Mobileye Announces Fourth Quarter and Fiscal Year 2014 Financial Results

JERUSALEM, Feb. 26, 2015 /PRNewswire/ -- 

Fourth Quarter 2014 Highlights:

• Total revenue of $39.7 million
• Non-GAAP Net Income of $13.3 million
• Non-GAAP fully diluted EPS of $0.06
• Generated $15.4 million in free cash flow

Fiscal Year 2014 Highlights:

• Total revenue of $143.6 million, up 77% year-over-year
• Non-GAAP Net Income of $46.8 million, up 41.5% year-over-year
• Non-GAAP fully diluted EPS of $0.21
• Generated $50.8 million in free cash flow
• Added three OEM and three Tier-1 relationships

(NYSE: MBLY) – Mobileye N.V., the global leader in the design and development of camera-based Advanced Driver Assistance Systems, today announced financial results for the fourth quarter and fiscal year ended December 31, 2014.

"The fourth quarter marked a strong finish to the year, driven by the continued demand for our innovative ADAS solution," stated Ziv Aviram, co-founder, president and chief executive officer of Mobileye.  "During 2014, we significantly enhanced our technology leadership with the addition of new driver safety functionality on the third generation of our chipset platform, the EyeQ3.  We believe we are well-positioned to maintain our momentum longer-term given the benefits from increased regulation of ADAS, the large and growing trend towards semi-autonomous and autonomous driving, as well as continued expansion from new and existing OEM and Tier-1 relationships."

Fourth Quarter 2014 Financial Highlights

• Revenue: Total revenue for the fourth quarter of 2014 was $39.7 million, compared to $31.4 million in the prior-year period.  Within total revenue, original equipment manufacturing (OEM) revenue was $32.3 million, compared to $22.6 million in the prior-year period.  After market (AM) revenue contributed the remaining $7.4 million of total revenue for the fourth quarter of 2014 compared to $8.8 million in the prior-year period.
• Net Income and Earnings per Share:  GAAP net income for the fourth quarter of 2014 was $2.4 million or $0.01 per diluted share. This compares to GAAP net income of $13.0 million, but a net income applicable to ordinary shares of $2.1 million, or $0.06 per diluted share for the fourth quarter of 2013. GAAP results included share-based compensation expense of $10.9 million for the fourth quarter of 2014 and $3.7 million for the fourth quarter of 2013. 
  Non-GAAP net income for the fourth quarter of 2014 was $13.3 million or $0.06 per share based on 237.5 million weighted average diluted shares outstanding.  This compares to non-GAAP net income of $16.7 million, or $0.08 per share based on 209.7 million weighted average diluted shares outstanding during the fourth quarter of 2013. Non-GAAP net income excludes share-based compensation expenses.  
• Cash and Cash Flow: As of December 31, 2014, Mobileye had cash, cash equivalents and short-term investments of $375.1 million, compared to $349.2 million as of September 30, 2014.  
  The Company generated $16.9 million in net cash from operating activities for the fourth quarter of 2014 compared to generating $18.7 million for the fourth quarter of 2013.  The Company generated $15.4 million in free cash flow for the 2014 fourth quarter compared to $18.3 million for the comparable 2013 quarter.  Free cash flow represents net cash provided by operating activities minus capital expenditures.

Fiscal Year 2014 Financial Highlights

• Revenue: Total revenue for the fiscal year 2014 was $143.6 million, an increase of 77% compared to $81.2 million in the prior-year period. Within total revenue, OEM revenue was $121.8 million, an increase of 92% compared to $63.3 million in the prior-year period.  AM revenue contributed the remaining $21.8 million of total revenue for fiscal year 2014 compared to $18.0 million in the prior-year period.
• Net Income (loss) and Earnings (loss) per Share:  GAAP net loss for the fiscal year 2014 was $(30.1) million or $(0.28) per share. This compares to GAAP net income of $19.9 million, but a net loss applicable to ordinary shares of $(226.0) million, resulting in a net loss of $(6.03) per share during the fiscal year 2013.  (This was mainly due to a one-time adjustment to the net income related to the benefit to participating shareholders from the August 2013 private placement).  GAAP results included share-based compensation expense of $76.9 million for fiscal year 2014 and $13.1 million for fiscal year 2013.  
  Non-GAAP net income for the fiscal year 2014 was $46.8 million or $0.21 per share based on 224.6 million weighted average diluted shares outstanding.  This compares to non-GAAP net income of $33.1 million, or $0.16 per share, based on 204.9 million weighted average diluted shares outstanding during fiscal year 2013. Non-GAAP net income excludes share-based compensation expenses.  
• Cash Flow: The Company generated $56.1 million in net cash from operating activities for fiscal year 2014, an increase of 99%  compared to generating $28.2 million for fiscal year 2013.  The Company generated $50.8 million in free cash flow for fiscal year 2014, an increase of 98% compared to $25.6 million for fiscal year 2013.  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 (Thursday, February 26, 2015) to review the company's financial results for the fourth quarter and fiscal year ended December 31, 2014 and to provide guidance for fiscal year 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 26, 2015.

About Mobileye

Mobileye N.V. is the global leader in the design and development of software and related technologies for camera-based Advanced Driver Assistance Systems. 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, as well as to identify and read traffic signs and traffic lights. Our products are or will be integrated into car models from 23 global automakers including BMW, Ford, General Motors, Nissan and Volvo.  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 registration statements on Form F-1 and, when filed, 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 (loss). To arrive at our non-GAAP net income (loss), 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 the 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 the fluctuations of our stock price and lack of any historical stock price information due to our recent IPO, which impact share based compensation.  Therefore, the information necessary for a quantitative reconciliation is not available to us without unreasonable efforts.

Company Contact:
Yonah Lloyd
Chief Communications Officer / SVP Business Development
[email protected]

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SOURCE Mobileye N.V.

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