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VLDR Velodyne Lidar

Participants
Lana Adair The Blueshirt Group
Anand Gopalan Chief Executive Officer
Drew Hamer Chief Financial Officer
Tristan Gerra Baird
Colin Rusch Oppenheimer
John Murphy Bank of America
Michael Filatov Berenberg Capital Markets
Joseph Spak RBC Capital
Call transcript
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Operator

Good day, and welcome to the Velodyne Lidar 3Q FY2020 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Lana Adair from The Blueshirt Group. Please go ahead, ma'am.

Lana Adair

afternoon. Good for Inc.’s today's results. third you discuss call us Lidar Velodyne quarter joining thank conference on to And XXXX financial us are call on With Dr. today’s Hamer, Anand Chief Officer; Chief Gopalan, Drew Velodyne’s Financial Officer. Executive Velodyne’s

I'd began, closed investor third presentation. published market quarter issued after Velodyne XXXX financial we you results. that like Before today, announcing release an shortly press a of the remind its also to Velodyne

discussion of the forward-looking presentation during velodynelidar.com. You we Velodyne’s Please will looking to in forward a Investor Exchange release statements. might results factors access form of includes I measures the performance. Commission Relations discuss X, with would some our the Today's actual call, to non-GAAP to that and related that cause company's discussion October XXXX, also to materially statements. you press refer section these for dated the the the differ from X-K filed Securities like could remind

to the follow-up You nearest as can find you the one during we questions release. ensure many one measures press the GAAP analysts’ address request to question as initial comparable that the please we that reconciliation possible and To of those question. call, measures limit in

over to Velodyne. Now, I'd to Anand turn the Gopalan, CEO like of Dr. call

Anand Gopalan

Thank this to CEO you, Lana. Gopalan, everyone And thank us I’m afternoon. you Anand for joining of Lidar. Velodyne

our a I'm our to traded our first And management, that dedicated closed present extend new strong September as for company. the shareholders. closed excited XX, opportunity business and team, Corp. now our behalf Following time. Industrial successful public is a Graf appreciation of results internal our publicly with combination about we customers quarterly Velodyne On to tremendously this

industry. of $XXX also the XX,XXX by we success, vision cumulative shipment our revenue to for David's as commercial sensors today are million. work lidar evidenced and over Hall, who today. where of us launched have brought Velodyne’s expertise grateful a the for fueled We're founder David our pioneering You of

Following we and combination currency, with Graf non-automotive both our the Corp., balance evaluating business sheet, exciting and completion and an to for Industrial further development public extend a automotive acquisitions. healthy potential while leadership applications have opportunity of accelerating product our opportunistically a market

in XXXX the in grew our which and the of applications end to six or our exceeded a new the performance third million. our at strong across of markets quarter, QX projects Velodyne’s agreements quarter We we illustrates At to solutions in XXX $XX.X third the the ability demand lidar XXX% XX% our bringing for projects XXX Revenue end tracking and of in represents our target. different Our pipeline, XX. to agreements quarter, match year-over-year all three total over very further the were multi-year increase points. broad lidar met to price added and

to share business strengthened I leader you Our call, the Velodyne fund balance to turn minutes we and today with of combination just cash know more some a evolution. believe cash post the upfront meaningfully us few why during we spend is positive. sheet Because we enough flow to will lidar this have global was getting Velodyne are autonomous you than until in

applications shuttles, quarter and of well Drew at lidar-powered developments the real the beyond continue delivery trends vehicles include endless brink with Next, revolution. the and systems, the to for results. security. for These Lidar to cities, the through only over call and scale Velodyne turning ADAS consumer more. are multiple lower on will lidar XXXX capability secular world are today goods, share both robotics, for walk breadth is Hamer cities people, I many who lidar the specifications grow company industrial with manufacturing lidar we enables and of deliver for product moving us moving before will the smart portfolio Globally, systems, to priced third autonomous smart recent auto. The broad financial applications.

