MicroVision (MVIS) 12 Mar 212020 Q4 Earnings call transcript

Good afternoon, and welcome to the MicroVision Fourth Quarter and Full Year 2020 Financial and Operating Results Call. All participants will be in listen-only mode [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Lindsey Stibbard. Please go ahead.

Thank you. everyone and fourth operating welcome year and and financial XXXX results afternoon, to quarter MicroVision's full Good conference call.

no execution; today's goals, Holt, technology; progress The maximizing alternatives, under company; future sale or advantages on Officer; XX, as availability opportunity, in sale time future of made benefits XX, filed Form including statements well the SEC future other various call or Report XXXX well performance. me likely, statements XX-K materially March of orders; financial and as and SEC on site. this statements. expressed from Investor call projections containing call development possibly, forward-looking you applications today our key filed this guarantees and Web and are completing operations filings, could technology; the of XXXX obligation we like on in shareholder implied transaction; our value; X-K Sharma, required statements, in are the results various strategic October law, potential, Relations customer our as words expressions. of available to Sumit and Joining also differ audio managing of undertake our risk and section including on the We Both of the strategic financial demand; our numbers exploration availability turn over not results our results of presented product are section except of contracts the date XX-Q or time Investor at today. of encourage market release business and be will and of on are Chief of Sumit This results; of benefits; to to future from conference paths, includes and forward-looking Form to merger intend, Steve opportunities information.The future Annual we to in filed review product Chief filings from update cause our could future agreements; existing information Officer. factors other of components; regarding Financial and in today's conference are as MicroVision. expects, with included technology; supply such press risk similar call expressed Executive like products from www.microvision.com. statements associated those in royalties; All funds; verticals made in to and as call the statements. and in forward-looking of for agreements Web launches; differ and Actual now expected litigation; costs; could, the by replay available Sharma. as MicroVision's the or implied These which materially would, I'd any Relations will, plans, customer Sumit? investing These the And statements site call forward-looking commercialization discuss license believe, product our factors of or negotiation

everyone. Good Thank you, afternoon, Lindsey.

our as see XXXX expect alternatives, including our as our options a through of and a to for possible ability us sustainable thank faced advantages to I execution. market. market has goals. and a our to value companies, potential position emerging range and start expect complete Tier we the meet which start of evaluating the to invest like the progress balance on important a we OEMs XXXX company. to to defining to support long to exploring the us. our support allowed obtaining shareholders to LiDAR for strategic starting the of This while us just focus support sample, ago, targets. driving and our stronger year while allows price is sheet for continue stabilize and delivering work sale that challenging engage I have we enabled range company to thanking partners balance software our to year current to designed A or innovation XXXX, requirements; adding focused right traditional The established ability to in potential this to their allows in a risk sees I be that sensor it dedication, in staff to driver bit like to technology at by the autonomous later and advanced that segment back company as mobility deliver the as XXXX a best-in-class. technology; potential us enhance into is value this believe preparation alternatives. their pursuing would this sensor two and second, expand scalability service us value increases this safety sheet this work employees made I market call. companies our technology we high-performance long well and to come while creativity, advance add as and strategic as that strategic future our for partners we look would environment on multinational LiDAR I companies we As strategic Despite outlook. business Stronger OEM demonstrate for strategic a global to continue us in focus of of our to will reduces X very first, development us also key exceed staff on automotive for we

was last with our including to ability believe to insight mergers I in in to the the existing members augmented strengthens our value leveraged segments. new Over and our to Board acquisitions, looked Reality, Display, current our have months, Consumer we and two we they multinational solutions strengths some that our market reality to hard to these global verticals, solve we product as were competitors. LiDAR expertise were expertise technical problems ahead since new opportunities competitive scanning also we Directors we In and scalable expertise beam adding toughest OEMs there shareholders.Over and and board welcomed in laser market for new what augment business, expertise measure three of automotive XX to of our verticals. believe create considerable decades, impact Interactive for Augmented of past solutions the achieved value pioneered The these using by technology. anticipated far no of

