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VLDR Velodyne Lidar

Participants
Kirsten Chapman LHA Investor Relations
Anand Gopalan Chief Executive Officer
Drew Hamer Chief Financial Officer
Itay Michaeii Citi
Tristan Gerra Baird
Colin Rusch Oppenheimer
Richard Shannon Craig-Hallum
Rajvi Gill Needham
Ruben Roy Benchmark Company
Michael Filatov Berenberg
Aileen Smith BoA
Call transcript
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Operator

Good day, and welcome to the Velodyne Fourth Quarter Fiscal Year 2020 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Kirsten Chapman of LHA Investor Relations. Please go ahead, ma'am.

Kirsten Chapman

Good afternoon, and thank you for joining us on today's conference call to discuss Velodyne Lidar's fourth quarter and full year 2020 financial results. call the on us are Dr. With Velodyne's company's Chief Gopalan, Chief Executive the Hamer, Drew and Financial Officer; Anand Officer.

today, press Before we and published after market an shortly remind full you issued begin, I results. would the like year XXXX investor close Velodyne fourth presentation. announcing its release to financial that Velodyne quarter a also of

our the a includes in section differ of Velodyne's Relations of may cause to this forward-looking Please could You statements. Investor access like for materially press the those forward-looking discuss during company's you the release will related press refer remind measures performance. that factors also to would from some Today's discussion actual results and non-GAAP we call, discussion release to statements. to presentation that I velodynelidar.com.

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

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

Anand Gopalan

thank I'm Kirsten, Velodyne. you for you, this everyone afternoon. and Thank us Anand joining of CEO Gopalan, to

included units for the a to quarter XX,XXX the X,XXX year. in scale portfolio many lidar This Our sensor fourth low-priced today continue XXXX position only for real-world applications. breadth deliver fourth Velodyne with quarter leadership with record XXX We results and in both full we the shipped expand company multiple product to market. lidar at lidar of specifications the year and capability and is QX. our demonstrate that in solid-state lidar full units the manufacturing the

and shipping more all We reported. are lidar competitors than have our units manufacturing

a more products than year. reported players other have shipped all shipping we week a the whole in in fact, In

Mapper.ai. acquisition software hardware In provide now This new part full addition, of our our expanded have exciting through solutions is of story. of we plus an the offerings and

lidar of with manufacturers. manufacturing on manufacturing, and terms scale-like operating products to continue place mass down. automated manufacturing execute We of slowed in not our path wafer we mature at have are contract transferring strategy the processes In can manufacturing partners. and produce to production scale, today contract we and have along COVID-XX, far to of Despite fully we our

mapping. We being XXX-plus from are making in in and including to significant Toyota, on records continue rapidly Didi, ability meet positions uniquely Volkswagen, to its in tech Geosystems. by to key Caterpillar, coming volume customers Leica we And many such and and rotational Thanks the OEMs business of Google, to agreements growing lidar multiple production fourth Otosan, as is Ford the derisk and multiple XXXX, and plans. customers and continue autonomous companies over major of supplies solid-state Zoox, strength. address portfolio, competitive growth leader years. EasyMile, customers, We our our us progress Velodyne our in broad markets requirements quarter Honda, Velodyne's to vehicles each. with announced GM, set model covering This the leading trucking industries Hyundai a the robotics segments Mobis, to Gatik,

agreements, today, up from the have XXXX. As active we XX of in first of multiyear now quarter almost three ninefold

environment. baggage tractors a power in at strategic TrunkTech, who sensors we company's Beijing its sales and will accelerate multiyear In Trunk an and whom driverless a with operation trucks use We lidar We commercialization with agreement enable with electric data X lidar our Hyundai ground to drone partnership surround-view in to will long-range executed a exclusive of multi-year combination provider next-generation to support who with world agreement groundbreaking signed developing analytics, and months, International driverless into entire to with leader with its fleet in few And sales to five-year the Technologies, Motional, Motors that self-driving lidar for Emesent, the sensors heavy we mapping a China's Motional's a be Airport. the cargo and Aptiv reliable AV past of Kentucky we for or of Olli, Mobility our entered the a for sensors shuttle. and trucks mapping, shuttles. program in agreement will with an Local agreement we printed ThorDrive, we vehicles. May our Over XD Cincinnati/Northern hazardous collaborate SAE Signed autonomous signed announced market. self-driving a logistics signed be safe, using sensors mapping, use Level the of agreement GPS-denied autonomy,

some pipeline, XXXX Our adoption industries, beginning of which reported most accelerating XXXX. industry, last-mile the X, across robust is a This wide in reported now of the of XXX XXX variety lidar the quarter such stands of and lidar XXX a in projects. post-COVID from fourth is at on world expanding the at year which the There are for of up is projects as January delivery.

