Mobileye first quarter revenue falls by almost 50% as clients cut back on spending to clear excess stock
The Israeli company said net loss widened to $218 million in the quarter from $79 million a year ago, weighed down by a slump in sales
Mobileye reported a sharp fall in first-quarter revenue on Thursday, hurt by fewer orders for its driver-assistance chips as clients rein in spending amid an uncertain economy and excess inventory.
Mobileye reported a near 50% drop in first-quarter revenue to $239 million, but higher than analysts' average estimate of $231.6 million, according to LSEG data.
"The financial results in the first quarter reflect a supply chain reset as the excess inventory held by our customers is consumed," Chief Executive Officer Amnon Shashua said.
All key operating metrics in the first quarter were impacted by lower volume of its advanced driver-assistance chip, the EyeQ, to Tier 1 customers, the company said.
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In January, Mobileye warned that the company was grappling with slowing orders for its autonomous driving technology and chips as clients cut back on spending to clear the excess stock they had built up to avoid a supply crunch during the pandemic.
Mobileye, owned by Intel, said net loss widened to $218 million in the quarter from $79 million a year ago, weighed down by a slump in sales.
