Mobileye Announces Third Quarter 2015 Financial Results

Nov 03, 2015, 07:00 ET from Mobileye N.V.

JERUSALEM, Nov. 3, 2015 /PRNewswire/ --

Third Quarter 2015 Highlights:

  • Total revenue of $70.6 million, up 104% year-over-year
  • Non-GAAP net income of $34.9 million
  • Non-GAAP fully diluted EPS of $0.15
  • Generated $25.6 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 September 30, 2015.

"Our third quarter results highlight the growing interest from OEMs, consumers and regulatory agencies to include advanced safety features in vehicles," stated Ziv Aviram, co-founder, president and chief executive officer of Mobileye.  "We launched new programs with autonomous emergency braking, a feature being standardized around the world, and recently released semantic free-space and holistic path prediction, the most innovative vision technologies for road scene interpretation.  Our commitment to innovation, ability to add successful program launches and provide best-in-class technologies for autonomous driving further strengthens our leadership in the ADAS and autonomous driving market."

Third Quarter 2015 Financial Highlights

  • Revenue: Total revenue for the third quarter of 2015 was $70.6 million, an increase of 104% compared to $34.7 million in the prior-year period.  Within total revenue, original equipment manufacturing (OEM) revenue was $60.8 million, compared to $28.8 million in the prior-year period.  After market (AM) revenue contributed the remaining $9.8 million of total revenue for the third quarter of 2015 compared to $5.9 million in the prior-year period.
  • Net Income (loss) and Earnings (loss) per Share:  GAAP net income for the third quarter of 2015 was $24.2 million, or $0.10 per diluted share. This compares to GAAP net loss of $(13.1) million or $(0.09) on a per share basis for the third quarter of 2014. GAAP results included share-based compensation expense of $10.7 million for the third quarter of 2015 and $22.8 million for the third quarter of 2014.

Non-GAAP net income for the third quarter of 2015 was $34.9 million, or $0.15 per share, based on 238.5 million weighted average diluted shares outstanding.  This compares to non-GAAP net income of $9.7 million, or $0.04 per share, based on 232.9 million weighted average diluted shares outstanding during the third quarter of 2014. Non-GAAP net income excludes share-based compensation expense. 

  • Cash, restricted bank deposits, marketable securities and cash flow: At September 30, 2015, Mobileye had cash and cash equivalents, restricted bank deposits, and marketable securities of $448.3 million, compared to $422.2 million at June 30, 2015. 

The company generated $26.2 million in net cash from operating activities for the third quarter of 2015 compared to $10.9 million for the third quarter of 2014.  The company generated $25.6 million in free cash flow for the 2015 third quarter compared to $10.4 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 8:00 a.m. Eastern Standard Time (U.S. time) today (Tuesday, November 3, 2015) to review the company's financial results for the third quarter ended September 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 February 1, 2016.

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.  Our 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 integrated into car models from 23 global automakers including BMW, Ford, General Motors, Nissan, Volvo, Audi and Hyundai.  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.  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. To arrive at our non-GAAP net income, 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, 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 CCO / SVP yonah.lloyd@mobileye.com

 

MOBILEYE N.V.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except per share data)

For the nine months ended

For the three months ended

September 30,

September 30,

2015

2014

2015

2014

Revenue

$

169,053

$

103,979

$

70,645

$

34,677

Cost of revenue

43,763

26,392

18,158

9,017

Gross profit

125,290

77,587

52,487

25,660

Operating costs and expenses

Research and development, net

31,758

26,925

11,526

10,140

Sales and marketing

9,791

11,910

2,812

6,448

General and administrative

26,667

59,685

10,780

18,160

Total operating expenses

68,216

98,520

25,118

34,748

Operating profit (loss)

57,074

(20,933)

27,369

(9,088)

Interest income

1,718

1,097

1,030

379

Financial loss, net

(592)

(2,973)

(158)

(3,006)

Profit (loss) before taxes on income

58,200

(22,809)

28,241

(11,715)

Taxes on income

(8,574)

(9,674)

(4,028)

(1,398)

Net income (loss) for the period

$

49,626

$

(32,483)

$

24,213

$

(13,113)

Basic and diluted income (loss) per share:

Basic

$

0.23

$

(0.45)

$

0.11

$

(0.09)

Diluted

$

0.21

$

(0.45)

$

0.10

$

(0.09)

Weighted average number of  ordinary shares (in thousands)

Basic

216,927

71,884

218,180

149,779

Diluted

237,795

71,884

238,522

149,779

 

 

MOBILEYE N.V.