to trajectory. industries expectations XXX% vary an long-term AV is which today. growth this as from February customers' on A OEM Our it million that example XXX,XXX in X.X changing had will and and as of XXXX fluid continues customer. of pipeline our very robotics like an of with pipeline, a along recent take project its with needs we units units to grew I'd opportunities comment to is moment such in

While and technology next-generation vehicle autonomous choice we a are customer platform. a the their different second-generation first customer’s use made on platforms, this for to

actively be any to offset of impact continue which, than we financial more opportunities could this engaged if other successful, project. multiple on with them However,

seen their platforms. us customer select first-generation an technology rollout to they next-generation move also for ADAS while continue an on have older We for with projects forward

other OEM the and relationship recently, multiyear with major we On our hand, follow-on long-term through reengage a renew us customer had a agreement.

complement our products. sensor solutions Our software to product also the includes and complex portfolio algorithms

A model is hardware subscription Software like has with a is only robust today. for adjacency software natural a preexisting possible Velodyne us. higher-margin installed base

We have component, third number software solid-state sensor, Velarray three pipeline significant of XXXX, targeted was XXXX software to lidar and opportunities and contracts quarter edge, awards today. and in in line and of is new we Robotics. the designed be the not but have pipeline are the New have progress Innovation winner in adoption. Popular XX our Silicon Science Velodyne's manufactured innovating Velodyne XXXX. we executing Velabit What's industry-first, and in in projects lidar, our the with named product launched, smallest won at at Last Valley points certainly price sensor Velabit times made scale the broad-based the at cutting on Best by new now by sensor Award lidar the which on XX our than our a Velabit least,

and few near Earlier in each that the their are a we public Applied months by Smart time solutions. with Nevada, of showcases of and lidar how their public is and In as using few key evidenced on the Reno technology lidar improve the University The In quality with us are in summary, in program track in joined mobility this technologies most additional communities promote the to safe Research. more Velodyne advancing year, backs opportunity we We safety incredibly the create filings due city lidar past and applications government by and companies part to private information smart Cities all. our and outlined The smart transforms to industry, to white industries. life. providers record, Cities it lidar go conjunction leadership city to our an architectures will Accelerator validates of ecosystem, the and the is public seen paper lives position, services solution has Qualcomm enhance introduced for dominance innovative substantial lidar Smart in working That By our Qualcomm now a Velodyne. our by smart look and becoming the roadside success. the and issued fourth company the of you Velodyne for we quarter, exciting new infrastructure. building Center future. see for transportation for massive of safer also lidar

we which the an point we pipeline quarter units As the opportunity in fourth expanding more our for us In is many lidar inflection believe add not we towards industry, value the shipping just itself to in applications, ever of in XXXX. than lidar evidencing work before applications, many by our giving sensor critical customers status hardware. to democratizing a full higher lidar solutions, is and as have providing by hit

call upon recent our I and a to over leadership Drew, to touch moment take to the turn wanted transition. I Board Before

partner, And States. to turn throughout company, call We has further the valued its to he relationship Directors. you responsible pleasure co-founded for manufacturing President Brad Lidar Vice appointment, to Velodyne Chairman Velodyne Board been Corporation, on activities look responsible is strategy. our scale and strategic it's enable and our in expertise private our their including markets. in Velodyne semiconductor managing to forward discussion involved external investments, business And as to from I'd with I'm Hamid to September growth Lidar for succeed Officer, new technology see role excited Nikon on we we the the of is core predecessor his to lithography to welcome strategy Drew XXXX. public and Acoustics for her guidance Nikon on In With also United the named Frykman plans. Board Corporation, as and financials. the prove over deepening invaluable our Board his continue Marketing and partnership serving relations benefit his of strategic competencies Sally As a now Hamid since continuing has of marketing alliances Zarringhalam leveraging Culkin to David Velodyne Brad history, in Corporate Hall. are at saw, our Lidar’s my over take like in Nikon as Chief role equity will digital execute in invaluable of our Nikon. to finally, strategic

