TEL AVIV - Innoviz Technologies Ltd. (NASDAQ:INVZ), a provider of LiDAR sensors and perception software, has been notified by Nasdaq that it no longer meets the minimum bid price requirement, the company disclosed on Friday. The Nasdaq Listing Qualifications Department's notice, dated July 30, 2024, states that Innoviz's shares have closed below $1.00 for 30 consecutive days, violating Listing Rule 5450(a)(1).
The current status of Innoviz's shares on the Nasdaq Capital Market, trading under the ticker "INVZ," remains unaffected by this notification. Nasdaq has granted the company a 180-day grace period, ending on January 27, 2025, to regain compliance with the minimum bid price rule. Compliance can be achieved if the shares maintain a closing bid price of $1.00 or more for at least ten consecutive trading days within this period.
Innoviz may be eligible for an additional 180-day grace period to meet the requirement if it complies with other listing standards, subject to Nasdaq's discretion. The company plans to monitor its share price closely during the grace period and explore options to regain compliance.
Innoviz operates globally, supplying LiDAR technology to the automotive industry, and asserts its commitment to advancing safe autonomous driving. The company's technology is designed to surpass human vision capabilities and adhere to stringent industry standards for performance and safety.
In other recent news, Innoviz Technologies reported solid Q1 2024 earnings with revenues reaching $7.1 million, surpassing the projected range of $5 million to $6 million. The company also managed to decrease its cash burn compared to Q1 2023, ending the quarter with a robust cash position of approximately $128 million. Innoviz has made significant progress in its strategic realignment and collaboration with industry giants like Volkswagen (ETR:VOWG_p), Mobileye, and NVIDIA (NASDAQ:NVDA). However, Goldman Sachs (NYSE:GS) has downgraded Innoviz's stock from Buy to Neutral and lowered the price target to $1.00 from the previous $2.25.
This adjustment reflects Goldman Sachs' anticipation of a challenging environment for the lidar industry, which is expected to impact Innoviz's revenue and earnings per share (EPS) growth. The slower-than-anticipated adoption of higher levels of vehicle autonomy that incorporate lidar sensors and ongoing price declines for lidar sensors are cited as reasons for this outlook. Despite these challenges, Innoviz anticipates Q2 2024 revenues to be in the range of $4 million to $5 million, with the full-year revenue expected to be more robust in the latter half. The company has also set targets to secure two to three additional programs and $20 million to $17 million in new non-recurring engineering (NRE) bookings for 2024. These are recent developments in Innoviz's business operations.
InvestingPro Insights
Innoviz Technologies (NASDAQ:INVZ) is navigating a challenging period as it works to regain compliance with Nasdaq's minimum bid price requirement. An in-depth analysis using InvestingPro data provides a clearer picture of the company's financial health and market performance.
InvestingPro data shows that Innoviz holds a market capitalization of $116.42 million as of Q1 2024, reflecting the scale of the company within the tech sector. Despite a significant revenue growth of 411.65% over the last twelve months, the company's gross profit margin stands at -33.35%, indicating that it is currently not generating profit on its sales. Additionally, the stock price has experienced a steep decline, currently trading near its 52-week low and having fallen by over 80% over the last year.
On a positive note, analysts have revised their earnings estimates upwards for the upcoming period, suggesting a potential improvement in Innoviz's financial outlook. However, it's important to note that the company is quickly burning through cash and analysts do not anticipate it will be profitable this year. Investors should keep an eye on these dynamics as they may influence the company's ability to meet Nasdaq's listing requirements and its overall financial stability.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that can provide further insights into Innoviz's financial and operational performance. For instance, Innoviz holds more cash than debt on its balance sheet, which is a positive indicator of the company's liquidity and financial resilience. Additionally, the company's liquid assets exceed its short-term obligations, offering some cushion against financial pressures.
Investors and stakeholders may explore these metrics and more on the InvestingPro platform, which includes a total of 16 InvestingPro Tips for Innoviz Technologies, offering a comprehensive analysis of the company's financial health and market position.
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