As systems systems many with in those lidar multi-dimensional distance autonomous applications lidar with valuable light safety advancing patent to customer of you of very solutions the systems know, perception are Velodyne first a Lidar vehicles is market [depth], automated systems, with of working safe development global history object and quicker. vehicles a and the the help detection, across ranging. short to portfolio, and is precision. base, of come so of detection enhance broad a [indiscernible] and a for and industries classification high-level that mover that and define based

development of We path products market relative the safe OEMs majority planning object improve OEMs conditions. perception X world. program in or atmospheric lower customers, Mobis. In roadway data Ford, various companies and to margin a with error safety our focus the major leading tech companies traditional Micron, vehicle plus the to and leading with reliable and with today. lidar partnered Velodyne avoidance has supplies work Baidu, and in all without concentration. share and Tier Hyundai of sell every largest customer have major Lidar suppliers including singular is Velodyne or autonomous companies like automotive XXX nearly cameras. dramatically we We over sector, radar closely for a of

also customers in concentration. the don't have model multiple have We geographical and risk reduced we by in our multiple a serving industries inherently

COVID-XX. solution mile are plus contactless the of years revenue We will half market out, [build] We was XX for two adoption. E-commerce more quickly last lidar for last segments than lidar from beyond considering also future, be than space. delivery accelerated The see but automotive. project that seriously projected the contracts now outside we demand Many auto anticipated. delivery is our one the high-margin for during Last year, target incorporating or example. more mile in of non-automotive industries

$X.XX mile that delivery down human leaves In On package. XX% lidar our robotic approved including and from San expense XX application, last to by as equipped the reducing regulatory per analysis and per are and cost robotic systems one Texas, shows such a front, several in Alto to states, $X.XX Florida already savings delivery customers an cities Palo Francisco. of transitioning package

lidar Velodyne nighttime. Economic and pedestrian traffic weather lights. programs. many sensors data traffic addition technology the other for e-commerce, integrated and at security The engaged city similar the project recently Development and Nevada of lidar city even Nevada, Office or it any anonymous between improving urban functionality. forefront groundbreaking state intersections conditions analyzes In precise traffic with via smart data of sensors The The at Nevada infrastructure. our in also our of collects daytime into [DOTs] We're of to Reno, Lidar University is their and internationally Governor's be

technology seismic a industry in safety. revolutionary new a represents a is the lidar application, of Our transportation level shift assuring in

Our business customer approach relationships with high switching fosters entrance costs.

not relationship systems of are to as Cost to These Once build, relevant security we transferable that and into the closer further customers, is the customers with grows design their customers move they their to we no due validate In our as increases factor into the then program. have initiate adoption effect, the test the technology integration then longer win barrier technology stickiness components. move launch. easily a of Our in lidar. our our underlying software. a

application of As pricing seen, for lidar technology demand approachable have many to the we the expands industries.

base the sight of of direct, line a ASP lowering further near-term our for have sensors. We

our grow. New my In use company's Velodyne, will and Officer. believe was Technology prior are evolving I role Chief cases we time only at our

rotational portfolio a lidar just state team or on technology. broad Our avoid product one built solid relying has in and product to

our blind state unmatched As surround and sensors, view surround said popular breadth for view, earlier, architected example Velodyne solid Prime of manufacture rotational an applications. We wide Alpha meters directional give of vision. products an To VLS-XXX with a spot XXX has of you range high-resolution one the of of offers lidar.

across I hold my installation Velabit hand; that and in gives applications. customers engineering many our would product which team’s the of product lines, Today, we portfolio pricing have options can I of the Our for interchangeable economies lower with designed scale. note miniaturization increase palm components

fully be already hundreds to lidar scale in the built, manufacturers. can and next today, millions processes we produce path have dollars. our We and not along will tens CapEx of several and place automated and with spending the We over years of mass at contract production. millions wafer-scale place furthest manufacturing the are With systems of our operating in

algorithms software systems to complement our developed products. sensor and complex have We

like natural adjacency a possible software robust the Software hardware a only A therefore contracts, to pre-existing on and new cusp are with today. has higher is base we Velodyne incremental which install our is product subscription model software winning pipeline. are of margin

sets off We data and applying our and base. sets are across data AI our product these of install accumulating building