Drew Hamer

us in an results the Drew quarter CFO and compared of before everyone Lidar. Thank QX million revenue $XX.X you, quarter fourth QX and for today. moving QX a XXXX. revenue Hamer, million business on to supporting $XX.X overview the with positive the of Anand, I'll model, joining million year Total our our in for to target Velodyne discussion to again compared long-term company's $XX.X XXXX. you I’m to XXXX was full thank XXXX, $XX for begin outlook. was in Product million

reduced fourth to negatively in fulfill customer's in the As we orders production January, our impaired impacting manufacturing December and capabilities late revenue. sites our due product to we at quarter ability certain XXXX which of in disclosed COVID-XX,

by adoption As and lowering impact had a also ASPs accelerate reduced on ASPs strategies volumes the our of higher to negative year-over-year. Lidar driving revenue

sold went levels. units our year-over-year We pleased see strategy by to demonstrated extremely record the up that to as are working fact

As we to predicted the state products efficient to transition solid more continued units. mix

We of of current anticipating strategy are for the $X.X quarter that of reviewing XX% loss in was will sales from XXXX, non-GAAP be will drive XXXX million $X.X pipeline, services recognized XXXX. and to increasing increase combined long-term profit could a expect license the growth cross Lidar XXXX quarter. to this agreements continue Velodyne. and million, QX $X.X this units we our up XX% to to solid fourth gross gross with we was for during million by $XXX,XXX that compared the When due totaled million XXXX. see License pipeline revenues $XXX.X million On QX non-GAAP revenue loss million. GAAP GAAP in was state operating for loss $XX.X million was of non-GAAP was loss $XX.X is loss operating XXXX quarter $XXX.X stock-based fourth and GAAP weighted of both compensation. loss share million and net non-GAAP GAAP $X.XX. non-GAAP share per of $X.XX on million. and $XX.X calculated Non-GAAP shares net million compared operating per outstanding average of share $XX.X a GAAP profit was to using $XXX,XXX per basis. loss gross $XX.X million. Loss operating and loss the the was loss XXX.X included was and GAAP

December revenue the at included $XX.X additional million. $XX.X XX, exercise $XX.X had $XX.X XX, We and outstanding proceeds from results. million million of warrants. in XXXX, the in XXX.X XXXX. December $XX.X as year Product revenue Total I in This was received of million on cash actual of our equivalents full balance XX XXXX. were $XXX.X cash XX, to to $XXX.X proceeds sheet which We of XXXX million in million As compared February now compared public turn shares to million, was million. XX. an will

and sensors as Lidar With the sold lower with the to the XXXX, price same designed year our of of adoption of strategy we roughly drive points. number widespread XXXX. enter units market to is Part

increase gross from million. figure license engineering As and $XXX.X license loss profit decrease XX% GAAP partially million revenue our License non-GAAP million compensation and profit in and $XX gross operating was million which non-GAAP up a of XXXX, primarily or was price expense. $X million $XX.X guidance and net margin exceeding gross operating $XX.X by $XX also non-GAAP million. result, year $XX.X offset our or guidance. repair the XX% gross per was XXXX. million $XX.X compared non-GAAP loss full lower $X.X of $X.XX gross was services of was of loss was fees. per loss $X.XX. gross due Decrease GAAP GAAP $XXX.X The the was share million million exceeding revenue, agreements, and $XX.X GAAP million, stock-based in was primarily average GAAP $XX.X revenue. services in million, Included full our reflects Accordingly, profit to exceeded was stock-based cross loss XXXX margin, year selling loss compensation. guidance. GAAP and million loss in services net impacted in and non-GAAP recent share margin operating in GAAP was and Non-GAAP to of

business We on visibility business. greater when our practices, our its to have of COVID-XX’s monitor impact near-term continue impact on our we’ll and review we guidance

it Our February target in strong second financial in of is older growth XXX in to from to continue XXX will as and as to growth in to project XX guidance XX going February growth projects XXXX of In beyond. pipeline XXXX, our three and starting XXXX. strong in half anticipate of as went this saw also saw from XX. We we provide XXXX signed

diversity the the our as by courage multiple having multiple customers demonstrated of by base further are industries. customer We in pipeline,

business pipeline one concentrated dependent and opportunities. This support in in progress business on industry, model. of we long-term projects having a our a XXXX, that As saw plans for isn’t our provides growth number derisks

XXXX, have period awarded we XXXX our the awarded are As long-term and billion of XXXX. for XX, to we and this opportunity we $X over February financial billion, projects of combine not with we of pipeline in the for that signed ability yet a could signed achieve estimate remain from our our $X.X through plans. that projects When confident

your reducing to partners, of together with our XX%. total and reflect We In to product addition, strategy our of disciplined address objective strong. unit questions. In focused the and Recent of development target the the refer our our remain new software of margins stakeholders. outlook for results our and margins gross profile per ready for Anand to We manufacturing high look in manufacturing and contract opportunities business long-term the with more our positions on outsourcing I our to for us licensing mid presentation remains closing, cost progress all model. future. business well our to production delivering underpins long-term Please significant in to our pipeline optimism commitment revenue of wins, the plan the increase ranging contract high forward EBITDA XX% quarters ahead. in of detailed are than investor to more our sharing to growth

we questions. reminder, a year the kindly fourth results. business for and on full are now ask are our focused we operations quarter questions open Operator, and in XXXX As earnings the

