Mobileye Chairman Amnon Shashua with Volkswagen brand chief Herbert Diess. Their recently announced joint venture marked the first time an automaker planned to use Mobileye's mapping technology, known as Road Experience Management.
Mobileye’s stream of self-driving partnership announcements and success with aftermarket products pushed it to a strong finish in 2016.
The camera sensor supplier reported net income of $32.6 million in the fourth quarter, a 73 percent increase from the same period in 2015. The momentum continued this month, as Mobileye said it was entering joint ventures with Volkswagen AG and BMW for autonomous vehicle mapping, with a similar agreement expected in the next few weeks, according to the company.
“Our expanded product portfolio matched very well to customer demand for future vehicle technology, leading to five Level 3 and five Level 4 autonomous vehicle production program wins,” Mobileye CEO Ziv Aviram said in a statement on Wednesday.
Revenue for the fourth quarter was $104.6 million, an increase of 46 percent from $71.8 million in the fourth quarter of 2015. Mobileye sold 1.7 million EyeQ chips -- which enable processing for driver assistance technologies -- in the fourth quarter, up from 1.3 million a year earlier. The price per chip rose to $45.50 from $44.70 during the same period.
Mobileye more than doubled its aftermarket revenue in the fourth quarter, bringing in $27 million, compared with $10.6 million in 2015.
Mobileye shares gained 2.8 percent to close at $47.43 on Wednesday.
Analysts said they expect continued strong performance from the sensor supplier as automakers and suppliers invest further in self-driving systems.
“We believe the continued acceleration in [advanced driver assist systems] take rates and investment in autonomous capabilities will drive strong topline and earnings growth for the company over the next few years,” wrote Richard Kwas, an analyst at Wells Fargo, in a note to investors.
In a conference call Wednesday morning, the company said it expects revenue to be between $490 million and $505 million in 2017, up about 40 percent from $358 million in 2016.