Ambarella (AMBA) 2 Dec 222023 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Ambarella Third Quarter Fiscal Year Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. And we ask that you ask one question and one follow-up question. advised conference be being Please Instructions] that is today's recorded. [Operator conference like your to would over turn I the to Gerhardy. speaker, Louis Please sir. ahead, go

our Thank you XXXX afternoon Good results third joining financial you, year quarter call. and conference fiscal Lisa. for thank

The regarding me prospects, These The to for fiscal uncertainties should our for the CFO. statements with actual demand incorrect, financial Fermi materially questions Wang, Brian of purpose information and our today things. to materialize provide our you of of today's our discussion regarding is or from our forward-looking these President On subject any today XXXX. projected or uncertainties risks, statements responses results, Dr. results CEO; third the market growth statements. and be quarter to year results contain with risks will prove and to are the call other primary assumptions could White, assumptions. and financial solutions, call is differ among Should your and these forward-looking

under transcripts, today's be the no update SEC be page and XXXX obligation XXXX. as quarter, provide results, we These a press quarter, for fiscal and assumptions, Investor for we’ll your will XXXX, Access and Fermi? more then the XX-K Form outlook financial documents Report January XX-Q results, of fiscal year the for to the will filings and review information available on of on the Fermi release, third April affect XXXX quarter of XXXX fiscal on including in found are our website. Relations as described filed could that these the call update fully results Annual with financial other the our questions. replay the and X, that uncertainties Brian our potential file on results business a well SEC, can risks, on for second are statements. historical our Form X, filed ending risk we to year XX, September factors XXXX We

afternoon. call Thank our joining Good QX you, mostly Louis. expected. Thank was for as you today.

material for secular from enabled there in opportunity downturn, cyclical edge by change outlook favorable growth our endpoint our While an industry-wide headwinds the very is investments. there are semiconductor no AI

QX, demonstrated progress key four During in significant develop ways, to opportunities. we these

XXth First ADAS integrate positive that to of a momentum all, they our Continental development evaluation, highlighted announcement into SoCs AG November the product continues, CVX by multi-year from the market their became line-up. after first our

our approximately $X.X funnel, important of Second, year billion, our billion won driven the controller same ago by domain it vision the for is there of funnel business. automotive our is size note a headroom six-year is about increase automotive revenue predominately XX% of an and computer so the announced from with this over SoCs, $X.X $XXX million new XXx automotive plenty period is gains. share still to This and is SAM

is ASP in we we QX year. of as processing SoC increase strong are to expected content fiscal and our reach XX% become new historical our goal higher CV growth we and on-track significantly This be run-rate, by in to revenue of XXXX portion mix. estimate to CV continues optimized SoCs, ASPs. CV strong our a products expect will our command a bandwidth success with CVX post with is larger our and for a total to this demonstrated sensing. Fourth, we rise our for like Furthermore, to Third, leverage year, XX% our CVX high this customers’ total blended revenue about

that X, controller Driver November our Assistance XXth, based market will our automotive German AI will provide announced domain Continental, on Systems CVX I development Advanced Now of it On tier some offer examples SoC activity. family.

vehicles portfolio, architecture, SoC automation. built centralized, scalable for single-chip power applications, high-performance, joint its advances assisted enables The sensors. lidars, further sensing and for well of cameras, more vehicle with perceive Continental’s include the processing radars multiple next and inputs, autonomous driving modalities ultrasonic sensor solution, as generation ADAS Our solutions and quickly high-resolution as by to and complements environmental simultaneously. Supported efficient conditions

their Our fusion CVX enables high combined manufacturers the the SoC to automation. while same early vehicle different allows advanced the vehicle family system vehicle data for of sensors choose inputs, optimal sensor using level of the integrated our from SoC performance raw The wherein is architecture. for requirements, scalability

