AEye, Inc. Q3 FY2024 earnings call

• Product advancements: Apollo set new performance bar with 1 km high resolution object detection in a half-size form factor; first Apollo samples delivered to partners; completed in-vehicle driving test with NVIDIA meeting Hyperion specifications. - Partnerships: Delivered Apollo samples to partners; showcased Apollo with LITEON at IZB; making progress in China with ATI and LighTekton. - Financial: Reduced net cash burn for sixth consecutive quarter; cash burn for Q3 was $5.6 million (excluding new financing), down from $6.2 million in Q2; closed Q3 with $22.4 million in cash, cash equivalents, and marketable securities; potential liquidity ~$75 million.

Total revenue for the third quarter was $104,000, driven by non-automotive product sales to an existing customer. Gross margin was negatively impacted by increased warranty reserves. No specific revenue contribution % mentioned for segments as it was primarily from one non-automotive product sale.

• Ongoing expense reduction initiatives are yielding cash savings and trending towards outperforming 2024 cash burn guidance of $25 million through payroll and facility related savings. - Potential liquidity includes cash on hand, ELOC, and ATM facilities at approximately $75 million.

• Forward-looking statements are subject to inherent risks, uncertainties, and changes in circumstances. Actual results may differ materially from forward-looking statements. Risks, uncertainties, and other factors are detailed in reports filed with the SEC.

Q: How have potential end customers reacted to the advances with NVIDIA and high resolution at long range, and what should investors expect next on procurements?

A: Matt Fisch said 2024 has been quiet on nominations but sourcing decisions may start next year. Apollo's response has been positive, engagements continue strong, and the seamless software integration from Apollo eases OEMs' process.

Q: Talk about the competitive landscape for RFQs faced this year?

A: Matt Fisch stated the automotive industry likes choices; AEye aims to be the best in performance, size, and cost. Being partnered with a Tier 1 supplier with optics expertise gives a cost advantage.

Q: Does the administration change and potential tariffs on imported vehicles affect the plan?

A: Matt Fisch said no immediate changes foreseen; technology is agnostic to powertrain, and AEye is well-positioned to meet needs regardless of potential restrictions.