Q1 2024 Innoviz Technologies Ltd Earnings Call
Ladies and gentlemen, thank you for standing by we will begin shortly.
Speaker Change: Good morning, I would like to welcome you to our Q1 'twenty 'twenty four earnings conference call.
Speaker Change: Joining us today are Omar Talos, Chief Executive Officer, and Endara, Zeigler, Chief Financial Officer.
Speaker Change: Following their opening remarks, we will open the call to your questions I would like to remind everyone that this call is being recorded and will be available on the Investor Relations section of our website at IR Dot innovation Doc Tech.
Speaker Change: Before we begin I would like to remind you that our discussion today will include forward looking statements that are subject to risks and uncertainties relating to future events and the future financial performance of innovation.
Speaker Change: Actual results could differ materially from those anticipated in the forward looking statements forward looking statements made today speak only to our expectations as of today and we undertake no obligation to publicly update or revise them.
Speaker Change: For a discussion of some important risk factors that could cause actual results to differ materially from any forward looking statements. Please see the risk factors section of our form 20-F filed with the SEC on March 12, 'twenty 'twenty four AMR. Please.
Speaker Change: Thank you Michael.
Michael: And good morning, everyone. Thank you for joining US first quarter was a strong start for the fiscal year for you as well.
Speaker Change: We achieved revenues above our guidance range for the second consecutive quarter once again extended our relationships with key partners and customers.
Speaker Change: A significant progress on our strategic realignment and continued to build on our RFID and RFP pipeline.
Speaker Change: We had another busy quarter political activity without deemed traveling globally throughout Japan, China, Korea, Europe, and the U S to meet with existing and potential new customers.
Speaker Change: Meanwhile, we've been Super focused on supporting our skus across multiple programs.
Speaker Change: The team also made significant progress in continuing to develop a desktop technology.
Speaker Change: Along with our commitment to provide best in class technology to our customers.
Speaker Change: Beginning with our topline performance.
Speaker Change: We delivered revenues of $7.1 million up from $1 million in Q1 2023.
Speaker Change: And above the guidance range of $5 million to $6 million, we provided last quarter.
Speaker Change: Driven by a combination of an aries sample the product shipments. These results demonstrate the potential power of this three pronged approach to growing future revenue streams.
Speaker Change: I'll now pivot to a new a few customer and partner updates.
Speaker Change: As we showed this quarter the BMW seven has launched in Germany, and we expect the MW to shower user experience feedback in the coming weeks.
Speaker Change: While other liner companies have reached S&P, allowing little too we believe that as of today. We are the only pure plays on a company rich esselte with level three.
Speaker Change: With vehicles already on the road using a lighter than perception software.
Speaker Change: During the quarter, we continued supporting software developments specific to the deployment of enormous one on BMW five series vehicles in China.
Speaker Change: We continue to see China as a catalyst to accelerate the use of lighter than the move towards level three autonomy.
Speaker Change: And we are working closely with the BMW in magazines, which have performed on road testing specific to the Chinese market.
Speaker Change: We believe once China approved level three autonomy through absolutely similar to what we saw happen with UBS.
Speaker Change: In fact it is.
Speaker Change: The swap global and local brands, including BMW have levels redacting licenses across seven locations in Jordan.
Speaker Change: With both of them as you know we secured the series production awards in 2022 for carrier for different VW brand, which is a passenger vehicle level three high volume program based on Qualcomm platform.
Speaker Change: We also previously disclosed with our second program with the VW group in the IV Bud light commercial vehicles.
Speaker Change: It will be 11, four program with multiple runways Lidar square vehicle planned to launch in 2026.
Speaker Change: The previous quarters, we discuss additional opportunities for expansions.
Speaker Change: Please to share that we are working on yet another expansion through our collaboration with mobile unquote lending group for an additional high volume level three programs with a similar timeline.
Speaker Change: In parallel with continued commercial discussions with VW group.
Speaker Change: This progress may add significant additional volume with more developers platforms establish assemble shipments, which will help fund our airports door volume ramp up.
Speaker Change: Meanwhile, we are actively working on several exciting new opportunities within the pause button group. In addition to the three opportunities I just mentioned.
