Mobileye 4Q15 Earnings Call Notes

posted in: Notes | 0

Mobileye’s (MBLY) CEO Ziv Aviram on Q4 2015 Results

10m cars on the road using our tech

“There are now over 10 million cars on the road enjoying a safer driving experience through the use of our technology.”

We are in a forward position to create a standardized map asset for autonomous driving

“We have planned to include all car manufacturers and create a world index. Our position as a technological supplier puts us in a forward position to create a standardized map asset for the autonomous driving industry. Given that our announcements were reciprocated by similar announcements by GM and Volkswagen, this indicates that we are not alone in appreciating the significance of the value we bring to the mapping industry.”

The bar for competition is very high

“A worthy competitor must achieve production worthy performance on the entire spectrum of customer functions, including sensing, mapping and driver policy. Together with a huge database covering tens of millions of miles on driving required to validate the performance of the system, the necessary bar for competition is very high.”

Autonomous driving will be a multi-player game. Open architecture makes the most sense

“I think the motivation for open architecture is not to increase revenue, but to enable our partners to be able to provide their own value into the system, because when you talk about autonomous driving, it’s really a multi-player game. It’s very, very hard to think about it in terms of a closed system. Sensing alone, it’s okay to think about it as a closed system, but once you start adding mapping, you start adding your driver policy, you start adding differentiation between different players; an open architecture makes more sense.”

Our belief is that consumer electronics companies underestimate the challenge of automotive

“we supply to whoever wants us to supply to. So it’s not that we will not supply our chip to consumer electronics players, if and when they will become suppliers to the automotive industry. Now, as for whether the future would be that the car is electronics on wheels, and it will be supplied by consumer electronics companies rather than traditional car manufacturers, our belief is that consumer electronics companies today underestimate the challenge of automotive.”

Consumer electronics have more defects than are allowable in the auto industry

“And when you look at consumer electronics, the kind of product that we are used to have lots of imperfection, and we as consumers have learned to live with it. We buy an iPhone or an Android smartphone and we wait for the next software upgrade and then it gets better or it gets worse and so forth and so forth, it’s always imperfect. We are not tolerant to imperfection with cars. Now you buy a car, you don’t expect it to go to a mechanic every month. Once in five years this is our expectation. And when you think about autonomous driving, where there is safety involved, the level of perfection is really foreign and unparallel to the consumer electronics world.”

Ofer Maharshak

ASPs should grow as complexity increases

“So as we said, the longer-term trends that ASP is growing, it’s growing because of the complexity of features, as Prof. Shashua just mentioned and I also mentioned in the prepared comments. We see a trend with OEMs that even beyond NCAP they are requiring more sophisticated features.