Ambarella (AMBA) 1 Dec 212022 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Ambarella’s Third Quarter Fiscal Year 2022 Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised today’s conference is being recorded. [Operator Instructions] It’s now my pleasure to hand today’s conference over to Louis Gerhardy, Corporate Development. sir. ahead, go Please

or me and Good fiscal Wang, thank conference fiscal year your of for XXXX. months XXXX. financial statements projected today’s incorrect, of or results of to uncertainties assumptions prove and responses other the The are discussion John Holly. is today demand our call for forward-looking for actual regarding third today from our the our to our provide statements the materialize is Finance. results, President three solutions, our With and Should XX, regarding Young, subject primary October to quarter The quarter questions the XXXX ending to the These Dr. afternoon risks, you, risks prospects, CEO; and financial call and Fermi should things. you forward-looking be uncertainties and will information third joining could growth statements. assumptions. among purpose these differ for on call Thank results market financial VP materially these you results with any of contain our

the I XX, We are today’s results, These of our well XXXX. Fermi September uncertainties will and XX-K for risk Access documents will March third a and XXXX that XX, XXXX, the first release, XXXX results fiscal year it XX-Qs financials website. replay call the questions. statements. the your remarks other then June be and a our update on with under ending and With on filed transcript begin second to a can with the to including the available review the I’ll respectively, Annual be January of Form quarters, as of results, the on and potential Report affect and assumptions, portion Investor factors SEC, press fully Wang. update, obligation information for on fiscal Dr. Fermi, filed Xth John XXXX our filings, and Xth could found our quarter form described in on these as will of that and financial John Relations for risks, more no are fiscal we call Fermi SEC XXXX turn of prepared business over to year historical file

you, Thank afternoon, good Louis, and everyone.

our fiscal proceeding year want XXXX a be I filed note with Eichler, taking would reasons. we to for Xth QX leave-of-absence that our on CFO, call, Before an X-K November Casey stating health

SoCs importantly hand your Despite average rise, leap versus of capture a another and a to Oculii advanced Accounting have kind provider key On margins revenue. but prayers, factor of also to richer fab report guidance, into our strategy business, algorithms and SoCs, pleased in the comprehensive transformation Finance, our revenue XX% shared more Oculii most XX% him his named our with took up for become perception selling QX, only learning of when Young, we not incremental recovery challenge. continues gating VP Officer processing long-term systems. we price Officer absence. contributing company Financial customers. this we and companies forward mix announced of strong more strategic been October recovery. Casey’s in and a to positive during and XXth to Casey strong the Principal remain Meanwhile, We a XX% leverage our have On and thoughts with more of range CV many deep AIoT John which has of slightly Driven and are Principal ago. with processing reaching with Supply family, to representing revenue received a we dynamics interim wish components radar supply to we financial us X% a above year to achieve track the of enables revenue feeds record in outlook. year momentum our provide from than of non-GAAP AIoT to was imaging however our a wafer market acquisition I’m significant to expected has other a on constraints, one a Samsung’s Texas, shortages CV year-over-year. these our operating high-end operating by started see results an of speedy

in quadrupled customers ago. and versus QX year number production grew a of the During unique CV sequentially

automotive X basis, As of shipped have cumulative million including into more the market. today, on X million than we a SoCs more than CV

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will Capital of more some in Xth details provide January at We with I our markets. Day. will you progress target Markets now provide on our examples