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME

(UNAUDITED)

(in thousands, except per share data)

For the nine months ended

For the three months ended

September 30,

September 30,

2015

2014

2015

2014

GAAP  net income (loss) as reported

$

49,626

(32,483)

$

24,213

(13,113)

Non-GAAP adjustment

Expenses recorded for Stock-based compensation

Cost of revenues

18

21

8

6

Research and development

5,871

4,347

2,000

1,988

Sales and marketing

1,384

5,994

353

4,191

General and administrative

19,918

55,558

8,355

16,589

Total adjustment

27,191

65,920

10,716

22,774

Non-GAAP net income

76,817

33,437

34,929

9,661

Non-GAAP net income per share

Basic

$

0.35

$

0.16

$

0.16

$

0.05

Diluted

$

0.32

$

0.15

$

0.15

$

0.04

Weighted average number of shares (in thousands)

Basic

216,927

204,734

218,180

209,079

Diluted

237,795

220,247

238,522

232,859

 

 

MOBILEYE N.V.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands)

September 30,

December 31,

2015

2014

Assets

Current assets

Cash and cash equivalents

$

126,476

$

339,881

Restricted bank deposits

3,052

2,315

Marketable securities

52,972

32,895

Trade account receivables, net

26,212

15,806

Inventories

35,458

17,626

Other current assets

9,135

9,820

Total current assets

253,305

418,343

Long-term assets

Marketable securities

265,839

-

Property, plant and equipment, net

10,921

8,787

Funds in respect of employee rights upon retirement

9,144

7,969

Other assets

2,079

1,307

Total long-term assets

287,983

18,063

Total assets

$

541,288

$

436,406

Liabilities and shareholders' equity

Current liabilities

Accounts payable and accrued expenses

$

29,140

$

17,870

Employee related accrued expenses

4,690

3,961

Other current liabilities

12,506

5,739

Total current liabilities

46,336

27,570

Long-term liabilities

Liability in respect of employee rights upon retirement

10,958

9,350

Long-term liabilities

5,082

4,812

Total long-term liabilities

16,040

14,162

Total liabilities

62,376

41,732

Shareholders' equity

Share capital

2,554

2,511

Additional paid-in capital

558,574

523,315

Accumulated other comprehensive loss

(871)

(181)

Accumulated deficit

(81,345)

(130,971)

Total shareholders' equity

478,912

394,674

Total liabilities and shareholders' equity

$

541,288

$

436,406

 

 

MOBILEYE N.V.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 (in thousands)

For the nine months ended

For the three months ended

September 30,

September 30,

2015

2014

2015

2014

Cash flows from operating activities

Net income (loss) for the period

$

49,626

$

(32,483)

$

24,213

$

(13,113)

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

Depreciation

2,464

1,856

846

677

Exchange rate differences

(21)

1,396

556

1,262

Liability in respect of employee rights upon retirement

1,608

842

80

(191)

Loss  from marketable securities

173

1,482

5

1,441

Share-based compensation

27,191

65,920

10,716

22,774

Changes in asset and liabilities:

Trade accounts receivables, net

(10,406)

(7,280)

(2,797)

1,201

Other current assets

694

(1,884)

(1,145)

(2,959)

Inventories

(17,832)

(6,935)

(8,167)

(2,697)

Other long-term assets

(772)

(890)

(66)

(674)

Account payables and accrued expenses

10,813

9,761

1,737

2,097

Employee-related accrued expenses

729

607

(114)

21

Other current-liabilities

6,767

2,941

368

1,173

Long-term liabilities

270

3,924

(12)

(150)

Net cash provided by operating activities

71,304

39,257

26,220

10,862

Cash flows from investing activities

Change in restricted and short-term deposits

(692)

2,651

(717)

176

Proceeds from maturities / sales of marketable securities

144,659

15,985

14,984

4,010

Purchase of marketable securities

(431,438)

(18,985)

(73,708)

(329)

Short term loan granted

-

(6,392)

-

(6,392)

Funds in respect of employee right upon retirement

(1,243)

(707)

(406)

106

Purchase of property and equipment

(4,141)

(3,937)

(620)

(481)

Net cash used in investing  activities

(292,855)

(11,385)

(60,467)

(2,910)

Cash flows from financing activities

Issuance of shares, net

-

196,538

-

196,841

Exercise of options

8,102

2,479

1,236

1,838

Net cash provided by financing activities

8,102

199,017

1,236

198,679

Increase (decrease) in cash and cash equivalents

(213,449)

226,889

(33,011)

206,631

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

339,881

72,560

159,647

92,684

Exchange rate differences on cash and cash equivalents

44

(1,240)

(160)

(1,106)

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

$

126,476

$

298,209

$

126,476

$

298,209

 

 

MOBILEYE N.V.

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

(UNAUDITED)

(in thousands)

For the nine months ended

For the three months ended

September 30,

September 30,

2015

2014

2015

2014

GAAP net cash from operating activities as reported

$

71,304

$

39,257

$

26,220

$

10,862

Capital Expenditures

(4,141)

(3,937)

(620)

(481)

Free Cash Flow

67,163

35,320

25,600

10,381

 

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SOURCE Mobileye N.V.