Speaker Change: Regarding mobile App during the quarter mobile announced another win with our mutual customer postponement specifically their in house that they will offered southern production ready functions for the new level three shopper, but.
Speaker Change: <unk> announced that there was supply the sulfur in hulbert Volkswagen with implementation into the level of Forbes drive platform IV Budd.
Speaker Change: Their goal is to bring self driving IV bags, because for ride hailing services for series production 26.
Speaker Change: We have a close relationship with both mobilized airports bug in group.
Speaker Change: Our products are already integrated into bulk of their platforms through the IV baas programs that which we believe allows us faster integration into additional opportunities such as the level three program mentioned earlier.
Speaker Change: Overall, we are pleased to see one of our key partners one of our key customers deepen their relationship.
Speaker Change: We continue to see long potential runway for growth with both Volkswagen group and mobile.
Speaker Change: And as I said earlier, we are working with the Qualcomm Broadcom for the BW corridor program and we are working with the mobile at Broadcom for the IV Baas and the additional levels reported them.
Speaker Change: We are hopeful that we will benefit from these collaborations across other programs with additional Oems.
Speaker Change: I would like also to update as we are making progress on our collaboration with Nvidia and we are working with Oems on several of our video base, our skus in our pipeline.
Speaker Change: We believe that our collaboration with Nvidia and these Oems who presents another opportunity for growth in extensions.
Speaker Change: I'll now touch on our Rsi and RFP pipeline or.
Speaker Change: Our pipeline is very active and we are continuing to mature 10 to 15 programs in the pipeline.
Speaker Change: Most of these are level three passenger vehicles.
Speaker Change: Happy to share that about 50% of our pipeline it into RQ stage, we're deepening relationships with existing customers, while working towards additional programs with potential new customers.
Speaker Change: At quarter was showed that there were two programs for a global deployment of levels right. Because we're in a decision timeline were pushed into 2020 for the.
Speaker Change: We continue to work closely with these Oems and are confident in our position within these aren't huge.
Speaker Change: In addition to the level three opportunities we would like to highlight two level four facilities in the pipeline that progressed well during the quarter.
Speaker Change: Those opportunities are with two leading levels for platform companies in the trucking and ride hailing spaces, while working with various Oems.
Speaker Change: Certainly there is a lot to be excited about.
Speaker Change: Importantly for each potential program, we're hoping whether it was the new customer or an expansion with an existing one reporting within our region.
Speaker Change: This is significant because it was a cash runway to the cash we have on hand together with these potential new business opportunities, we feel confident in our ability to execute our strategy within the remainder of the market capture window.
Speaker Change: Okay.
Speaker Change: And I'll share a few recent observation on the latter sector.
Speaker Change: They are very optimistic as we are seeing continuous progress with virus platforms. The programs. As a result, we believe that the meaningful percentage of vehicles in the market will be equipped with cider by 2030.
Speaker Change: To that end according to the S&P Global research in 2030, approximately 10 million lighter scanners cross virus autonomy levels are expected to be sold globally in the automotive market.
Speaker Change: They also expect the number of lattice can a solid 2035 to be more than doubled.
Speaker Change: Now pivoting to a recent industry development.
Speaker Change: At the end of last month, the U S. National Highway traffic safety administration visa announced a new motor vehicle safety standard that will require all new light vehicles to have automatic emergency braking system as of September 2029.
Speaker Change: This requirement sendoff as is the crucial safety feature.
Speaker Change: It is intending to save lives and prevent injuries by somatic the breaking a vehicle in a crash with another vehicle and pedestrian or pedestrian is imminent.
Speaker Change: What is important to highlight here about the new publication is the fact that pizza who'll adopt testing requirements of emergency braking system, which can include compliance in both daylight and dark conditions.
Speaker Change: As part of their commentary received by Nissan Dorado Coalition stated that the insurance Institute for Highway safety founded in darkest conditions camera and radar based pedestrian emergency braking system say in every instance.
Speaker Change: To detect pedestrians.
Speaker Change: But the magic emergency braking systems do sensors to detect objects in front of the vehicle.
