Mobileye, which produces collision-avoidance technology, reported a 70 percent rise in revenue but posted a net loss for the third quarter.
The company said it was profitable using nontraditional accounting measurements.
In a report today, the Israel-based company said it posted third-quarter revenue of $35 million, up from $20 million a year earlier. Revenue from manufacturers climbed 60 percent from a year earlier, reaching $29 million, and aftermarket revenue skyrocketed 146 percent, hitting $6 million.
“We are pleased with our strong third quarter results, driven by the ongoing demand for our complex technology,” CEO Ziv Aviram said in a statement.
“During the quarter we successfully won programs for our EyeQ System-on-Chip in several new models with new and existing OEM customers, further validating our best-of-breed mono-camera technology, which bundles multiple applications into a single package,” he said.
Continued market demands from automakers drove the rise in revenue, Aviram said in a conference call today. During the third quarter, Mazda became the 21st OEM to partner with Mobileye and is expected to launch the technology in 2016, Aviram said in the call.
“We are pleased with the momentum of our business as the market continues to recognize the value” of Mobileye’s technology, he said.
But, Mobileye reported a net loss of $13 million, compared with a net income of $5 million a year earlier.
Mobileye, like many technology companies, also measures its profitability using nontraditional, or non-GAAP, financial measurements. On that basis, Mobileye said it posted a gain of $9.7 million, up from $7.9 million during the same quarter last year.
The company is poised to benefit from semiautonomous and autonomous driving, Aviram said.
“Mobileye remains in a position to benefit from the ongoing move toward increased regulation of [Advanced Driver Assistance Systems] as well as from the large and growing trend towards semi-autonomous and autonomous driving,” he said.
Analysts liked the numbers and raised their future financial projections.
“Lead times for autonomous functionality haven begun to shorten for the company’s existing customers,” Wells Fargo analyst Rich Kwas wrote today. “In our view, that implies that semi-autonomous application wins could come sooner than initially thought.”
The company, which went public in August, increased its revenue estimate for 2014 to between $139 million and $141 million, with an annual growth of 70 percent from a year earlier.
The company is “well-positioned to maintain momentum over the long term,” Aviram said.