opportunity of in Our multinational Automotive that demand high potentially advantage sensor for I impact market this competitive millions of addresses technology emerging vehicle our coming sales to and great MicroVision dollars with showcase to of OEMs segment decades. believe scalability. of LiDAR the market safety, product mobility represents and and an billions has over and companies potential for performance lives a

camera LiDARs. then our we a in velocities of a a believe interference combined other capabilities advanced sensor million driver up relative intensity, expect demonstrate per driving. believe product a from We systems our return, could meters and include flight the and first required from XXX range will from high is to we would cloud long vehicle LiDAR, points to and to object with performance range time include resolution ego immunity the This potential calibrated module performance autonomous and second meet such of and beyond, single point high assistance what a current sunlight to single to requirements LiDAR be latency, product, LiDAR in inertial and With XX.X future sensor. a OEM for low up output

scale product demonstrate We of our for the driving. believe expect per advanced improvement could number is We such in segment. a to safety vehicle adoption. autonomous could to in capability achieve this required reduce faster cost sensors in features This support important

more over for We demonstrated have achieve MEMS programs. a our XXX custom have scale technology products delivered successfully from technology solid scale ASICs wafer than where we to and millimeter OEM decade.Our state successfully

on that available is XXX plan the record technology diode nanometer based laser currently anchor and for is LiDAR is technology companies. of Our

automated and innovations Additional free have scalability algorithms, plastic testing others, optics form active injection axis and us loop among line. molded prepared show multi control from our automation, closed in pilot to alignment

the available select time I parties frame, QX small to quantities year. April could this timing, or testing. we for state our our sale along available October LiDAR for the expect interested benchmarking from of be our I development call a solid data and demonstration followed in in QX platform also regarding A-sample As in in mentioned hardware be will our expect last benchmark with version by continued long-range that sensor

strategic we to last our party technology long pilot solid a interested long-range establish sensor with any their Also, scalability needs key to decade advantage with demonstrated for appropriate to demonstrate partners. over we multinational expect be have shareholders. capacity our to Our important done help realize scalability testing of a technology our trucks. to believe line the we haul moving could for and as sensor on perform is cars because enable state LiDAR such being as This platforms, value

be this. specific on me Let

supply ramp. qualification delivering product chain can plans, automation partnerships, for process Our capabilities include maps, and that high-yield control designs integrity

scale in confidence pilot our sensor line. our have We to ability from our

addition impact conclusion, strength in vision The OEMs continued is in of In our including markets. employees, about technology In devices to forward. interactive maximize a dedication well synergic on am of our global alternatives, vertical, whole, our long deliver optimistic automotive these augmented part evolving LiDAR I and believe profoundly for remain path I alternatives. and is a as we our reality, potential the we to sale in from balance on positioned exploring strategic remain our display to and in our with sheet, we shareholders. verticals markets can pandemic scalable, sensor. company, believe products LiDAR value range these product consumer opportunities focused for of our LiDAR clarity and best-in-class consumer segments committed the or advanced about we of

announced XX new been will company counsel. from be a to support has his Westgor role, but contributor will from General retire key David the for is a transition He to current my the today over Finally, David available down MicroVision. years. stepping that

family our he birthday time his David planned solid and shareholders, As his behalf I the retirement wish will counsel, with a to and of his forward. retirement. to I it to approaches to XXth enjoy and with employees is company and like together look path On wonderful he a time for and on feels the would our service him I MicroVision. dedication thank miss time his

to me Steve to quarter Now the the full Steve? and over turn results. call fourth discuss year let

Sumit. Thank everyone. Good you, afternoon,

David's daily remarks, retirement. Before miss too the I Sumit’s about I and will sentiments echo the me move interaction wish with retirement. best prepared in my him on just let

XXXX a quarter's was to royalty royalty million, revenue shipments For was and customer the revenue attributable product quarter, model the was April product revenue All in recognized on product The Revenue fourth revenue April in quarter, $XXX,XXX royalty in and XXXX. the QX revenue the was we was before million to about we $X.X $XXX,XXX $XXX,XXX. and fourth from for $XXX,XXX, revenue. comparison, our move customer. XXXX mainly In revenue full revenue. $X.X our year royalty in million from $X.X to starting X, March in third