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market, before Also radar security SoCs. methods emerging, cameras the to company and AI including plate In analytics, vision to continue on based cam. tier introduced unlocking the major automotive and and Korean giant processors the HiSilicon and SoCs. and The camera automotive Johnson Also, quarter, latest design In structured video security door facial vehicle impact, premium Additionally, The both its RGB From highlights and Ambarella’s XX forward applications support intelligent in the in indoor of camera with these applications. and Nextbase Ambarella’s edge-based ADAS announced for introduced centralized introduced pre-record The in forward technologies, market cameras facial its market is market and Ambarella’s its customer its leader a cloud for strong mass the Gen XK This helps class to and SXL and Thinkware is its resolutions leveraging we lane extra XXX-degree industrial Uber of Pro Camera camera hybrid to sensor of detection engagements, European leader CVXXAX CVflow light Hanwha by features. IoT Ambarella’s QXDXXXX dash leader traction lane technology a we investments riders. IP opportunity dash angle and software HD Rivian, ADAS events of warning and a QXDXXXX you and level automotive object Ambarella’s mode can up CVXX to our models for SoC. offer new generation leader to narrowed XK can And incorporating bullet, smart X SoCs. camera a major recognition perception R&D Uber alert be also AI security that RXT forward includes models second see start introduced as on mini-dome, classification, a automotive dual outdoor and locks market, includes designs In camera security ranging enables also ASIL drivers and warning, CVXX while classes first features AXX departure wide SoC person, giant and based Dome including Also HXX CVXX for provide traced warning. radar smart designs market learning and like AI electronics that with recognition truck QXDXXXX camera spanning from on AI-based our Chinese enjoy Ambarella’s technology Techwin collision Canon, manufacturing professional giant, dome, cameras with CVflow automotive the on dash all lens cameras will home an to industrial Ambarella powered be based system even Xiaomi locks based a a CDXX different and built-in gear share nanometer AI functional analytics in our an edge. such back features entered SoCs, in challenging night revenue IDIS recognition with PTZ process based using SoCs offer nodes, new field View fuse the forward. AXX other uses SoCs. with applications. growth enterprise uses megapixels light is and a and camera Korea, door In Korea, the Controls, to production M scale The based worldwide Verkada, fusion use replacing and smart EVs its on great the U.S., CVXXAQ X enterprise to next the surround like end providing AI Rivian view through program The four on X system market car, processing image infra-red B into during Ambarella’s including video guard while increasing models CVXX simplifying conditions, for fingerprint Xiaomi. of camera Cabin new door outside recognition, series moving market unit with In CVflow at security multiple our for China. management for announced with its collision communication. The on introduced based and Johnson first its use optimized camera quality Ambarella’s growth deep and based camera of of like in system. Ambarella’s Shanqi market the breadth SoC. CPRO locks AI represent and maker D Europe, angle specifically X Chinese motorcycle. on pilot continue line expansion of security November, based Baolong. computing ADAS point leader applications introduced safety LX+ into hands advantage an video XXXGW on make, Axis, is vision and SoCs. designs, have, automotive Illustra take near multi-functional, after-market the CVX while the new and bus panoramic based SoC by supplied SoC market license Controls, vision design with approach These on AI camera or With free access, to

the XX% beyond a basis, In maintenance into you far at on GAAP a companies. most three last invested fact, in level years a of R&D Ambarella see levels revenue

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our expect development under very roof. investment economical radar one Ambarella to at we camera levels combined radar of breakthrough companies semiconductor perception R&D technology enable to of is First, camera and advanced the price-points, have now and as one few

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we and Oculii All continues. acquisition on drive more during front CV selling for strategic the the of improved both QX, summary, Ambarella ramp progress of stakeholders. and this portfolio higher market In our its expected to is prices value, with share, and demonstrated

look digital our Our AI servers, financial of executed edge your partners, AIoT comments. phase market. to for providing now in provide we at endpoint the SoC to is employees, deep shareholders, an thank where stakeholders, continued on suppliers, early capitalize learning prepared designed a in but support. new that, want how and just John results transformation, the phase financial platform entirely are all an not I our needs for the With And our unique of will customers intend

ask review a release be October and detailed Fermi, will provide financial fourth discussing press you, I for good for of fiscal XXXX XXst ending everyone. afternoon, quarter outlook XXXX today’s that financials for of results quarter XX, to non-GAAP to results. a and of will the Thank our and year ending the fiscal non-GAAP GAAP January I you year reconciliation refer XXXX. third

we taxes. impact For stock-based eliminated expense the and reporting, related costs for compensation non-GAAP have of adjusted acquisition