Speaker Change: We believe ladder could provide the technical capabilities with it.
Speaker Change: Access will emit this requirement in any weather and lighting conditions.
Speaker Change: We believe that Oem's work to comply with new regulations and as the entire automotive industry raises the standards Oems will move to implement new capabilities and features many of which would probably be supported only by lighter.
Speaker Change: Zero base, we are optimistic about our ability to position ourselves to capitalize on future opportunities on either.
Speaker Change: Now moving to the latest updates from our winter testing of the enormous to be sample with our second generation custom Asics and our computer vision AI software in Europe.
Speaker Change: And we recently announced you reached a key milestone after our team successfully completed the winter testing for innovation.
Speaker Change: The deaths pen 18 days of driving across 10 countries, demonstrating the robustness and reliability of our technology in the harshest winter conditions.
Speaker Change: In August two is reaching maturity is approaching its design freeze stage for automotive grade applications.
Speaker Change: It's supported by the results of this winter testing.
Speaker Change: We believe only the most mature and wealth of other technologies are able to perform safely and effectively in such stress testing.
Speaker Change: It was two shows showed resilience in different weather conditions.
Speaker Change: And to potential blockages, including rain snow and dirt, we believe that this could be a distinct competitive advantage for us in the industry.
Speaker Change: The data and insight accumulated during the testing are being used to improve enemies as proprietary AI backed software and hardware solutions.
Speaker Change: With the successful completion of their best Winter testing, we've overcome a big hurdle that is challenging for any automotive component producer.
Speaker Change: Cited to move our technology to the next stage of development.
Speaker Change: I want to briefly touch on the progress we've made on the strategic realignment of our operations announced last quarter.
Speaker Change: And that will provide more color on this shortly as well.
Speaker Change: As of today, the implemented nearly all of our initiatives of our realignment plan.
Speaker Change: Aligned with our plan, we have reduced our investments in the development of <unk>, one and are reallocating part of the savings toward the development of the enormous to sample the perception software platform.
Speaker Change: This includes different configurations of the enormous too such as the level three long ridge.
Speaker Change: Short range and trucks.
Speaker Change: And as well as implementation of our sensors at lower heights, and behind the windshield with the English to sleep.
Speaker Change: We've also integrated our hardware and software development units into a combined R&D department.
Speaker Change: Taken together, we delivered a decrease in cash burn compared to the first quarter of 2023.
Speaker Change: Wrapping up with our guidance for the second quarter of Slide 24, as a reminder, live reserves is providing.
Speaker Change: Quarterly revenue guidance instead of annual revenue guidance.
Speaker Change: Expect second quarter of 2020 for revenue in the range of $4 million to $5 million compared to $1 5 million for Q2 of 2023.
Speaker Change: We continue to expect full year 2020 for revenues to be more back half weighted based on channel Bill and customer activity.
Speaker Change: We also expect there will be continued lumpiness due to the typical cadence of binary.
Speaker Change: Last quarter, we will also guided to two to three additional programs from both existing and new customers the 20th of $17 million of new energy bookings in 'twenty 'twenty four giving.
Speaker Change: Given our strong start to the fiscal year and the momentum we're building in our pipeline we can see.
Speaker Change: You need to believe that we are on track to meet those targets this year.
Speaker Change: And with that I'll turn the call over to Dow to review, our Q1 2020 for financials.
Dow: Thank you Omar and good morning, everyone.
Dow: Starting with cash we ended Q1 2024 with approximately $128 million in cash and cash equivalents bank deposits marketable securities and short term restricted cash on the balance sheet.
Dow: As Omar mentioned, our continued solid revenue performance plus the efficiency efficiencies achieved from our operational realignment led to a decreased level of cash burn compared to Q1 2023.
Dow: Cash used in operations and capital expenditure coming in at $23 million compared to $29 million in Q1 'twenty three.
Dow: And went to intervene as one now in serious production all of quoting and bidding activity in our RFID and RFP pipeline, our focus on innovation to platform.
Speaker Change: As we remain in this critical market capture Windows, you have heard us talk about in the past we are maintaining the appropriate level of flexibility to demonstrate we can meet customer evolving needs. The realignment has made interviews and more efficient company.