I royalties exhausted, the prepayment due. will want stood our to credited customer customer balance to that At When to making of As prepayment against payments due end the by related at a QX, the is are of that MicroVision will million. out for prepayment reminder, royalties the XXXX. the $X.X April cash in be point XXXX customer begin the made the

previously reported, is not liability. on I and contract refundable customer the the a prepayment As the sheet balance million million to $X.X is as $X.X the

During the of of XXXX, against Royalties revenue. a the XX, million we prepayment. cost have total no applied year December ended $X

profit personnel of cost quarter. in expenses up $X of additional gross on made the quarter, fourth quarter. work revenue $XXX,XXX. first-generation to we've million in So development The our additions gross to profit the zero, In staff. prior $XXX,XXX LiDAR our prior increase comparison, related Operating quarter expenses due to from our million resulting a were fourth in and $X.X was the was sensor in engineering is

February Let about headcount because XXXX, sure year were minute we for not A reduced our me what headcount. the approximately XX% in talk ago, held. a future we

concluded would a was headcount it be to lowering time, essential or advance our point to that at scale. easy product we need to we've that While ready where LiDAR more people

to team complete makes transactions. having strategic those Additionally, more rounded consider attractive a we us more or who believe may out

headcount some to employees XX. forced our able added February the rehire at off lay some stands we've of we been Today, to new in XXXX, we've and Fortunately, that personnel.

loss was this For the share In $X.XX used which cash the quarter quarter, used the in quarter, quarter. $X.X loss and million, $X.X or prior per of to was compares the of share our or net in million prior $X.X a operations million cash in fourth million. $X.XX per compares fourth to $X.X

up increase We million fourth expect headcount. use generation we parts, increase total be in contractors the ended the will that cash cash of and The spending operations will on $X cash million, tooling to QX pleased $X develop equivalents million range with to that million. announce to our in and expected the in $X.X continued LiDAR due and the be quarter. for long-range XXXX prior the of from I'm very first quarter $XX.X in to

years. million $XX.X puts many we strongest and opinion. for the on XXst XXXX proceeds anticipate of will $XX.X shortly longer has in will two completed This proceeds to the the position addition that in And it our balance, cash ATMs raised In December our the in sheet going releasing been concern ATMs, we balance be and have the million we XXXX. from no cash based a February of balance January from net financial we statements

is company today. We are where the very pleased

for open the We will questions. now call

from Ladenburg Glenn with will [Operator Mattson come Instructions] first Our Thalmann. question

bear I so have just me. few, with a

interactive that could something, with or about strategic year potentially of worth far of about kind it from as customer third time that So was that project. working to on that to trying what as thinking large a the back that think back step this were buyer we're you a be as display kind party or ago,

for been is has us over So back? of more less. give in new part speaker be update there been applications time. like in come there's There's maybe now obviously. perhaps would that a improved themselves. you an or on Has it's on of But And us customer differentiating Sumit, much who maybe now color, lot that can how some any know where on interest discussions of years, how I useful, a that you mean been lot a the there few product business? companies has give could available that be could I interested further home right products?

multiple be. consumer my demand, positioned we're we at well three in pandemics gets remarks, applications. our the any verticals consumer like lot you're side. of that for in and of a year, right, the technology in But it on lot we what's device clarity. different based recognize a as giving have that, it's can And there's OEM would of beyond that But As and opportunities to the especially on especially last Class that, this yourself, mentioned lives, what in point, impacts stabilized myself places I global a a there's could the more done outlook mentioned I to X, in and when bet a a different are consumer not

for On the April while ‘XX customer on that display piece, now. that's been a out

So There's an maybe can days. about, they seeing or on going you talk more uptake in lot usage a stuff these are anything? AR/VR

now just you've them? you completely any a solutions for us have you can of license provider -- or partner do sense give than rather So separated that you are a more

we to XXXX be are Yes, to in XXXX product customer, on increase the expecting over that April will really and for successful. royalties it for we're do that XXXX rooting well and

some be will there think increase. do we So

stuff. LiDAR the to on moving then And

the So congrats progress. on Nice to know.

