Q4 2024 Aeva Technologies Inc Earnings Call
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Jess: Good day my name is Jess and I will be your conference facilitator I would like to welcome everyone to Ava technologies fourth quarter and full year 2024 earnings conference call.
Jess: During the opening remarks, all participants will be in a listen only mode. Following the opening remarks, we will conduct a question and answer session.
Jess: As a reminder, today's conference call is being recorded and simultaneously webcast.
Andrew: I would now like to turn the call over to Andrew <unk> Senior director of Investor Relations and corporate development.
Andrew: Andrew Please go ahead.
Speaker Change: Thank you and welcome everyone to <unk> fourth quarter and full year 2024 earnings conference call.
Speaker Change: Joining me on the call today are serious silo.
Speaker Change: <unk> co founder and CEO and <unk> <unk> CFO.
Speaker Change: Ahead of this call, we issued our fourth quarter and full year 2024 press release and presentation, which we will refer to today and can be found on our investor relations website at investors that Eva Dot com.
Speaker Change: Please note that on this call we will be making forward looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These.
Speaker Change: These statements reflect our views only as of today and should not be relied upon as representing our views as of any subsequent date.
Speaker Change: These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.
Speaker Change: For further discussion of the material risks and other important factors that could affect our financial results. Please refer to our filings with the SEC, including our most recent Form 10-Q and Form 10-K.
Speaker Change: In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of <unk> performance.
Speaker Change: These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from GAAP results.
Speaker Change: The webcast replay of this call will be available on our company's web site under the Investor Relations link.
Sue ish: And with that let me turn the call over to Sue ish.
Sue ish: Thank you Andrew and good afternoon, everyone Q4, and historic 2035 have been an incredible period of momentum in our business and I'm excited to update our investors and stakeholders.
Sue ish: I think it's appropriate though to step back and frame how we got here.
Sue ish: When we laid out our vision for Eva and building a market leading perception of testing company nearly eight years ago. We knew it was not going to be easy in the past you were taking with SM CW would ultimately build the platform for the future, but it would take time.
Sue ish: Importantly, we built a strong team understood the challenging engineering problems to overcome algorithms and software necessary to build the hardware semiconductors and silicon photonics to be developed and iterations required to bring multiple generations of our powerful product to market.
Sue ish: If successful we would have the building blocks required to enable both breakthrough long range perception and micron level precision for broad application and perception.
Sue ish: Richard datasets faster processing, everything aligned and scalable architecture and protected by a massive wall of significant IP.
Sue ish: We knew that this product vision was the only way to unlock the potential promise of autonomy and the other next generation capabilities for our customers across automotive industrial robotics and other applications.
Sue ish: Our team was constantly faced with challenges to overcome along the way and needed an intense drive to deliver on our ambitious goals.
Sue ish: I am proud of how we have pulled together time and again to deliver our first commercial product areas too in 2022, followed by our first integrated ASIC product Atlas beginning of last year.
Sue ish: These were breakthrough milestones in the Lidar space as the promise of Mcw Lidar was finally being delivered.
Sue ish: These products enabled our historic series production win at Daimler truck one of the largest commercial vehicle manufacturers globally.
Sue ish: We didn't stop there however, as we have continued to push into a smaller form factor launched a next generation ASIC that have increased the resolution of our market, leading Atlas ultra product line targeting passenger vehicles.
Sue ish: Our ultra product has now enabled us to bring the power of our platform to the passenger vehicle market has enabled us to be awarded a joint development program from a global top 10 passenger OEM.
Sue ish: This award opens up a new market for our products and signals the confidence large global Oems have and our technology at future.
Sue ish: The joint development program is focused on taking our market, leading Atlas ultra product and fine tuning it to fit within their specific vehicles and package it for use in their stack.
Sue ish: The engineering work and milestones for this program are well defined and the team is laser focused on delivering where we have confidence in our success.
Sue ish: The objectives of this program are clear and on success enable us to be included as the light our future and the global Oems model lineup globally and for geographies outside of China.
Sue ish: We expect to complete this program later this year, where we expect this transition to a large scale production award amongst the largest opportunity in the industry and delivering a next generation technology to our customers vehicle platforms.
Sue ish: In summary, 2024, it was a year of strong commercial momentum at Ava and we expect to double down on this momentum in 2025.