Speaker Change: We are laser focused on the innovators to platform.
Speaker Change: Moving to the income statement revenues in Q1, 'twenty 'twenty four were $7 1 million dollar reaches approximately 18% higher than our guidance range.
Speaker Change: This is a significant increase compared to Q1 2023 revenue of $1 million demonstrating the positive financial trajectory we are delivering.
Speaker Change: Our operating expenses for Q1, 2024, whereas $31 $7 million, a decrease of 5% from $33 $3 million in Q1 2023. This quarters operating expenses intrinsic fact included $5 $9 million of share based compensation.
Speaker Change: Compared to $5 $2 million in Q1 2013 suites.
Speaker Change: Research and development expenses for Q1, 2024, or 23 point to $8 million, a decrease from $26 $1 million in Q1, 'twenty 'twenty suite.
Speaker Change: The quarters R&D expenses included $3 $8 million attributable to share based compensation compared to $3 $5 million in Q1 2013.
Speaker Change: As you can see rehab maintained decreased levels of operating and R&D expenses, we expect to keep our expenses at these levels in the coming months.
Speaker Change: To summarize we are pleased by the continued strength of our financial performance and moving forward, we will remain disciplined and run an efficient organization with the goal of optimizer, optimizing our competitive positioning while maintaining a healthy cash position and reverse it.
Speaker Change: Hand, it back to Omar before we open up the call for Q&A.
Omar Talos: Thank you Laura.
Omar Talos: Before I conclude and place to share the D&B was collected by the Ecomotion community to host the Ecomotion Assembly Edina <unk> headquarters on the fourth of June <unk>.
Omar Talos: Ecomotion Assembly is an ultra technology conference hosted in Israel that brings together many Oems also in technology companies from across the global mobility ecosystem learn share knowledge and developments and look ahead towards shaping the future of liquidity.
Speaker Change: We are honored to host this prestigious conference this year and look forward to continuing to support expressing the international mobility ecosystem.
Speaker Change: We encourage you to visit the Ecomotion website for additional information and hope that you will join us.
Speaker Change: To wrap up my remarks, as you've heard Q1 was another busy and productive quarter for innovation with many engagements with existing and potential customers in different regions. We.
Speaker Change: We are already in the middle of the second quarter, and we are continuing to advance opportunities across different programs and we look forward to sharing more positive updates going forward.
Speaker Change: We believe that we are well positioned with our customers and partners to win additional programs and cement our place as a leading latter supplier during the market capture fee.
Speaker Change: As the market comes to appreciate this positioning and extends the growing importance of bladder across the various applications with tailwind coming from your regular regulatory requirements. We believe that there is a perception that auto sector by the capital markets will increasingly reflect the sector's opportunity.
Speaker Change: With that operator.
Speaker Change: Turn it on to the Q&A.
Speaker Change: Thank you in order to ask a question. Please raise your hand, using your mobile or desktop application and wait for your name to Vietnam.
Speaker Change: Once again, please raise your hand.
Speaker Change: Using your mobile or desktop application and weight early P&L.
Speaker Change: Our first question today comes from the line of Mark Delaney with Goldman Sachs. Please go ahead.
Mark Trevor Delaney: I S M. Good morning, and good afternoon. Thank you very much for taking the questions I'm, hoping for more details on how individually progressing with it are a key opportunities the company reiterated it's a winning two to three more programs. This year could you. Please speak to what may need to happen for this to be realized in your confidence in getting there. Moreover, I'd like a bedroom.
Speaker Change: Understand if that's H a programs and it is expected to win this year has shifted given the commentary on potential al four wins as I thought many of the key our key opportunities were for al two in all three Adas applications and she said another way have your opportunities for consumer Adolf's Awards change at all or is it more about an expansion of what you could win and elsewhere.
Speaker Change: Okay. Okay. Thank you Martin thanks for joining us.
Speaker Change: So after they want to start with the last question, we are highlighting their lives more opportunities because those actually made very significant progress in the last quarter and.
Speaker Change: In a way we're expecting them to converge.
