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PLEASANTON, Calif. - AEye, Inc. (Nasdaq:LIDR), a $17.22 million market cap company whose stock has surged over 20% in the past week, announced Monday that its Apollo lidar units have been selected by a major transportation OEM, representing a potential revenue opportunity of $30 million over the next 24 to 36 months. According to InvestingPro analysis, the company is currently undervalued based on its Fair Value estimates.
According to the company’s press release, the OEM selected AEye specifically for the Apollo lidar’s ability to detect objects at distances of up to one kilometer, which enables faster hazard identification and response time.
"Many critical transportation applications require perception well beyond 200 meters," said AEye CEO Matt Fisch. "We believe this selection by a global OEM validates the growing role of lidar in sensing applications that depend on extended range and reliability."
The Apollo is a high-performance 1550nm lidar sensor that delivers resolution in a compact form factor. It is designed for flexible deployment in vehicles and fixed infrastructure to support both advanced driver-assistance systems and intelligent transportation systems.
The selection marks what the company describes as a major milestone in advancing long-range safety systems for transportation applications where early object detection is critical.
AEye’s Apollo lidar units are designed to integrate into vehicles as well as fixed infrastructure. The company states the technology is particularly suited for dynamic applications requiring precise measurement imaging to ensure safety and performance.
The revenue projections and timeline mentioned in this article are based on company statements and represent potential future earnings rather than confirmed financial results. Analysts tracked by InvestingPro anticipate sales growth of 26.23% for fiscal year 2025, though the company is not expected to be profitable this year. For deeper insights into AEye’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, AEye Inc reported its first quarter 2025 financial results, revealing a GAAP net loss of $8 million, or $0.46 per share, and a non-GAAP net loss of $5.8 million, or $0.33 per share. The company also highlighted a significant reduction in operating expenses, which decreased to $6.8 million from $9 million in the previous quarter. AEye launched its Apollo LiDAR solution, targeting the automotive and Intelligent Transportation Systems markets, marking a strategic move to capture market share in these sectors. Despite these efforts, the company projects ongoing challenges with an expected full-year cash burn between $27 million and $29 million.
In addition to financial developments, AEye has joined the University of Toronto’s WinTOR project to enhance autonomous vehicle perception systems for adverse weather conditions. This collaboration, supported by major industry players like General Motors and LG Electronics, aims to address limitations in current autonomous driving systems. The company’s Apollo sensor, capable of detecting objects at distances up to one kilometer, is central to this initiative. AEye’s involvement in the WinTOR project represents a significant step towards overcoming challenges in autonomous vehicle development, particularly in poor weather conditions.
The company has also made strides in restructuring, reducing operating expenses by 75% and headcount by 60%, as part of its ongoing efforts to stabilize financially. AEye’s focus on the automotive sector and partnerships with industry leaders like NVIDIA are pivotal to its strategy. As part of its commercial strategy, AEye is engaged with over 20 potential customers and has begun delivering proof of concept samples to further its market reach. Despite these initiatives, AEye’s forward guidance indicates continued financial difficulties, with EPS forecasts remaining negative for upcoming quarters.
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