Israeli company Mobily International Company MBLY (Nasdaq: MBLY) announced that it has halted internal development of a new generation of frequency-modulated continuous wave (FMCW) sensors for use in highly autonomous and automated driving systems. The company said the move is part of its regular review of its long-term technology strategy.
Mobileye added that its lidar R&D unit will be liquidated by the end of 2024, affecting about 100 employees. The fate of those employees is unclear at this point, though Mobileye says it will seek to reassign them to other roles. However, it is estimated that most of the affected employees will lose their jobs. Operating expenses for the lidar R&D unit are expected to be $60 million in 2024, including $5 million in stock-based compensation expenses.
Mobileye believes lidar technology is becoming less critical to the future of its “far-eye” systems. This is due, among other things, to significant advances in its EyeQ6 computer vision system, improvements in the performance of its own imaging radar, and continued declines in the cost of time-of-flight lidar units from third-party suppliers. Operating expenses for this unit are estimated at approximately $60 million through 2024, including approximately $5 million in stock-based payment expenses.
Mobileye says the closure of its lidar R&D unit will not impact ongoing customer projects or other product development. The company will continue to focus on developing imaging radar, the company’s strategic core technology, which is expected to go into production next year as planned.
The latest move comes on the heels of Mobileye’s major financial challenges. The company’s stock price fell 8.5% on Friday to a new low of $11.55, sending the company’s market cap to $9.4 billion, compared to $17 billion ($21 per share) at the time of its IPO in December 2022.
Mobileye’s stock price has fallen 73% since the beginning of the year due to a weak outlook, difficulties in the Chinese market and the sale of more than half of its 10.7% stake in the company by Norway’s central bank, Norges Bank. Mobileye is now worth far less than the $15 billion it was acquired by Intel a decade ago. Intel currently owns 88% of Mobileye and is considering selling some of its shares due to liquidity issues.
This article was published in Globes, Israeli Business News – en.globes.co.il – on September 9, 2024.
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