Sue ish: Let's now discuss in more detail our recent business developments.
Sue ish: We are excited to be selected by a global top 10 passenger OEM for a lighter development program for a next generation global production vehicle platform, where we will join the work on development packaging and integration of Eva Avnet Ultra <unk> are for use across the Oems global line of passenger vehicles.
Sue ish: Over the course of last year, we have discussed our advancements with this OEM, including being down selected to the final stages of our Q.
Sue ish: Now this development program land represents a key milestone in our ongoing collaboration and.
Sue ish: It is effectively the first of all <unk> phase of the series production program and is focused on the joint be sample development packaging of Radnet ultra product for use across the Oems broad lineup of vehicle models.
Sue ish: This OEM has a long history of using time of flight three D. Lidar, however, through extensive evaluation and real world testing up 840, lidar, including instant velocity immediately to interference and other advantages over time of flight. The OEM has found that our technology is better able to address a number.
Sue ish: A key use cases needed for the OEM to successfully expand its operating design domain at higher speeds and scale to higher levels of automation and clauses vehicle line in more markets.
Sue ish: As such they are moving to Mcw technology in order to future proof their solution for their next generation vehicles.
Sue ish: Importantly separate in addition to this program. We have also secured a letter of intent from this passenger OEM toward the series production program Award decision.
Sue ish: And we expect that to transition to a large scale global production program opportunity for Eva later this year.
Sue ish: This OEM is a leader in commercializing new technology at scale in the passenger vehicle space with annual vehicle volumes in the millions and the potential.
Sue ish: <unk> to be the primary feature across geographies outside of China, We believe the opportunity for the serious production program. Upon conversion from this development phase is expected to be massive and likely one of the largest in the automotive industry, which could cement our position as a market leading company globally.
Sue ish: We're excited to be awarded this development program with this OEM and are planning for Atlas Ultra startup production starting in 2027.
Sue ish: Beyond the top 10 OEM win.
Sue ish: We're seeing increased momentum for our funnel with other global passenger and commercial vehicle Oems that are advancing toward FMC W technology for their vehicle platforms.
Sue ish: Specifically, we are increasing our joint activities with other passenger Oems, including another top 10 passenger OEM through the RFP process and two other commercial vehicle OEM opportunities with significant volume potential based on our Atlas and Atlas ultra platforms and with targeted <unk> between <unk>.
Sue ish: 27% to 229.
Sue ish: More broadly interest to leverage MPW technology is rising across the industry as these decisions incorporating geographic considerations.
Sue ish: Believe Ava is in a strong position with our products and cost competitive solution.
Sue ish: Moving now to update for Dominic truck on the production program, we are progressing well with Donna truck, having delivered on all of those milestones for the program in 'twenty 'twenty four as the exclusive long rage and ultra long range Lidar supplier for the Oems Autonomous truck production program, Eva 40, Lidar as a primary detach.
Sue ish: Sensor and we have been working closely with diamond truck and a subsidiary of torque to achieve their key milestone toward a safe and scalable commercialization of autonomous trucks.
Sue ish: I am happy to share that this relationship continues to deepen until 'twenty five.
Sue ish: We recently expanded our collaboration with torque to include sharing of sensing data kind of Freightliner vehicle platform. This will enable even closer collaboration between our teams as we work together on advancing the safety architecture for autonomous trucks, and enabling talks virtual driver software to make safer and more intelligent decisions.
Sue ish: So insurers Ava remains on track for startup production and so I think six to support diamond trucks market entry by 2027.
Sue ish: Turning now to the latest enrollments around <unk> products.
Sue ish: We unveiled atmos ultra at CES. This past January this is our newest and most powerful automotive grade 40, Lidar that is designed to meet OEM requirements for level, three and higher speed applications.
Sue ish: Compared to our Atlas product and the Ultra offers 300 solution and the capability for a wider field of view all in 35% slimmer packaging, which.
Sue ish: Which opens up even more integration options with minimal taxes vehicle styling aerodynamics.
Sue ish: Like other Eva Lidar products as ultra Leverages, our proprietary lighter on chip architecture, which integrates all optical components, including a transmitter detector and lenders onto silicon Photonics module.
Sue ish: This along with no use of fiber or exotic materials allows us for highly automated manufacturing process and ability to mass produce at affordable costs.
