Israeli company Mobileye Global Inc. (Nasdaq: MBLY) has announced that it is closing down internal development of next-generation frequency modulated continuous wave (FMCW) lidars for use in autonomous and highly automated driving systems. The company said that this step is being taken as part of its regular review of its long-term technology strategy.
Mobileye added that the lidar R&D unit will be wound down by the end of 2024, affecting about 100 employees. The fate of these employees remains unclear at this stage although Mobileye says it will strive to transfer them to other positions. Nevertheless, estimates are that most of the employees affected will lose their jobs. Operating expenses for the lidar R&D unit are expected to total $60 million in 2024, including $5 million related to share-based compensation expenses.
Mobileye believes that lidar technology has become less essential for the future of the company's 'eyes off' systems. This is due, among other things, to significant progress in its EyeQ6 computer vision based system, and improvements in the performance of imaging radar that the company is developing, as well as a continuous decrease in costs of time-of-flight lidar units from external suppliers. Operating expenses for this unit are estimated at approximately $60 million for 2024, including approximately $5 million for share-based payment expenses.
Mobileye stresses that closing down its lidar R&D unit will not affect existing projects with customers or development of other products. The company will continue to focus on the development of imaging radar, which is its strategic core technology, and is expected to go into production next year as planned.
This latest decision comes in the wake of the major financial challenges facing Mobileye. The company's share price fell 8.5% on Friday to a new low of $11.55, giving a market cap of $9.4 billion, compared to $17 billion ($21 per share) at the time of its IPO in December 2022.
Mobileye's share price has fallen 73% since the start of the year due to lower forecasts, difficulties in the Chinese market, and the sale of over half of its 10.7% stake in the company by Norwegian central bank Norges Bank. Mobileye is now worth far less than the $15 billion at which it was acquired by Intel a decade ago. Intel currently holds an 88% stake in Mobileye and is considering selling some of its shares due to its liquidity problems.
Published by Globes, Israel business news - en.globes.co.il - on September 9, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.