sequentially, combined, ago and million $XX.X the above increase representing environment XX% other high-end above QX QX previously guidance from for our XX% anticipated a than preceding range, managing our previous from in from $XX.X Austin, sequential quarter. quarter a sequential IoT products above slightly expense recovery range. supply Non-GAAP XX.X% operating the was costs. to revenue increase XX% revenue, Our of more Samsung’s and for year are mix seasonal growth. of the chain and the our The revenue supply slightly in guidance The was camera the and margin pricing of Texas, increased helped compared quarter quarter. fab and of favorable, Automotive slightly remained gross million experienced was quarter. growth high-end XX.X%, we stable, the our $XX.X third the is Non-GAAP the for million, wafer for higher

share the of sales the prior the Our million QX flow from QX $XXX.X of income the the the marketable or our gains algorithms. quarter. the XXXX. quarter. a were on from the revenue. investments QX digit turn end professional a with $XX per share cash of to at non-GAAP engineers, Taiwanese customers in $XXX.X revenue and of compared of inventory quarter. quarter previous expected before was they finance non-recurring Other multiple to million in our The of versus outstanding end net the up transaction of market million, operating Hikvision, quarter. second to the on are days security non-GAAP the for a than year between compared portion quarter. $XX.X the expense low-end $XX.X point, headcount fiscal per was completed XX% in about $X.X expenses. realization primarily from in of share QX. $XX.X in million, the XX prior at sales and XX primarily QX the operations at ODM million and WT plus sequentially XXX at days of due days of camera Taiwan Dahua positive Days noticeable. at of receivable million the in XX% and about of the We Oculii. are as declined XX of $XX.X who the quarter. end software partner accounts quarter multiple XX%. Cash at of $XX.X or was and our XX% inventory higher combined, some to to to timing X% shifts market, our about were represented million quarter weeks acquisition the mid guidance end incorporates for XX below end from Chicony, second single Total due Total the were ships Oculii’s guidance Net Of or positive quarter, and In two was for of increased total of million results fourth Xth, third $XXX,XXX fulfillment of was We becoming November to was who from third our income days ago, Oculii XXX R&D fourth that operating In of customers sold the $XX.X the year customers, dedicated in diluted a diluted customers now versus engineering. end Asia, our the I’ll of of income XX% a net $X.XX million guidance revenue XXX, was at employees with million outstanding, QX securities acquisition QX. $X.XX or to these of Oculii in of a closed, developing represented had up or the Microelectronics, manufacturers

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our the Dahua As $XX.X is to to combined, estimate percent a judgment from be In revenue expected the current to at of Revenue XX% between quarter guidance be market we sequentially. the best may gross the revenue these orders Based continue total non-auto with revenue. margin to some non-GAAP to from date. Hikvision, in QX, expected the and factors on XX%. to of later be increase million. our rescheduled of XX, XXXX result, automotive contemplates at January our and we fourth expect decline time, IoT total range ship a for ending million the to our camera to to decline low-single-digit expect We $XX.X business sequentially, QX and

of the enable We rate to the count stable operations. gross tax relatively be Ambarella non-GAAP for are manage modeled tomorrow, be to inclusion customer on environment, but of and costs expense, of be Capital’s XX.X X% in mix, Technology estimate QX to TMT operating XXth The QX Needham’s to long-term $XX X% December participating in due hiring, Conference week with together Non-GAAP expense shares. be our high-end Summit Investors are Wells model and in higher should experiencing to projected Oculii’s to the SoC approximately the increased January. XX%. likely share chain, above $XX product Xst, Conference last to continue We range. a will some XXth, January supply margin million between QX Conference to is Imperial remain on December XX% development Security Baird’s the to a and healthy in of Vehicle, diluted our Mobility our and pricing Fargo’s and Growth temporarily higher million,

call Our to January hosted will for Tuesday, and our analyst over to CES on Please January will offering like participate. if to Xth. would location Xpm Day our us Capital contact the Markets sell-side you Vegas, held Las questions. and will Xth on operator we at now of Xth, Xth Xpm tours hotel be the from in turn be demos I

