TEL AVIV (Reuters) -- One month after going public, Mobileye posted lower net income but sharply higher revenue on strong demand for its camera-based systems that help drivers avoid collisions.
The company today reported second quarter net income of $189,000 compared with net income of $4 million during the same quarter last year. But overall revenue during the quarter surged 91 percent to $33.7 million.
Mobileye went public in August in what was the largest ever U.S. IPO by an Israeli company, raising about $890 million after its shares were priced at $25. The stock closed on Wednesday at $46.97, up 9.2 percent, but closed down 3.4 percent today to $45.37. Through Wednesday, the shares had jumped nearly 27 percent since the IPO.
"We expect year-over-year growth to be robust," CFO Ofer Maharshak told a conference call.
He forecast 2014 revenue would rise 65 percent to $133-$135 million.
As it typical with many technology companies, Mobileye also reported its results using non-traditional accounting methods.
On that basis, calculating per-share earnings including adjustments, Mobileye posted net income of 5 cents per share, compared with 3 cents during the same quarter last year. The company was forecast to earn 5 cents a share on revenue of $33.1 million, according to Thomson Reuters I/B/E/S.
For the year, Mobileye is forecast to earn 18 cents on revenue of $131.2 million, according to Thomson Reuters I/B/E/S.
Non-traditional accounting is sometimes used by newer technology-based companies as a more accurate way of measuring their financial performance.
Mobileye is taking advantage of a push by automakers to attain high safety ratings from agencies such as the U.S. National Highway Traffic Safety Administration.
"We believe Mobileye's monocular camera system is at the early stages of a 10 to 20-year mass adoption by the auto industry," Raymond James analysts said in a client note.
The company's technology detects other vehicles and objects using only a camera and software based on complex algorithms. This has helped it gain market share from its competitors, such as Delphi Automotive, which make driver assistance products using complex radar-based sensors.
Mobileye's technology is already used in more than three million vehicles made by BMW AG, General Motors Co. and electric car maker Tesla Motors Inc., among others.
"Longer term, our position in the market will enable us to benefit significantly from the large and growing semi-autonomous and autonomous driving trend," CEO Ziv Aviram said. Tesla said it is planning to roll out its semi-autonomous vehicle, which can drive itself on long stretches of freeway, by 2016.