Sue ish: And the ultra also utilizes our custom Eva X, one soc or system on chip processor, which enables seamless integration of data acquisition point cloud processing scanning and application software into a single mixed signal processing chip.
Sue ish: Our excellent Soc also powers, Eva advanced perception algorithms that leverage Powerpoint velocity data for object detection and semantic segmentation.
Sue ish: We are already working on integrating Atlas ultra with key partners such as the global top 10 passenger OEM and plan for additional availability to automotive customers later this year.
Sue ish: At CES, we also showcase the industry's first functional behind windshields integration of an FMC CW lidar and collaboration within automotive partner.
Sue ish: This enables a high lighter positioning for optimal long range detection with seamless integration minimizing impact the vehicle design at aerodynamics.
Sue ish: The in cabin integration is enabled by our FMC there'll be lighter on chips small form factor low power consumption and passive cooling, which helped maintain goodwill visibility and passenger comfort.
Sue ish: Our operational demonstration vehicle utilizes a co develop custom formulated glass from Yi by AGC that is compatible with <unk> unique mcw wavelength to maintain long ledge section endpoint cloud quality.
Sue ish: Feedback from leading Oems falling real world Andre demonstrations have been very positive and has already led to deeper engagements.
Sue ish: Switching now to industrial developments, where we are growing rapidly with major applications of our products with industry leaders, such as an icon and <unk> AG for the $10 billion plus market opportunity and industrial robotics and factory automation.
Sue ish: This is possible now on 225 because of the competition in our core technology components, including our core vision Lidar on chip module and excellent Soc for industrial applications.
Sue ish: In particular late last year, we partnered with <unk> to incorporate Eva Mcw technology into its portfolio of high precision contact Center solutions.
Sue ish: As mentioned <unk> is one of the top leaders in sensor solutions with revenues of nearly $3 billion annually.
Sue ish: Specifically, though in the multibillion dollar market of high accuracy displacement sensors sick sells more than 250000 sensors, a year, which are used across a broad range of industrial robotics and factory automation applications.
Sue ish: Eva sensors brings a number of major performance size and cost advantages versus current solution such as more reliable micron level precision across many operating condition.
Sue ish: Or the ability to measure both short and long standoff distances with the same small sensor.
Sue ish: And because of <unk> ability to directly measure velocity, we believe our technology when it opened up new capabilities that bring the possibility to expand the use of Eva sensors across industrial position market.
Sue ish: Having now substantially completed our validation with sick, we're now moving to commercial deployment beginning in Q3 of this year.
Turning now to our key objectives I would like to first provide a quick recap of our 2024 goals before sharing more about our 2035 objectives.
Sue ish: We said challenging objective for 2024, and I am proud to say that we have achieved essentially all of them with.
Sue ish: With regards to the goal for two additional production wins, we secured in industrial win with <unk> and.
Sue ish: And a global top 10 passenger OEM development program.
Sue ish: Our other goals from maturing our production product to finalizing our supply chain and exceeding our financial metric targets with over 100% revenue growth were all successfully achieved.
Looking to 275, we expect the work accomplished last year will enable Eva to build on our momentum this year.
Sue ish: Our focus is on further driving the adoption and commercialization of MPW technology, while continuing to maintain strong financial discipline.
Sue ish: Specifically, we targeted winning two additional programs in 2025 beyond the top 10 passenger OEM.
Sue ish: Second we are on schedule to complete and released the <unk> sample of our advanced products to key customers. This year. This key milestone will keep us on track for our 2026 startup production with Daimler truck.
Sue ish: Third we are working to expand substantially and industrial robotics and factory automation, we're able to unique mcw technology has the potential to transform the industry.
Sue ish: We are seeing significant interest from some of the global leaders in the space with potential for materially higher deployments to the tune of at least 1000% for Eva anti 75.
Sue ish: Fourth we plan to complete our automated and automotive qualified production line with capacity for 100000 plus units annually.
Sue ish: This critical step will not only better position Eva to meet the increasing near term interest for our 40, Lidar, but also our upcoming commercial deployments.
Sue ish: And fifth we aim to achieve these objectives with a strong focus on financial growth this year.