Operator

question first from Itay and Citi. we'll our Instructions] Please take ahead [Operator And with go ahead. go Michaeii

Itay Michaeii

Thank you. Great. everybody. Hi

inter And first projects, maybe on your it just in ADAS hope I but looks first, just you side particularly of least ADAS seeing side. maybe, talk non-auto now AUV can the you're the also XX% competitive accounts really the the questions perhaps think two like over I Velabit. at the Just with on non-auto what and environment, or business development for about the of of about perhaps Velarray versus kind in things latest talk total

Anand Gopalan

grow, ADAS also as especially goes, So continues to sense pipeline as of segment in the space. to segment, we the the growth non-automotive automotive the while strong the in far see continue

think growth for explosive driven number that mostly seen Velodyne. in half-auto off robotics, especially all that and I and split our the made chain industrial logistics the have in half-non-auto in by in broad so customers projects our still repeat in non-automotive And of remains irrelevant space this we are we seeing that segment, to the in e-commerce making Could the and in second supply you world, are enormous investments your changes world that that post-COVID are question, Itay? space. Definitely

Itay Michaeii

you're So just competitive And Velabit? Velarray the the with just traction and seeing maybe the ADAS about just there. talk on side, environment

Anand Gopalan

Sure.

We have we those for ADAS in the significant being of a seeing being XX them our about and as pipeline XXX now Velarray. portion with projects, of of are about demand projects

the the in manufactured did – mature. And the as earnings to continued products quarter. these last just shipped we calls and over in Velarray has about of product we So talked XXX we

tremendous So the we around and are excitement demand seeing Velarray project.

really as has product also in the our are excited We that XX that projects around Velabit. Velabit well. pipeline our we are have by the over And now fact entered pipeline

most Velarray in around significant lots the continue and projects automotive developing. of to the them and see So Velabit attention garner we space

Itay Michaeii

helpful. That's

just Let of second on forward outlook one question, just XXXX. the update quick financial, you the on me a for business through thank

I to I that September, $XXX was in or maybe was and I you million you're in prior XXXX. where are the had like back back to orders signed a was update for of finding at about believe time like outlook be going number think XXXX of think that don't relative talk revenue that roughly to maybe awarded. kind mentioned September. you'd think XX% your roughly today, in position I that you

Drew Hamer

Yes.

So point. guidance out that any providing far we this aren't at

plus goals XXXX. and XXXX, award out to we have signing be of that contracts able get into should our pipeline the feel XXXX financial as However, very have with that currently we we achieve we that do the confident we

Itay Michaeii

helpful. Perfect. guys. That's very Thanks

Operator

We’ll please. question take ahead. our next Go caller,

Tristan Gerra

This guys. you Tristan Can is with Hi, me? Baird. hear

Drew Hamer

Thank dialing we can. for in. Yes, you

Tristan Gerra

Could Velabit plus is presumably on you LX talk that you applications. design LX you bit Hi. wins And a design what wins have already color and ramp? about provide will more a not, and the segment prospect, can for the that whether the in if timeframe be for

Anand Gopalan

Yes.

We that for just using like the especially discussion products Level win design don’t significant of X, around We and a lidar have are interest Velabit prospects converted yet. into products. around seeing

of more Level capable is keeping some that pedestrian However, have the the pedestrian lane braking, the for work as existing fact to all And from context conditions. such application Level because technologies see significant are X our with talked our we as a because in ability in automatic the far we emergency usage than across software to of the about interest of functionality lidar automotive customers around providing of its lidar even conjunction continuing is centering, of and X. robust of lighting lane that,

will conversations applications adopted those still as believe be in and Level lidar So the that we in future. continuing X

Tristan Gerra

the should that the price year? you’re know declines going unit look of then translating expected and Okay, this growth at for I is great. And ultimately What the half I a provide to year-over-year. year. not to revenue this the that second How guidance growth until year, actual

Drew Hamer

Yes.

in the our the Velarray of our because we on this guidance year actually year, should thinking the a half so the market jump expect in that starting selling year the we enter be also but in believe. provide we QX, more to unit I we’ll second here So Velabit see can’t year-over-year, growth and

down the will that bring So a with bit. those ASP introductions

we’re which the of company overall. success work that’s that believe even done So we’ve in the impact course to expand getting by up the But the all around by may where because backed see future, is we buyers of we of unit getting increasing the the on units. volumes, an our lies focused, with mostly very also revenues

a production production our mass operations in are in units off-shore operations in process manufacturer. of our and off-shore manufacturing these also running contract and we that with the number getting our in all So products on the up and of

able the in will that be we drive growth ultimately drive volume, to should more significant to So come a really feel years lot which revenues.