Speaker Change: And we wanted to highlight is not too surprised when things might happen at level. Most of as we said most of our RF cube.
Speaker Change: Hi, and RFID pipeline, our focus on level, three and that's where we see most of the activity.
Speaker Change: In terms of the two to three opportunities that were expected to get this year. So I just talked about another opportunity within the PW program would be mobilized level. There is quite a big program that we're very happy to step into.
Speaker Change: Which will provide us additional volumes.
Speaker Change: Obviously, we're very happy about that and we said that our actually additional opportunities can VW. So it's really exciting to see how VW as a group can offer so many volatilities profitable, but other than that we talked about the two other <unk>.
Speaker Change: Level three programs that we were expected to convert by end of last year, and we're still working with those customers very closely.
Speaker Change: But what needs to happen in order to.
Speaker Change: To conclude this process, it's basically still in many discussions that are related to.
Speaker Change: Our design and manufacturing and we are supporting the customers in order to allow them to converge a process as early as they can.
Speaker Change: Okay.
Speaker Change: That's helpful. I. Thank you for that matter question ways to better understand your expectations for cash use this year and what would happen to cash flow over the next six to 12 months as the company has success converting on some of those energy bookings opportunities you're you're guiding towards thanks.
Speaker Change: So.
Speaker Change: We have completed our realignment program and.
Speaker Change: We expect to see some benefits.
Speaker Change: From from this.
Speaker Change: Cost reduction.
Speaker Change: As I mentioned.
Speaker Change: We are expecting to see the the cash.
Speaker Change: On the expenditure.
Speaker Change: To be similar to what we saw until now and maybe.
Speaker Change: Even better.
Speaker Change: We are available to show that in the next few months. So all in all I would expect that.
Speaker Change: This year, we will be very disciplined and we will be able to keep our budget as we planned them.
Speaker Change: As said before obviously, we have enough on our hands.
Speaker Change: In order to capture the market to watch.
Speaker Change: Using the opportunity to execute on that strategic.
Speaker Change: The plans, we have and hopefully.
Speaker Change: Able to secure additional wins.
Speaker Change: By the way, maybe I can add something that you might find interesting.
Speaker Change: While some of those dishes decisions are taking longer on some of the areas that we're able to collect or coming from programs that we are asked to continue working on them in order not to allow any delay now now work to support those programs.
Speaker Change: Thank you I'll pass it on.
Speaker Change: Thank you. Our next question today comes from the line of unrest Shepherd of Cantor. Please go.
Unknown Executive: Uh huh.
Unknown Executive: Hey, Omar Hail Dara good afternoon quite.
Unknown Executive: Great to see you both again and congratulations on the bordering and thanks for taking our questions.
Shepherd: I wanted to maybe just confirm that the the timeline or some of your.
Andres Juan Sheppard: OEM agreements in obviously both.
Omar Talos: BMW being maybe the more near term basis.
Unknown Executive: Could you just remind us what is the timeline for that.
Unknown Executive: The ramp up in revenues.
Unknown Executive: <unk> and Volkswagen the Asian, OEM and in the Robo taxi just wanted to measure with a step change or just wanted to maybe confirm those real quick. Thank you.
Speaker Change: So we Didnt gave a definitely timeline for each one separately, we gave only for those that were communicated by the customer.
Speaker Change: And online obviously BMW launch was communicated and we're expecting to get more insight from the I would say the feedback from home the ground, obviously excited to see our product already out in the wild.
Speaker Change: In the the only pure play a lot of company that's already managed to get two deployments once SLP offset a level three program.
Speaker Change: A very significant milestone for us as a company.
Speaker Change: As a leading company in this category.
Unknown Executive: In terms of maybe dovish, we talked about a 2026 timeline for the IC bus.
Unknown Executive: We said similar timeline for the of the level three program.
Unknown Executive: We didn't disclose additional.
Unknown Executive: Timelines for the all the risks.
Speaker Change: Got it okay. No that's helpful. I appreciate that.
Speaker Change: Maybe a question for Al Dor.
Al Dor: You know how should we think about gross margins Opex and capex.