Now, recent I'd highlight business to developments. like

signed agreements multi-year First, awarded the we in and quarter XXXX. have third added six with XX of contract

number total of pipeline Our is XXX. projects

engineering our selling RFQ and Based to the high the an contracts history plan mobility for quality lives where comparing to conditions. technology lidar-based from radar contracts. white sale based our We represents continue lidar manufacturer centric and lidar ADAS entry superiority and failed. camera understand of long RFI issued communities to all. a on and by Velodyne established cycle systems led conversion the secure safer solutions, in camera the volume. for to experience paper for this in-depth advancing Proprietary less radar of to stages and need solution transforms at a our for we value that a the recent We nighttime testing current indicated the

third our October, late annual hosted Summit. we in Finally, Safety World

of fatalities a Smart vision to or and We among translates Velodyne customer of strengths drivers industries In and technology company. work type reduction Velodyne. policy and closing, technologies and of Our one together. operators, a lidar broad the people portfolio far customers are exceptional vast of key ultimately products diversity is a brings one technology from pedestrians. manufacture

you Now, Drew, you. our to our colleague, walk Thank financials. my third call over I through turn quarter will to

Drew Hamer

fourth company. with for thank joining results to moving the Velodyne CFO first this time to today. guidance Thank you for results to company's quarter Lidar. third Drew again you, XXXX. I'll for public as the a share I'm Anand. for pleased an year Velodyne before the of Hamer, Lidar’s everyone financial opportunity reconfirming quarter I'm And us overview for on fiscal the and begin

Third team, for under September a Warrants. company's benefit proud Business was the as common started broad and the This in and first stock excited be to employees non-automotive an markets. quarter long symbol management process from Velodyne. trading a XXXX markets automotive we on NASDAQ opportunity interest to ticker company We is the future lidar VLDR the with and exciting both set. on solution milestone for continued for VLDRW XX traded the to a investors the lidar and are and in publicly

an the Importantly, evidenced levels in increase contracts. company see by as long-term continues of customer healthy engagement to

year. the company's represents Third quarter last revenue a Sensors of the $XX.X focused versus XXX% comparable stream. increase million are quarter revenue

Prime number we to Alpha sold record automotive the units of a This predominantly sector. quarter,

its mile largest in the of customers chain our include Another for multi-year accelerated to RoboSense, our the the customer, agreements. agreements company segments. to quarter contracts. company XX finished third model, was targeted our each is important last supply The True that for delivery these customers represent are solutions third of response in COVID-XX. automotive with contracts place end-user program that their an area putting in multi-year diversified Baidu, quarter solutions a of end-market offering customer lidar.

cost I'll As gross normalized restocking press one-time to a the of due profit well margin quarter our and release, connection R&D GAAP lower gross start quarter's with model from to sold the and engineering offered touch the the in highlighted non-GAAP a GAAP next for company and during more in services in was production contract on goods expects production reclassification non-GAAP manufacturers. as some customers. to fee, of at the that The our guidance. as to of quarter expenses non-recurring benefited reflect

the decreased That the building. related protection sold sale under the includes the as well Morgan G&A our actions, expenses. operating $X.X quarter net building legal by IPO-related expenses does the as balance I rules. combination, Third Non-GAAP the write-off quarter. would to At approximately quarter, business third of the global end well in with a GAAP property and for and $XXX in expenditures short-term that the licensing This and the with includes XXX investments $X.X Lidar that proceeds Hesai conjunction degrees capitalized financing the sheet. million RoboSense occurred include proceeds gain third quarter the million the income third as was capital accounting was surround lidar sensors. as successful intellectual of note expenses from on cash same operating were not equity the amount well agreements Hill of view for sale Velodyne of with of recent million

in shares, of with of plus Lastly, the and just all registered to September. which finally, set This the business company level now for Velodyne average to the the the the conversion to shares weighted publicly everyone, disclosed at accounts the investment that as ended the for turn time like XXX.X common quarter we shares Lidar’s are remains preferred same And outstanding. guidance, of closed million I'd combination. early

are As result Anand last are plans about cautious and of acceleration mentioned, while spending. pandemic seeing mile the interest of capital delivery as we industries increased other a

the our and of With approximately these contracts volume. quarter pipeline for estimated full on fourth to dynamics revenue in XXXX, by reduction year mind, be based the ASPs $XXX million production is offset of and