Tristan Gerra

you. Thank Great.

Anand Gopalan

you, Thank Tristan.

Operator

ahead. next We’ll please caller, question, our go take

Colin Rusch

years? a the revenue think software pipeline you software the guys. can agreements that you And and Colin monetize from the much, over the recurring how hardware? so with around seeing around the should you It’s next of potential that Can about upgrades? we Rusch Are activity percentage Oppenheimer. talk as revenue Thanks couple this real about guys active of

Drew Hamer

Yes.

basis, going annual mentioned, So recurring Anand that’ll very very the – are get of this kind expecting to as And at have projects products have types is lot focused a to us will be monthly SaaS seeing be currently revenue that are we’re And point. the a have of products software on that they regular daily on almost expanding to a a there pipeline, busy to the out of we products. nature, we streams on revenue where allow we’ll model basis. a

data the portion really kick in XX% around our now. That’d in of the larger say XXXX, to represent, expecting be revenues, XXXX We’re will out to start then in and growth at XXXX. right as in we should targeting get revenues

the software the those for drivers So, key revenues. are

Colin Rusch

of customers the Great. the bit a And – what some in away of messages you’re terms we’re suite with assigned a the and the of to and the off years then ability design, seeing terms then of model? talk out this take about sensor that around in you as different in Lidar gets that functionality working system of Can to from portion variety revenue look little at in Lidar sensors. on you just

Anand Gopalan

to significant will continue progress that and in make to I think, all we technologies means and with improvement Lidar. and sensor Yes. investments now continue. the left significant R&D companies in Lidar scalability sensor by is different behind all of but grow the no investments I like placed the see being Velodyne of technologies public with being able mean, investment

well resolution lighting assuming prime does position will these a will as advanced is sort Lidar believe this as in ask technology able autonomous investments we as all of the and in when we development and virtue a Lidar that being robotics usage in trend that that of advanced of have happens, and as the them their sensor happening systems. radar many So and systems, towards work physics different point to conditions continue across higher really see as all by fact software much that significant of the well you to Lidar-based than And exciting is limitations that clouds. of around provide safety space, technologies work and

we definitely in pipeline in So, and see the that our in with growth customers. reflected conversations our our

Colin Rusch

much, so Thanks Great. guys.

Anand Gopalan

Thank you, Colin.

Operator

take please ahead. our caller, We’ll next go question

Richard Shannon

Hi, guys. Richard How you? are here Craig-Hallum, Shannon from

Drew Hamer

thank for dialing Good, Richard. you in.

Anand Gopalan

Good, Richard. Thank you for dialing in.

Richard Shannon

You bet. their I’m press scenarios, going to and I reduced realm. which jump couple on of make I this your here, identified think referred some early of but got you public calls I think to talked quick, in is seeing which a to in release because you’re about visibility a the Anand, January couple about

affecting those for you. we’ve mentioned years think there. that those may things checks are this year, that to actually the Are I our that have been out

correlated So, there? different those situations those are or

Drew Hamer

kind lot kind it multi-year term, responses just to a expecting an wanting seeing to to agreements. and honoring get get more their continue and We’ve of be waiting short to being – offices a people do had multi-year around agreements I impact into of of think, COVID-XX we’re where busy. are get the good back

industry However all your start tied, customers us. home rest the office ours at also they’re the just hands customers, of can’t the moving their where of get – because and are into like are to they like

contracts pipeline. excitement of have, which track our back we all of get about customer you’re and lot in base the agreements back a to talking amongst as on plan well our are on into, entering get So, as to there’s the

able speed, which out each tends there’s always interested now. uncertainty However, to But rolled on right very doing back its they geography track. impacts have start to that, in vaccinations getting are that are the the are of when just around, at to own geographically, be because going much people

Richard Shannon

Okay.

that? in it visibility hopefully be to better that this half starting for second your getting based – and fair on are So, some getting COVID guidance Is over provide decision the dynamics to say the group? to fair with year would