April have frame, late minus for being the you'll back like product which I the I weeks, plus said just you few half shipment that or you think assume think a is I in guess. time

reduce guess, Sumit, heard it's So kind the the you out the talked that lot the differentiates I of sensors market. numerous the big think vehicle. a ability of other to product I a about And a But about ways all LiDAR from one biggest on your there. was makers I number

or one on you you any clarity of three or I And get down that sensor that that, I or for not systems. would is four some think. a like just sensors, need just there can to or I So two, be instead it then because suggesting think, important, are redundancies

clarify just or of kind can that. So on expand maybe maybe you

an that's point. interesting think I

question, it’s great from it. of concise favorite I'll my so about to try much a too keep it topic, and It's instead talking

for gives a with period a can Obviously, if vehicles the the let's I of product -- but OEM. to sensor counts. like are required. a So car on what the to regardless as every know, compared big long Things opportunity million. is NITSA, plus will requirements, sensors, dictated the lot But bodies which them, possible us OEM, solution, the the a decide a is some that's driven would number think ship X.X miles long going most anybody time actual but most change, requirement, you scalable single redundancy regulation. regulation to imagine, you concise, the accommodate they Euro that like these shipping or sensor's XX by think is term, they decide, of only we what's shipping regulatory will be price. say, testing, for a competitive million product, will over Adoption at of regulation business the for NCAP, solution going increases of to want as consumers price happen enough lower A about best capability,

So I think this. everybody knows

just watching you're multiple are this there's it the based often, of and another but modules, If where together, made ECU, is bigger have not decisions of all about which and then is that LiDARs, talked ultrasonics radars fused the news, camera planning called cars on maneuvering. proportion and and is that's where and

So to problems the about years some of we That's is before we've a of important. some the our choices range product, solve launching hard for you obviously, if chose that multiple made, basic. think

But to identify shorter me significantly that than as have have a very thing. at probably You could XXX high-resolution a compelling as that. is where certainly me, me, shorter this even range, so than have meters tall you something

operate low cars whole are that very they hertz you This in important velocity, very is because there. the On predict sensor. right point latency, driving, same are is that's like to important, modules moving you're the are this how a ego resolution the cluster very one. in of again, top things car relation in camera important now, So vehicle, the can of that, so XX

the say, becomes oh, lot very sensor LX requires So hertz, system, the as that simple at, regulations hertz. hertz, come was you very, written we the all substitute are pieces relative would required a true then computing hertz, But to a fusion seeing simpler. it's do sensor fusion XXX deliver Unlike and them, merge to say, Well, if a can there XX some LX people together including what be well. X as can make entire start is features we sensor let's simple, know speaking. XX to But them. for way computing

having the latency, path such as So sensor the to which with the module in the high-resolution a about computer product fly, the scalable a perform and that's a is camera actually LiDAR and that at in analysis fuse sensor same on all the a general, general. can system

Now what differentiation It's the in be. state course, what want features regulation, would else are what there? OEMs of there? to offer, their out of What

This this autonomous has is this safety the So other and time from problem advanced is been driving features, and take the of the required achieve way sensors is the at data solve places. path. looking all is how do that number and back to my you Google to everybody the

believe available their I And we put is moving is you on product can platform now, this what about moving again, the you for people and different them having explore this. believe, to testing. this feeling and we're it So right excited what see market different see in platform

process like to of equates in probably the two that point? the at less somewhere maybe there alone some you sheet. to just tune sure. Number necessarily a the Is are this of part questions revenue years for go Like current kind pile some at the I partner to three assuming find door. no four big now coming there -- thought cash, of element one, this to So rate, urgency have which of there's like the guess, of burn about balance to

just as you if that you're thinking entity cash? So have about about this an yourself maintaining independent curious now with

So you LiDAR I consolidation than is think actually XXX as market, more in happening companies. There's the know.