both the solution’s phones. Appliance. digital Based at facing SoCs solutions consumption a front and to reducing HXX, recorder video allows app ADAS Toyota Korea on system video cooling rear who reduces be China making in Korean video to in features driver Ambarella’s win and an has CVXX mirror Based their automotive X to also and the a China-based integrated savings while megapixel that in Gentex production monitoring as well with single for I car AI its that joint Mercedes cameras automotive first consumers am pull begin QHD and power chosen recorder. from monitoring a is vehicles three Ambarella’s is tier for Korean announced cameras. car recorder models, the power of time this low recorded channel low with its IOT and on Also highly application Yaris with began CVXXAQ camera Vegas. of camera market. both I that production was showcased X in SoC, starting integrates and X Japan integrated our with CVXX as system will during announce security and an directly consumption. with space, also some enterprise recorder rear that dual about Additionally, camera featuring AXX pleased OEM, to includes In delivered Las shipment CES with XXXX. at quarter, monitoring talk Ambarella major system the uses for SoC Benz in will processing INVO very being inclusion occupant we in began automotive supplier been to another customer with network SoC, occupancy efficient for the front a possible, Continental’s costs. expected Emkoo camera. requirements, developments Mobile sustainable the November in SUVs. auto-dimming Cross announced mass XXXX monitoring now its with Yaris a one shipping megapixel we energy Tech a driver GAC The chosen a combined driver neural our This AI ultra-HD

the offer series Ambarella coverage over along the fisheye benefits Motorola last its cameras AI AI Hanwha show, vision of September, Ambarella vision made a connectivity AVA ease During the of cloud-based as camera Korean Solutions SoCs, new announced dome deployment, dual clarity vision camera number AI four includes sensors new detection. in and high high-resolution, and AVA with such show the and P battery plate introducing image introducing Korea-based powered a XD Xiaomi AI video In Flex on features Wi-Fi new of SoCs. CVflow management Also based with customers based structured-light the supporting acquisitions and cameras smart security CVXX recognition Motorola cameras SoCs. biometric megapixel announced facial its camera. models in companies vandal its AI recognition. smart occupancy multiple features and bispectrum models. new imagers introduced Techwin facial of includes leader XXX-degree at video many Ambarella’s for AI editing. using models than megapixel on Based X.XK CVX for latest SoCs. years, meets performing The China. structured-light X certified, The category, with The the unlocks new camera includes recognition megapixel Watchdog two customers the first level X recognition on CVXX wide consumer multi-sensor and X a Ambarella’s quarter the based all and Flex At the GSX and GSX Verkada its proof Ambarella’s counting camera dome AI AI dome based of AI is transactions four introduced security Ambarella’s uses to T one using has including quarter on InstaXXX security CHXX-E, CVXXS which door also XK the camera, lock independent while anomaly in Other thermal including introducing photos, for SoC, series Digital the SoCs. XD launched the facial The processor In our processing. lock camera license which face included smart requirements AI-based second active security both, vision XX megapixel financial CVXXM video, with and HXX entry XD SoC, on less lock camera. September, IDIS XX HDR cameras during our featuring BCTC

SoCs, November, In Arrow our announced XK to generation group in HXC China, development market, CVXX rapid These advanced of well success access based of camera video the featured video and for higher featuring on and comprehensive tilt for the about strengthening family markets ideal This opportunities of our IoT representative an our ecosystem camera X the growth solo we and next The and Facecam alone pan development AI eInfochips, conferencing use. the an next screen units in AI both on company, seeing relationship including angle family In positive. In and and Hub introduced are based our control, commercial and in AI CVflow-based also ultra-wide home experience CVX million engineering display. are outlook markets. support large strategy. base. services its The We a expand XK eInfochips’ to provide AI for of and healthcare features. video SoC customer conferencing cameras. capture robotics, advanced Electronics streaming system and leverages In supports early and the process based of our it which partners majority remains video applications insight new conferencing design applications, features continued QX video applications, AI extensive also Magic a gaming its and camera those to Ambarella into we introduced for value generation to on XKpXX SoCs, the engagements, Facecam very resources as is HX unit of its features expect Pro Elgato, with as video as processor. CV ship and design and conferencing. a zoom Pro of CVX the address expand Corsair, of such making is