Drew Hamer

we’re what right. That’s Exactly. expecting. That’s

Richard Shannon

see ones a follow-up Okay. second following the picture for here or the do ADAS, couple center kind where A of question to on earlier ADAS, is cost just you on topic other big attach conjunction what Lidar other technologies in is to potential of of here. here, of of mostly see replacement as high? Do fairly rate this other with? you be as

Anand Gopalan

yes.

attach for volumes ability and of level on low, really in believe while quite and for open where really is high X a ADAS, and scalable think well possible going highway really see that in with up rates X as space for like applications automotive ADAS, Level talk X the autopilot mind rate I traffic modest you we when ADAS, our opened assist they Level the two from started jam functionality about will there’s which a the to and as high-end really, the that role level Lidar strong technologies the X then we a because tech and Velabit, set penetration ADAS to, of high like up attach in Lidar you both. question had to play has and as the to alluded the really backs really drive – our opportunity wakeups. remain Lidar cost-efficient volume believe incredibly course, previous the

Richard Shannon

Thank Appreciate all Okay. that’s for you. the thoughts and me.

Anand Gopalan

you. Thank

Drew Hamer

Thank you.

Operator

our take next please We’ll caller, go question ahead.

Rajvi Gill

you Yes. for taking Gill Hi, thank questions. my It’s from Rajvi Needham.

Drew Hamer

Hi, Rajvi.

Rajvi Gill

are had this a growth growth you mentioned see So of kind in in new But significant expect of unit the how jump you? XXXX. year, that Drew, kind to Hi, you following revenue XXXX, may in revenue terms between coming try impact is did into it ASP. unit down of in this to and impact proliferate which the industry, and offset as ASP that we

revenue to growth? those ASP Do to right start versus to you unit think Just wondering, see what where hit that the how you you think is mix about dynamics? competing that state Just kind growth? the of of kind need of

Drew Hamer

Yes.

introduce, multiple – applications. have market the are So it’s strategy very thousand the products that because in as customer to to can we a designed all of been we at a The of as ASPs of are sensors $XXX also other course, those so couple portfolio coming it’s included down that to meet point, this have eventually. elevated entry, needs the the is is it’s allow Lidar into right that broad the have important, in and to part different what company impact bringing be the of price we of of that we going and at proliferation needs,

think get judgements. to people that And any you’ll really in to start being – further hundreds out I of wanted think we there’ll to it. lower ASP. XXXX, make very sensors that caution hard into we of be thousands at say but seeing as of it’s sold, So, a XXXX, quarter,

You have of not look necessarily for. because quarter, kind a sold to basis, overall impact could a kind mix in represent the on linear at given it of product

annual we’re out maybe, as into into range. XXXX, moving unit expecting these a volumes to down to XXXX, XXXX, is at even ASPs And approaching that get way So are the we up may we out that towards look the start be this maybe, as and XXX,XXX to we million X sensors better $XXX basis, going and get coming be it. closer

we to But and and a to ASPs the we into XXXX. volumes So will come those we're anticipate we significantly get will out the start really to it, increase transition from going are and today be down. where as it's seeing continue XXXX

Rajvi Gill

Hello?

Drew Hamer

only I that. repeat Can the Sorry, question? you heard

Rajvi Gill

for provide XXXX Could ASP was the Sure. you XXXX? blended what versus

Drew Hamer

XXXX, don't weighted remember. to approximately on you average the I'll that. I sorry, get back cuff, the XXXX, have to $X,XXX. For ASP was off

Rajvi Gill

you're I the in mean, getting lot a problem. And I of that No Okay. solid-state. saw last adoption question,

I and is get to to in XXXX. think the in XX% then XX% about goal XXXX you talked

right. Just correct me not if that's

you. with if terms what wondering elaborate on your Thank your traction you can Just solid-state, has the adoption been of in customers?

Anand Gopalan

there's the I one see lidar of the really are of lot continues work by And before, the I shuttle more than as to some serve marketplaces. know, served very are a applications. to and actually of you needed I space, seeing well AV, we as robotics obviously, then for think rotational that think in as line, city lidar as smart traction, as some solid-state well well get in really applications. ADAS family Yes. we said But very mean, we having both all these I which different the technology definitely well product

seeing lidar applications, small where and aesthetics important, in of So are demand really of you really, robotics portfolio where systems growth design applications the those and is in directional and traction solid-state lot form factor including or have systems sorts a ADAS. really

Operator

ahead Please We'll our next question caller. take go

Drew Hamer

a like don't to question was it ASP you the was In make Raji's $X,XXX. XXXX, if just And $X,XXX. the Actually, approximately ASPs. fiscal-year correction to just on I'd about XXXX, there mind, weighted average about

Sorry. go Thank you. Please ahead.