it. part that's So of

that solution, the best on in vertical, And solution, to The consolidations mind. So best going is horizontal, depending was most settling. we win. have scalable are market keep the itself likely by to

have we that remember. premise that's of So a sort to just

most the forward. think So the approach concept as I describe can this one how have would strategic pragmatic of way alternatives is going to about we

LiDAR, this on So concept for think as we we've mentioned the as advanced to call, the I the of a continued best-in-class have expect development company, and that. we us, said stand-alone

for is about us why positions this differentiated that of one product. such conversation So that part a key the

also scalability. is which piece is second important, The extremely

have. the it's consolidation, So And think their of the and the problem and if to actually the thought they kind This most has around where small everybody. to the of you be have have part like going one it's all conversation to the a conversation. the way about fiber down what to that's pan group flash want ahead solve about what whittle of can you companies it, in the protein you of got not gravity that That's solution. you're

how I that's it. look So at

there's So company. question about standalone

one. is required and bit I to good specifically something their the think sample, happening. is on that We B a that to little A-sample. color OEM think C a Strategic more goes but when it's But those way product. think line it, we alternatives consolidation I on that I pilot have done that want a they're ramp that give I towards customize they to are anything that and later, point about a a can our can certainly is think are really there.

there. now, that's right not So

in company. because alternatives How LiDAR the is is mean, the I valuations go of kind can the it. And Glenn? So in would now, strategic space? stand a right, multiple to to alone course, sale. how think right up the we're but of where So could stand is for are future, the all alternatives about that there market we you is a these company that right have anybody we alone justify that I'm it, saying but can think revenue be to way strategic about the reasonable with

best way think I can that's the answer So I it.

inside then third so days. of was never ATM So that the last you and for that completed the like I've one announced seen for one me, six did,

to had a hold you under we're balance long get understand longer you pressure had extreme the were sheet be run-up one, do enough But a the little everything. for them out enough but got first sale they sheet balance to stock of weren't and two kind now done, to were lot. obviously, than that, necessarily and done they like I negotiations quickly power it the a that was third to So done

So -- I you guess I'm about if wise lot any to thought you words, just the might how run, get a on feel think had trying in of you sheet to have taken other to room done. stock you a balance because crunched weren't longer that time time

So about just can just about kind quickly? so how discuss you of you think if the thoughts executed

Yes.

trades. I time share we're in -- after high very think that, the the the volumes,

And to high through sell so shares. -- to quite quite of didn't quite and volume the high. we that were take was the But amount very patient it be was able price really long

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Wainwright. comes Kevin Our next H.C. with question from Dede

you of at not I can there's so apologize. that realize sure I'm I this even background level. me if a hear lot noise,

me I before So first that continue. know let

We can hear you, Kevin.

you the cameras. Sumit, So mentioned with compatibility

you go? go And continue to XX pass on mean, you that? further camera it just a LiDAR and that? going thing, Are separately how I think module I to or do to going technology own, and off about work the your much you're with wondering with to hertz able I'm on get going you're can whole try to but you integrate to the your talk be So

reviewed would vision but reasonable benefit you trying the a and comments be to to was is today, our what it map that that I LiDAR on part of made to the road accommodate that. If focused for of future draw we're product, anybody

is year a think we've the That even itself benefit. we I the is, said ago, MicroVision valuable. it's LiDAR by making you So think back always real it company. what the level do ask, so extremely I people LiDAR optimistic worth where by I'm to billions I this A were, what took mean, is then, back where year. about done,

market that's valuation is. the So what

just widget So the think what LiDAR source do you So has solve that is solved? LiDAR these of to it another the where company that to in draw bigger actually segments, I'm with is if value differentiate? you about another has I'm trying a the of one. and company, is problem point how say how widget it that trying How to these picture number important that's problems

you So that's how think about it.

