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LIDR Nasdaq· AEye Inc.
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LIDR Nasdaq· AEye Inc.
Earnings report Q3 2023

LIDR Reports Declining Revenue in Latest Quarter

Segments of revenue

LIDR's revenue in the latest quarter was primarily generated through development contracts with original equipment manufacturers (OEMs) and Tier 1 suppliers. The company focuses on the commercialization of its automotive products and has been selling lidar solutions to customers in the Industrial market. Additionally, LIDR relies on a licensing model with Tier 1 suppliers in the Automotive market, which is intended to generate royalties for the company.

Strengths

Despite the declining revenue in the latest quarter, LIDR's strategic plan to focus on the commercialization of automotive products shows promise. The company expects to generate attractive gross margins from licensing its lidar technology and software to Tier 1 partners in the Automotive market. LIDR also aims to leverage its foundation in the automotive sector to expand into other markets, which could provide additional revenue streams in the future.

Challenges

LIDR faced challenges in the latest quarter, as evidenced by the declining revenue. The company expects significant charges related to write-downs of certain inventory in the fourth quarter of 2023, which impacted its financial performance. Additionally, the decrease in costs of revenue is expected to align with the anticipated revenue decreases in the immediate future.

Noteworthy

LIDR discontinued its existing product for the Industrial market in the fourth quarter of 2023 and plans to curtail its involvement in that market. This decision indicates a strategic shift towards focusing on the Automotive market and leveraging the Tier 2 automotive supply chain for future growth opportunities.

Summary

LIDR's latest quarter performance reflects declining revenue, primarily attributed to the write-downs of certain inventory and the discontinuation of its product for the Industrial market. However, the company's strategic plan to focus on the commercialization of automotive products and its licensing model with Tier 1 suppliers in the Automotive market provide potential for future growth and attractive gross margins. LIDR aims to leverage its foundation in the automotive sector to expand into other markets, further diversifying its revenue streams.

Source documents

Form 10-Q  filed on Nov 09, 2023
13 pages scanned

Reference data

Company financials Q3 revenue 188k
Analyst estimates Q3 EPS missed by -44.44%
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