Kicked off key strategic partnership that will
bring AEye’s lidar into the China market
Fourth consecutive quarter of cash burn
reduction
AEye, Inc. (Nasdaq: LIDR), a global leader in adaptive, high
performance lidar solutions, today announced its results for the
first quarter ended March 31, 2024.
Management Commentary
“AEye made incredible progress with our capital-light
partnership model in the first quarter, including significantly
expanding our strategic opportunities and opening the door to the
booming lidar market in China. The first product from our 4Sight
Flex reference design, Apollo, has passed an important technical
performance milestone, which is driving interest among automotive
OEMs. Additionally, our new Tier 1 partnership with LITEON creates
a path to further strengthening our industry leading product in
terms of both cost and performance,” said Matt Fisch, AEye CEO.
“Overall, we are starting off 2024 with strong execution and could
not be more excited for what the future holds for AEye.”
Key Q1 2024 Financial
Highlights
“We remain focused on cost discipline and have reduced our cash
burn rate for the fourth consecutive quarter. With $28.9 million in
cash on our balance sheet at the end of the first quarter, we are
confident that these efforts extend our runway into 2025. We have
proven that we can deliver on both our product development goals
and successfully execute at a burn rate that’s up to 10x lower than
our peers. Thanks to our capital light business model we believe we
have the resiliency to ride out the industry headwinds,” said Conor
Tierney, AEye CFO.
In December 2023, the company effected a 1-for-30 reverse stock
split and all the financial information disclosed has been adjusted
to account for the revised share count numbers.
- GAAP net loss was $(10.2) million, or $(1.61) per share, based
on 6.4 million weighted average common shares outstanding.
- Non-GAAP net loss was $(7.2) million, or $(1.13) per share,
based on 6.4 million weighted average common shares
outstanding.
- Cash, cash equivalents, and marketable securities were $28.9
million as of March 31, 2024.
Conference Call and Webcast
Details
AEye management will hold a conference call today, May 14, 2024,
at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss these
results. AEye CEO Matt Fisch and CFO Conor Tierney will host the
call, followed by a question-and-answer session.
The webcast and accompanying slides will be accessible via the
company’s website at https://investors.aeye.ai/.
Access is also available
via:
Conference call: https://aeye.pub/3W7rZlg
Webcast: https://aeye.pub/3Uq2JW4
About AEye
AEye’s unique software-defined lidar solution enables advanced
driver-assistance, vehicle autonomy, smart infrastructure, and
logistics applications that save lives and propel the future of
transportation and mobility. AEye’s 4Sight™ Intelligent Sensing
Platform, with its adaptive sensor-based operating system, focuses
on what matters most: delivering faster, more accurate, and
reliable information. AEye’s 4Sight™ products, built on this
platform, are ideal for dynamic applications which require precise
measurement imaging to ensure safety and performance.
Non-GAAP Financial
Measures
The non-GAAP measures provided in this press release should not
be considered a substitute for, or superior to, measures of
financial performance prepared in accordance with generally
accepted accounting principles (GAAP) in the United States. A
reconciliation between GAAP and non-GAAP financial data is included
in the supplemental financial data attached to this press release.
Non-GAAP financial measures do not have any standardized meaning
and are therefore unlikely to be comparable to similarly titled
measures presented by other companies. AEye considers these
non-GAAP financial measures to be important because they provide
additional insight into the Company’s on-going performance. The
Company provides this information to investors for a more
consistent basis of comparison and to help investors evaluate the
results of the Company’s on-going operations, and to help enable
more meaningful period-to-period comparisons. Non-GAAP financial
measures are presented only as supplemental information to
understand the Company’s operating results. The non-GAAP financial
measures should not be considered a substitute for financial
information presented in accordance with GAAP.
This press release includes non-GAAP financial measures,
including:
- Non-GAAP net loss which is defined as GAAP net loss plus
stock-based compensation, less change in fair value of convertible
note and warrant liabilities, plus one-time termination benefits
and other restructuring costs; and
- Adjusted EBITDA, defined as non-GAAP net loss plus depreciation
and amortization expense, less interest expense and other, less
interest income and other, plus provision for income tax
expense.