We expect higher QX. volumes in sense

$XX reduction remain the sales costs prototyping are million discussed to we lower marketing expected million of million We are non-GAAP expect non-GAAP to $XX reclassification is On estimated including G&A stock-based QX is around compensation, in G&A expected to due be of expenses basis, gross is a insurance and expenses a be result million stock-based reclassification QX QX prototyping include previously to gross revenue. million and $XX which continue stock-based to approximately the non-GAAP total GAAP margin, full-year D&O cost of will new by in projected marketing the than $XX stock-based expenses and spend XX%. due million. million. cost of the in XX.X% our resulting Net a expect Sales around company expense, as be R&D decrease of $X compensation partially costs. to discussed products. of in of $XX and the basis, between In to will non-GAAP million stock-based $X expense compensation QX this revenue. the public QX. $XX but resulting are GAAP total a million to expenses in GAAP to fourth lower on we of This invest approximately to costs compensation million expenses expense, lower margin expense, $XX G&A approximately of R&D in around are those and and $XX total total quarter. include expense, than On million the GAAP for protection, On IP basis, lower expense related million. a XX.X% to approximately $X.X approximately previously to compensation include expenses operating approximately legal other $XX a of offset reflect The and basis expenses XX% of to costs of non-GAAP

million. in $XXX the include each billion compensation full-year, For upon stock-based loss million Fourth compensation for on charge approximately expected price the the in GAAP adjustments in compensation operating XXXX. to Non-GAAP of XXXX. incentive full-year vary equity common share $XXX.X day of is $XXX to expense, employee million incentive of October be the quarter $XX expense the approximately of $XX based stock-based loss expected range to all actual will operating includes $XXX non-GAAP million using million of for which stock-based loss closing vests. to for the expense. is assumes result is $XXX the will The operating a This VLDR XX, total million calculated

significant stock-based quarter related As compensation be in to vesting. noted, expense anticipated the will share fourth

will development Recent your joining weighted stronger modeling product call. contract quarter for the high listing. new optimism interest positions be and of company's you for to In full-year. million following first commitment us XXX.X opportunities the profile for our our wins, pipeline fourth the basic For purposes, million and significant future. Velodyne’s Thank for for average approximately even well us public shares closing, earnings and XXX.X our is the long-term for

sharing are Relations to forward ready quarter investor Anand open We Investor Operator, available address for questions. to questions. ahead now today. website the will we I and on in results is and your quarters look presentation The third our

Operator

Instructions] you. our will Thank from Thank from you. take [Operator We now Baird. question Tristan Gerra first Mr.

Tristan Gerra

for mile You'll type were in of this inflection we that little at ahead bit of expectations. ramps? some would a last is And those a that point in recall delivery volume today Looking revenues assume vehicles initial into be projects lot of these an what when volume R&D ASP we should expect moving it can [indiscernible]? to project expect with fair initial in ramp,

Anand Gopalan

This all mile you level conditions think the – I seeing we general, pandemic, as faster the five. Anand because of here. the as from social for accelerating some than two question. delivery level Tristan. of and of well other to Thank last Hey, is automotive see economic the Yes, around applications are definitely conditions, delivery in systems we as traditional the

that of those application. with of or specific applications. first specific I any inflect associated publicly disclosed customers those we and come some don't to than correct expect So, other ASPs specific sooner you're think fruition those the will sorts we to

generally as Now the dollar see we said application in robotic in we speaking, see – before, ASPs lidar. for volume, I’ve range high sub-thousand

Tristan Gerra

great. Okay,

Anand Gopalan

add Anything Drew? to

Drew Hamer

using is in being the talk the in the because been Velabit’s down, five start little – when as to out built average ASP our further think, our and still about to coming years. the I big successful in blended And Velarray’s different to get provided to broad developing these – are have. ASPs even years company that mind seeing so markets result or of know, bear portfolio upon products this but going developed coming when That price to is this overall, four a purpose very the at weighted It's you used be company. know, last able the points Yes. be will should years. based enter in the or giant that average you of a important that – I kind products in about using different thinking know, weighted it’s could we're see may company what has, spent is the could a you And margins we're we they future a be you solutions

Tristan Gerra

as visibility question, the into in segment? what have then, really [LX] market that And [lead] In a do design think you can you type initial And LX this volume frame, great. time is how see follow-up do should when get Okay, we of wins? XXXX of much applications? you share terms

Anand Gopalan

Yes.

that are create the we're [CES] to earlier mass the ability So having really That which because be for Velabit, on year, a lidar this price of low needed is like – points today really at and OEMs I volume. LX and the is really LX you're which the think adoption. pick we to applications this $XXX those unlocks our backs conversations of LX announced now with ASP able something lot are

are many having more we've we the So, around [indiscernible]. fruition use in functions XXXX, conjunction been – of come From the this providing a these technology OEMs perspective, yes, And in our with as – that's LX conversations conversations. XXXX those a volume of ramp deep multiple to expect to like we timeframe. software, with result in likely

Tristan Gerra

you. thank Great,

Drew Hamer

Thank you.