Al Dor: For this year, you know as it pertains to gross margins you know what does the path to positive gross margins look like I understand obviously, it's a combination of volume but.
Al Dor: Just curious if you have maybe some some color there that you can share and then on Opex should we expect that number to be lower now or maybe even significantly lower than last year given the the realignment.
Al Dor: And then just lastly is the just the capex looks like this quarter.
Al Dor: It was a little bit lower than.
Al Dor: Q1 last year, just curious how we should think about that or for this year as well. Thank you.
Speaker Change: So obviously I am expecting the realignment impacting our opex expenditures so.
Speaker Change: This is definitely part of.
Speaker Change: What we would project for this year.
Speaker Change: In terms of margin.
Speaker Change: Yeah.
Speaker Change: A significant part of our revenues transform <unk>.
Speaker Change: And Larry.
Speaker Change: As you know these are positively.
Speaker Change: Affecting our gross margins so.
Speaker Change: We are expecting to have additional and a reason additional positive.
Speaker Change: <unk> contribution to our gross margin as we are.
Speaker Change: Gain more and more in <unk>.
Speaker Change: And.
Speaker Change: I'm not sure what's locked Capex Capex <unk> capex.
Speaker Change: Next will be a stable are we.
Speaker Change: We're not expecting a huge capex for this year or E.
Speaker Change: There were increased from last year.
Speaker Change: We are relatively capex light, we are using contract manufacturers.
Speaker Change: So.
Speaker Change: With this and it should be stable or our strategy related to working with contract manufacturing is there has been a very.
Speaker Change: Strong cross it's allowed us to be very flexible with different customers, who want us to be able to serve them from different locations without making a huge investments on each one separately working with contract with vectors that with as partners with the right expertise and the existing facilities that are already automotive.
Speaker Change: Allowing us to save.
Speaker Change: Capex as Dara mentioned, but also get faster for the month.
Speaker Change: That's helpful and just to clarify so you said you expect capex this year to be lower than last year or or or flyovers either.
Speaker Change: No it's been similar.
Speaker Change: Similar okay got it.
Speaker Change: Okay. That's helpful. Thanks, guys, Congratulations again I'll pass it on thanks.
Speaker Change: Kevin.
Speaker Change: Thank you. Our next question today comes from a line of Kevin Cassidy of Rosenblatt Securities. Please go ahead.
Kevin Edward Cassidy: Yes, Thanks for taking my question and congratulations on the results.
Kevin Edward Cassidy: Just for the new ruling from the National Highway Transportation Safety administration.
Kevin Edward Cassidy: Automatic emergency braking with their cars that you're in today, so the BMW and the <unk>.
Kevin Edward Cassidy: BW would those qualify.
Kevin Edward Cassidy: Definitely.
Kevin Edward Cassidy: Obviously with the use of Lidar.
Kevin Edward Cassidy: Enables dysfunctionality in different better conditions in 19 conditions will definitely it should so glenn.
Kevin Edward Cassidy: Within the niche.
Speaker Change: Okay. So do.
Speaker Change: They see this type of a ruling moving into other countries.
Speaker Change: I I believe and that's a trend that we'll expect to see growing and also new ruling on new features.
Speaker Change: I think that the benefits of using life saving technologies.
Speaker Change: <unk> is approved the capability as an insurer.
Speaker Change: Yes.
Speaker Change: The desire to improve.
Speaker Change: And in those.
Speaker Change: Challenges related to <unk>.
Speaker Change: Unnecessary.
Speaker Change: Accidents as something that will continue to improve and I believe that basically that's why we're here.
Speaker Change: We eventually.
Speaker Change: There's no need for car accidents avoided and technologies are already available and I'm sure that those ruling was only continue.
Speaker Change: Okay, great. Thanks.
Speaker Change: Kent can you break out the revenue for this $7 $1 million for March from NRT to production and same would be for your outlook for June.
Kent: So and so.
Kent: A significant part is an R E. We didn't break it down significant priorities and Harry Budd.
Speaker Change: It consists of three three elements aid.
Speaker Change: Yeah.
Speaker Change: In a as one component that we provide.
Speaker Change: Regina for BMW Sam.
Speaker Change: Samples.