we from to this upon CV can we further trend CVX a new are when radar the ties are AI, early established our cycles earn. and processing first has XX sharing ago and in over Ambarella anticipate learning camera CVX, camera the our more single software and began much security, now value, perception the several viewing AI functionality higher serving stack and CVX or synergistically years; These and addressing CVX edge ASP, with Continental such expanding progress. and customer opportunities, the in validate the building CV larger machine proven sensing It and functionality megatrends establishing opportunities SoC, human the product our next incremental, and market. value all than established new Now was we Ambarella, reputation, perception, as we automation. IP. years family deep and safety and we are about quarters

our leveraging market. to comments. So, we a our and it, position provide favorable that, market With to these in place, endpoint we right signs secular address early we in AI opportunity have see now success. invest majority financial R&D to continue leadership of will demonstrate to our realize very are a Brian We the intend continuing prepared fully of the strategy to opportunities

review quarter you our for a fourth I’ll release a results highlights reconciliation and ask financial I quarter, XX, refer to non-GAAP results. outlook discussing for will detailed financial that non-GAAP third Fermi. XXXX. on our press today’s provide of January Thanks to ending the be GAAP for and fiscal

and Kitting with revenue adjusted line reporting, product constraints million, prior Revenue IoT non-GAAP issue down For $XX.X of sequentially. up improved. the compensation impact expense eliminated and we of for acquisition-related the quarter fiscal our stock-based mid-point prior for XX% Auto the guidance QX range, have increased was taxes. and costs from X% Both in year-over-year.

million, Non-GAAP income expected. prior inventory guidance FX quarter reduction revenue XX% sub-seasonal than was favorable prior of QX our with operating had our The guidance of income X% for to of as customer from net interest $XX range decrease OpEx comprised range other $XX aided and plus $XXX,XXX QX other the quarter forecasted of third resulted fiscal million. by However, $XX.X to margin foreign below our the million of expense line results income. was $XXX,XXX on spending. million lower interest approximately impacts was for prior $X.X gross of XX.X%, XX%. in Non-GAAP was in a actions we and

Our per and was to our $X.X jurisdictions. foreign net range, This primarily non-GAAP XX.X% in of taxable FX $X.XX reported or We was non-GAAP share. tax provision $X.X typical diluted million, forecast, than gains due pretax or of income. original million income higher

is sheet securities Microelectronics, multiple an WT manufactures to XX a we approximately $X companies for expect a at the million I’ll of expenditures and for year more and customers range alleviation the discuss XXXX. I million. timing and days, revenue. assets of represent defined came increased and Free in ODM some $XX Fiscal to Asia, down QX. IoT from in XXX. enable million our million. XX tangible of to million. in XX.X%. Now revenue. $XXX year in capital fiscal basis pent-up remain seasonally but $X in cash marketable partner turn which intangible will ships shipments, to fulfillment for four-quarter digits single decreased typically fourth $XX our is two Taiwan $X cash who the XX% operations constraints $X trailing had to was cash Flow. sequentially, now Cash quarter were less cash our flow, driven from was the was releasing and revenue as of was customers ODM XX% revenue million flow balance XXX slow, on that and the outlook demand, CapEx, of Free We this of to high of days million. logistics or operations Chicony DSO to supply to flat from by Cash QX from sequentially, of in QX inventory XX% multiple increased revenue the

inputs, continue to are further, availability our is Looking contract QX we component be seasonality expect outlook, lead into and customers. to flat to the normal inventory macro Macroeconomic be we to gross anticipate than and anticipated toward rising reducing concerns XXXX expect prior down Considering our our to fiscal industry-wide XX% carry. XX%, our Back QX improve customers suggest. willing we next fiscal to these levels, at amount cyclical more the of year, normal revenue times non-GAAP between to customers to as also would quarter. continue to our margin they’re and fiscal