Sue ish: As Rob will discuss later on we believe we have the ability to achieve record revenues for the company. This year with approximately 70% to 100% year over year growth in 2025.
Sue ish: At the same time, we expect to reduce our operating expenses this year by approximately 10% to 20% year over year.
Sue ish: In summary, it was working on multiple significant commercial opportunities in toys, any five and with our unique 40, Lidar a strong team and liquidity position. We believe we are in a good position to execute on our objectives and capitalize on the growing momentum around FMT W.
Rob: With that let me turn the call over to Rob to discuss the financials.
Sue ish: Thank you <unk> and good afternoon, everyone I would now like to discuss <unk> full year 2024 financial results.
Sue ish: Revenue for the year 2024 was $9 1 million, representing growing sensor shipments to automotive and industrial customers, including for the Diamond truck program.
Sue ish: Full year non-GAAP operating loss was $123 2 million consistent with our plan to keep it flat from the prior year.
Sue ish: 2024, gross cash use was $112 million, which comprises all operating cash use of $106 9 million and capital expenditures of $5 1 million.
Sue ish: <unk> ended the year with total available liquidity of $237 million, which includes $112 million in cash cash equivalents and marketable securities.
Sue ish: And $125 million in Undrawn facility.
Sue ish: This facility has conditions should draw that are fully met and can be drawn at management's discretion.
Sue ish: We believe gave us total liquidity positions us to continue executing on our existing production programs as well as securing additional wins.
Sue ish: And as more industries look to FMC W. Technology <unk> is in a unique position to drive adoption.
Sue ish: We will continue to be strategic in how we invest and believe we can simultaneously scaled manufacturing to support increasing deployment and pursue new business. While also lowering total spend.
Sue ish: Turning to our financial outlook for the full year 2025.
Sue ish: We target growing our revenues to be in the range of $15 million to $18 million. This year, which is an increase of approximately 70% to 100% year over year in 2025 and.
Sue ish: Continues on a similar strong 100% plus year over year revenue growth trajectory that we achieved in 2024.
Sue ish: The higher revenue is expected to be driven by the ongoing scaling of product shipments to automotive and industrial customers.
Sue ish: Revenues are expected to be backend loaded in the year.
Sue ish: As we mentioned earlier, we see opportunity to reduce our spend in this year 2025.
Sue ish: This is due to completion of certain major engineering activities.
Sue ish: Overall maturing the commercialization of our products.
Sue ish: As such we are targeting non-GAAP operating expenses, which exclude stock based compensation and other potential nonrecurring charges to be in the range of $95 million to $105 million.
Sue ish: A reduction of approximately 10% to 20% on a year over year basis.
Sue ish: We added a very exciting time in the company's journey as we begin to scale deployments and meet the growing interest for our 40 Lidar technology.
Sue ish: We believe our available liquidity enables us to execute on our plan.
Sue ish: With that let me turn the call back to solution for closing remarks.
Thank you Rob 224 was a transformational year at Eva beginning with our major production program Award from Daimler truck to multiple industrial wins and the startup of commercial deployments.
Sue ish: It's taken a leadership position in driving the growing adoption of ssw lidar across a broad range of applications.
I'd like to thank the <unk> team for their immense work that they continue to do and realizing these accomplishments.
Sue ish: Looking forward I am really excited about what lies ahead for our company and this year we.
Sue ish: We are uniquely positioned to execute given the maturity of our 40 lot of technology and the company's financial position.
Sue ish: With our first top 10 passenger OEM program and other auto and industrial opportunities the number and depth of our engagements have never been stronger and we believe that Eva is on a path to emerge as a leader in our market.
Sue ish: With that we will now open the lineup for questions.
Sue ish: Thank you at this time, if you would like to ask a question. Please press star one on your telephone keypad, you may remove yourself from the queue at any time by pressing star Q.
Sue ish: And the interest of time, we ask that you. Please limit yourself to one question.
Sue ish: Once again that is star one for any questions.
Colin Rusch: We will go first to Colin Rusch with Oppenheimer <unk> company.
Colin Rusch: Thanks, So much guys and congratulations on all the progress.
Speaker Change: Wednesday industrial applications.
Colin Rusch: Clearly there are a myriad number of them.
Colin Rusch: They are fairly sizable can you talk a little bit about initial targets outside of metrology for R&D and what the cycle time is.
