- Realignment actions to be implemented during the first
quarter of 2024 and are expected to reduce cash outlays by
$22-24 million on an annualized
basis
- Savings expected to be derived primarily from the transition
of the InnovizOne program to series production and concentration of
future investments on the InnovizTwo sensor and perception software
suite
TEL
AVIV, Israel, Jan. 31,
2024 /PRNewswire/ -- Innoviz Technologies Ltd.
(Nasdaq: INVZ) (the "Company" or "Innoviz"), a leading Tier-1
direct supplier of high-performance, automotive grade LiDAR sensors
and perception software, today announced a strategic realignment of
its operations to expand the Company's cash runway and optimize its
path towards profitability and free cash flow generation. The
realignment is expected to deliver strategic cost savings from a
combination of reduced costs following the transition of InnovizOne
into series production and the concentration of future investments
on the InnovizTwo sensor and software platform. As a result of the
strategic realignment actions, the Company's headcount will be
reduced by approximately 13%.
"Innoviz is at an important point in its growth trajectory,"
said Omer Keilaf, Innoviz Co-Founder and CEO. "The Company is
in a market capture window that has the potential to determine the
market share of the LiDAR industry for the next decade or more.
Today's actions are the result of a thoughtful process to optimize
the Company's cost structure, increase our competitive positioning,
and extend our cash runway through the expected remainder of the
market capture window. Looking ahead, we remain confident in our
ability to achieve our long-term goals and become a market leader
in automotive LiDAR."
Transitioning InnovizOne into Series Production
Since 2021, Innoviz has simultaneously funded the development of
two production path programs – the InnovizOne and InnovizTwo LiDAR
sensor and perception software suites. With the InnovizOne program
now successfully transitioned from the development phase into full
series production, the Company will eliminate duplicative cost
structures and significantly reduce its spending on InnovizOne
development, while reinvesting a portion of the savings into the
InnovizTwo sensor and perception software platform. All quoting and
bidding activity in the Company's RFI and RFQ pipeline will now be
focused on the InnovizTwo platform.
Concentrating Investments on the InnovizTwo Sensor and
Perception Software Platform
The Company is reducing its investments in initiatives that have
meaningful upfront cash outlays and lengthy time horizons before
achieving commercialization and securing sizeable series production
volumes. These initiatives include the Minimum Risk Maneuver (MRM)
software solution and the InnovizCore AI compute module, along with
other previously unannounced initiatives.
Going forward, investment activity will be more concentrated on
the InnovizTwo sensor and software platform and commercializing it
for series production awards with the world's largest automotive
OEMs. The Company believes that focusing on applications with the
broadest market fit will yield a better return profile and optimize
its path towards profitability and free cash flow generation.
Innoviz is deeply focused on leveraging the strengths of the
InnovizTwo platform to win additional series production awards from
its robust customer pipeline.
Projected Financial Benefits
As a result of the strategic realignment actions, Innoviz plans
to decrease its employee headcount by approximately 13% and expects
to reduce its 2024 planned cash outlays by $22-24 million on an annualized basis. Cash
savings are expected to begin in the first quarter of 2024 with run
rate savings expected to be achieved by the end of the second
quarter of 2024. Cash costs associated with the strategic
actions are expected to be minimal.
About Innoviz
Innoviz is a global leader in LiDAR technology, serving as a
Tier 1 supplier to the world's leading automotive manufacturers and
working towards a future with safe autonomous vehicles on the
world's roads. Innoviz's LiDAR and perception software "see" better
than a human driver and reduce the possibility of error, meeting
the automotive industry's strictest expectations for performance
and safety. Operating across the U.S., Europe, and Asia, Innoviz has been selected by
internationally recognized premium car brands for use in consumer
vehicles as well as by other commercial and industrial leaders for
a wide range of use cases. For more information, visit
innoviz.tech.com.
Join the discussion: Facebook, LinkedIn, YouTube,
Twitter
Media Contact
Media@innoviz-tech.com
Investor
Contact
Investors@innoviz-tech.com
Forward Looking Statements
This announcement contains certain forward-looking statements
within the meaning of the federal securities laws, including
statements regarding the services offered by Innoviz, the
anticipated technological capability of Innoviz's products, the
markets in which Innoviz operates and Innoviz's projected future
results. These forward-looking statements generally are identified
by the words "believe," "project," "expect," "anticipate,"
"estimate," "intend," "strategy," "future," "opportunity," "plan,"
"may," "should," "will," "would," "will be," "will continue," "will
likely result," and similar expressions. 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. Many factors
could cause actual future events to differ materially from the
forward-looking statements in this announcement, including but not
limited to, the ability to implement business plans, forecasts, the
operational realignment and other expectations, the ability to
convert design wins into definitive orders and the magnitude of
such orders, the ability to identify and realize additional
opportunities, potential changes and developments in the highly
competitive LiDAR technology and related
industries, and our expectations regarding the impact
of the war and evolving conflict in Israel to our ongoing operations. The
foregoing list is not exhaustive. You should carefully consider
such risk and the other risks and uncertainties described in
Innoviz's annual report on Form 20-F filed with the SEC on
March 9, 2023 and other documents
filed by Innoviz 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,
and Innoviz 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. Innoviz gives no
assurance that it will achieve its expectations.
Logo -
https://mma.prnewswire.com/media/1496323/Innoviz_Technologies_Logo.jpg
View original
content:https://www.prnewswire.com/news-releases/innoviz-announces-operational-realignment-to-expand-cash-runway-and-optimize-path-towards-profitability-and-free-cash-flow-302049269.html
SOURCE Innoviz Technologies