Forward-Looking
Statements
Certain statements included in this press release that are not
historical facts are forward-looking statements within the meaning
of the federal securities laws, including the safe harbor
provisions under the United States Private Securities Litigation
Reform Act of 1995. Forward-looking statements are sometimes
accompanied by words such as “believe,” “continue,” “project,”
“expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,”
“opportunity,” “predict,” “plan,” “may,” “should,” “will,” “would,”
“potential,” “seem,” “seek,” “outlook,” and similar expressions
that predict or indicate future events or trends, or that are not
statements of historical matters. Forward-looking statements are
predictions, projections, and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Forward looking
statements included in this press release include statements about
AEye entering the lidar market in China, the progress made on
commercialization of AEye’s new Apollo product, the benefits of the
new Tier 1 relationship with LITEON, and the Company’s cash
position, among others. These statements are based on various
assumptions, whether or not identified in this press release. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as and must not be relied on by
an investor as a guarantee, an assurance, a prediction, or a
definitive statement of fact or probability. Actual events and
circumstances are very difficult or impossible to predict and will
differ from the assumptions. Many actual events and circumstances
are beyond the control of AEye. Many factors could cause actual
future events to differ from the forward-looking statements in this
press release, including but not limited to: (i) the risks that the
strategic partnership intended to bring AEye’s lidar into the China
market may not yield the results anticipated; (ii) the risks that
the interest among automotive OEMs in the first product from AEye’s
4Sight Flex reference design, Apollo, may not develop to the extent
anticipated, or at all; (iii) the risks that our new Tier 1
partnership with LITEON may not create a path to further
strengthening AEye’s industry leading product in terms of cost,
performance, or otherwise, to the extent anticipated, or at all;
(iv) the risks that the reduction in cash burn may not continue to
the extent anticipated, or at all; (v) the risks that the cash
runway provided by the cash and marketable securities on AEye’s
balance sheet as of March 31, 2024 may not extend AEye’s runway
into 2025; (vi) the risks that AEye may be unable to maintain a
burn rate that is up to 10x lower than its peers and successfully
execute to the extent anticipated, or at all; (vii) the risks that
AEye may not have the resiliency to ride out industry headwinds, or
that such industry headwinds may last longer than anticipated;
(viii) the risks that AEye’s cost reduction initiatives may not
continue to be effective to the extent anticipated, or at all, due
to unforeseen circumstances, or such reductions may have other
non-cash consequences negatively impacting AEye’s business
operations; (ix) the risks that market conditions may create delays
in the demand for commercial lidar products beyond AEye’s
expectations; (x) the risks that lidar adoption occurs slower than
anticipated or fails to occur at all; (xi) the risks that AEye’s
products may not meet the diverse range of performance and
functional requirements of target markets and customers; (xii) the
risks that AEye’s products may not function as anticipated by AEye,
or by target markets and customers; (xiii) the risks that AEye may
not be in a position to adequately or timely address either the
near or long-term opportunities that may or may not exist in the
evolving autonomous transportation industry; (xiv) the risks that
laws and regulations are adopted impacting the use of lidar that
AEye is unable to comply with, in whole or in part; (xv) the risks
associated with changes in competitive and regulated industries in
which AEye operates, variations in operating performance across
competitors, and changes in laws and regulations affecting AEye’s
business; (xvi) the risks that AEye is unable to adequately
implement its business plans, forecasts, and other expectations,
and identify and realize additional opportunities; and (xvii) the
risks of economic downturns and a changing regulatory landscape in
the highly competitive and evolving industry in which AEye
operates. These risks and uncertainties may be amplified by current
or future global conflicts and the lingering effects of the
COVID-19 pandemic, both of which continue to cause economic
uncertainty. The foregoing list of factors is not exhaustive. You
should carefully consider the foregoing factors and the other risks
and uncertainties described in the “Risk Factors” section of the
periodic report that AEye has most recently filed with the U.S.
Securities and Exchange Commission, or the SEC, and other documents
filed by us or that will be filed by us from time to time with the
SEC. These filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Forward-looking statements speak only as of the date they are
made.
Readers are cautioned not to put undue reliance on
forward-looking statements; AEye assumes no obligation and does not
intend to update or revise these forward-looking statements,
whether as a result of new information, future events, or
otherwise. AEye gives no assurance that AEye will achieve any of
its expectations.