Colin Rusch: With design wins.
Colin Rusch: And when we might start to see some revenue.
Colin Rusch: <unk> I guess since we're doing one question about the secondary piece would be.
Colin Rusch: If you could give us an update on manufacturing progress from here.
Speaker Change: Yeah, Hey, happy to answer this is <unk> speaking so as you pointed out we are actually beyond automotive, which was the big update today. We are really excited about the opportunity. That's ahead of us for robotics.
Speaker Change: Especially and also the factory automation space so.
Speaker Change: That space as we have talked about.
Speaker Change: Across our products as I mentioned that being on the call. We have spent the past number of years laying the foundation for creating the products in our platform the perception platform <unk>.
Speaker Change: Including our.
Speaker Change: Key core technology pieces with our two silicon.
Speaker Change: Chips right. So the the optical core vision as well as the excellent Soc and with that we've been able to actually put this product together in a way that can be applied to automotive and industrial applications.
Speaker Change: Now that these are substantially complete this is the year that we're really excited about that we're starting to actually.
Speaker Change: Increase those sales and be able to actually commercially deploy those across the markets. So within the industrial sector. Just to give you an idea. These applications the industrial automation robotics and factory automation, we see an opportunity just for the sensing supplier was one similar to us to be in the 10 billion plus dollar market per year opportunity.
Speaker Change: Now obviously.
Speaker Change: <unk> is one of the leading players in this space.
Speaker Change: Nikon is another in the metrology space.
Speaker Change: No.
Speaker Change: Were working across with these players and others to start to deploy our first kind of industrial precision products.
Speaker Change: And for this the opportunity is quite massive.
Speaker Change: Seek by itself does about 3 billion of sales annually.
Speaker Change: That's in the multiple 10 million mens millions of sensors, but if you kind of Peel the onion and look at what is actually actionable marketable for hour.
Speaker Change: Specific sensor set.
Speaker Change: In the kind of high accuracy or.
Speaker Change: Precision displacement sensing.
Speaker Change: So <unk> itself does about two or 300000 units per year right. So right. There is where we see a critical opportunity for Eva and.
Speaker Change: So.
Speaker Change: This market because it is already in existence. It is one that is ripe.
Speaker Change: For disruption. It is one that is it is really exciting for us. So we are part of a sick too.
Speaker Change: Two actually transitioning their portfolio of sensors from.
Speaker Change: Other types of technologies, such as <unk> or others are more and more towards FMC W. Based sensors as it relates to high accuracy and displacement sensing.
Speaker Change: And so we see that as quite a large opportunity and we are talking about on this call as well.
Speaker Change: Which in which we're planning to actually increase our industrial segment's censor shipments by nearly about extra 1000%. This year. So that's just to give you an idea.
Speaker Change: One of the scale that we're going after and we think this is just the beginning we think the run rate of opportunities for this if we are able to execute in the next couple of years could be quite massive.
Speaker Change: Joining us opportunity potentially cost.
Speaker Change: 100 plus million type range.
Speaker Change: Per year business. So that is a very exciting thing for us and the reason that I think I would say we are seeing traction as area. This is not the same as maybe others in this space when they talk about Lidar for industrial this is something that's quite different the unique advantages for Ava the areas will be around.
Speaker Change: Accuracy micron level precision and a non contact way at kind of long standoff distances and thats something that is really a time of flight or lidar is not even in the business of doing so and Thats why we are excited about it so I hope that answers your question.
Speaker Change: And can you just address the manufacturing question.
Speaker Change: For a second just in terms of your progress and manufacture ability and operation to ramp as you start to see some of these opportunities materialize.
Speaker Change: Yes, absolutely so so.
Speaker Change: As you pointed out we have been focused heavily on.
Speaker Change: Increasing our manufacturing capacity, obviously is important for us to be able to meet the growing demand for our products to hit these targets that I mentioned of the 1000% for industrial sensor. So one of our goals. This year actually is two <unk>.
Speaker Change: Install and complete our manufacturing production line with a capacity of 100000 units per year and as you may recall from last year, we set a goal to two to really secure our final assembly manufacturing as well as make dedicated manufacturing line of Fibernet for our core module.
Speaker Change: All of those as I mentioned on the call are done now we're now getting into the next year to really start being able to have the manufacturing capacity.
