TEL AVIV - Arbe Robotics Ltd. (NASDAQ: NASDAQ:ARBE) (TASE: ARBE), known for its Perception Radar Solutions, has announced its collaboration with Tier 1 supplier HiRain Technologies on the development of an Advanced Driver Assistance Systems (ADAS) for a Chinese automaker. The new system will integrate camera and radar fusion technology, aiming to match the performance of LiDAR-based systems. The anticipated serial production is set for Q4 2025, pending OEM approval.
HiRain Technologies has been gathering extensive data through a fleet of vehicles equipped with LRR610 Imaging Radars, which are based on Arbe's chipset technology. CTO of HiRain Technologies, Chengjian Fan, stated that their imaging radars offer unprecedented performance in radar technology, enhancing sensor fusion and perception, thereby making advanced ADAS systems more accessible and ensuring safety.
Arbe's chipset, featuring a substantial array of 48 transmitting and 48 receiving channels, enables the LRR610 to produce ultra-high resolution in both azimuth and elevation. This technology creates a dense point cloud for detailed imaging, which is vital for the next generation of automotive safety.
Kobi Marenko, CEO of Arbe, expressed that the partnership aims to transform automotive safety by integrating radar capabilities traditionally unique to other sensors. He emphasized the initiative's potential to offer a cost-effective solution that does not compromise on safety.
Arbe, headquartered in Tel Aviv, Israel, is at the forefront of the automotive radar market, providing high-resolution radar technology essential for L2+ autonomy and beyond. HiRain Technologies, based in Beijing, specializes in intelligent driving solutions and electronic systems for the automotive industry.
The press release also contains forward-looking statements, which are subject to risks and uncertainties. These include the company's ability to meet HiRain's quality and timing requirements and market its radar product effectively.
This article is based on a press release statement and aims to provide factual information without endorsing any claims or future predictions made by the companies involved.
In other recent news, Arbe Robotics Ltd. has secured a 7 million euro deal with Tianyi Transportation Technology through its tier-1 provider, Sensrad. The agreement, set to commence in the third quarter of 2024, involves supplying 4D Imaging Radars, utilizing Arbe's superior chipset technology. Moreover, Arbe announced during their Q2 2024 earnings call that they have secured two major customers, marking a significant advancement in their imaging radar development for production vehicles.
One of the top 10 global OEMs has chosen Arbe to supply chipsets for the development of next-generation imaging radar systems. Additionally, a well-known European truck manufacturer will incorporate Arbe's radar into its next-gen sensor suite for trucks. Despite reporting a net loss of $11.8 million for Q2 2024, the company anticipates revenue from these deals by late 2025 or early 2026.
Arbe's Q2 2024 financials showed a revenue of $0.4 million, a gross margin of -9.5%, and operating expenses of $11.6 million. The company's 2024 guidance includes achieving four design-ins with automakers and projecting an adjusted EBITDA loss between $30 million to $36 million. These are recent developments in Arbe's journey, with the company actively working on securing four design wins with leading global automakers.
InvestingPro Insights
Arbe Robotics Ltd. (NASDAQ: ARBE), while making strides in the automotive radar market with its recent collaboration with HiRain Technologies, presents a mixed financial outlook according to InvestingPro data and tips. With a market capitalization of $153.73 million, the company is navigating through challenges, as reflected in its negative P/E ratio of -3.28, indicating that investors are currently facing losses.
InvestingPro Tips highlight that Arbe is quickly burning through cash and suffers from weak gross profit margins, which are concerning factors for potential investors. The company's gross profit margin stands at a negative 27.62% for the last twelve months as of Q2 2024, underscoring the difficulties in converting revenue into gross profit.
Moreover, Arbe's revenue growth has seen a sharp decline of 33.04% over the last twelve months as of Q2 2024, although there has been a quarterly uptick of 41.52%. This suggests that while there may be some short-term improvements, the company has faced significant challenges over a longer period. In line with the InvestingPro Tips, analysts do not anticipate Arbe will be profitable this year, which is a critical consideration for stakeholders.
For readers interested in a deeper analysis, InvestingPro provides additional insights and metrics. There are currently 9 InvestingPro Tips available for Arbe Robotics Ltd., which can be found at https://www.investing.com/pro/ARBE, offering a comprehensive view of the company's financial health and market position.
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