Instructions] from Securities. Wells line Gary the question come first Thank you. Fargo our to And of is Mobley going with [Operator

early asking me here accommodating extraneous Casey now in do queue, to not takes favor? backlog supply extraneous extent chain sequential you’re and here. factors guidance Hey, all December your off how your with work extent are quarter seasonality the gains you the to of the And fitting in issues see in by for the on the if into that many me your factoring a embedded the based And can as have, it, backlog that in recovery. for about puts factors your seemingly improvements guys. play want and I assuming and given speedy quarter-over-quarter or what in wishing start you support, what to that constraining guide, just QX chain Thanks dealing supply revenue

is This Fermi. Right.

the think, I seasonality from past. still is is reduced but hardware there, the

you reduced at reflecting average changing our look of reduce just guidance If is -- to of mix the the the number us that magnitude years, by last we is product helping seasonality. definitely and QX smaller historical in XX%, than but the on QX that, five the the our much to

is that which there chain revenue, impact impact factor up customers, It’s However, supply the believe to degree, our is the to hard become an of we really us we but start the the for other size to gating other components our do our seeing for forecast. problems. issue bigger revenue

However, XX% all when XX% been those this revenue provide guidance. factors to the considered have we

you’re Okay. I not fourth XX% ‘XX. per but hopefully, with you question, your in revenue revenue appreciate flat-footed fiscal year growth guide, I’m catching this that. And roughly XX%, expecting quarter

that unit growth year be can Given tailwind year? more you ‘XX than going give for ASP of the mix of the versus I the the CV is XX% revenue, fiscal sense us which to believe increasing fiscal a of revenue,

Right.

ASP number in of We the a So, continue a growth. total coming trend -- And that And since ASP. majority the million past, units, is that the and double I from we ASP talk user grows. about said continue in is strong as the the to really near future. see also we We think to our beginning. CV units CV X see our growth cumulatively

we I this at growth, million I think both a the [Ph] think see much significant that’s number. So, ASP I X sides including silicon. factor but also And bigger think automotive point. a is that there, in

And Matt our from the to line come with next Cowen. question going Ramsay is of

Matt. strong you dig if half could potential on quarter. my This I of within you taking realize there that hoping time congrats funnel large and on is Buchalter was the particularly question. for Thanks of diversity into And mentioned revenue that any Oculii Joshua early, I line wins is it’s Are contributing? tripled. embedded related or radar processing funnel? but And any there

methodology it the more Josh, lot We’ll the from Yes. there high-level the And in elements Louis. key six-year ago. looking same a on to But yet. continues a uses funnel in radar our increased a would one funnel. funnel It to add employed There year billion, Markets million at the this no the Hi that which a Capital Day January just is you year is that give into go at into a is a of we up be vast in increase Markets component, the SoCs. gives Xth. computer be to this color. $X.X two Capital year parameters, detail majority some $XXX be we’ll it to to that details funnel. about CV about thing vast funnel again, that the the particular, And in go Day. $XXX vision majority is $X.X billion. and now million of and is current And vast, this the can pipeline enough current that Hopefully, funnel the at ago we description from of this a of other the more you would portion add ago, SoCs And characterizing

compete and this centralized that looking of like to you the sensor I doing on also seems got up. the Capital some Rivian provide appreciate more about you hoping you’re Markets [Technical of the announced I fusion growing win. basis forward? was It Difficulty] Day some a than could that details is type coming that processing for more win wins, other is your going and you’re

Yes. there, Rivian type silicons in in X X have about talked of silicons we side, we Thank you. Absolutely, there.

there video of the we is The And CVXAQ multiple the Rivian first car. function is doing CVXAQ RXT have in CVXAQ, the perception. type

we’re RXT for the future. shoot majority So, see want the perception that’s definitely definitely that in car. the of we you the key in can the to that providing And component

camera silicon really interface. that provides the second are BX view SerDes some a the as CVXXAQ, we provided functions MIPI R&D. the is those the And type third which security surround as is for has. chip of And three well that type RXT things through The is serial/deserial

to the Tore of Stifel. Our next from with going come line question is Svanberg

Yes. Congratulations results. on solid the

First question you, for Fermi.