Speaker Change: It is a much higher scale and then be able to satisfy the demand that we're seeing from these various markets across auto industrial.
Speaker Change: Thanks, so much guys.
Desilva: And once again it was star one if you had a question. We will go next to <unk> Desilva with Roth capital.
Desilva: Hi, Serge so Rob congrats on all the progress here.
Desilva: Taking into consideration your comments about opex being able to bring it down some of the product maturing I'm wondering if also that applies maybe just some of these large programs like the diamond truck program.
Desilva: Could you characterize the 25 kind of effort laskin versus maybe 24, perhaps just the heavy lift and there's less risk and what's left between now and program start 'twenty six 'twenty seven or whether there are still some significant milestones and challenges remaining.
Desilva: Yeah, Hey, Sanjay this Thursday, I'm happy to answer that so.
Desilva: Bob.
Desilva: Obviously as you mentioned we have.
Desilva: We have substantially completed a significant chunk of the efforts as it relates to our first launch of our product filed. This this is a year in which we're working on releasing a final see sample.
Desilva: Which is the.
Desilva: I would say.
Desilva: A key milestone for us to be able to commercially deploy this at scale there.
Desilva: There is no coincidence that were actually.
Desilva: If you go back and look at it.
Desilva: Forward the installation of a manufacturing line capacity from $26 25.
Desilva: Including two you'd be able to give that to 100000 units per year.
Desilva: <unk> is because of the growing demand, we're seeing across automotive industrial so with diamond truck. We have delivered on every milestone either on time or at a time last year. I think we have had a really successful partnership and the production side when the analysis at the beginning of last year and we continue to do so as we go forward. So.
Desilva: Majority of the development work is complete.
Desilva: A good chunk of the manufacturing.
Speaker Change: Your line.
Speaker Change: Installation is done.
Speaker Change: Now increasing that making a full automated line for our final assembly.
Speaker Change: And being able to hit these types of numbers that we're talking about so.
Speaker Change: As that relates to our spend.
Speaker Change: Obvious and goes without saying this is the year that we are looking to set a record revenues for the company as I mentioned, 70% to 100% year over year.
Speaker Change: We're not just making this out of thin air we have.
Speaker Change: Set those goals last year, we exceeded them now we are back here again are sending these goals this year and hope to do the same.
Speaker Change: And at the same time this year, we're looking to reduce our spend.
Speaker Change: Part of that is because of the fact that we are substantially complete with our product development. Some of the onetime or engineering type cost equities silicon development that can be cost you are now getting behind us.
Speaker Change: And we are maturing as a product from insurance company. So we're really excited now to kick into high gear and start scaling our our products and on top of that keep on so most car momentum with wins in automotive and others. So.
Speaker Change: Pretty pretty exciting year for us about Q4.
Speaker Change: Sure.
Speaker Change: Great progress on a great set up for 'twenty and then my other question is on the.
Speaker Change: The OEM program and the 'twenty seven target first started production I. Just was curious first of all is that an L. Three card program and second of all as you talked about $1 billion lifetime value will be 10 year straight line is 26 at the beginning of that contribution and part of it or I missed for 27 really the first you'd get some.
Speaker Change: Kind of 110th of that sort of run rate beginning what's a more realistic expectation.
Speaker Change: Yes, sure happy to maybe touch on the top 10 win here.
Speaker Change: With the passenger program that you're talking about so.
Speaker Change: As I mentioned on the call a little bit.
Speaker Change: We've been working with this OEM for quite some time now over the past year or two years.
Speaker Change: Over the past year has been quite intensive really extensive collaboration together.
Speaker Change: But before I dive into that maybe we have to zoom out for a second. So you also have to understand that this OEM has had significant experience with time of flight already testified lidar.
Speaker Change: And throughout their experience and lessons learned there now realizing what they need and what what may be missing and ensured theyre looking now to move past time of flight towards if mcw technology. So given both the lessons learned the challenges as well as the significant advantages they see that they can gain by going to FMC.
Speaker Change: W.
Speaker Change: We think thats a win win situation and importantly, crucial signal for the passenger OEM space of what we think is is to come as a major shift for the Oems as they start to transition to a mcw Lidar technology, and we hope and we believe <unk> is going to play a key role for that as of year end Mcw.
