AudioEye Targets Defense, Automotive Growth With Software-Defined LiDAR

Key Points

• AEye is expanding its software-defined LiDAR across automotive, defense, security and other physical-AI applications, allowing customers to customize range, resolution, frame rate and field of view primarily through software changes.
• The company says its flexible North American manufacturing model can scale to 60,000 units annually while limiting upfront capital needs. Automotive LiDAR pricing is expected to fall below $1,000 per unit at volume, whereas defense and aerospace applications can command thousands of dollars and margins above 60%.
• Defense was AEye’s largest revenue source in the first half of the year, with demand spanning drones, unmanned vehicles and counter-drone systems; the company also sees opportunities in data centers, border security and perimeter monitoring.

AEye executives outlined the company’s strategy to expand its software-defined LiDAR technology across automotive, defense, security and other “physical AI” applications, emphasizing long-range sensing, manufacturing flexibility and a capital-light business model during a J.P. Morgan conference presentation.

Matt Fisch, chairman and chief executive officer of Audioeye NASDAQ: AEYE, said LiDAR remains an important component of autonomous-driving sensor stacks alongside radar and cameras. He said LiDAR can provide long-range sensing with greater resolution than radar and can operate in conditions including direct sunlight and rain.

Fisch said the market’s view of automotive LiDAR has shifted away from a “monolithic” approach, in which one sensor performs multiple tasks across a vehicle. Instead, automakers are increasingly considering specialized sensor configurations for different vehicle functions, he said.

Flexible sensor architecture

AEye’s approach centers on what Fisch described as software-defined LiDAR, allowing customers to allocate a sensor’s “photon budget” differently depending on an application. For example, the company can prioritize long-distance sensing, higher frame rates, resolution or wider fields of view without requiring a wholesale hardware redesign, according to Fisch.

“Range brings them in the door,” Fisch said of prospective customers. “The ability to customize the sensor to their use case is what’s sealing the deal.”

He said the company’s long-range Apollo sensor previously offered one kilometer of range, while its newer Stratos sensor has a range of 1.5 kilometers and fits in the palm of a hand. AEye can alter certain optics and remove logic for applications that require narrower viewing angles and longer-range sensing, Fisch said, adding that more than 90% of the work between Apollo and Stratos is shared, primarily through software.

Potential automotive applications vary by vehicle type, executives said. Robotaxis may require detailed sensing around the vehicle while also needing longer-distance visibility for highway driving. Trucks may prioritize a narrower field of view and extended range due to long braking distances. Passenger vehicles may use a long-range sensor behind the windshield, which Fisch said can provide packaging advantages compared with roof-mounted systems.

Fisch also highlighted the sensor’s durability, saying AEye’s MEMS-based architecture uses a moving part about one millimeter in size. He said the company recently tested the technology for a customer requiring 1,000g shock resilience.

Manufacturing and automotive economics

Fisch said supply-chain resilience has become a “table stakes” requirement among purchasing departments at automakers and other transportation customers. AEye manufactures in North America through a global and flexible supply-chain footprint, he said.

The company’s current production line, announced late last year, is prepared to ramp to 60,000 units annually, according to Fisch. He said AEye’s modular assembly and supply-chain model allows it to scale manufacturing up or down while limiting the need for significant upfront investment in production lines.

AEye also pointed to its relationship with NVIDIA as a way to reduce software integration costs for customers. Fisch said NVIDIA’s hardware is deployed or stated to be used by more than 35 original equipment manufacturers, making compatibility with its platform valuable when approaching automotive customers.

Conor Tierney, AEye’s chief financial officer, said automotive LiDAR pricing at volume is expected to be below $1,000 per unit. He said initial samples can command higher prices, while non-automotive applications can involve prices in the tens of thousands of dollars when hardware, software and services are included.

• Automotive applications generally face more compressed margins, Tierney said.
• High-performance aerospace and defense applications can support margins above 60%, according to Tierney.
• AEye expects licensing relationships with Tier 1 suppliers to become more relevant for higher-volume automotive programs over the longer term.

Defense and security opportunities

Fisch said defense represented the largest portion of AEye’s revenue during the first half of the year, driven by demand related to unmanned ground vehicles, drones, manned vehicles and counter-unmanned aircraft systems.

He said long-range LiDAR can help larger drones identify hazards such as power lines during low-altitude missions. According to Fisch, the technology can detect power lines about three centimeters thick from hundreds of meters away. He also described counter-drone applications in which LiDAR can complement radar by providing finer resolution and helping distinguish drones from other objects.

For larger combat or surveillance drones, Fisch said the Stratos sensor weighs about one kilogram and consumes roughly 15 to 18 watts of power. He said defense-oriented sensors can sell for thousands of dollars, and in some cases above $10,000, compared with automotive price expectations generally ranging from $500 to $1,000.

The company also cited security applications, including data centers, border security and perimeter monitoring. Fisch said AEye works with partner Flasheye on perception applications that can distinguish humans, animals and other sources of potential false alarms. Tierney added that LiDAR can offer advantages in areas such as chain-link-fence monitoring, where radar may experience interference.

Fisch said AEye has 25 revenue-generating customers, a strong cash position and what he described as a clean balance sheet. Tierney said the company intends to maintain its capital-light operating model, although management would evaluate investment needs if a major growth opportunity emerged.

About Audioeye (NASDAQ:AEYE)

AudioEye, Inc is a provider of digital accessibility solutions, offering software and services designed to help organizations ensure their online properties comply with Web Content Accessibility Guidelines (WCAG), the Americans with Disabilities Act (ADA) and other global accessibility standards. Through its cloud-based platform, the company automates the detection and remediation of accessibility barriers in websites, mobile applications and multimedia content.

The company's flagship AEYE Platform leverages machine learning, artificial intelligence and human validation to continuously scan digital assets, identify potential compliance issues and deploy corrective overlays or code adjustments.

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