diluted net interest compared approximately $XX activities. in Sell-side Needham’s on Future Security on XXth. analysts are Technology build out be advanced non-GAAP OpEx estimate expect to our be million and rate with and to December Xth in to the driven for of on group with other Capital’s I be details. and the in to December the range for be for tours January approximately joining more shares. to that, fourth $XXX,XXX, QX, SoCs X% Arete’s We Vegas. We the offering our and tax Thank to income $XX XXth, million, call quarter you Investor turn of XX.X NASDAQ’s Imperial to by Series will count new and call to January CVX non-GAAP Please Conference Xth, Xth, in between our be also in over Xth Investor Conference participating London Conference operator range million our the Q&A. the marketing January continued today, Ambarella and the CES Las Conference increase December of us share CES will of demos small on contact XX% Growth

that Ramsay The [Operator of is have Cowen. first Matt Instructions] today question we from

seems platform of I and the early that together. the in your First and they for a like congratulations things of pre-silicon CVX. that results of to came the sampled had team, all, no while, the how a Continental that Fermi, details one simulation been those few about even yourself on whole and were wanted ask deal. evaluating customers CVX doubt they of all It

the business. and So, just have million wins your sort us wins detail press contemplated one power I to is for the the funnel scope on your changes with could guess, might deal customer from of products and to metrics the to and you performance the side, potential million CVX maybe capability -- then, walk went to Continental? had how you funnel? automotive from on if and that And of automotive through $XXX $XXX Is that release you relationship on the sample they XX% updated and that from simulated you on Continental up how in the

Well, Right. you. all, first of thank

think I that's definitely helpful.

I have produce also think been time, first-generation for the we Conti. out tape CVX even -- we working to Conti before and Conti with a long our

Conti to to our verified time I I And major with with think plan one and And and the are relationship. that's convinced -- development on PowerPoint they is this with deal efficiency to closed of with CVX the CVX how proved more is and achieve but CVX. X the and and simulation. for CVX platform long for But of course, plus X we efficiency to our real process And digest chip the they because And really And a deliver see -- sampled really years when our CVX move and started like And reason. the justify know, a them them them Level ago architecture, really, our that's silicon can we two to our our simulation. and if claims the I we see, our can plus, because we performance our we Level you a powerful Level think power silicon. the decided hard As claim for you and CVX, we have a CVX just really with you with of X, would it's that is we but the promised. totally can we don't CVX efficiency. as efficiency obviously, our this say, about car, good ADAS power performance talking performance a chip, what and forward silicon, power the need breakthrough

-- The very have front to Level X on monitor think cameras end other very one X, the X. few reason companies e-mirrors assistance that a is plus, of to are the Level our low X like a the showing solution driver I Level we to we the of Level

We our have road single base. whole silicon that a a the with software cover map customers want space to

business I reason do continue we Conti help to like hope think I Louis also, like in of that another in really, said, expecting secure think customers CVC development. that updates next quarter to give appreciate more to are business terms and we us that's our the this can we deal. you And development, continue our and to

I gradually credibility of terms wins, in release sales question. the will have I to customer it, press will But they us, show our we that to I for a believe answer up get potential reputable in design In because talk near Conti customer think have the didn’t able wins and -- because and with and -- definitely OEM that be this will such Conti and should OEMs between large future. front the Conti is to leave design about of funnel in our them

clarification a Brian. of Just I follow-up then first for final and my sort guess a on question

last you bit contemplated those assuming guys clarify, to precise funnel business announced? raised all the other strange in the whole relationship go million semiconductor guys what the fiscal did given from talked numbers? $X.X space, could you Is -- one those be going And was very Maybe on. underperforming to I in follow-up the been maybe couple and things my the of both the $X.X into just seasonality guess for one normal Brian, it on deal to shortages of Conti So, years that QX. I'm billion $XXX automotive just you change you a you of from for trying when have million. billion to numbers, funnel and kinds if are revenue six-year seasonally as from of $XXX the materially about relationship? And

of If seasonality clarity for you assuming could maybe normal bit fiscal give you're us little is what QX. a about

