AEye, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing significant changes in revenue, losses, and strategic direction compared to the previous fiscal period.

For the three months ended September 30, 2024, AEye generated total revenue of $104,000, a decrease of 45% from $188,000 in the same period of 2023. The nine-month revenue remained unchanged at $1,395,000 compared to the prior year. The decline in quarterly revenue was primarily attributed to a significant drop in development contract revenues, which fell 70% to $39,000, largely due to reduced contributions from a Tier 1 automotive supplier. Conversely, prototype sales increased slightly to $65,000, up from $56,000 in the prior year.

The company reported a loss from operations of $(7,846,000) for the third quarter, an improvement of 54% from $(17,235,000) in 2023. For the nine months, the loss from operations was $(26,833,000), down from $(59,310,000) in the previous year, indicating a substantial reduction in operational losses. The net loss for the third quarter was $(8,706,000), a 49% improvement from $(17,048,000) in 2023, while the nine-month net loss decreased to $(26,912,000) from $(59,344,000).

AEye's total assets as of September 30, 2024, were $26,368,000, down from $54,317,000 at the end of 2023. Cash and cash equivalents also saw a significant decline, dropping to $5,851,000 from $16,932,000. The company’s total stockholders’ equity decreased to $14,906,000 from $29,023,000.

Strategically, AEye has shifted its focus towards the automotive market, discontinuing its industrial product line in late 2023. The company has established a partnership with LITEON as a Tier 1 automotive supplier, following the termination of its previous arrangement with Continental AG, which accounted for 71% of revenue in the prior year but contributed 0% in 2024. AEye's revised strategic plan aims to reduce fixed operating costs and enhance its product offerings in the automotive sector.

In terms of operational adjustments, AEye has implemented workforce reductions and restructured its sales and marketing efforts to align with its automotive-first strategy. The company also faced a lease breach complaint with potential claims up to $8,500, which it disputes, and has drawn down a standby letter of credit of $2,150 related to this issue.

Overall, AEye continues to navigate a challenging market environment while focusing on its core automotive initiatives, anticipating ongoing losses as it seeks to achieve commercialization and secure design wins in the competitive lidar technology sector.