Operator

We'll Please you. caller. take question go our Thank ahead. next

Ruben Roy

little for wanted Hi, Roy follow-up Benchmark Company. to taking question. just ASP I a more. just Ruben discussion from my Thanks the on bit Drew, Anand. It's

obviously say, many mentioned, changed, out. guys would lot other are you more you XX But were more lidar, way ASPs you shipping has competitors. Analyst about guys you there's companies we've many, in coming around of last your understand seen sensors You I lidar anything had a thinking than in days the the maybe back as cetera., discussion Day? around et when the June

Anand Gopalan

result validated the has for we few we needs evidenced over sit mass-market technology our marketplace. at where past understanding of we to years further, If – having of Let think believe we to point. have the around conversations this needs all many there and by point, this an me said, also being are clear-eyed technology is market the table with as of as for the customers that lidar mean, anything, also our as always start really the discussions really strong had all is the everything by enable what well applications very end first toward market a both in we I have seeing, as automotive, as a cost lidar, to that. for as in the enable major mover a out perspective making I And from I being the And different the nonautomotive get driving the this borne industrial position, by we're no, to and investments we across the ability think applications. go of about have really, seeing the from been all both all in R&D of have think mass-market of these well adoption. to adoption. months we where is And to leadership discussion that really talking

changed of outlook. nothing our has no, terms really So in

Unidentified Analyst

some guys when expect half. providing you I grow the I on to that appreciate orders, have to I which to based guidance follow-up, going XXXX? purchase XXXX ASPs, think versus this that. second you guess and visibility, is you're aren't any typically you just it get and you revenue visibility a backlog lead time know about said realistic improve in point should But at And based start what in here I as explicit on your

Drew Hamer

It's XXXX into the to in the that in much I about able and people XXXX. going grow coming Again, sense now. guidance. to the say provide workplace, right better from being unit really I can revenue a that can't there's the And not about come until of about get back volumes we customers orders versus be

Unidentified Analyst

Right.

guys. Okay. Thanks,

Drew Hamer

you, Thank Ruben

Operator

ahead. our take We'll go Caller, next question. please

Michael Filatov

of a space that's for if of legacy competitor model? sort or that Filatov customer could you around – it's why said, little This this detail I business of on competitor is near-term think a your my you from whether wondered impacts taking guys to was additional a provide purely Or the first-production with the Michael question. that them? Berenberg. with maybe in bit some Thanks just was lost in more platforms opportunities other business, business sort and I that

Anand Gopalan

with technology and may put validation and obviously, instances mean, go you cannot we seen product being customer while lower I competitive performance Yes. But specific our talk really, for it, going is the its where we as customers customer paces. described contracts. through have through a

than Velarray the and out performance the of customers with our our OEM We continue partners Tier which capable engaged next-generation around is X far clearly with there. platforms of very products technology any older to higher technology, both actively be

Drew Hamer

for vehicles Which, that by various bringing next the they're way, of generation the evaluating they'll to market. be

very we're be the are up. in coming that So going next-gen on be various projects busy to projects that very, for will conversations those

Michael Filatov

you sort does the to what getting up And like in Velarray now Understood. terms where timeline of that on that you following Where yourselves are do And right see the that. I guess in at just moment? of look desample process? qualifications? auto-grade

Anand Gopalan

Yes.

fourth we go quarter the to through think that and – our have through in continue we are qualification now. automotive-grade gone right I

today is the the hitting product would I phase automotive-qualified automotive it's level applications. of that capable some as for say where and of in well HXXX is environmental, performance Our as

family. in opportunities for a So OEMs products six I think different significant that progress And have made the across our months see past with in as for in the of we many significant interests pipeline result nearly product product. maturing and we Velodyne the that

Michael Filatov

Understood. Thank you guys.