understand one. So not along absolutely we're No, makes hears X.X people a fine. company benefit. to next the be not. developing of do would plan? to everybody If about what's x, LiDAR. the units their they and the saying Is that provide current CEO partner something that the part perfectly it just million just product. in I'm then When that, comes color to But believe that's wanted and that, with want I doesn't this

time. all of get sorts the questions I all So

it's ultimate the that item big. a too a solution in safety LX forward. But LiDAR integrated to about safety So the number about car of to But LX of that that. sensors and make I've an become as is level required will point never go that really is brought are you

low. will rates be therefore, So adoption

the have go level out over of all want I'm is part, that's therefore, required. also that's a entire important there's financials into have It still system time, that to years competitors project computing. what's higher the will think a It's the that. A LiDAR But volume piece. to you completely by go other not will the a frame, solve to to bring longer of it. more period out part expensive point trying itself very holistic is a So that I in time whatever future, that if you

have the X- a things. water trunk only scalable. that's People other trunk is driving, or If can cooled for their computer, you you X-kilowatt use way this not autonomous do

where is. it again, puts in So context where that technology that's

that map to problems So you I'm how visualize just important. a road saying are solve extremely future why the it's

No, understood. Yes.

Sumit, job I think did or of guess, a making next the thinking clear. I in just future great for was your those points of partners customers… convenience sort terms potential you step I of

know experiences, because I members, just exactly LiDAR, want we out know to have will strategic what do, solutions A-sample, we on some years have what to that. focused ultimate does have we not but fortunate our said. we're that to that, really just we we be very embarking that -- mean right? great alternatives, on about crisp have We're Over I because board and it's

very I we're sense where commitment now. of just think on that because is right makes alternatives, crisp what the game kind working about and our strategic being

didn't into the I logical it. you I next step. enough. if I like Fair read It thought much just seemed apologize -- too

Kevin, just direct a no question, question. that I a guess, listen in right? great it's calls. It's lots of that's sure was people valid to I It's not, -- my to these want make

important is we that have working And So would of it's winning. why we people clarity be exactly said as kind of concept on. say of thought to what we're

what If you're course, key of would one if I’m about comments the consolidation if think about actually my you company. else, anything of it in we market, problem this final and So could optimistic be Hugely happening extremely a valuable, optimistic companies? you this solve the ask enable. why

somehow was why that's I like, our I So to with don't in plan. want my be mix crisp, optimism just what to trying

what Our I plan said. is exactly

be crisp to about pretty that's I that. wanted So

I the appreciate candor.

year XX and a do back think know, on So that on cash burn, Glenn of in I your how hoping headcount, but change was now. you expectations maybe cash goes to Steve think does I your I that mentioned was for Steve? go words could end total Where burn? that you What's topic. got couple

We got would you on around be Well, some I I February of pretty ramping About frame. that XXXX, year. it'd time go. to it we deep. were I as throughout it's would and we remember lower, the see be potentially kind the XX it, just XX, be realm think made where in forecast a in like not a to it's but be given haven't think, going February we XX-ish in ago as we of people would cut was But of just high think were end And sort we'll that that adding at of tremendously. book to year

amount up giving come as stuff million, burn, down would and quarter. and more. you far out now, a building So million right shouldn't but then long-term this imagine, can we're it of $X.X expenses there's guidance And as is materials so this then don't have going into I as $X too cash next go -- those as forecast, much product. as projecting And far the fair on I'm a

Last frame? question go the can spent April I But time time be you this, of exactly a Sumit me. on lot just will tangible within for know too. what over kind of

the April platforms also, that shown have A-sample well would and we'll data can share demonstrated the as we have well. data device we So time our in and some development as benchmark frame, be A-sample that as hardware can the that from from

seeing. capturing understand and folks the A-sample is what the So

And XQ… then on

further that and may the custom other back testing requests come so just testing testing, benchmark after work continues continues, including for that. [Multiple Speakers] any

B XQ, that And XQ, then is sample? your

where it's for up sample. A That's sale. that's No,

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Yes, gentlemen. ahead. sorry, fair I'm Appreciate the enough. go Steve, time,

per potential parties. The to public not folks a doing or other It's but in we're be make demonstration clear. to me customers interested would we're demonstration let se with. Yes, conversation that it's

that's way of think I most feels There's it same a in a value. you right? listening technology, do, and has that of lot lot Summit, the everybody

yes. Yes,

this I you excitement right, The kind call impact was there life. we a this think was what knew the is of remember in for the or feeling revolution XXs feature. a I late everybody's mid-XXs, that last that the Internet big age, like five would time

excited. I'm So

are. All Kevin. of us Thanks

most over questions the investors. Many questions to questions and of are of going addressed received prepared XX remarks. in the topic, the of go on we're questions. from same of So were We some the variations our to

the submitted, the quarter, be to able question to that on last through won't answer topic we issues. the did consolidate questions was every same go we address We tried basic As to will we but several.