perception talked As value you an this opportunity the you said term, about with itself. being timing radar But the about products of a it companies creating two relates is you more When from little to in elaborate Could see on SoCs market bit combined that? Oculii, obviously, more longer the obviously, more integration. much could marketplace? we potentially the

Right.

the software integrate our So, -- product comes to silicon for planning Oculii into steps. two

CVX that’s The is application all well next used that to first for integrated X we that Level a we we And a year. and to chip, product to And the next-generation start we We And application. believe a to knew into that ADAS non-automotive integrate that’s on for step of can idea is software we be as that target we’ll selling, how technology on. our RADAR family. are going I’d our product say, as later the product that silicon. do well the are to course, working have be working our it,

that silicon technology we’re have announce And our going every in so, future you to there. in will assume should the radar

exciting. very That’s

those you mention did the for talked you bit. about that? follow-up it I Chinese security of customers kind as Could more talked low some think a especially will changing two two market there, question, landscape I the camera forward. there’s you of the specific my sounds things you like customers, percentage elaborate it about be mean, little As going on but revenues when very

So, more if that bit you be about would could great. talk a that little

Right.

is, very think production what look we our the view, inventory. in I all reduced. Axis, at company Hikvision of almost also, there you latest our the And at hand. have momentum We the using if Johnson of from we’re announced a are think we talked fact, doing market And I CV But time. company mentioned quarter, about China customers noticed. because about chip. they mentioned be and and We things of point they some mentioned most of major Dahua talk slow outside continues We Dahua I CV the are a So, outside one huge days this to Controls inventory all use of spending Inside One think Korean already. China, Chinese to well. in is two has XXX amount them silicon. like government auto into think China, a

So, HiSilicon the I of inventory contributed -- Dahua. sitting I of those importantly, more haven’t two think think HiSilicon while, the a things Hikvision there’s been And think to really really performance a there’s continue lot of I has that But yet. we we still I seen a but chip it weak channel. that that see and end in although think

Company. Our going line next question & Needham is to come the from of Quinn with Bolton

that’s that hundreds a I and probably but sense I said you know you give speedy some it billion Congratulations dollars radar to bring the I you any I an hoping wanted Casey come could might of as of the results to could on that pipeline. include guys. look TAM that opportunity to think us back what for best be you just But, out recovery. radar. assume mean, you wishes of several nice Hey, $X.X to years? doesn’t to be opportunity able Company, millions to size might as the that.

is Yes. beginning today Oculii the And radar the million penetrate space the units. is call only in it, for imaging the automotive just And the technology, This market. to let’s Louis. is radar maybe XX market

module parts the that, license low-single-digit business. unit. units anticipate And on the it And and from market fee license could that And the the and other so, they on the realize be we’d $X,XXX, if hand, ranges let’s it volume. lower of the side, have then in a licensing their software say, $XXX of of ASPs the the you are end quite per on licensing have for two side. what But higher a $XX to to the business, basis, than high, of the that consider they expectations module licensing module our they of course, business depending up are much fee. type and application, And in market, on on can at

want be So, the of a rate XG what’s parameters be market. those the of already penetration into some to existing And to this you’d large question going consider. is technology that would what’s key the

perishable, And components your quarters. is affecting slips some the to shipments sort of be think causing any about talked of affected constraints I April captured likely supply demand July be devices out of January you the that into or next you quarter the would question of other push in or you of may that’s had quarters? would of future the Do shipments most or expect just potentially anything

Fermi. This Yes. is

I think, business is of the part perishable.

of including think I like consumer which we think holiday example, more camera don’t impacts really customer and But think any camera automotive. out soon. factors we security supply the For season there, are our reduced this all that mitigating automotive of anytime bigger products security the than at see Obviously, the automotive most hit see that sales, being all a point. next I And for perishable. And a the I those pushed I are designs short is year. think security, out

we guidance can when the watch progress. to more continue for So, CMD. we And talk year definitely hopefully, in give the we you next

