Source: Gasgoo
On April 25, Mobileye Global reported a sharp drop of revenue in first-quarter since decrease in orders for its driver-assistance chips due to the economic uncertainty.
According to LSEG, Mobileye’s first-quarter revenue fell nearly 50 percent year-over-year to $239 million, but its still higher than the average analyst estimate of $231.6 million. Mobileye’s stock fell more than 3 percent in premarket trading after the financial report.
The Chief Executive of Mobileye Amnon Shashua said, “The financial results for the first quarter reflect the reset of the supply chain as excess inventory held by our customers is consumed.”
Image source: Mobileye
Mobileye indicates that sales of EyeQ, an advanced driver assistance chip, declined and cause huge effects on all the key operating metrics of the company in the first quarter.
In addition, the company’s first-quarter net loss widened to $218 million from $79 million a year earlier and the gross margin plunged to 23 percent in the first quarter from 45 percent in the same period last year.
In January, Mobileye warned that it was struggling with declining in orders for its self-driving technology chips as its customers cut spending and opted to clear excess inventory.
Mobileye also announced that it would provide advanced driver assistance technology for Mahindra’s next generation of vehicles. Besides, the company would keep an eyes on growth in the Indian automotive market.
In an announcement at the Consumer Electronics Show in Las Vegas on April 23, Mobileye said the two companies will also collaborate to develop a fully autonomous driving system for India. Financial terms of the partnership were not disclosed.
Thanks to the advanced driver assistance technology, India’s roads become safer. According to the World Bank, India has the “most dangerous” roads in the world, with more than 900,000 people killed or maimed in road accidents each year, costing $156 billion.