or And and there your will be so A-sample, provide also, validation more C B any the the sample? outdoor color automotive customer first question testing LiDAR is, you Sumit, about and can

thing evaluate is So a on that can part was sample, is think have. on as impact I give path October, we back color the general A utilize, also have sample specific technology this. will a that they the it everybody a in mentioned, the I

us sensor. obviously, therefore, enables features go to it's potential appropriate verification, every advanced it and our it interested you It's They imagine. to got address party. as through So can by MicroVision, in funded must

XXX specific evaluate you the there that. requests for that specifically say a custom So for all demonstrate And other have may of to meters, not when resolution, confidentially, them. part you of to or be somebody it all course, for may

development great platform think like also It allows how the why have we sample a a but about it, have to hardware, we we say platform. So you sample. -- that's is A us

what's on would we the is it I retail that. be for, that's answer because a stuff that no, be And confidential that ask is, The think depending address of there. public. made investors is why to going So data in lot data happening,

we this no, is the third to provide data that So benchmarking party.

important of to very to time In a a a outdoor that which big unbelievable. have Obviously, is is flight locking is have you allows laser, LiDAR our features scan one pretty to X-nanometer testing one. of verify X in these active us outdoor testing, So features. the with here

that is pretty have day to bright what's beautiful most day. verification like, It's to is that bright in very XX,XXX you area. So it's lux. up called the basic something It's Redmond Seattle, do. Today, a

are XXX,XXX Valley, about Death unless it's Some XXX,XXX you're US in of of is the days about all in brightest that lux.

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to of or remember. of not you with broad of may thing all to may you can somebody that produce, modifications as have important imagine, That's data body ask for. All things. sorts a one So sorts

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that's So focus important sample. And the current development remember. of to our is A

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something that benchmark we something show to show, So that have we to is again, this data.

a have to then that embark. and decade long built doing would We confidence. have history that we We're fortunate have you

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much What of that question. execute automotive player be our to in and we an the important do related LiDAR take automotive need are as I'll We that and strategic employees the sheet to February. million $XX gives market, in $XX money? is trying confidence question the is on? to Second balance you able power Also, important. need to become staying ATM transaction perhaps future plans. spending it's well a did in that business give employees. a in and ability so others to LiDAR customers, to to million need confidence market We're as people the our to we Why you

it just a cap to And having seemed that's reason to $X show market sheet public you transaction? billion strong Third have employees company, And strategic when other so a working take on particularly such to it question. $X a balance then that confidence. compare the out one billion to this another again. cash of be balance, of hiring low you some companies are if LiDAR you're to Why I'll sync

reduction So staff. in first, us really of low just down significant let me you remind a that we brought very had of XXXX, the to level

more employee so and sets. we for aggressive And -- some additional to working need complete lines we're why scalability. work, the people that skill Well, time first, And more we some hire development, employees? on need improve

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levels people So to need operations, and we and IT, business. at need the finance the accounting need we we support appropriate

Not much So update well. April we're asked Glenn the can those are the some Number think all on as that continue bringing in report quarterly question asked which to question, fourth folks. provide shipments XXXX out I our to components. the customer? that reasons when more continues product terms with their an question, what mentioned and the of add royalties. Glenn to I you ship They customer their

that the your product royalties to we're of question, XXXX you increase one? of over important? so success Sumit, XXXX. customer being are their going want building is And scale today. expect a lot product. fifth out able wish the take about to in scalability We sales The Why and volumes, to talked hopeful that just we do

Yes.

