Wei Mok

Wei Mok of Oppenheimer & Co. Inc. asked which business segment is expected to drive the anticipated revenue rebound in Q4 2025, given the Q3 guidance suggests a temporary trough.

Answer

CFO Guy Nathanzon clarified that Valens does not provide revenue forecasts allocated by segment. He noted that the company observes temporary weakness in Q3 across both its CIB and automotive businesses, with improved visibility for Q4 in both areas.

Wei Mok of Oppenheimer & Co. Inc. inquired about the new partnership with Mobileye, asking how it alters the strategy for securing future OEM design wins and if it implies closer collaboration with Mobileye's existing OEM partners. He also questioned the potential impact of new tariffs, seeking clarity on the company's visibility to claim no direct effects and asking about any indirect consequences.

Answer

CEO Gideon Ben-Zvi explained that the Mobileye collaboration is driven by the need for higher quality and bandwidth for ADAS cameras, a capability where Valens excels. He noted that this partnership signals strong industry backing for A-PHY to the broader OEM community. Ben-Zvi confirmed that Valens engages with all ecosystem players—OEMs, Tier 1s, and Tier 2s—and that OEMs are always involved in the final decision. Regarding tariffs, he stated that specifics could not be disclosed but that the company is adapting to market dynamics.

Wei Mok, on behalf of Rick Schafer, asked for more detail on the company emerging from the bottom of the cycle and for commentary on the automotive competitive landscape following a competitor's M&A.

Answer

CEO Gideon Ben-Zvi stated that confidence in a market recovery comes from direct customer feedback and new product opportunities like the VS6320 chipset, which opens new segments. Regarding automotive competition, he expressed strong confidence in the technical superiority of the MIPI A-PHY standard for high-bandwidth applications, asserting that Valens' solution wins by a "knockout" in head-to-head technical evaluations.

Wei Mok inquired about a recent Nanosecond Annealing (NSA) shipment, asking if the customer was part of the evaluation program, and sought clarity on the timeline for China's revenue normalization to the 20% level.

Answer

CEO William Miller clarified the NSA shipment was a direct sale to a new customer for 2-nanometer gate-all-around (GAA) production, not part of an evaluation. CFO John Kiernan stated that recent export regulations did not have a near-term impact and reiterated the forecast for China revenue to be 25-30% in H1 2025, with a decline in H2.