AEYE, INC. Consolidated
Balance Sheets (In thousands) (Unaudited)
March 31, 2024 December 31, 2023 ASSETS
Current Assets: Cash and cash equivalents $
9,535
$
16,932
Marketable securities
19,374
19,591
Accounts receivable, net
67
131
Inventories, net
557
583
Prepaid and other current assets
1,745
2,517
Total current assets
31,278
39,754
Right-of-use assets
10,862
11,226
Property and equipment, net
339
281
Restricted cash
2,150
2,150
Other noncurrent assets
798
906
Total assets $
45,427
$
54,317
LIABILITIES AND STOCKHOLDERS’ EQUITY Current
Liabilities: Accounts payable $
3,751
$
3,442
Accrued expenses and other current liabilities
5,239
6,585
Total current liabilities
8,990
10,027
Operating lease liabilities, noncurrent
14,464
14,858
Other noncurrent liabilities
49
409
Total liabilities
23,503
25,294
Stockholders' Equity: Preferred stock
—
—
Common stock
1
1
Additional paid-in capital
369,781
366,647
Accumulated other comprehensive (loss) income
(4
)
10
Accumulated deficit
(347,854
)
(337,635
)
Total stockholders’ equity
21,924
29,023
Total liabilities and stockholders’ equity $
45,427
$
54,317
AEYE, INC. Consolidated
Statements of Operations (In thousands, except share amounts and
per share data) (Unaudited)
Three months ended March 31,
2024
2023
Revenue: Prototype sales $
20
$
125
Development contracts
—
511
Total revenue
20
636
Cost of revenue
263
2,261
Gross loss
(243
)
(1,625
)
Operating expenses: Research and development
4,532
9,442
Sales and marketing
341
6,268
General and administrative
5,615
8,554
Total operating expenses
10,488
24,264
Loss from operations
(10,731
)
(25,889
)
Other income (expense): Change in fair value of convertible note
and warrant liabilities
2
(810
)
Interest income and other
195
277
Interest expense and other
317
176
Total other income (expense), net
514
(357
)
Loss before income tax expense
(10,217
)
(26,246
)
Provision for income tax expense
2
19
Net loss $
(10,219
)
$
(26,265
)
Per Share Data Net loss per common share (basic and diluted)
$
(1.61
)
$
(4.75
)
Weighted average common shares outstanding (basic and
diluted)
6,352,835
5,528,862
AEYE, INC. Consolidated
Statements of Cash Flows (In thousands) (Unaudited)
Three months ended March 31,
2024
2023
Cash flows from operating activities: Net loss $
(10,219
)
$
(26,265
)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
29
330
Gain on sale of property and equipment, net
—
(53
)
Noncash lease expense relating to operating lease right-of-use
assets
364
350
Inventory write-downs, net of scrapped inventory
19
208
Change in fair value of convertible note and warrant liabilities
(2
)
810
Stock-based compensation
3,014
6,513
Amortization of premiums and accretion of discounts on marketable
securities, net of change in accrued interest
(252
)
33
Expected credit losses
14
—
Changes in operating assets and liabilities: Accounts receivable,
net
50
494
Inventories, current and noncurrent, net
18
(386
)
Prepaid and other current assets
772
2,722
Other noncurrent assets
97
71
Accounts payable
309
(985
)
Accrued expenses and other current liabilities
(1,343
)
(134
)
Operating lease liabilities
(397
)
(392
)
Other noncurrent liabilities
(358
)
—
Contract liabilities
—
(511
)
Net cash used in operating activities
(7,885
)
(17,195
)
Cash flows from investing activities: Purchases of property
and equipment
(87
)
(599
)
Proceeds from sale of property and equipment
—
76
Purchases of marketable securities
(6,045
)
—
Proceeds from redemptions and maturities of marketable securities
6,500
22,000
Net cash provided by investing activities
368
21,477
Cash flows from financing activities: Proceeds from exercise
of stock options
—
323
Payments for convertible note redemptions
—
(2,300
)
Taxes paid related to the net share settlement of equity awards
(45
)
(868
)
Proceeds from issuance of common stock under the Common Stock
Purchase Agreement
165
—
Net cash provided by (used in) financing activities
120
(2,845
)
Net (decrease) increase in cash, cash equivalents and restricted
cash
(7,397
)
1,437
Cash, cash equivalents and restricted cash at beginning of period
19,082
21,214
Cash, cash equivalents and restricted cash at end of period
$
11,685
$
22,651
AEYE, INC. Reconciliation of
GAAP to Non-GAAP Financial Measures (In thousands, except share
amounts and per share data) (Unaudited)
Three months ended March 31,
2024
2023
GAAP net loss $
(10,219
)
$
(26,265
)
Non-GAAP adjustments: Stock-based compensation
3,014
6,513
Change in fair value of convertible note and warrant liabilities
(2
)
810
One-time termination benefits and other restructuring costs
—
1,253
Non-GAAP net loss $
(7,207
)
$
(17,689
)
Depreciation and amortization expense
29
330
Interest income and other
(195
)
(277
)
Interest expense and other
(317
)
(176
)
Provision for income tax expense
2
19
Adjusted EBITDA $
(7,688
)
$
(17,793
)
GAAP net loss per share attributable to common
stockholders: Basic and diluted $
(1.61
)
$
(4.75
)
Non-GAAP net loss per share attributable to common
stockholders: Basic and diluted $
(1.13
)
$
(3.20
)
Shares used in computing GAAP net loss per share attributable to
common stockholders: Basic and diluted
6,352,835
5,528,862
Shares used in computing Non-GAAP net loss per share
attributable to common stockholders: Basic and diluted
6,352,835
5,528,862
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240514436358/en/
Leigh Bannister AEye, Inc. Lbannister@aeye.ai 925-400-4366
Evan Niu, CFA Financial Profiles, Inc. eniu@finprofiles.com
310-622-8243
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