• New Capital Raised: $5.2 million in new capital net of financing costs.
• Equity Line of Credit Facility: Access to up to $50 million in additional liquidity.
• Net Cash Burn: $6.2 million in Q2, down from $7.6 million in Q1.
• GAAP Operating Expenses: $8.1 million, down 23% from the prior quarter.
• Non-GAAP Operating Expenses: $6.4 million, down from $7.5 million in Q1 2024.
• GAAP Net Loss: $8 million or $1.16 per share, compared to $10.2 million or $1.61 per share in Q1 2024.
• Non-GAAP Net Loss: $6.2 million or $0.91 per share, compared to $7.2 million or $1.13 per share in Q1 2024.
• Net Cash Used for Operating Activities: $6.4 million in Q2, down from $7.9 million in Q1.
• Cash, Cash Equivalents, and Marketable Securities: $28 million at the end of Q2.
• 2024 Cash Burn Guidance: On track to outperform the $25 million full-year guidance.

• Warning! GuruFocus has detected 6 Warning Signs with LIDR.

Release Date: August 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AEye Inc (NASDAQ:LIDR) launched a new product, Apollo, which has received overwhelmingly positive feedback from OEMs and partners.
• The company has demonstrated its lidar sensor's capability to perform at a distance of 1 kilometer, which is considered the longest in the industry.
• AEye Inc (NASDAQ:LIDR) has successfully completed a technology transfer to its Tier 1 partner, LITEON, and is executing a significant product cost reduction initiative.
• The company has extended its cash runway into the second half of 2025 through capital raising and cost-saving initiatives.
• AEye Inc (NASDAQ:LIDR) has reduced its net cash burn for the fifth consecutive quarter, demonstrating strong financial management.

Negative Points

• The company is still facing long lead times for OEM program engagements, with potential series production agreements not expected until as early as 2027.
• AEye Inc (NASDAQ:LIDR) reported a GAAP net loss of $8 million for the second quarter, indicating ongoing financial challenges.
• The company is operating in a competitive environment where capital is scarce, and investors are focused on sustainable business models.
• Despite progress, the US and EU markets are progressing at a measured pace compared to the Chinese market, which may impact global growth.
• There are potential geopolitical risks associated with US-China tensions that could affect partnerships and market opportunities in China.

Q & A Highlights

Q: Can you provide timelines for potential series production agreement announcements with OEMs, and are there any new use cases for your technology? A: We are still looking at series production agreements potentially starting as early as 2027. The lead time for OEM programs is typically around two years or more. While the timeline remains similar to previous discussions, the interest in our long-range, high-performance product is increasing, particularly from our connections in China.

Q: Are you seeing any delays in RFIs and RFQs due to recent market estimates cuts by S&P Global? A: The timelines for RFIs and RFQs are holding steady. The recent NHTSA requirement for automatic emergency braking is driving increased interest in high-speed applications, which aligns well with our 1550 nanometer lidar technology that offers long-range capabilities.

Q: Is there any concern from Chinese customers about US-China tensions affecting your partnerships? A: Our partnerships with ATI and LighTekton are well-received in China, and we have established a local supply chain and support through these partners. This setup addresses the major concerns of potential OEMs, and we have not encountered any red flags regarding US-China tensions.

Q: How is the partnership with LITEON progressing in terms of cost reduction and market engagement? A: We are making strong progress with LITEON in driving down BOM costs, which is crucial for market adoption and engaging with OEMs. LITEON's established presence and track record in industrializing products are seen positively by OEMs, generating increased interest.

Q: What are the financial highlights from the second quarter, and how is AEye positioned for future growth? A: We reduced our net cash burn for the fifth consecutive quarter, with a second-quarter cash burn of $6.2 million, down from $7.6 million in the first quarter. We raised $5.2 million in new capital and secured a new equity line of credit facility for up to $50 million, extending our cash runway into the second half of 2025. Our capital-light model and partnerships are unlocking market opportunities and positioning us for scalable success.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.