Anand Gopalan

Thank you.

Drew Hamer

Operator, please. next question,

Operator

from question We Colin now you our go next will Mr. from ahead. Rusch Thank take and Oppenheimer. please

Colin Rusch

give Can much dollar a that the volume [indiscernible] and Thanks you’re of awards? so specific are guys. you sense application of total those in awards those us that six the

Drew Hamer

Yes.

awards, the deal. sizable that individual the we really of give that, proud remarks. did prepared smaller deals The Its them that it's was to you sense mentioned pretty then, in various of business sizes contribute in from you And you course, to to do a volume have. was blend. that because slightly NDAs was our know, things speak, to we're large specific very Baidu of a and think one but So on other place, are there a substantial

Anand Gopalan

classes even systems And all different an application we application systems just they the have that moving about, smart city security are the of moving from, all perspective, goods, and application. to to know, way add, that you do and are span talked people that from

all those span, of large are those categories. So,

Colin Rusch

right. All

could portfolio the you earlier levels certain [indiscernible]? moving as fast that think you serve that market? the levels know, your of You to for of capacity there’s of some development customers with, of to around the know, have ADAS portfolio or you deal amount or [indiscernible] know, speak [throws], XXX actually the that they through And work and lower to ability XXX and I confusion Velodyne’s portfolio’s a know, vehicles, to you

Anand Gopalan

great multiple portfolio Yes, that I Velodyne that’s has serve Velodyne in question. mean, purpose. that its actually – a products

hit and a XXX products, performance are driving been the on the the specifically So, have class degrees this applications they highway in years in of Alpha type have which view the fast Prime surround needs point, at multiple production range for designed hit long going for resolution with and – fact, of needed – we Further, highway performing they lidar, high high Velarray designed also product low-end family are range Velarray for of type our performing resolution for performing a and applications. to are the in required. Velarray also from these Velarrays providing has ADAS end a are highest a skews end meant highest and long that to multiple

products those] that So [pick I we to these and would have are customers. say and applications, that are production today products have furthermore, multiple multiple in we shipping

Colin Rusch

aware just having of the actively Okay. And now, on we that to third the you're tight on sources talking get [indiscernible] of be terms last some you're supply me, and one there areas supply? to should in Or just for you're right working about? are [indiscernible] or concern trouble of getting chain preparedness of that second,

Anand Gopalan

Yes.

know, five have other been plus is years You one really work we this that of doing from apart things all that sets the for players already. the is – is sets what Velodyne this

So that are components. chains – have the developed we scalable multiple architectures all developed are key time, period have, over for supply and the that sources of

perspective, contracts not into components, gives today but we to scale our all supplier also the a confidence at have in for key able are and So what high-volume from we that talking geographical from us diversity, perspective about just point being we're today. a a where of that's

Colin Rusch

Thanks Great. much so guys.

Drew Hamer

you. Thank

Anand Gopalan

you. Thank

Operator

Murphy Please from ahead. of John will go from We next Bank take our question now Mr. America.

John Murphy

guys. me? hear afternoon, you Can Good

Drew Hamer

Thank can. joining you for us. we Yes,

John Murphy

having me. for Thanks

is third unit, of quarter around [indiscernible] and wondering versus an in third as look we quarter of look quarter XXXX, idea just disclosure mix third I'm give first a And curious we of then you're the revenue sensors having the a as year question, for also, give the of of number you incredibly Just could of XXXX? which at price two if XXXX the the quarter by can XX in or maybe how different time will helpful deck, out your Slide third of you end-markets over shift time, three flavor over as just end-markets – or mix understanding if some in I'm product at us here? these grow sort

Drew Hamer

I'm sorry.

first question, think the John, XXXX On is versus I this about asking you're QX year QX versus right, that XXXX? year, ASPs last

