Exhibit 99.1

 

Mobileye Announces Second Quarter 2016 Financial Results

Second Quarter 2016 Highlights:

· Total revenue of $83.5 million

· GAAP Net Income of $26.9 million; Non-GAAP Net Income of $41.2 million

· GAAP fully diluted EPS of $0.11; Non-GAAP fully diluted EPS of $0.17

· Generated GAAP net cash from operating activities of $37.8 million; Non-GAAP free cash flow of $33.0 million

JERUSALEM, Israel – July 26, 2016 –(NYSE: MBLY) – Mobileye N.V., the global leader in Advanced Driver Assistance Systems and autonomous driving technologies, today announced financial results for the quarter ended June 30, 2016.

“We are pleased with the second quarter financial results,” stated Ziv Aviram, co-founder, president and chief executive officer of Mobileye. “More important, commercial and strategic achievements in Q2 capped a first half in which we secured new business at all levels, from ADAS through fully autonomous, as well as introduced innovative new products, such as Road Experience Management (REM).  In addition to winning new ADAS programs and new Tier-1 partnerships, we have begun an expansion of our value proposition by creating partnerships with automakers and others in order to bring fully autonomous driving to volume production within the next five years.  The BMW/Intel/Mobileye partnership is the first significant collaboration of this type and we anticipate others. Overall, we believe we have made important progress in advancing our strategy of securing a significant, long-term presence in all levels of autonomous driving.”

Second Quarter 2016 Financial Highlights

· Revenue: Total revenue for the second quarter of 2016 was $83.5 million, compared to $52.8 million in the prior-year period. Within total revenue, original equipment manufacturing (OEM) revenue was $64.4 million, compared to $43.6 million in the prior-year period. EyeQ chip volume increased 45.4% year-over-year to 1,409 thousand EyeQ units, compared to 969 thousand units in the prior-year period. The EyeQ Average Selling Price (ASP) per unit for the second quarter of 2016 was $44.5, up from $43.7 during the same period last year. After market (AM) revenue contributed the remaining $19.1 million of total revenue for the second quarter of 2016 compared to $9.2 million in the prior-year period.

· Net Income and Earnings per Share: GAAP net income for the second quarter of 2016 was $26.9 million, or $0.11 per diluted share. This compares to GAAP net income of $15.3 million, or $0.06 per diluted share, for the second quarter of 2015. GAAP results included share-based compensation expense, net of tax, of $14.4 million for the second quarter of 2016 compared to $8.3 million for the second quarter of 2015.

Non-GAAP net income for the second quarter of 2016 was $41.2 million, or $0.17 per share, based on 237.7 million weighted average diluted shares outstanding. This compares

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to non-GAAP net income of $23.6 million, or $0.10 per share, based on 237.8 million weighted average diluted shares outstanding during the second quarter of 2015. Non-GAAP net income excludes share-based compensation expense, and the applicable income tax effect.

· Cash and Cash Flow: At June 30, 2016, Mobileye had cash, cash equivalents, restricted cash and marketable securities of $543.1 million, compared to $510.2 million at March 31, 2016.

The company generated $37.8 million in GAAP net cash from operating activities for the second quarter of 2016 compared to $23.6 million for the second quarter of 2015. The company generated $33.0 million in non-GAAP free cash flow for the 2016 second quarter compared to $22.8 million for the comparable 2015 quarter. Non-GAAP free cash flow represents GAAP net cash provided by operating activities minus capital expenditures.

A reconciliation of the non-GAAP financial measures to GAAP measures has been provided in the financial tables included in this press release. An explanation of the non-GAAP financial measures and how they are calculated is included below under the heading “Non-GAAP Financial Measures.” The Company has updated the reconciliation of GAAP to non-GAAP net income in line with the recent Securities and Exchange Commission ("SEC") Compliance & Disclosure Interpretations ("C&DIs") and added to the reconciliation the applicable tax effect on share-based compensation expense, for all presented periods.

