Arbe Tier-1 Sensrad Announces Signing a Framework Agreement to Provide 4D Imaging Radars to Tianyi Transportation Technology

Rhea-AI Summary

Arbe Robotics (NASDAQ: ARBE) announced that its tier-1 partner, Sensrad, has signed a framework agreement with Tianyi Transportation Technology to provide 4D Imaging Radars powered by Arbe's chipset. The deal, valued at an estimated 7 million euros, follows a year-long evaluation process, with deliveries expected to begin in Q3 2024.

This marks Sensrad's first commercial contract, representing a significant milestone for the company. The 4D Imaging Radar utilizes Arbe's advanced chipset technology and Gapwaves' proprietary waveguide antenna technology. Sensrad has reported multiple customer engagements for this product in 2024, indicating growing market interest in Arbe's radar solutions.

Positive

• Framework agreement signed for 4D Imaging Radars powered by Arbe's chipset
• Estimated value of 7 million euros
• Deliveries expected to begin in Q3 2024
• Multiple customer engagements reported by Sensrad for the 4D Imaging Radar

Negative

• None.

Insights

Financial Analyst

This agreement marks a significant milestone for Arbe Robotics and its tier-1 supplier Sensrad. The 7 million euro deal with Tianyi Transportation Technology represents a tangible revenue stream for Arbe's technology. The expected delivery start in Q3 2024 provides a clear timeline for potential revenue recognition.

However, investors should note that this is Sensrad's first commercial contract, which may carry execution risks. The year-long evaluation process suggests thorough due diligence, potentially mitigating some risks. The China market entry could open up substantial opportunities, but also expose Arbe to geopolitical and regulatory risks.

While positive, the 7 million euro value is relatively modest in the context of the global automotive radar market. Investors should monitor for follow-on orders and expansion into other Chinese OEMs to gauge long-term potential.

Automotive Technology Expert

The adoption of Arbe's 4D Imaging Radar technology by a Chinese transportation company is a significant validation of its capabilities. 4D imaging radars represent a leap forward in autonomous vehicle perception, offering superior resolution and object detection compared to traditional radars.

Tianyi's decision after a year-long evaluation underscores the technological edge Arbe possesses. The combination of Arbe's chipset with Gapwaves' waveguide antenna technology in Sensrad's product creates a unique value proposition in the market.

However, the automotive industry's slow adoption cycles and stringent safety requirements mean that widespread implementation could take time. Investors should watch for additional OEM partnerships and integration into mass-produced vehicles as indicators of broader market acceptance.

Market Research Analyst

This deal signifies Arbe's entry into the lucrative Chinese automotive market, which is the world's largest. China's push for autonomous driving technologies presents a substantial growth opportunity for Arbe and Sensrad. However, competition in this space is intense, with both domestic and international players vying for market share.

The framework agreement structure suggests potential for volume scaling, but actual orders may vary based on Tianyi's needs and market conditions. Investors should monitor Sensrad's ability to secure additional customers in China and other markets, as diversification will be important for long-term success.

The multiple customer engagements reported by Sensrad in 2024 indicate growing interest in their 4D Imaging Radar. This could lead to a snowball effect, attracting more OEMs and potentially accelerating Arbe's market penetration.

Sensrad Values Its Agreement at an Estimated 7M Euros, with Deliveries Expected to Begin in the Third Quarter of 2024

TEL AVIV, Israel, Sept. 4, 2024 /PRNewswire/ --  Arbe Robotics Ltd. (NASDAQ: ARBE) (TASE: ARBE) a global leader in Perception Radar Solutions, announced today that its tier-1, Sensrad, has signed a framework agreement to provide 4D Imaging Radars powered by Arbe's chipset to China-based Tianyi Transportation Technology, according to an announcement from Sensrad. Sensrad values the agreement at an estimated 7M Euros, with deliveries expected to begin in the third quarter of 2024.

