Cepton, Inc. (NASDAQ:CPTN) Q4 2022 Earnings Call Transcript

Richard Shannon: Right. I figured they’d be staged throughout the year so. Okay. That’s helpful in understanding this dynamic here. Let’s see here. I think in the last earnings call, you had talked about a couple of RFIs that you’re hoping to go to RFQ. I didn’t hear you talk about language to that effect here. I think, Mitch, you just used some different language to maybe describe those situations. Then you also mentioned some relationship in the advanced engagement stage that appear to be without competition. So, I guess, on the first two RFIs, if those officially moved RFQs or not, and then any statements you can make on that advanced engagement that didn’t have any competition at that’d be great.

Mitch Hourtienne: Sure, sure. Yes, there has been some progress on both of those. So on the first point on RFIs, yes, we’ve advanced the RFQ phase with another major OEM recently. So, we are very much in the RFQ phase with them. The second point, this has evolved into the point that I made about advanced discussions about additional vehicle models and extended duration that that’s where we’re at with our lead OEM, General Motors.

Richard Shannon: Okay. And I know you mentioned — someone mentioned on the last earnings call about that, so there hasn’t been — there’s been discussions, but you haven’t extended beyond, I think you mentioned the past model year ’27? So it’s still in model year ’27?

Mitch Hourtienne: Yes. That’s right.

Richard Shannon: Okay. That is helpful. Maybe one or two other ones here. I guess just a question on the OpEx guide here, kind of keeping it in the similar range as last year. I guess in the context of thinking about where you are able to compete well, I know you have done pretty well in Asia at least with your Tier 1s there. But you also mentioned, Mitch, I think some engagements in your competitive in Korea and Europe as well, and announced I think a few months ago opening up your office in Munich. But with your OpEx here staying flat, how do you kind of manage being competitive across the world, especially with at least one of your lidar peers here in the public market spending at rates well above what you are? How are you able to do that with kind of keeping your OpEx flat this year?

Hull Xu: Yes. So I think one of the operative word is focused. So, we are very much focused on the Top 10 global OEMs, while maybe others could — say, they’ve got wins with other OEMs, but we are really just top 10. So, I think you know North America is our key geography. And Japan, because of relationship with Koito, we are very much plugged in there. Europe, we’ve had an office for a little while now, and we’ve actually gone quite a bit more activity in Europe in recent months. I think that’s owing to the success we’ve had with GM, maybe Mitch can talk about some of the European OEM tractions.

Mitch Hourtienne: Yes. I think, Richard, we can do a lot more with a lot less than the competition because of our relationship with Koito and General Motors. So, Koito is doing a lot more on the front end business development, especially in Japan and the Asia region. So, we can rely on them. And now, with General Motors divulging a lot more details about this system, especially where lidar is, other OEMs are viewing these public announcements and understand more about Cepton solution. So, you are right, we are doing more with less, but that’s because we have two big companies we are working on this with.

Richard Shannon: Okay. I think that’s all the questions for me. I’ll jump offline, guys. Thank you very much.

Operator: The next question comes from Growth Capital. Please go ahead.

Unidentified Analyst: Just a couple of questions for me. I just wanted to ask when you expect to see the first batch of GM’s cars using Cepton’s lidar at actual dealerships.