Speaker Change: Now together, we've done a lot of work since last year.
They have a valid our technology firsthand on extensive real world testing onto testing we've talked about this over the past year or so a few months.
Speaker Change: The past number of audits maturity as a direct your one supplier.
Speaker Change: <unk> done a lot of technical.
Speaker Change: Analysis gone through 1000 requirements together.
Speaker Change: <unk>.
Speaker Change: <unk> gone through the final stages of our Qdoba Downcycle, we were down selected for as we mentioned last year. So the culmination of all of that is what is these two agreements that we talked about one is the award by this top 10 passenger OEM for the development agreement.
Speaker Change: This is intended for.
Speaker Change: Developing a solution that fine tunes, our ultra product in a way that fits across their global production vehicle platform, which includes multiple lines of vehicles.
Speaker Change: And the works effectively kind of first phase of the production program and really focused on doing b sample development for us to be able to get them to use it across.
Speaker Change: Our lineup of vehicles.
Speaker Change: This OEM.
Speaker Change: OEM has obviously serious.
Speaker Change: Vested interest in skin in the game.
Speaker Change: With.
Speaker Change: Eva as well as within our contribution to help should make sure that we are successful.
Speaker Change: And in addition to that the second piece is we have got a step beyond that with this top passenger OEM and have been able to secure a letter of intent from the OEM for a large scale production program Award.
Speaker Change: This year, which we.
Speaker Change: We believe is a very strong.
Speaker Change: Indication of the Oems plan for next generation as well as our collaboration together. So overall, we're feeling confident about that I think the objectives and the milestones are clearly laid out as I mentioned, we know what needs to happen.
Speaker Change: <unk> is laser focused here right now and is understood what we need to do and we have high confidence in going to close it out together in the next number of months here. So thats, what I would say about about kind of our activities and kind of how we got here.
Speaker Change: But to answer your question about kind of timing and ESOP.
Speaker Change: We have mentioned on this call and earlier today that our targets with Atlas Ultra S&P.
Speaker Change: Which obviously ties into what we're talking about here is 2027, and we expect that from production ramp to market entry to follow that.
Nathan Wayne: We will take our next question from Nathan Wayne with Morgan Stanley.
Nathan Wayne: Great. Thanks, guys.
Nathan Wayne: Wanted to ask given some of the additional wins and engagements just how are you feeling about the level of cash right now it looks like.
Nathan Wayne: Cash burn last year was kind of similar to whats on the balance sheet today spending will be a little bit lower this year, but is there a <unk>.
Nathan Wayne: Our cash number you feel comfortable operating the company and you expect to be able to have to draw on that facility before we kind of start to get to scale over the next couple of years.
Nathan Wayne: Hey, Nathan this is Rob so happy to answer that question as I mentioned in my prepared remarks, our total liquidity available is $237 million 112 is on the books on the balance sheet and the remaining $125 million is in the form of.
Nathan Wayne: And drawn facility.
Nathan Wayne: Conditions to draw have been fully met and now does that management sort of distribution to draw at any point in time, So we feel pretty good about our liquidity its a multiyear runway to take us all the way to production.
Nathan Wayne: And as you see that we are while we are.
Speaker Change: Increasing revenues, we are decreasing cost and as <unk> mentioned earlier in the call that there are certain heavy lift on the R&D front, particularly the silicon development and maturity of the product both those activities odd coming down as you would expect as you lease maturity. So we feel pretty good about it we don't have any debt and at the same.
Speaker Change: When you look at the whole ecosystem of Lidar companies than others. We feel we've done a very good position from the balance sheet strength and liquidity to execute on our plan and with more customers.
Speaker Change: Okay excellent and thanks, Thanks, and congrats on the progress.
Speaker Change: Thank you.
Speaker Change: We will go next to Richard Shannon with Craig Hallum.
Speaker Change: Hi, This is Tyler on for Richard Thank you for taking my questions. I was just wondering what is the general area that the.
Speaker Change: Top 10, OEM is located in for their headquarters and in which geographies ex China are they operating in and is there any cadence to the different model ramps or any kind of way you can describe.
Speaker Change: The size of this opportunity.
Speaker Change: Yes, yes happy to do that I think.