Quarterly Conference Call

Mobileye will host a conference call at 8:00 a.m. Eastern Time (U.S. time) today (Tuesday, July 26, 2016) to review the company’s financial results for the second quarter ended June 30, 2016. A live Webcast of the conference call will be accessible from the Investor Relations section of Mobileye’s website at http://ir.mobileye.com. An archive of the Webcast will be available through October 24, 2016.

About Mobileye

Mobileye N.V. is the global leader in the development of computer vision and machine learning, data analysis, localization and mapping for Advanced Driver Assistance Systems and autonomous driving. The Company’s technology keeps passengers safer on the roads, reduces the risks of traffic accidents, saves lives and has the potential to revolutionize the driving experience by enabling autonomous driving. The Company’s proprietary software algorithms and EyeQ® chips perform detailed interpretations of the visual field in order to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris and other obstacles. The Company’s products are also able to detect roadway markings such as lanes, road boundaries, barriers and similar items; identify and read traffic signs, directional signs and traffic lights; create a Roadbook™ of localized drivable paths and visual landmarks using REM™; and provide mapping for autonomous driving. The Company’s products are or will be integrated into car models from 25 global automakers. The Company’s products are also available in the aftermarket.

Forward-Looking Statements 

This press release contains certain forward-looking statements. Words such as "believes," "intends," "expects," "projects," "anticipates," and "future" or similar expressions are intended to identify forward-looking statements. These statements are only predictions based on the Company’s current expectations and projections about future events. You should not place undue

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reliance on these statements. Many factors may cause the Company’s actual results to differ materially from any forward-looking statement, including the risk factors and other matters set forth in the Company’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 20-F for the year ended December 31, 2015. The Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.

Non-GAAP Financial Measures

In this release, we provide financial information that has not been prepared in accordance with GAAP. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors as a supplement to GAAP measures. We believe that these non-GAAP financial measures also provide additional tools for investors to use in evaluating our ongoing operating results and trends and in comparing our financial results with those of other companies in our industry, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures should not be considered in isolation from, or considered as an alternative to, operating income (loss), net income (loss), earnings per share or any other measure of financial performance calculated and presented in accordance with GAAP. Our non-GAAP measure may not be comparable to similarly titled measures of other organizations because other organizations may not calculate non-GAAP measures in the same manner. You are encouraged to evaluate these adjustments and the reason we consider them appropriate. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

Non-GAAP net income (loss). To arrive at our non-GAAP net income (loss), we exclude share-based compensation expense and the applicable income tax effect from our GAAP net income (loss). We believe that this non-GAAP measure is useful to investors in evaluating our operating performance for the following reasons:

• We believe that elimination of share-based compensation expense and the applicable income tax effect is appropriate because treatment of this item may vary for reasons unrelated to our overall operating performance;

• We use this non-GAAP measure in conjunction with our GAAP financial measure for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and

• We believe that this non-GAAP measure provides better comparability with our past financial performance, facilitates better period-to-period comparisons of operating results and may facilitate comparisons with similar companies, many of which may also use similar non-GAAP financial measures to supplement their GAAP reporting.

Non-GAAP free cash flow. We define non-GAAP free cash flow as GAAP net cash provided by operating activities minus capital expenditures. Non-GAAP free cash flow is important to reflect the cash that can allow us to pursue business strategies and opportunities and fulfill our goals. A limitation of using non-GAAP free cash flow versus the GAAP measure of net cash provided by operating activities as a means of evaluating our company is that non-GAAP free cash flow does

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not represent the total increase or decrease in the cash balance from operations for the period because it excludes cash used for capital expenditures during the period. Management compensates for this limitation by providing information about our capital expenditures on the face of the cash flow statement.

