Earnings Highlights and Review: Mobileye's Revenue Soared 66%; Non-GAAP Surged 67%
Research Desk Line-up: NetSol Technologies Post Earnings Coverage
LONDON, UK / ACCESSWIRE / June 22, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Mobileye N.V. (NYSE: MBLY), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=MBLY, following the Company's posting of its first quarter fiscal 2017 financial results on June 01, 2017. The self-driving technology Company surpassed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
Mobileye generated total revenue of $124.7 million for the first quarter ended March 31, 2017, surging 66% compared to $75.2 million in Q1 2016. The Company's revenue numbers topped analysts' consensus of $119 million.
During Q1 2017, Mobileye's original equipment manufacturing (OEM) revenue jumped 54% to $94.5 million compared to revenue of $61.4 million in Q1 2016. The segment's EyeQ chip volume increased to 2,032 thousand EyeQ units in the reported quarter compared to 1,322 thousand units in the prior year's corresponding quarter. During Q1 2017, EyeQ Average Selling Price (ASP) per unit was $45.1, up from $44.2 during Q1 2016. The Company attributed the increase in OEM revenues to new launches and the roll-out of Mobileye technology to more models within existing programs. For Q1 2017, Mobileye's Aftermarket unit generated $30.2 million of revenue compared to $13.8 million in Q1 2016, representing a 188% increase.
Mobileye's GAAP net income for Q1 2017 was $33.5 million, or $0.14 per diluted share, compared to GAAP net income of $21.9 million, or $0.09 per diluted share, for Q1 2016. The Company's GAAP net income for the reported quarter represented 26.9% of revenue compared to 29.1% for the prior year's same period. Mobileye's GAAP results include share-based compensation expense, net of tax, of $19.9 million for Q1 2017 and $6.5 million in expenses associated with the pending Intel's transaction.
Mobileye's non-GAAP net income for Q1 2017 was $60.0 million, or $0.25 per share, compared to non-GAAP net income of $34.7 million, or $0.15 per share, in Q1 2016. The Company's non-GAAP net income represented 48.1% of revenue in the reported quarter, reflecting an increase in profitability versus 46.2% for the prior year's comparable period, driven by improving gross margins and lower operating expenses as a percentage of revenues. Mobileye's earnings came in ahead of market estimates of $0.24 per share.
Cash and Cash Flow
As of March 31, 2017, Mobileye had cash and cash equivalents, restricted bank deposits, and marketable securities of $677.2 million compared to $633.4 million as of December 31, 2016.
During Q1 2017, Mobileye generated $56.6 million in net cash from operating activities, compared to $32.5 million for Q1 2016. The Company generated $41.2 million in non-GAAP free cash flow for the reported quarter compared to $30.4 million for the prior-year's same period. Mobileye's free cash flow generation during Q1 2017 was comprised of payment of the $12.9 million purchase price of the land for the Company's new headquarters as well as $6.1 million of transaction related expenses incurred in connection with the Intel's transaction.
Land Acquisition
In March 2017, Mobileye closed its purchase of land in Jerusalem, which it intends to use for the construction of a new R&D and innovation center that also will host the Company's headquarters. Subject to receipt of the necessary regulatory approvals, Mobileye intends to begin construction, and intend to invest approximately $195 million in the development of the Mobileye Campus.
Pending Acquisition
On March 13, 2017, Mobileye entered into a purchase agreement with Intel Corporation and Cyclops Holdings, Inc., a wholly owned subsidiary of Intel pursuant to which Cyclops will offer to purchase all of the issued and outstanding ordinary shares of the Company, par value EUR 0.01 per share, for cash consideration of $63.54 per ordinary share. The Company will hold the AGM on June 13, 2017.
Mobileye stated in the earnings press release that in light of the pending transaction, the Company will not host an earnings conference call and will not provide guidance relating to its expected financial results for future periods.
Stock Performance
On Wednesday, June 21, 2017, the stock closed the trading session at $62.67, slightly up 0.19% from its previous closing price of $62.55. A total volume of 2.69 million shares have exchanged hands. Mobileye's stock price skyrocketed 3.16% in the last three months, 79.62% in the past six months, and 53.38% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 64.40%. The stock is trading at a PE ratio of 124.59. At Wednesday's closing price, the stock's net capitalization stands at $13.91 billion.
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