Speaker Change: Obviously I would be careful here I think we adjusted out of this that we don't want to get ahead of ourselves to help too much I can tell you. This is a obviously a top 10 OEM is super obviously, well known brand with global presence.
Speaker Change: I don't think I can tell you the exact head.
Speaker Change: Orders, but.
Speaker Change: In general I can tell you that.
Speaker Change: We have significant business globally.
Speaker Change: What we see with this OEM is as I mentioned is they are making in the millions of vehicles per year and there importantly, really.
Speaker Change: One of the top theaters and.
Speaker Change: Introducing new technology right. So we think that that combination together with <unk> ability to provide this really unique FMC W. Technology, along the way really proved out as maturity and scalability is going to be a major win win situation not just for the two companies, but we.
Speaker Change: Also see this as an opportunity for us to jointly bring this technology to the passenger yield market. Similarly to what we're doing with diamond truck on the commercial vehicle market.
Speaker Change: So we are really excited about that Don obviously as a leader in their respective commercial vehicle field and we see that the opportunity here with this OEM also is to be in a leading position in the passenger vehicle field. So we're looking to work together and really.
Speaker Change: Buildup that potential of the scale as you.
Speaker Change: I alluded to decide so.
Speaker Change: As I mentioned on the call.
Speaker Change: Millions of vehicles sold.
Speaker Change: We see the opportunity.
Speaker Change: <unk> program to be across multiple vehicle model lines, we see that for some of these key model lines, we expect it to be as a standard feature for Lidar So people on the math.
Speaker Change: Potential opportunity would be quite massive and as I mentioned on the call. It will be amongst the largest in the industry.
Speaker Change: And we expect the size to be at least similar to what was a diamond truck program, which is a billion plus dollar.
Speaker Change: Revenue opportunity so.
Speaker Change: We're really excited by this but again we.
We see this as a stepping stone and not at all as a destination.
Speaker Change: <unk>.
Speaker Change: We're just getting started here in Q1, so looking forward to providing more obvious as we go along.
Speaker Change: That's fair thank you for answering.
Speaker Change: I had one more for for the menu factoring is this enough to get you going for the next couple of years or does that need to be adjusted as we move forward until the end of 2000 and beyond.
Speaker Change: Yes, so as we mentioned earlier.
Speaker Change: Our goal is to obviously sell manufacturing capacity.
101000 units to really be able to satisfy the demand that we see in the market from our customers.
Our target. This year is just to start this year for our manufacturing capacity installed, but I can tell you that our line as is being installed is already able to go north of 200000.
Speaker Change: As we install that enable to expand that and that's something that we already have plans for as we go around and so long as manufacturing capacity.
Speaker Change: No.
Speaker Change: Our ability to produce add significant volumes for each theres. Just one line is going to be crucial and one of the reason we can do that is actually because.
Speaker Change: If you look at our system.
Speaker Change: Well, we have been able to do with Atlas and then address ultra is reduce the components that goes inside of Lidar, let's say if you compared to in contrast, the tubular I'd say typical lidar or time of flight technology. He may have many tens or hundreds of components and modules.
Speaker Change: Where will you see with FMC W will be done at Eva has been able to reduce that to a handful of key modules and.
Speaker Change: That significantly reduces the complexity of the product we have had very positive feedback from the Oems has contributed to some of the success that you've had so far some have even commented that this is kind of reduced to the Max in terms of complexity of the system level. So we see that opportunity to be able to.
Speaker Change: Really makes it easy.
Speaker Change: For us to make this fully automated is not going to be that much of a huge challenge for us. So that's why from.
Speaker Change: From the beginning of the design, we've been able to actually get the system level of complexity to a level where it's at.
Speaker Change: Straightforward to be able to manufacture and automated fashion all of that what I am saying is ability for us to increase our capacity system level is.
Speaker Change: As.
Speaker Change: Already in our plans and it's something that we know how to do.
Speaker Change: And then our focus is on scaling up manufacturing at the module as silicon level to match that up which obviously that is.
Speaker Change: Is something that is also known quantity that we know how to do so hopefully that answers your question.
Speaker Change: It appears we have no further questions at this time.
Speaker Change: This will conclude the avid technology's fourth quarter and full year 2024 earnings conference call.
Speaker Change: We thank you for your participation you may disconnect at any time.
Speaker Change: Okay.
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