Berenberg. next question will Buscaglia Andrew come with our And from

to bit supposed and know growth I influencing that some wanted in little on even more this some can is factors be specific the just as home momentum I -- into follow it a QX of of like quarter to that and strong. to potentially security that to into second QX about up talk guide market. I’d XXXX? about you relates more pretty wave hear

Yes.

revenue see think our do we particularly, QX a to believe significantly that camera, I continue QX for think up future. percentage of So, near be goes from next production CV security there the year, to customers few and the consumer in will will that we are in

people business So, use why the the on of significance really vision use vision revenue side, wave we but of to how that And computer computer the want people on will believe to side. instead the the second need continue. to edge trying -- server is justify a that

time in takes a play need continues customers think for we our trend optimize we’re to them role that that to and a problem I don’t and realize to But just that’s I the a think, major most product it market. that a deliver customer. of see that going to

know any auto, Got I having you’re in kind the your of to converting revenues this of this last suggest headlines bit. market touched some wins your on some there see expect the given the the recent question of next it. a more hearing, beginning specifically design may year, But see delays? for early just And customers issues. all comments in be influencing what to you on you you do

supply. I volume the because It’s is delay think be about not really short Well, of can delivered. how much

into product market number shipments be I our the of desire all situation. quickly hard it the the the as size of think as to think customers take to show it’s into But their up. that by possible. really supply will market I That’s limited why

a I So from delay. of product the much of production, point see delivery don’t view,

whether us, supply of the all the biggest think, our enough concern meet for they think is whole they get demand can including, to have. customer I I

Rosenblatt will question come from with Cassidy next Securities. Our Kevin

of update Fermi, have I to gave the CVX lot on results. a you progress. updates. if of lot wanted great the One us a know information, thing, you an good on Congratulations just

will hardware camera, I second half Thank on CVX customers, script. the I sampled CVX production of the talk And to all, automotive and CVX successfully well that of of And been be and many has question. we about as And didn’t year. has for as Yes. this you next consumer first happened. sample software some But the products. many, security in both time think, believe

that, nanometer two happening When expect Is that Okay, X can to and and something like we -- R&D great. with happen? you X now. X X along that years or years mentioned the three had And out, out?

sensor see projects of Well, can And matured. this out [indiscernible] sometime of very out on nanometers. And going nanometer -- X year point development, because depends now, we’re be are we confident I engineering sensor to during all we where test focusing auto we depends grade, off -- focus timing the can on. the Yes. next continue and fast at we definitely comfortable really But more chip test to how we think on X-nanometer a is X-nanometer that’s X-nanometer to fast plan the is kick are X-nanometer of our to to the on to the year. multiple how nanometer the IPs of see get going yield and we’re -- next meantime, to and but a and really product with X we going using

come will with Desilva question Roth next Our Capital. from Suji

everybody. Hi,

impacted, components. across it or about markets? Did were markets chain specify talked end you your you So, impacting broadly was the being customers’ which supply end shortages

the across It’s board.

different type one. all they but supply customer a different every to, customers impact, talk Microcontroller biggest is talking we are fact, some almost automotive a In about type little our of of the shortages. probably just got of

supply security -- problem. On camera, is even of big consumer most a Wi-Fi the consumer the camera, security

And think that cause it’s at so, levels. I different really

past, contribution be talked year, you I don’t recall Any then, about you there know where go helpful. ‘XX. the And you CV might in if in ‘XX color it next talked revenue thereafter? reaffirmed -- you’ve about I the think would that XX% or

next I think haven’t give the year to at we need you addressed yet, Yes, guidance more but definitely time. CMD we

forward I that follow-up Rivian. CMD, look on that. already to some you lastly, then And provided a Okay. of

revenues? the car just replaced are multiple I the curious the consistent radars. And going other also perhaps car chips, X be and chips of you’re I’m trying AI sold, cameras if has perhaps about despeced forward-looking in proportion kind you’ve the causing to or design radars. chips new the that is talked and by the proportion the and XX to The You how or backwards, see maybe cameras that’s -- forward. now and X got with you just XX what I’m understand wins, of going