John Murphy

Yes.

you mix, in year-over-year, If could of the us you number how products idea quarter? some sensor and the shifted give between know, year-over-year, ASP basis on a the year-over-year

Drew Hamer

Yes.

really, the know, the higher the has brought Velarrays just of have you an year a continued market. to ASP, have a We balancing on as effect from Velarrays it’s into bit VLS-XXXs got let's this they've whereas going a so to year and our well, So, lower mix, ASP, this where talk the the of point market are and entry the this other some – we're products. very focused little [without] mix sale VLS-XXX so benefited the

reality know, then, little that into it that VLS-XXX, the higher as And a different volumes tended Velarrays about mix of going that new same. you substantially there's So bit of mix. the the kind as be But like on by the in might having products the are well are end is look the the the year-over-year. to coming

quarter well. as comfortable very to be and here direction it’s the proud I current with as going the and taking mix we’re we're we go the think So, into very

John Murphy

we're think XXX]. know, pipeline forward you [XXX if about this ramping and yes, going encouraging. speakers] projects, of [multiple as anything great we to seeing going very up And It's just to

develop could mix I about curious, should this we think Just you of you mix end-markets as going the mean, of how forward, think see continue? about you sort that time? Or, product know, these over barbell

Anand Gopalan

Yes.

some can I maybe color. add So

incredibly think mix surround state Velarrays like the large I products a Velabit. be products well around some saw portion forward, also rotational volume [indiscernible] definitely X see move as will units level to move of and become to the as as like some robotics, a we in products Having the – view continue that, our level applications, So definitely of as segments the said Velabits, robust solid a we revenue. By well bigger and in Velarrays will see driving as X, continue to as be time products, we into continue and shipped. the the both we of of will portion strong the

John Murphy

Okay. some say, for over time? I ways, to But you. follow-up, And in like you people what that for do be margins if that's at seem negative in I hey, a might and case a doesn't the be, for know, look some might going margins. ask think that net could mean, this just reality means you

you this can margins over you if shift know, maybe the with just So how’ll talk what that, about, for time? means and know, you deal you

Drew Hamer

Yes.

as chain. the and setting the have last and So know that up designing this the work is David you products this is Anand – done really important, in supply in you know, years over the couple of

to was provide would products to get price that the starting point point for allow margins consumer a to it company. proper for the yet was that – So, these purchases,

manufacturing mentioned us course, is products supply that items move we that and that where machines improve moving margins a merger yields high as it as of we with entity. from of ASICs algorithmic of lot reduce ago, to just So, [indiscernible] MLA to are that allow products, the different mix efficient makes products able cost but the talking driven using units I chain, process, also activities so during the as this And offshore finally, and it a take of the that the and been our we've these that on to which volumes by benefit few costs. the the as development all well labor of chips to proprietary labor at into we've get taking should chips. that And going mean these developed the can minutes markets the manufacture also about products is a it's It's had out produced. design well. we calculate the did we're more Anand lot proprietary and of of scale

know, MLA ASICs so you really offshore, doing the product we product moving margins be – supply So, it the to pretty proprietary to design talking it that, it about able should do that we've supply selected confident chain made previously. been with feel combination the that that is chips, chain being machines, has and hit of and the the using we

Anand Gopalan

should a plan add we’ve this been… is I And

John Murphy

Thank helpful. you. Very

Anand Gopalan

into Sorry. able know, point to an perspective from have our the to take had a product they plus clear and so be And this at really, sight we are is the from been what this we we've this for relationships from able profile towards can plan you scale. the pick that. I And line been business. marching we working should that needed already. right to for, years today, customer of add these margin be four And of advantage to market developing [ASC] inflection towards have products

John Murphy

Thank That's very helpful. you much, very guys.

Drew Hamer

Thank you.

Anand Gopalan

Thank you, John.

