Mobileye Announces Fourth Quarter and Fiscal Year 2015 Financial Results

JERUSALEM, Feb. 24, 2016 /PRNewswire/ --

Fourth Quarter 2015 Highlights:

• Total revenue of $71.8 million, up 81% year-over-year
• Non-GAAP Net Income of $36.6 million
• Non-GAAP fully diluted EPS of $0.15
• Generated $28.6 million in free cash flow

Fiscal Year 2015 Highlights:

• Total revenue of $240.9 million, up 68% year-over-year
• Non-GAAP Net Income of $113.4 million
• Non-GAAP fully diluted EPS of $0.48, up 129% year-over-year
• Generated $95.8 million in free cash flow

(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, 2015.

"Our fourth quarter and full year 2015 results represent our continued successful execution in terms of growth, improved margins and robust free cash flow generation driven by ongoing NCAP and regulatory support that will secure our growth for years to come ," stated Ziv Aviram, co-founder, president and chief executive officer of Mobileye. "During 2015, we successfully extended our technological leadership position evidenced by the recent launch of our new Road Experience Management (REM) mapping technology which enables safe autonomous driving and are proud of the endorsements from three of the world's largest automakers.  We are also advancing our sensing technology and creating driving behavior capabilities, which we believe will further position Mobileye to remain at the forefront of the autonomous driving trend"   

Fourth Quarter 2015 Financial Highlights

• Revenue: Total revenue for the fourth quarter of 2015 was $71.8 million, compared to $39.7 million in the prior-year period.  Within total revenue, original equipment manufacturing (OEM) revenue was $61.2 million, compared to $32.3 million in the prior-year period.  EyeQ chip volume increased 83% year-over-year to 1,308 thousand EyeQ units, compared to 715 thousand units in the prior-year period.  The EyeQ Average Selling Price (ASP) per unit for the fourth quarter of 2015 was $44.70, up from $43.10 during the same period last year. After market (AM) revenue contributed the remaining $10.6 million of total revenue for the fourth quarter of 2015, compared to $7.4 million in the prior-year period.
• Net Income and Earnings per Share:  GAAP net income for the fourth quarter of 2015 was $18.8 million, or $0.08 per diluted share. This compares to GAAP net income of $2.4 million, or $0.01 per diluted share, for the fourth quarter of 2014. GAAP results included share-based compensation expense of $17.8 million for the fourth quarter of 2015 and $10.9 million for the fourth quarter of 2014.

Non-GAAP net income for the fourth quarter of 2015 was $36.6 million, or $0.15 per share based on 238.1 million weighted average diluted shares outstanding.  This compares to non-GAAP net income of $13.3 million, or $0.06 per share based on 237.5 million weighted average diluted shares outstanding during the fourth quarter of 2014. Non-GAAP net income excludes share-based compensation expense. 

• Cash, restricted bank deposits, marketable securities and cash flow: As of December 31, 2015, Mobileye had cash and cash equivalents, restricted bank deposits, and marketable securities of $476.1 million, compared to $448.3 million as of September 30, 2015. 

Mobileye generated $29.6 million in net cash from operating activities for the fourth quarter of 2015 compared to $16.9 million for the fourth quarter of 2014.  The company generated $28.6 million in free cash flow for the 2015 fourth quarter, compared to $15.4 million for the comparable 2014 quarter.  Free cash flow represents net cash provided by operating activities minus capital expenditures.

Fiscal Year 2015 Financial Highlights

• Revenue: Total revenue for fiscal year 2015 was $240.9 million, an increase of 68% compared to $143.6 million in the prior-year period. Within total revenue, OEM revenue was $202.3 million, an increase of 66% compared to $121.8 million in the prior-year period. EyeQ chip volume for fiscal year 2015 increased 67% to 4,445 thousand EyeQ units, compared to 2,656 thousand units in the prior-year period.  EyeQ (ASP) per unit for 2015 was $43.90, up from $43.70 during the same period last year.  AM revenue contributed the remaining $38.6 million of total revenue for fiscal year 2015, compared to $21.8 million in the prior-year period.
• Net Income (loss) and Earnings (loss) per Share:  GAAP net income for the fiscal year 2015 was $68.5 million, or $0.29 per diluted share. This compares to a GAAP net loss of $(30.1) million, or $(0.28) per share during the fiscal year 2014.    GAAP results included share-based compensation expense of $45.0 million for fiscal year 2015 and $76.9 million for fiscal year 2014. 

Non-GAAP net income for the fiscal year 2015 was $113.4 million, or $0.48 per share based on 237.9 million weighted average diluted shares outstanding.  This compares to non-GAAP net income of $46.8 million, or $0.21 per share, based on 224.6 million weighted average diluted shares outstanding during fiscal year 2014.  Non-GAAP net income excludes share-based compensation expenses. 

• Cash Flow: The company generated $100.9 million in net cash from operating activities for fiscal year 2015, compared to $56.1 million for fiscal year 2014.  The company generated $95.8 million in free cash flow for fiscal year 2015, an increase of 89% compared to $50.8 million for fiscal year 2014.  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 (Wednesday, February 24, 2016) to review the company's financial results for the fourth quarter and fiscal year ended December 31, 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 May 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. 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; 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. Our products are or will be integrated into car models from 25 global automakers.  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 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. 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 operational 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 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 preferences 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 so 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 for 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 fluctuations in our stock price since our IPO, which impact share based compensation.  Therefore, the information necessary for a quantitative reconciliation is not available to us without unreasonable efforts.

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SOURCE Mobileye N.V.

Related Links

http://ir.mobileye.com