JERUSALEM, Nov. 15, 2016 /PRNewswire/ --
Third Quarter 2016 Highlights:
- Total revenue of $94.9
million
- GAAP Net Income of $27 million;
Non-GAAP Net Income of $46
million
- GAAP fully diluted EPS of $0.11;
Non-GAAP fully diluted EPS of $0.19
- Generated GAAP net cash from operating activities of
$38.6 million; Non-GAAP free cash
flow of $36.9 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
September 30, 2016.
"Our core business performed well in the third quarter," stated
Ziv Aviram, co-founder, president
and chief executive officer of Mobileye. "Strategically, we
continue to see rising interest for higher-level autonomous vehicle
technology. Most new customer requirements for future programs now
include a semi-autonomous feature-set in addition to Advanced
Driver Assist System safety features. We have also seen an
uptick in discussions relating to Fully Autonomous
programs on the heels of our two recently-announced Level 4
programs with BMW and Delphi. I am pleased that our customers
continue to recognize the value Mobileye provides across the entire
driving spectrum – from Driver Assist to Fully Autonomous."
Third Quarter 2016 Financial Highlights
- Revenue: Total revenue for the third quarter of 2016 was
$94.9 million, compared to
$70.6 million in the prior-year
period. Within total revenue, original equipment
manufacturing (OEM) revenue was $72.6
million, compared to $60.8
million in the prior-year period. EyeQ chip volume increased
to 1,553 thousand EyeQ units, compared to 1,351 thousand units in
the prior-year period. The EyeQ Average Selling Price (ASP)
per unit for the third quarter of 2016 was $45.50, up from $43.50 during the same period last year.
After market (AM) revenue contributed the remaining $22.3 million of total revenue for the third
quarter of 2016 compared to $9.8
million in the prior-year period.
- Net Income and Earnings per Share: GAAP net income
for the third quarter of 2016 was $27
million, or $0.11 per diluted
share. This compares to GAAP net income of $24.2 million, or $0.10 per diluted share for the third quarter of
2015. GAAP results included share-based compensation expense, net
of tax, of $19 million for the third
quarter of 2016 compared to $10.6
million for the third quarter of 2015.
Non-GAAP net income for the third quarter of 2016 was $46 million, or $0.19 per share, based on 238.5 million weighted
average diluted shares outstanding. This compares to non-GAAP
net income of $34.8 million, or
$0.15 per share, based on 238.5
million weighted average diluted shares outstanding during the
third quarter of 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 and Cash Flow: At September
30, 2016, Mobileye had cash, cash equivalents, restricted
cash and marketable securities of $584.4
million, compared to $543.1
million at June 30,
2016.
The company generated $38.6 million
in net cash from operating activities for the third quarter of 2016
compared to $26.2 million for the
third quarter of 2015. The company generated $36.9 million in non-GAAP free cash flow for the
2016 third quarter compared to $25.6
million for the comparable 2015 quarter. 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.
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 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 Time (U.S. time) today (Tuesday, November 15, 2016) to review its
financial results for the third quarter ended September 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 February 13, 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 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 SEC, 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
release similar non-GAAP financial measures.
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 companies because other
companies 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.
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 we can use 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 effort.
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 nine
months ended
|
|
For the
three months ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue
|
$
|
253,581
|
|
|
169,053
|
|
$
|
94,896
|
|
|
70,645
|
Cost of
revenue
|
|
62,236
|
|
|
43,763
|
|
|
23,283
|
|
|
18,158
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