Operator

our will question Berenberg take Michael Filatov you. from Thank We Instructions] now Capital from Markets. next [Operator

Michael Filatov

for taking question. Hi, my guys. Thanks

today. supply the First between know used mix I of you XXXX-nanometer, the some market in XXX-nanometer of know is one, I perspective being the I there's the I sort chain and a guys And sort there's and a difference using benefits XXX-nanometer. from XXX-nanometer use think which of and know

a more you if little cost color and wondering perspective? and supply a was I that give how from could you maybe that So benefits around perspective chain just

Anand Gopalan

sure. Yes,

as look a But think tool I the sort reality know, is, in the to really of [a toolbox. religious] out be it this some of wavelength at You people make battle. we

allows and What these hit about For is, the the right be application, right the way? to XXX-nanometer, From have sets where of to that also current what's ability significantly really a these these literally key our components with end choice points trying lasers building the these state dollars, of have lasers XXXX in that building applications really you is [indiscernible] you hit So such it's used point, scalability the talking make? of lidar, but a advantages the where solid and and you us contrast for devices few go devices we're multiple a large hits products and see very what to are to the and portfolio are price for the to would highest today. build and who there able applications? performance handful in able for were in detectors, key sources as to that's the volume the question to dollars but spending the and cost detectors fully of performance if lower do to we of huge ability are, have – perspective, a that use that within that the

Michael Filatov

and you competitive give around Understood. ASPs? any needed And would you the one you. could maybe be color of those, low follow around volumes You’ve [indiscernible] sort know, give family, reference Thank color quick just then, up, hit you to very some us great? that could

Anand Gopalan

Yes, sure.

would which wave being today, clear hit able of look you ASPs [earnings]. I So, like hundreds to hit what of we hitting to sight volumes, when in today. But thousands first think those the automobile Velabit, to we at ASPs expect you something would into in those know, have ASPs we be traditional be line and the be are $XXX considered, able

Michael Filatov

you much. Thank Great. very

Drew Hamer

Thank Okay. you.

Anand Gopalan

Thank you.

Operator

We will Joseph from Instructions] now take Spak RBC question our next Capital. from Mr. [Operator

Joseph Spak

everyone. Good afternoon, thanks. Hi,

if update they was customers’ willingness solution could ADAS any to specifically, the on that Vela you generation of, OEM sort wondering next provide of type as on the software I know, work Just their you to look projects? products,

Anand Gopalan

Yes.

as technology now have the think tools earlier, I I we would discussed So, Vela that or we a we – perspective, all toolbox, the have from in the software. development say

seeing interest, continue of for designing of spaces We OEM with to space, We're the both industrial in multiple are the also software. that a usage but customers systems. strong working – we and their work lot into in

we I winning pipeline had around products that and which the that – talked we about are of would all software is to So the cusp upside contracts, themselves. the our on first say

Joseph Spak

And a delivery And, that. other ship you for, – or know, probably you for thanks sourcing know, outside for to competitive Like, of like right? your for, product the Okay, of know, those they of that sort been is to competitive you’ve Velodyne as have I a maybe think as sort while, you the do you whatnot? newer you that projects of lidar know, bit competitively? know, a looking can sort different auto better any sort feedback for you believe maybe lot of are lidar I view your whole automotive customers the share little more some companies bunch understand to, some about, you is them know, is of how for of versus autonomous initiatives a talked set of you, there developmental these this of of some

Anand Gopalan

Sure.

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market trusted the leader the are space. We in

And doing at ability at volume. been for we decade the mass this have have point. a deliver to this We over

we in whole systems looking for ready deploy many of we players other and was who know, year. scale of context products is of in only do that Velodyne, really in who the ship some actually, level of to demands all more volumes, the of meet lidar, able or are week are that. these a And to believe quickly in player large these is to than other You those very critical players ship a the scalars, the hyper

Joseph Spak

Thank Okay. you.

Anand Gopalan

Thank you, Joe.

Operator

there over It this over no appears further At are like back to I you. now phone. Thank conference the management. time, questions turn the would to

Anand Gopalan

has safer are a for possibilities to excited are to Thank Velodyne call everyone we team you roadways, earnings ability Thanks public our on The to At first create everyone community. and lives. already you more our come. to point, and forward progress conversations remarkable and is many its forward more and Velodyne sharing ability very much there look the much had journey to your positively look forward quarters a in but to for so time. getting safer safer to you, Thank for helping vehicles, to pretty virtually its our the tremendously company. thank I together and endless Velodyne, this operator. impact as lidar And to. put Drew our about technology listening. to

Drew Hamer

Thank you.

Operator

today's you Thank participation. your call. That concludes for

disconnect. may You now