net income (loss) applicable to Ordinary shares

25,413

 

(19,370)

 

15,275

 

30

Basic

$

0.12

$

(0.60)

$

0.07

$

0.00

Diluted

$

0.11

$

(0.60)

$

0.06

$

0.00

Weighted average number of  ordinary shares (in thousands)

Basic

216,287

32,071

217,362

32,071

Diluted

237,417

32,071

237,837

32,071

 

 

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,

2015

2014

2015

2014

GAAP  net income (loss) as reported

$

25,413

$

(19,370)

$

15,275

$

189

Non-GAAP adjustment

Expenses recorded for Stock-based compensation

Cost of revenues

10

15

5

7

Research and development

3,871

2,359

2,036

1,089

Sales and marketing

1,031

1,803

608

723

General and administrative

11,563

38,969

5,752

9,154

Total adjustment

16,475

43,146

8,401

10,973

Non-GAAP net income

41,888

23,776

23,676

11,162

Non-GAAP net income per share

Basic

$

0.19

$

0.12

$

0.11

$

0.06

Diluted

$

0.18

$

0.11

$

0.10

$

0.05

Weighted average number of shares (in thousands)

Basic

216,287

202,513

217,362

202,513

Diluted

237,417

213,941

237,837

216,485

 

 

MOBILEYE N.V.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands)

June 30,

December 31,

2015

2014

Assets

Current assets

Cash and cash equivalents

$

159,647

$

339,881

Restricted bank deposits

2,360

2,315

Marketable securities

38,318

32,895

Trade account receivables, net

23,415

15,806

Inventories

27,291

17,626

Other current assets

8,004

9,820

Total current assets

259,035

418,343

Long-term assets

Marketable securities

221,878

-

Property, plant and equipment, net

10,297

8,787

Funds in respect of employee rights upon retirement

9,109

7,969

Other assets

2,013

1,307

Total long-term assets

243,297

18,063

Total assets

$

502,332

$

436,406

Liabilities and shareholders' equity

Current liabilities

Accounts payable and accrued expenses

$

26,553

$

17,870

Employee related accrued expenses

4,804

3,961

Other current liabilities

12,138

5,739

Total current liabilities

43,495

27,570

Long-term liabilities

Liability in respect of employee rights upon retirement

10,878

9,350

Long-term liabilities

5,094

4,812

Total long-term liabilities

15,972

14,162

Total liabilities

59,467

41,732

Shareholders' equity

Share capital

2,547

2,511

Additional paid-in capital

546,643

523,315

Accumulated other comprehensive loss

(767)

(181)

Accumulated deficit

(105,558)

(130,971)

Total shareholders' equity

442,865

394,674

Total liabilities and shareholders' equity

$

502,332

$

436,406

 

 

MOBILEYE N.V.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 (in thousands)

For the six months ended

For the three months ended

June 30,

June 30,

2015

2014

2015

2014

Cash flows from operating activities

Net income (loss) for the period

$

25,413

$

(19,370)

$

15,275

$

189

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation

1,618

1,179

831

663

Exchange rate differences

(577)

134

(1,241)

25

Liability in respect of employee rights upon retirement

1,528

1,033

1,208

665

Loss (profit) from marketable securities

168

41

135

(189)

Share-based compensation

16,475

43,146

8,401

10,973

Changes in asset and liabilities:

Trade accounts receivables, net

(7,609)

(8,481)

(118)

122

Other current assets

1,839

1,075

3

32

Inventories

(9,665)

(4,238)

(6,420)

(3,711)

Other long-term assets

(706)

(216)

(659)

(134)

Account payables and accrued expenses

9,076

7,664

4,260

10,437

Employee-related accrued expenses

843

586

(765)

206

Other current liabilities

6,399

1,768

2,318

1,906

Long-term liabilities

282

4,074

392

2,176

Net cash provided by operating activities

45,084

28,395

23,620

23,360

Cash flows from investing activities

Change in restricted and short-term deposits

25

2,475

25

11,305

   Proceeds from maturities/sales of marketable securities

 

129,675

 

11,975

 

126,443

 

7,763

Purchase of marketable securities

(357,730)

(18,656)

(247,988)

(9,818)

Funds in respect of employee right upon retirement

(837)

(813)

(476)

(526)

Purchase of property and equipment

(3,521)

(3,456)

(809)

(3,374)

Net cash provided by (used in) investing  activities

(232,388)

(8,475)

(122,805)

5,350

Cash flows from financing activities

Issuance expenses

-

(303)

-

(303)

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

 

-

-

 

(28,000)

 

-

Exercise of options

6,866

641

1,863

28

Net cash provided by (used in) financing activities

6,866

338

(26,137)

(275)

Increase (decrease) in cash and cash equivalents

(180,438)

20,258

(125,322)

28,435

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

 

339,881

 

72,560

 

284,331

 

64,274

Exchange rate differences on cash and cash equivalents

204

(134)

638

(25)

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

$

159,647

$

92,684

$

159,647

$

92,684

MOBILEYE N.V.

RECONCILIATION OF GAAP NET CASH FROM OPERATING ACTIVITIES TO FREE CASH FLOWS

(UNAUDITED)

(in thousands)

For the six months ended

For the three months ended

June 30,

June 30,

2015

2014

2015

2014

GAAP net cash from operating activities as reported

$

45,084

$

28,395

$

23,620

$

23,360

 

Capital Expenditures

(3,521)

(3,456)

 

(809)

(3,374)

Free Cash Flow

41,563

24,939

22,811

19,986

 

 

SOURCE Mobileye N.V.