Speaker Change: That we are serving an ever growing numbers.
Speaker Change: And in our res which are.
Speaker Change: The most significant part of our revenues and this is our expectation going forward three elements risks at least this year and are really D.
Speaker Change: Uh huh.
Speaker Change: The most part of the revenues.
Speaker Change: Okay, great. Thank you.
Speaker Change: Thank you as a reminder, if you wish to ask a question. Please raise their hand, using your mobile or desktop application and wait for your name to be announced.
Speaker Change: Our next question today comes from the line of Kevin Garrigan West Park capital.
Kevin Garrigan: Please go ahead.
Kevin Garrigan: Hi, Kevin.
Kevin Garrigan: Yeah, Hey, Omar Hey, Albert Thanks for taking my questions. Let me Echo my congrats on the progress.
Kevin Garrigan: On the successful winter tariffs did you guys get a lot more interest from Oems. After you completed the tests.
Kevin Garrigan: I think that the results that we're able to show to customers is getting I would say applauds us.
Kevin Garrigan: We are very much aware of the challenges that might have been when you go into those extreme conditions.
Kevin Garrigan: I think that or very sensitive and.
Kevin Garrigan: Complex system like Lidar going through winter testing in these conditions is a very challenging task and being able to show the results in such a positive way.
Kevin Garrigan: Definitely gets a lot of the interest I am aware of many challenges in others.
Kevin Garrigan: Have gone through and not even being able to staff those that test in long time.
Kevin Garrigan: That said as being able to grow income in one of the challenges of winter testing is that you actually need to meet winter.
Kevin Garrigan: The U S.
Kevin Garrigan: You can't do that in the summer and if you Miss winter testing.
Kevin Garrigan: <unk> might be delayed by a year.
Kevin Garrigan: And being able to meet the timeline and successfully and not need to wait another year to do that again is a super important.
Kevin Garrigan: And I think that as I mentioned on the.
Kevin Garrigan: Earlier, one of the key issues is lighter when you go into such conditions is blockages I emphasize that because.
Kevin Garrigan: I don't think that people are aware that challenge whenever there is a blockage that can come from snow dirt.
Kevin Garrigan: Sometimes even drop of water sunlight hours might be blocked the benefits partially their field of view and that completely invalid there.
Kevin Garrigan: Availability of the system and it means that the driver needs to take control of that for anything that might happen. If the system is highly sensitive to those situations. It means the availability of level three is at very low probability very statistically it means that the drybulk disengaged too many times, it's a very poor user.
Kevin Garrigan: Great.
Kevin Garrigan: Our ability to work in those conditions, even when our window is covered by almost <unk>, 25% to 50% and still provide very well very good visibility without any horse in the field of view.
Kevin Garrigan: It's quite remarkable and these are things that we're very happy to show to our customers and give them the understanding that using our lighter will give them very high availability of our system in those conditions I think it says something that definitely will help us going forward.
Kevin Garrigan: Sure.
Speaker Change: Yeah that makes perfect sense and congrats again on getting that test.
Speaker Change: Separate question can you guys kind of give us a sense of the breakdown between Evs and ice platform center within the 10 to 15 <unk> are most of those programs kind of geared more towards electric vehicles.
Kevin Garrigan: But I don't think there is any major buckets in those.
Speaker Change: Our programs.
Speaker Change: Of course the system is.
Kevin Garrigan: They're agnostic to which.
Kevin Garrigan: Type of driving image combustion or N Gen or EV.
Kevin Garrigan: And so we don't really care.
Kevin Garrigan: Which car is used and.
Kevin Garrigan: Specifically with the programs, we already have with our customers some of them are combustion and some of them are easy.
Kevin Garrigan: Definitely.
Kevin Garrigan: I don't think there is a very clear majority between one or another.
Speaker Change: Okay perfect. Thanks, guys.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: <unk>, our question and answer session sports event.
Speaker Change: Hey.
Kevin Garrigan: Great.
Speaker Change: Thank you very much everyone.
Kevin Garrigan: We look forward for the next quarter to share with you our updates. Thank you very much. Thank you.
Kevin Garrigan: Yes.