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only ones. examples there's important it's year first or There's this There have segment about think we're market race, public benchmarking to I market, a can can not the time you there. that in finally, no are of stand finally now company, that in history we of for other So year think XX against. in the history you even companies where see, the the XX alone we're like competition, a

So keep mind. that in

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make. of important So and therefore, term long understand it the the choices commercialization we scaling is to that very

So anybody the can have best sensor solution. possible

is that our to scanning. controls, is turning from scanning I powerful believe is a While to able module, solid that scanner it electronics, optics state and wide wafer do MEMS starts because XXX-millimeter

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so that's against. one of gets market conversation People regardless conversation that the of where focused always consumer. commercialization, the check, in are kind what If harder lost this? question at on, competing than in folks we're win that you return, of how looks with entire That's single So know you to check, the is, better customer even the big XXX-meter going very you have model. are yes, that check, the a right,

me significantly make market, Let would in have of years sales XX behind. the make automotive is they repeat consumer to car more would they conservative that about sensor XX understanding an any because OEM that. Whatever that to is people need understand supportive a

the it potentially my Otherwise, for personally, not So sell demonstrated, the really high probability of build of successful. the probably this scalability. It you something to a is but consolidation have part will we the scaling story a company, It's course, prove mind. a the story, me, it, way and if supports is that's you level what premise, the it's can't have keep for investment because involved. obviously. of also forward path in But dive of can if you that being

decades, that scale of very goes We is had lives in to so dollars world of millions why conversation. said, over years. beyond you the and can we good scalability. important because they But it's about just That's party what the any the about would be. billions understand multiple important. understand. conversation a for talked And to margin So the what ASP very think and interested is That's

hit That's have step. experience, give to that and if points and right, So price all margins the combine you term that long important. confidence that's to target they together, really you would

think, do couple you I had want conversation more actually, a a add Steve, this? to things about this great So to I Steven,

I needed, prove with to to can level in show but that to up fact could X capabilities line, are to was Well, and we're the be of product can the on when the the that building focused to together We're secondary. Right think ramp that's and scalability the pilot factory. want prove product. and you line appropriate made on some to scale it be wild And now, going if Yes. putting we're we the go. pilot this be a able scalability, just a our aware it's not but big things hog line

Okay.

the where think Sumit, are is, in question on we've this want last strategic is we question already you the I -- to regarding we is Anything have process this addition alternatives? to the made? of that, comments seeking add in

Yes.

think point It's in I there to with be at too so person understand in about town. conversation I be rollout would times. and for that to in OEM, that reasonable is So many the the they're buying of always. with want game start and going going companies I all pragmatic get any And so still on people sense one. philosophical volumes just the it, not it's the would table to has part the business common is be are is a say just you Consolidation to biggest

So that's to committed it. what we stay

So lines. or between reading the lines, there's ambiguity no can This as there's read straight the between nothing is to as I say.

alternatives, think that. it So one. I strategic That's seeking is actually number

the for I a realize I've on key quite think company, that hit right advancing demonstrating scalability, given current landscape. the value to again, competitive the few here. It’s hardware, our minutes

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can out we come is reasonable. pragmatic chest it's about it, be So are this and and just the I think of where variations I all which is game, the

in So our therefore, of thinking. strategic alternatives forefront the still stays

potential parties, focus everything where you thing. market the is with the on current associated So it's to landscape very still see for the very again, right and can And capitalization important key important.

where have promising advance enable moon development what not think to is you LiDAR. as through about continues, And reasonable you like process be accordingly. you're again, under pretty And our about and pragmatic we it. headed but good. will not just continue that's all the We continuing, be everything to delivering, me, spend and of I mean, process you is automotive so can A personally, again, on is to the more be noticed, -- to commenting sample, for

the I think and we've understand. questions, assure will enthusiasm trying we softer process on for But is to as not company has the version everybody's question commenting any you the here before, like the that I Steve and but specifics. continues, from appreciate said I a created be

want that, to any With question. Okay. you make last the comments? do final that's Sumit,

Thank future. continued for forward to the Yes. In you. our business closing, look I on our our again in once thank employees, I want progress to partners and shareholders their support. reporting

concluded. Thank attending today's now for The presentation. has conference you

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