The agreement follows an extensive, year-long evaluation and implementation process of Sensrad's 4D Imaging Radar, which utilizes Arbe's advanced chipset technology. "After 12 intense months of development, we are pleased to enter into this volume contract, and as it is our first commercial contract, it is a major milestone for Sensrad," says Marcus Hasselblad, CEO of Sensrad. "I am proud of what the team at Sensrad has achieved in such short time. I also want to thank Tianyi for their trust in us and in our product, and we look forward to a long lasting, fruitful and growing cooperation."

In 2024, Sensrad has reported multiple customer engagements for its 4D Imaging Radar, which is based on the Arbe chipset and Gapwaves' proprietary waveguide antenna technology.

"Congratulations to Sensrad on this significant achievement," said Kobi Marenko, CEO of Arbe. "This agreement is a clear demonstration of the market's recognition of the superior performance and reliability of Arbe's 4D imaging radar technology. The growing opportunities in China reinforce our vision to transform perception capabilities globally. We are excited to support Sensrad in delivering unparalleled radar solutions to Tianyi and driving innovation forward in key markets."

About Arbe

Arbe (Nasdaq: ARBE), a global leader in Perception Radar solutions, is spearheading a radar revolution, enabling truly safe driver-assist systems today while paving the way to full autonomous-driving. Arbe's radar technology is 100 times more detailed than any other radar on the market and is a critical sensor for L2+ and higher autonomy. The company is empowering automakers, Tier 1 suppliers, autonomous ground vehicles, commercial and industrial vehicles, and a wide array of safety applications with advanced sensing and paradigm changing perception. Arbe, a leader in the fast-growing automotive radar market, is based in Tel Aviv, Israel, and has offices in China, Germany, and the United States.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. contains "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act of 1995. The words "expect," "believe," "estimate," "intend," "plan," "anticipate," "may," "should," "strategy," "future," "will," "project," "potential" and similar expressions indicate forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These risks and uncertainties include, but not limited to the Company's being able to meet Sensrad's quality and timing requirements and Tianyi being able to introduce and market products that use the Company's chipset, the Company meeting the conditions to the release of the net proceeds of its recently announced debenture offering from escrow and meeting the covenants, the effect on the Israeli economy generally and on the Company's business resulting from the terrorism and the hostilities in Israel and with its neighboring countries including the effects of the continuing war with Hamas and any further intensification of hostilities with others, including Iran and Hezbollah, and the effect of the call-up of a significant portion of its working population, including the Company's employees; the effect of any potential boycott both of Israeli products and business and of stocks in Israeli companies; the effect of any downgrading of the Israeli economy and the effect of changes in the exchange rate between the US dollar and the Israeli shekel; and the risk and uncertainties described in "Cautionary Note Regarding Forward-Looking Statements," "Item 3. Key Information – D. Risk Factors" and "Item 5. Operating and Financial Review and Prospects" and in the Company's Annual Report on Form 20-F for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission (the "SEC") on March 28, 2024, as well as other documents filed by the Company with the SEC. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements relate only to the date they were made, and the Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made except as required by law or applicable regulation.

Information contained on, or that can be accessed through, the Company's website or any other website or any social media is expressly not incorporated by reference into and is not a part of this press release.

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FAQ

What is the value of the framework agreement between Sensrad and Tianyi Transportation Technology?

The framework agreement between Sensrad and Tianyi Transportation Technology is valued at an estimated 7 million euros.

When are deliveries expected to begin for the 4D Imaging Radars to Tianyi Transportation Technology?

Deliveries of the 4D Imaging Radars to Tianyi Transportation Technology are expected to begin in the third quarter of 2024.

What technology does Sensrad's 4D Imaging Radar use?

Sensrad's 4D Imaging Radar utilizes Arbe's advanced chipset technology and Gapwaves' proprietary waveguide antenna technology.

How long was the evaluation process for Sensrad's 4D Imaging Radar?

The evaluation and implementation process for Sensrad's 4D Imaging Radar was extensive and lasted for one year.