191,345
|
|
|
125,290
|
|
|
71,613
|
|
|
52,487
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development, net
|
|
47,173
|
|
|
31,758
|
|
|
17,561
|
|
|
11,526
|
Sales and
marketing
|
|
11,382
|
|
|
9,791
|
|
|
4,088
|
|
|
2,812
|
General and
administrative
|
|
48,537
|
|
|
26,667
|
|
|
19,654
|
|
|
10,780
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
107,092
|
|
|
68,216
|
|
|
41,303
|
|
|
25,118
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
84,253
|
|
|
57,074
|
|
|
30,310
|
|
|
27,369
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
3,727
|
|
|
1,718
|
|
|
1,339
|
|
|
1,030
|
Financial income
(loss), net
|
|
(223)
|
|
|
(592)
|
|
|
39
|
|
|
(158)
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxes
on income
|
|
87,757
|
|
|
58,200
|
|
|
31,688
|
|
|
28,241
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes on
income
|
|
(11,987)
|
|
|
(8,574)
|
|
|
(4,703)
|
|
|
(4,028)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the
period
|
$
|
75,770
|
|
|
49,626
|
|
$
|
26,985
|
|
|
24,213
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
income per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.35
|
|
$
|
0.23
|
|
$
|
0.12
|
|
$
|
0.11
|
Diluted
|
$
|
0.32
|
|
$
|
0.21
|
|
$
|
0.11
|
|
$
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of Ordinary shares (in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
219,459
|
|
|
216,927
|
|
|
220,078
|
|
|
218,180
|
Diluted
|
|
237,719
|
|
|
237,795
|
|
|
238,502
|
|
|
238,522
|
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,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss) as reported
|
$
|
75,770
|
|
|
49,626
|
|
$
|
26,985
|
|
|
24,213
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustment
|
|
|
|
|
|
|
|
|
|
|
|
Expenses recorded for
Stock based compensation
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
33
|
|
|
18
|
|
|
14
|
|
|
8
|
Research and
development
|
|
8,725
|
|
|
5,871
|
|
|
3,489
|
|
|
2,000
|
Sales and
marketing
|
|
411
|
|
|
1,384
|
|
|
294
|
|
|
353
|
General and
administrative
|
|
37,454
|
|
|
19,918
|
|
|
15,290
|
|
|
8,355
|
Total Stock based
compensation
|
|
46,623
|
|
|
27,191
|
|
|
19,087
|
|
|
10,716
|
Income tax
effect
|
|
(449)
|
|
|
(282)
|
|
|
(115)
|
|
|
(165)
|
Total
adjustment
|
|
46,174
|
|
|
26,909
|
|
|
18,972
|
|
|
10,551
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income
|
|
121,944
|
|
|
76,535
|
|
|
45,957
|
|
|
34,764
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.56
|
|
$
|
0.35
|
|
$
|
0.21
|
|
$
|
0.16
|
Diluted
|
$
|
0.51
|
|
$
|
0.32
|
|
$
|
0.19
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
219,459
|
|
|
216,927
|
|
|
220,078
|
|
|
218,180
|
Diluted
|
|
237,719
|
|
|
237,795
|
|
|
238,502
|
|
|
238,522
|
MOBILEYE
N.V.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
(U.S. dollars in
thousands)
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2016
|
|
2015
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
230,890
|
|
$
|
152,692
|
Marketable
securities
|
|
98,614
|
|
|
59,394
|
Trade account
receivables, net
|
|
45,007
|
|
|
23,706
|
Inventories
|
|
53,815
|
|
|
42,676
|
Other current
assets
|
|
14,874
|
|
|
14,817
|
Total current
assets
|
|
443,200
|
|
|
293,285
|
|
|
|
|
|
|
Long-term
assets
|
|
|
|
|
|
Marketable
securities
|
|
251,691
|
|
|
260,982
|
Property and
equipment, net
|
|
18,533
|
|
|
11,031
|
Severance pay
fund
|
|
11,947
|
|
|
9,863
|
Other
assets
|
|
3,382
|
|
|
2,453
|
Total long-term
assets
|
|
285,553
|
|
|
284,329
|
|
|
|
|
|
|
Total
assets
|
$
|
728,753
|
|
$
|
577,614
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
36,864
|
|
$
|
24,593
|
Employee related
accrued expenses
|
|
6,551
|
|
|
5,341
|
Other current
liabilities
|
|
15,547
|
|
|
13,322
|
Total current
liabilities
|
|
58,962
|
|
|
43,256
|
|
|
|
|
|
|
Long-term
liabilities
|
|
|
|
|
|
Accrued severance
pay
|
|
15,273
|
|
|
12,020
|
Long-term
liabilities
|
|
7,532
|
|
|
6,864
|
Total long-term
liabilities
|
|
22,805
|
|
|
18,884
|
|
|
|
|
|
|
Total
liabilities
|
|
81,767
|
|
|
62,140
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
|
2,580
|
|
|
2,558
|
Additional paid-in
capital
|
|
630,490
|
|
|
577,212
|
Accumulated other
comprehensive income (loss)
|
|
667
|
|
|
(1,775)
|
Accumulated (deficit)