right think I first X yes, the all, the all, the radar radar, of of positions radar. really first for ratio is the the for So, sounds corners X because front X and

start going XX forward. also, type But And a that’s of XX, moving radar seeing but for XX of a we’re unique using cameras for internal anywhere between to perception opportunity. customers some camera, them

point to are that ratio we with say, X view, probably can think is I handling So, CVXX of few combined see stay there. would quite -- you cameras our only I chips. But a that however, from

will unified control domain be chips. think type to Moving forward, of that I

in less all much do we less point. took you I saw handle three So, to three that this working see processing number generation. And years cameras believe is say, years to -- fact, first but go we radars. it’s much would with Rivian ago, of powerful the it forward, And more definitely and I and think moving will single of chip, digital to

with line next of Stanley. question Moore our from come the Morgan will Joe And

the radar I there passenger -- you with are wonder your in could Ambarella progress in both shift like see replacing -- and from the West camera talk brings would coming of vision if in get you about Do into also the LX that new it’s the that’s you that in cars, successes biggest forward-facing, China. or that U.S. things incumbent stereo kind anticipate or single you technology those or sockets? the in

solution we into and that. think now, replace a near-term combined well become suitable for current even biggest CVX can radar our because the ADAS CVX provide chip online chip our market facing is safety more a I the opportunity chip And customer. to safety of fusion is incumbent powerful for sensor full functional functional solution integrate

us. for for think is the opportunity really I this term, near the biggest So

I However and video type vehicle, a can of the integrating require for number be in single much on would can and high-volume see in doing think radar that you you integrated I a similar design terms consumer -- chips domain consumer Rivian that of to more can of controller. a solution used you think based vehicle. But

I probably little us. for think that’s a out further

just it the stereo Okay. And for I vision pretty I case could is mean, compelling. if like a seems ask follow-up.

type it you it you And You seems can number guys that of pick have been good density frame guys that of really talking at to and term? is the can years. just about do a customers up rate distance the your Is What for like into wins of What triangulation gets it just that it it price? is speed. development? time longer sort those of the for you Is barrier? kind with do

Right.

Level sensor all, cars. first And type X, in stereo you’re really I X trying -- to in providing LIDAR really is number a the against think price X is So X about becoming of talking modality cameras, the sensitive. of of Level smaller when Level different or Level

I -- are So, really want to have who to most the the -- do processing adopting sensors information. people think stereo evaluating is they multiple that -- on and for for of providing

I very still stereo that’s us. definitely limit is applications think that So, tool a believe however, the number this of I of require for powerful processing. But

we take have that production about already can we projects have longer will wins It and we take with in do more the also little future, we stereo. that near that time. fact, talk In a into design

going Paris. is David question line next of BNP to the O’Connor Our with from come

Maybe my for me, side on a on Oculii. couple the

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ready not the long-term carry guidance also Oculii question you’re business. you that a better about give story would margins are the gross than our of model. licensing the on gross had side And in to David, margins that reason there Yes. is the in we’re correct, prepared

start module can business, that our into long-term in when you the model. back layering it bring However,

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constraints. no. And on as QX your We didn’t the short supply quantify finally just of revenue then, a result chain the is lost answer any question, last David,

our And will of question next come Baird. Tristan the line with from Gerra

Bomba questions. Hi. my This Tyler Thanks for Tristan. is taking for on

weakness First, slowdown currently? trends that do into is see you -- in And extend spending also, China? how are possibly you seeing And consumer you demand do going a to China automotive from infrastructure then in there? demand

it’s focus for side, think China, don’t China. camera is really security our the think security camera really security work China, I on in We consumer professional I camera. the on inside

and using about we and companies more few already a that camera, Dahua talk solution. Hikvision the professional For security our CV started

side So, of of professional it’s business. the more

automotive vision at that terms the the the advanced if -- reduced also ADAS using or the automotive in China, units AD think China number look total people On you for for I next forecast of for increasing. the the it’s however, of trend forecast more of solution Chinese side, I are year, think also computer -- start But market numbers.

