Velodyne Lidar, Inc. (VLDR) Q1 2022 Earnings Call Transcript
Summary
Third, by expanding our software to enable complete AI powered vision solutions, and fourth, by leading the industry and high volume manufacturing at the lowest cost and highest quality. Our gross margin improvement plan includes several initiatives, launching higher value system solutions and software to increase our pricing power, developing new sensor architectures to dramatically reduce bill of materials and assembly costs. The decrease in product revenue is attributable to supply chain constraints that Ted discussed previously, partially offset by ASP changes implemented to help recover portion of our increased costs. In the meantime, weve got this very challenging supply constrained environment, which is driving costs up across the industry and our price increases that were talking about today, which was essentially a doubling of ASP from Q4 to Q1 is being driven by those component shortages. We have robust processes for design, for manufacturability, test yield cost and so all of these are keeping the trains running on time, and that thats really what enabled us to achieve the exceptional execution in Q1, despite very strong supply headwinds.