Surplus
|
|
13,249
|
|
|
(62,521)
|
Total shareholders'
equity
|
|
646,986
|
|
|
515,474
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
728,753
|
|
$
|
577,614
|
MOBILEYE
N.V.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended
|
For the three
months ended
|
|
September
30,
|
September
30,
|
|
2016
|
2015
|
2016
|
2015
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income for the
period
|
$
|
75,770
|
$
|
49,626
|
$
|
26,985
|
$
|
24,213
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
2,943
|
|
2,464
|
|
1,076
|
|
846
|
Exchange rate
differences
|
|
(589)
|
|
(21)
|
|
(327)
|
|
556
|
Accrued severance
pay
|
|
3,253
|
|
1,608
|
|
1,193
|
|
80
|
Loss from marketable
securities
|
|
32
|
|
173
|
|
60
|
|
5
|
Share-based
compensation
|
|
46,623
|
|
27,191
|
|
19,087
|
|
10,716
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Trade accounts
receivables, net
|
|
(21,301)
|
|
(10,406)
|
|
(6,397)
|
|
(2,797)
|
Other current
assets
|
|
(141)
|
|
694
|
|
(955)
|
|
(1,145)
|
Inventories
|
|
(11,139)
|
|
(17,832)
|
|
(7,893)
|
|
(8,167)
|
Other long-term
assets
|
|
(929)
|
|
(772)
|
|
(240)
|
|
(66)
|
Account payables and
accrued expenses
|
|
10,319
|
|
10,813
|
|
7,463
|
|
1,737
|
Employee-related
accrued expenses
|
|
1,210
|
|
729
|
|
(88)
|
|
(114)
|
Other
current-liabilities
|
|
2,225
|
|
6,767
|
|
(1,693)
|
|
368
|
Long-term
liabilities
|
|
488
|
|
270
|
|
279
|
|
(12)
|
Net cash provided by
operating activities
|
|
108,764
|
|
71,304
|
|
38,550
|
|
26,220
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Change in restricted
and short-term deposits
|
|
(120)
|
|
(692)
|
|
(113)
|
|
(717)
|
Proceeds from
maturities / sales of marketable
securities
|
|
74,337
|
|
144,659
|
|
39,636
|
|
14,984
|
Purchase of marketable
securities
|
|
(101,676)
|
|
(431,438)
|
|
(40,723)
|
|
(73,708)
|
Severance pay
fund
|
|
(1,700)
|
|
(1,243)
|
|
(503)
|
|
(406)
|
Purchase of property
and equipment
|
|
(8,493)
|
|
(4,141)
|
|
(1,688)
|
|
(620)
|
Net cash used in
investing activities
|
|
(37,652)
|
|
(292,855)
|
|
(3,391)
|
|
(60,467)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Grant of Non-recourse
loan
|
|
(1,450)
|
|
-
|
|
-
|
|
-
|
Repayment of
Non-recourse loan
|
|
1,450
|
|
-
|
|
1,450
|
|
-
|
Exercise of
options
|
|
6,883
|
|
8,102
|
|
3,733
|
|
1,236
|
Net cash provided by
financing activities
|
|
6,883
|
|
8,102
|
|
5,183
|
|
1,236
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
|
77,995
|
|
(213,449)
|
|
40,342
|
|
(33,011)
|
|
|
|
|
|
|
|
|
|
Balance of cash and
cash equivalents at the beginning of the period
|
|
152,692
|
|
339,881
|
|
190,456
|
|
159,647
|
Exchange rate
differences on cash and cash equivalents
|
|
203
|
|
44
|
|
92
|
|
(160)
|
Balance of cash and
cash equivalents at the end of the period
|
$
|
230,890
|
$
|
126,476
|
$
|
230,890
|
$
|
126,476
|
MOBILEYE
N.V.
|
RECONCILIATION OF
GAAP NET CASH FROM OPERATING ACTIVITIES TO NON-GAAP
FREE CASH FLOWS (UNAUDITED)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended
|
|
For the
three months ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
GAAP net cash from
operating activities as reported
|
$
|
108,764
|
|
$
|
71,304
|
|
$
|
38,550
|
|
$
|
26,220
|
Capital
Expenditures
|
|
(8,493)
|
|
|
(4,141)
|
|
|
(1,688)
|
|
|
(620)
|
Non-GAAP Free Cash
Flow
|
|
100,271
|
|
|
67,163
|
|
|
36,862
|
|
|
25,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MOBILEYE
N.V.
|
SUPPLEMENTAL
INFORMATION (UNAUDITED)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine
months ended
|
|
For the
three months ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
OEM
Revenue
|
$
|
198,391
|
|
$
|
141,044
|
|
$
|
72,594
|
|
$
|
60,844
|
Aftermarket
Revenue
|
|
55,190
|
|
|
28,009
|
|
|
22,302
|
|
|
9,801
|
Total
Revenue
|
$
|
253,581
|
|
$
|
169,053
|
|
$
|
94,896
|
|
$
|
70,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of EyeQ units
(in thousand)
|
|
4,284
|
|
|
3,136
|
|
|
1,553
|
|
|
1,351
|
EyeQ average selling
price per unit
|
$
|
44.8
|
|
$
|
43.6
|
|
$
|
45.5
|
|
$
|
43.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Logo - http://photos.prnewswire.com/prnh/20140721/128803
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mobileye-announces-third-quarter-2016-financial-results-300363045.html
SOURCE Mobileye N.V.