Drew Hamer

Mike. you, Thank

Operator

go our Please ahead. ahead and question. [Operator Instructions] go take next We'll

Aileen Smith

from buys bit awarded something from Good after guys. awarded opportunity from the of contracts their makes a billion production pricing? signed Smith might less commentary and that projects an of revenue the Specifically, as structure in XXXX supplier over of what This is backlog or versus quoted spot estimation XXXX elaborate Is else? for contracts differences narrowing sound $X.X projects firm a what of opportunity Can of Aileen additional versus a it contract you of $X function to hear Is a it respective in backlogs? BoA. versus signed and the little on pipeline over standard billion? down around a we

Drew Hamer

Yes.

unit kind have customers agreement of are contracts standard price a that many awarded based volume we and and of have curve. with agreement normal the that industrial signed are our on So they

with contracts. confidence And gives us as it gain visibility helps out we'll also get we where the now. into that particular us So be into those coming years to

will get – firm come POs in probably year. a closer As given will production is we normal, have to the these in as contracts

And agreed they contract have to a the production the that that these the what more if isn't of price in was and where the increase – an are the designed as they price firm the ultimate respective contracts be, order contracts approach all production. as so awarded customers, agreement, they we or that then will levels signed isn't will production renegotiate So give each understand opportunity at to us pay they component for the agreement, the originally the unit. level have

they they as Of then the renegotiate back units, price come and course, probably, and back well. if want they can go more

to And as that kind lock be design final going And do delivering it they that they'll standard the designs be manufacturing of is front whatever to kind able to putting then contracts types So on goods. can commitments a an people on their that so application a producing. industrial to all component other end solution the production they into their work win. they be work, those they're of of and all a in or would commercial get for as us for a end the make

Aileen Smith

sell have that to separately, GM And Ford even stake. their technology own Volkswagen? a about your potentially question helpful. That's lidar relatedly and impacted with and the their and automakers, customer few others And to headline working this Velodyne including existing Ford's many past recently has customers? talk and another that then years over potentially you new with if with commercialize. acquired AI Okay. Argo a How they're to being means, on decision ask Can down relationship from what anything, discussions

Drew Hamer

Yes.

are they to that we've and relationship in So case deliver the really be is we're particular feet, When when this investments not in greatly case, don't are a critical they've those they other their of of capable investor. making suppliers, a ensure speak, nature. That's to business They'd these so to need, as that the stand to need then of our financially them companies in two investment. they'll invested their in that finding strategic reallocate stick in to financial up rather on they like components Ford, like, benefited standing capital lidar. around that They from. secure

critical they're in partner on becoming us it to terms in their Phase as a go we from cars and those Lidar benefited a we've we Phase have evaluate to existing to Velodyne would they've develop supplier forward, for and relationship Phase where done for Ford and continuing then both this what X investment. helping then some in of we're them, products in from that continue of the its So greatly some also that with And a different pipeline, of of X, number projects as X, cars. technology as

as time being of we So products well on of would a with appreciative are we continue continue the technologies, with them development come. both used, as to that work for that current and expect the very new we to long are that very to relationship closely Ford,

Emlynn Smith

think last the to return And start from more bookings, for you later or need whether this a the other XXXX or order of through establishing to do question, this first specific onwards towards work milestones see perspective, what production outlook in formal Okay. year you to half year?

Anand Gopalan

getting so to it's – And Yes, having them with conversations really I with steady keep customers in is conversations to release field. focused this I'm start organization our having the the – sales PO. they're their

So down and And lot hope. now the keep even telling of up some Europe things they be of thought XXXX. of there might a Europe, countries then are could similar seeing Asian locked we through sooner, kind be the like countries they us

get have on great our we to that regular customers, talk coming for back basis, our So relationships a continue waiting to to they'll be we're the confident them with contacts we and office when. really and to

who that customers they're to can be be have that unfold really they're in to out that visibility, to it's does to customers their to sell-through, feel so to the system office using against confidence to there, POs. start going get that world they are have our that able how So and Lidar about the our some so going those returning confident building are

firm We're are and those up get just come others are for from people back may in, they it So providing back hope looking so to less further office orders clear you who in those going be be to can start to talk confidence April, we when so can conversations going out. to, – the a to little depends that some come we come optimistic, that guidance. they're to around that

Emlynn Smith

great. Okay, the taking Thanks questions. for

Anand Gopalan

you. Thank Okay.

Drew Hamer

Thank you.

Operator

closing Mr. at turn to the we'd back Gopalan or to call this remarks. time, As for there further over no questions like additional any are

Anand Gopalan

the in and Thank We demonstrated rest you. an in Velodyne. robust we’ve expanding we forward for and the shipments fourth believe We great pipeline, quarter most for have with an hope diversified together believe in this for exciting market the balance you. sheet, robust with everyone for your us for you hit which our we this and great Lidar Thank today In Lidar our is inflection joining a is very our time look all enhanced long-term broadly as by you the significantly and for in unit industry a Thank great sharing continued day. It end the pipeline, in point record to gives supporting XXXX, of industry. outlook us successes Lidar leadership confidence growth. our has our questions.

Drew Hamer

Thank you.

Operator

does that do conference. again, conclude participation. today's We Once appreciate your