From time to time, we may also provide guidance regarding projected Non-GAAP Net Income (Loss) on an aggregate and per share basis. We cannot provide a reconciliation of our projected non-GAAP Net Income (Loss) to projected GAAP Net Income (Loss) for any future period due to the fluctuations of our stock price, which impact share-based compensation. Therefore, the information necessary for a quantitative reconciliation is not available to us without unreasonable efforts.

Company Contact:

Dan Galves

CCO / SVP

Dan.Galves@mobileye.com

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MOBILEYE N.V.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share data)

	For the six months ended						For the three months ended
	June 30,						June 30,
	2016			2015			2016			2015
Revenue	$	158,685		$	98,408		$	83,478		$	52,827
Cost of revenue		38,953			25,605			20,405			13,570
Gross profit		119,732			72,803			63,073			39,257
Operating costs and expenses
Research and development, net		29,612			20,232			14,633			10,505
Sales and marketing		7,294			6,979			3,563			3,483
General and administrative		28,883			15,887			14,629			8,230
Total operating expenses		65,789			43,098			32,825			22,218
Operating profit		53,943			29,705			30,248			17,039
Interest income		2,388			688			1,217			513
Financial income (loss), net		(262	)		(434	)		(423	)		160
Profit before taxes on income		56,069			29,959			31,042			17,712
Taxes on income		(7,284	)		(4,546	)		(4,174	)		(2,437	)
Net income for the period	$	48,785		$	25,413		$	26,868		$	15,275
Basic and diluted income per share:
Basic	$	0.22		$	0.12		$	0.12		$	0.07
Diluted	$	0.21		$	0.11		$	0.11		$	0.06
Weighted average number of Ordinary shares (in thousands)
Basic		219,148			216,287			219,332			217,362
Diluted		237,325			237,417			237,709			237,837

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MOBILEYE N.V.

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (UNAUDITED)

(in thousands, except per share data)

	For the six months ended						For the three  months ended
	June 30,						June 30,
	2016			2015			2016			2015
GAAP  net income (loss) as reported	$	48,785			25,413		$	26,868			15,275
Non-GAAP adjustment
Expenses recorded for Stock based compensation
Cost of revenues		19			10			12			5
Research and development		5,236			3,871			2,895			2,036
Sales and marketing		117			1,031			63			608
General and administrative		22,164			11,563			11,461			5,752
Total Stock based compensation		27,536			16,475			14,431			8,401
Income tax effect		(334	)		(117	)		(60	)		(53	)
Total adjustment		27,202			16,358			14,371			8,348
Non-GAAP net income		75,987			41,771			41,239			23,623
Non-GAAP net income per share
Basic	$	0.35		$	0.19		$	0.19		$	0.11
Diluted	$	0.32		$	0.18		$	0.17		$	0.10
Weighted average number of shares (in thousands)
Basic		219,148			216,287			219,332			217,362
Diluted		237,325			237,417			237,709			237,837

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MOBILEYE N.V.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(U.S. dollars in thousands)

	June 30,			December 31,
	2016			2015
Assets
Current assets
Cash and cash equivalents	$	190,456		$	152,692
Marketable securities		99,908			59,394
Trade account receivables, net		38,610			23,706
Inventories		45,922			42,676
Other current assets		13,863			14,817
Total current assets		388,759			293,285
Long-term assets
Marketable securities		249,713			260,982
Property and equipment, net		16,854			11,031
Severance pay fund		11,211			9,863
Other assets		3,142			2,453
Total long-term assets		280,920			284,329
Total assets	$	669,679		$	577,614
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued expenses	$	28,334		$	24,593
Employee related accrued expenses		6,639			5,341
Other current liabilities		17,240			13,322
Total current liabilities		52,213			43,256
Long-term liabilities
Accrued severance pay		14,080			12,020
Long-term liabilities		7,321			6,864
Total long-term liabilities		21,401			18,884
Total liabilities		73,614			62,140
Shareholders’ equity
Share capital		2,566			2,558
Additional paid-in capital		606,293			577,212
Accumulated other comprehensive income (loss)		942			(1,775	)
Accumulated deficit		(13,736	)		(62,521	)
Total shareholders’ equity		596,065			515,474
Total liabilities and shareholders’ equity	$	669,679		$	577,614

