AEye, Inc. Q1 FY2025 earnings call

• Strategic pivot to automotive sector, focusing on capital-light model and cost cuts, including 75% operating expense reduction, 60% headcount reduction, and rightsizing the executive team. • Apollo lidar progress: first units coming off LITEON's manufacturing line, completed first B-samples, entering final test and validation with NVIDIA DRIVE. • Commercial updates: launched Apollo customer outreach campaign, engaged over 20 potential customers, with proof-of-concept samples in negotiation. • Resilient supply chain: globally diversified with manufacturing in U.S., Mexico, Western Europe, and Asia to mitigate tariff impacts.

No specific product segment financial performance details provided in the transcript.

• Full year 2025 cash burn expected to be $27 million to $29 million, up from prior estimate of $25 million due to lease dispute resolution and potential cash repayments. • Apollo ready for market, focusing on leveraging its performance to pursue new customer opportunities across industries.

• Forward-looking statements subject to inherent risks, uncertainties, and changes in circumstances. • Lease dispute resolution may impact near-term cash burn. • Geopolitical and tariff impacts on supply chain pose potential risks to operations.

Q: Just to clarify on the litigation, the real estate litigation, was that a first quarter event? Or is that going to be a second quarter event? And then also the timing on the convert, potential cash pay on the convert, will that be -- when do you think that will be decided?

A: Conor Tierney answered that the lease liability true-up was in Q1, with cash payout in Q2. The convertible note payable over 15 months, first payment due in April, with ability to sell note in cash or equity, having paid two months in cash and some acceleration in equity.

Q: When you look at your cash burn over the rest of the year, you're saying it's going to trend down. Can you give me an appreciation for how it trends down?

A: Conor Tierney said normalized run rate is about $5 million per quarter, Q2 likely slightly higher due to lease settlement, then trending down to $5 million run rate in Q3 and Q4.

Q: You're in the final stages of getting through the integration issue or integration test with NVIDIA. When do you anticipate that? And can you help me appreciate what that actually means for the scaling of manufacturing?

A: Matt Fisch explained NVIDIA integration has two steps: software communication done, now independent test phase. Completion opens NVIDIA's ecosystem for OEM conversations, not directly connected to manufacturing; inventory sufficient for short-term demand, watching contracts for scaling.

Q: Do you have enough inventory to imply no scaling up manufacturing this year? Or can you give more color on potential timing of scaling?

A: Matt Fisch said they'd like to see more customers run through the pipeline first, but expect ramp this year. Conor Tierney added manufacturing partner is flexible with no minimum order volume constraints, allowing quick scaling.

Q: Are you talking about the pipeline of the non-auto business?

A: Matt Fisch confirmed it's the non-auto business, having closed a couple of proof-of-concept contracts in intelligent transportation systems and defense markets, with more details to come.