Mobileye Global Inc (NASDAQ:MBLY) reported a fiscal first-quarter 2024 revenue decline of 48% year-on-year to $239.00 million, beating the consensus of $231.56 million. Adjusted EPS of $(0.07) missed the consensus loss of $(0.06).

"The financial results in the first quarter reflect a supply chain reset as the excess inventory held by our customers is consumed. We are encouraged that the inventory drawdown and associated recovery in revenue appears to be on-track to what we laid out in January," said Mobileye President and CEO Prof. Amnon Shashua.

EyeQ and SuperVision revenue was $219 million vs. $438 million a year ago.

The Average System Price was $61.0, down from $53.9 in the prior year. Number of systems shipped plunged to 3.6 million, down from 8.1 million a year ago.

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Gross margin declined by 2,260 bps to 23%, while adjusted gross margin decreased by 876 bps to 62%, primarily due to the increase in revenue attributable to SuperVision.

Adjusted operating margin loss was (27)%, primarily due to lower gross margin. Mobileye held $1.22 billion in cash and equivalents as of March 30, 2024.

All key operating metrics in the first quarter of 2024 were impacted by a significantly lower volume of EyeQ shipments, resulting from the expected large drawdown of inventory at its Tier 1 customers.

FY24 Outlook: The company reiterated its revenue outlook of $1.830 billion—$1.960 billion (vs. the $1.899 billion estimate) and adjusted operating income of $270 million—$360 million.

Mobileye was spun-off by Intel Corp (NASDAQ:INTC) in October 2022.

Mobileye Global stock plunged 31% in the last 12 months. Investors can gain exposure to the stock via TrueShares Technology, AI & Deep Learning ETF (NYSE:LRNZ) and Innovator Deepwater Frontier Tech ETF (NYSE:LOUP).

Price Action: MBLY shares traded lower by 5.21% at $29.50 at the last check Thursday.

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