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After going public 10 months ago via a SPAC with China’s CITIC Capital, at an implied $1.4 billion equity value, LiDAR maker Quanergy has filed for Chapter 11 bankruptcy. Quanergy is now looking for a buyer under section 363 of the Bankruptcy Code.
Quanergy said it expects to continue operations during the Chapter 11 process and seeks to complete an expedited sale process with Bankruptcy Court approval. To help fund and protect its operations, Quanergy intends to use available cash on hand along with normal operating cash flows to fund post-petition operations and costs in the ordinary course.
Quanergy also said CEO Kevin Kennedy will retire effective December 31, 2022.
“It has been my honor to serve as CEO at Quanergy for the past 2.5 years,” said Kevin Kennedy, Chief Executive Officer of Quanergy. “During this time, the company shifted our technology focus towards security and industrial applications which enabled the company to grow revenue by serving customer needs in a new marketplace.”
The company will transition its executive leadership to a newly appointed chief restructuring officer and president, Lawrence Perkins.
“Quanergy has made considerable efforts to address ongoing financial challenges stemming from volatile capital market conditions,” said Perkins. “Despite these challenges, the Company has seen improving demand in the security, smart spaces, and industrial markets, and improvements in supply chain conditions. We are confident that Quanergy’s efforts have positioned the company for a value-maximizing transaction during the Chapter 11 sale process. During the process, we will continue to prioritize the needs of our customers and I am thankful to the entire Quanergy team for their continued efforts and contributions to the business.”
For Q3 2022, which ended on September 30, Quanergy reported revenue of $2.3 million, which is said at the time was near the top end of its guidance range and up 104% year-over-year. It reported a third-quarter GAAP net loss of $17.7 million, compared to $19 million in the third quarter of 2021, and a third-quarter adjusted EBITDA loss of $12.3 million compared to $6.1 million in the third quarter of 2021.
Revenue for its 2021 fiscal year was $3.9 million, which was up 30% year-over-year from $3 million in 2020. Quanergy said 1,065 LiDAR sensors shipped in the full year.
Tough times for LiDAR makers?
Quanergy isn’t the only LiDAR developer to be struggling financially. Last month, German LiDAR developer Ibeo Automotive Systems GmbH filed for insolvency because it could not secure further growth financing. MicroVision, a developer of MEMS-based solid-state automotive LiDAR and advanced driver-assistance systems (ADAS) solutions, swooped in to acquire certain assets of Ibeo for $15.8 million.
AEye reported revenue of $768,000 in its fiscal third quarter of 2022 with a GAAP loss of $23.6 million. Non-GAAP losses totaled $17 million in the quarter. AEye ended Q3 with $112.2 million in cash, cash equivalents and marketable securities.
Ouster and Velodyne, two prominent LiDAR companies, recently announced they’re merging in an all-stock transaction. The agreement was signed on November 4, 2022, and is expected to be completed in the first half of 2023.
Last year, Kyle Vogt, co-founder and CEO of autonomous driving company Cruise, said the LiDAR industry would consolidate. The issue, according to Vogt, is the projected revenue comes from “entirely overlapping potential customers, with very little discount applied to future projections.”