Newly listed driver assistance systems company Mobileye N.V. (NYSE: MBLY) reported its second quarter results today. Total revenue for the second quarter of 2014 was $33.7 million, an increase of 91% compared with $17.7 million in the corresponding quarter of 2013. Original equipment manufacturing (OEM) revenue was $28.8 million, an increase of 115% compared with $13.4 million in the corresponding quarter. After market (AM) revenue contributed the remaining $4.9 million of total revenue for the second quarter of 2014, compared with $4.3 million in in the corresponding quarter representing an increase of 14%.
On a GAAP basis, the company made a net profit in the second quarter of 2014 of $0.2 million or approximately break-even on a per class A share basis. This compares to a GAAP-based net profit of $4.0 million, or $0.02 per class A share during the second quarter of 2013. GAAP results included share-based compensation expense of $11.0 million for the second quarter of 2014 and $2.4 million for the second quarter of 2013.
Non-GAAP net profit for the second quarter of 2014 was $11.2 million or $0.05 per share based on 216.5 million weighted average diluted shares outstanding (reflecting the conversion of all class shares to ordinary shares). This compares with non-GAAP net profit of $6.4 million, or $0.03 per share based on 198.7 million weighted average diluted shares outstanding during the second quarter of 2013. Non-GAAP net income excludes share-based compensation expenses (reflecting the conversion of all class shares to ordinary shares).
Second quarter revenue slightly above the consensus analysts' estimate of $33.14 million, while earnings per share are in line.
After dipping at the opening, Mobileye's share price is currently almost flat at $46.75, giving the company a market cap of about $10.2 billion. The company made its IPO at the end of July at a price of $25 per share.
At the end of the quarter, Mobileye had cash, cash equivalents and short-term investments of $149.0 million, compared with $124.4 million at the end of 2013. After the end of the quarter, Mobileye closed its initial public offering (IPO) on August 6, 2014, which generated net proceeds of $193.7 million.
The company generated $23.4 million in net cash from operating activities for the second quarter of 2014 compared with $4.7 million during the second quarter of 2013. The company generated $20.0 million in free cash flow for the second quarter of 2014 compared with $3.4 million during the second quarter of 2013, mainly as a result of the increase in revenue as described above. Free cash flow represents net cash provided by operating activities minus capital expenditures.
"The second quarter results highlight the strength of our unique business model. Our strong revenue growth was driven by continued robust market demand resulting from the ongoing move toward regulating ADAS as well as the value proposition of our innovative solution, which bundles multiple applications into a single package," said Mobileye co-founder, president and CEO Ziv Aviram, "The completion of our initial public offering was an important milestone for us. Mobileye now has enhanced resources to continue executing its growth strategy and further extending its technology leadership position and penetration with OEMs. Looking forward, we have numerous opportunities to continue to drive growth, including creating new and enhanced applications to capitalize on the advantages of our complex technology. Longer term, our position in the market will enable us to benefit significantly from the large and growing semi-autonomous and autonomous driving trend."
Published by Globes [online], Israel business news - www.globes-online.com - on September 4, 2014
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