Mobileye Announces Third Quarter 2016 Financial Results

• 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   
[email protected]             

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SOURCE Mobileye N.V.

Related Links

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