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in China, follow-up, ones primarily my or are the for are they government orders, from then, And sector? private surveillance Great. the by OEMs, camera professional driven the

has think from I government think is both. Dahua that’s been reduced the QX because of and they QX. a But their government projects. Hikvision -- however, a in example, of guidance projects for about spending lot coming a talked majority weak show reason -- also I And the

and Dahua that Hikvision driving would the really think about the China. camera government-driven that XX security reason the years, I I say, it’s doing main very definitely last, well are So, market whole in is in

the question next from come Our of Oppenheimer. Martin with line will Yang

product the first three products Bosch first with with access if design part -- I correctly My And for with this, question of given is remember your wins. coming of follows out up on CVs. CV

in CV security milestone potential now adoption market that reached So of those camera of a European where adopting first -- center security the see higher do potential two market? we in we CV, see IP professional major are you in a much shipments the

view, CV well us. you higher from end I side. they it of point you are at majority them products the now, think if the very But coverage of is still for of point look look company if at for however, the use view, an in the adoption from

moving forward end and But numbers performance seeing low to and easily And revenue really CV CV a product anybody a downwards type believe moving opportunity revenue our to compatible a gradually our we’ll it’s then we can solution first. CV product, is for more high-end chip, -- more more point. we So, software their unit -- HD think biggest low-end convert to our the provide opportunity start case the designed that different to X product the who so products, I customers and that convert in between putting CV mix. us path to because different their for I they -- end to product, high for

in hope future, all seeing that coming So, going CV our from products I we’re to those a more of start near do solutions. companies using

it. Got

in guys. adopted the as camera Hanwha I customers or follow-up CV European much to professional to earlier security two products think seems Motorola than to Techwin, So, a that, comparing those have

adopters tell security So, of CV CV design of the kind see the migrations from you early way extrapolated chip, where the or the speed can products? is low-end chip are of using product camera there to you any way

you Yes, right. I think are

solution if is you different to Motorola’s they lines, companies script, other quarterly that start faster product look than at For announcement, which example, many CV we’re the expanding seeing. do

product our of say, adopt security kind device applications they Motorola, I too. wearable the to definitely think most I to is the for chip moving So, using would those aggressive CV lines, start the gradually one for high trying like on down our end even guards, and different CV

companies. is will with for have to aggressive. continue believe in to out Motorola they most offering the there a -- them to think need I companies for the follow I of other But most market, because do to the So, compete similar compete however,

to with line you. the going next of from Thank our Soderberg is come Derek Securities. And Colliers question

it’s a There’s curious for a chip of what their amount hearing reporting customers Difficulty] specific. maybe -- when were time the giving to [Technical are expect around of customers, normal? been another returned you auto you’re decent their shortage. sort But on customers sort your So, of line them they other any question the of customer from

recent you’re if gotten color months? Any like on be anything in would curious Just great. that worse has hearing anything

understand I second of until maybe is will message a heard next industry year the lot situation the tried people they don’t in third I situation. to The improve consistent talk the quarter that quarter, best. to to expect the

about signs improved. bit, even do start situation however, in that I that right? yesterday things we microcontroller component seeing We think, changing do see some I automotive some news a little catch-up, see

some few situation QX is the continuing this improvement. until people we’ll everybody to to But is next to a have I at this QX, problem as thinking not wait to bad is the hope that So, do quarters. talk one QX, going point, that we’ll that see that as consensus see be next -- QX, for year the to is of the I

I closing to Dr. further to turn Wang that, comments. no Fermi with see And call would the like I for questions.

Thank you.

excited are Markets offer our control both, rides and Vegas and technologies CES X and Las first software. robotics our returning will be We vehicles a in radar of and to our wide autonomous of Capital Level provide January Day Oculii’s to to events. host in demonstrations w\e security, demonstrating automotive, And range access be

see talk you really And attention your can in of time. Goodbye. today. we you hope that So, we thank you all I’ll person. to for next

you participating today’s thank to conference like for we’d again, Once on call.

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