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MOBILEYE N.V.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

	For the six months ended						For the three months ended
	June 30,						June 30,
	2016			2015			2016			2015
Cash flows from operating activities
Net income for the period	$	48,785		$	25,413		$	26,868		$	15,275
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		1,867			1,618			997			831
Exchange rate differences		(262	)		(577	)		309			(1,241	)
Accrued severance pay		2,060			1,528			798			1,208
Loss (gain) from marketable securities		(28	)		168			7			135
Share-based compensation		27,536			16,475			14,431			8,401
Changes in assets and liabilities:
Trade accounts receivables, net		(14,904	)		(7,609	)		(5,398	)		(118	)
Other current assets		814			1,839			(1,360	)		3
Inventories		(3,246	)		(9,665	)		(5,544	)		(6,420	)
Other long-term assets		(689	)		(706	)		(432	)		(659	)
Account payables and accrued expenses		2,856			9,076			2,609			4,260
Employee-related accrued expenses		1,298			843			291			(765	)
Other current-liabilities		3,918			6,399			4,203			2,318
Long-term liabilities		209			282			(26	)		392
Net cash provided by operating activities		70,214			45,084			37,753			23,620
Cash flows from investing activities
Change in restricted and short-term deposits		(7	)		25			(7	)		25
Proceeds from maturities / sales of marketable securities		34,701			129,675			11,278			126,443
Purchase of marketable securities		(60,953	)		(357,730	)		(36,840	)		(247,988	)
Severance pay fund		(1,197	)		(837	)		(626	)		(476	)
Purchase of property and equipment		(6,805	)		(3,521	)		(4,755	)		(809	)
Net cash used in investing  activities		(34,261	)		(232,388	)		(30,950	)		(122,805	)
Cash flows from financing activities
Cash received in respect of withholding taxes related to exercise of options		-			-			-			(28,000	)
Non-recourse loan		(1,450	)		-			(1,450	)		-
Exercise of options		3,150			6,866			1,152			1,863
Net cash provided by (used in) financing activities		1,700			6,866			(298	)		(26,137	)
Increase (decrease) in cash and cash equivalents		37,653			(180,438	)		6,505			(125,322	)
Balance of cash and cash equivalents at the beginning of the period		152,692			339,881			184,029			284,331
Exchange rate differences on cash and cash equivalents		111			204			(78	)		638
Balance of cash and cash equivalents at the end of the period	$	190,456		$	159,647		$	190,456		$	159,647

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MOBILEYE N.V.

RECONCILIATION OF GAAP NET CASH FROM OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOWS (UNAUDITED)

(in thousands)

	For the six months ended						For the three months ended
	June 30,						June 30,
	2016			2015			2016			2015
GAAP net cash from operating activities as reported	$	70,214		$	45,084		$	37,753		$	23,620
Capital Expenditures		(6,805	)		(3,521	)		(4,755	)		(809	)
Non-GAAP Free Cash Flow		63,409			41,563			32,998			22,811

MOBILEYE N.V.

SUPPLEMENTAL INFORMATION (UNAUDITED)

(in thousands)

	For the six months ended				For the three months ended
	June 30,				June 30,
	2016		2015		2016		2015
OEM Revenue	$	125,797	$	80,200	$	64,357	$	43,635
Aftermarket Revenue		32,888		18,208		19,121		9,192
Total Revenue	$	158,685	$	98,408	$	83,478	$	52,827
Number of EyeQ units (in thousand)		2,731		1,785		1,409		969
EyeQ average selling price per unit	$	44.4	$	43.7	$	44.5	$	43.7

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