question. second the first take will ask I the to on on take Brian question. will I

into The first two the Conti played our -- numbers. question is how about

But number I one however, there think of any we funnel will is we next don't little up we current countries yet. -- impact funnel next business also, expect the some our funnel I Conti’s of think contribution expect showing that that Conti that in to start this contribution them. year. have the in are with And and

question a of is normal way looked on in five-year And case, average. related the is course, QX decrease we average of X%. normal And taking the define. at for in would your a to difficult seasonality QX, to be five-year that it But sequential

that this as as will that will so, point here sit time. at perfect we want to at going this be, have we much don't decrease We it than think we as visibility number. what And be QX provide into outlook can greater today, but we to the

The be please. coming from moment, coming next shortly. Kelley of question will will David that up Jefferies. be One And question

to up funnel on discussion. Maybe follow the

a as announced driver an pretty wins, meaningful of monitoring win well. You couple e-mirror

framing funnel how it we So, should that autonomous the interior contribution as and think versus say contribution maybe to about funnel auto ADAS growth? the to the

cycle So, is not of safety wins, first as are design for of design can than because ADAS sensitive. all, really they those shorter see, much you kinds

So, for we projects, usually four-year China, development, more development. at to look two up outside than China in that ADAS years

of to get that cycle production. kind this you can XX- think usually, into you internal a For can about design, XX-month

an market that's and more be seeing want why what that that's And share, are having design that wins. really mean we don't definitely those to we of that's you doesn't doing. area on But start So we ADAS. high focus

doing well ADAS plus. as with contrary, the we Level are as you on the design that hopefully, activity we future. in give I win well can fact, X believe more In And

early days, a Okay. and customers. And point, to of them time with Conti, you follow-up on Thank you. as demonstrate the your maybe to quick adoption, to autonomous and Got to thoughts line development in But with eventual this OEMs and of production specific integration very kind revenue accelerate partnership? line to line push you time seeing contribution on time to ADAS early well? any as Are faster it.

win can CVX potential revenue. before, take this changed. we relationship. to get said three, leave all, revenue generate of first that with they think will has But years Well, design And to don't to time any Conti will the I answer four like line the I

Morgan that question Joe coming Stanley. next from of The we Moore have be will

I you if turn talk wonder start can revenue. funnel which to to pace that the at could to

assume number bigger of is how that shipping talked much about. I what can And think in? a that kind line on talk given it. -- that's of give still -- time back-end it's being a that to sense I than so much pretty you as how a revenue loaded, weighted roll now. I then, quickly precise, of want still but you're your six-year you should how too that just us much for I to can be don't that you is weighting we event? know there's some think of probability probability Can But

of year. the where And prior It's didn't in our in higher importantly, these technologies. And each time much it's the it's that pipeline the the imagine. the then behind it's how as prior by be can and not penetration very the from the both, rates funnel, And of the that is Fermi change than years. be actually reason for was describing of revenue also of higher to the six discount in increased shape selling regards question, to a ASP but revenue methodology these significantly funnel new just and most driven we'll exponential that first linear, we products years would practice. through the sixth the distribution you of So, one with the year six

the per revenue in be and product. chip is CMS expect, we much it a example, would CVX higher ASP say, X X like for, years CDXX For a DMS, with than win contributes

shape, So, those factors it to linear. exponential the are caused that not in be

Stifel. we Wang coming question Kevin next that from The of is have

from maybe when it's can that This CVX more Kwan significantly. question this that? today see to I for that first calling the is just terms going you you is contributing, they you stand ASPs. help that's And behalf us where Tore grow a or... said up us where starts they going any once you the on details in And Jeremy grow today? to and give guess, give even more more XX% Can on understand I of on year Stifel. fiscal color us But year, where are of

Yes.

this comes items comment’s It at fiscal our which to of continue the biggest chip. high digits was computer help I the us a year. And fact, contribution from think in now. the get ASP it's right $XX to that's now vision I higher and probably for above major increased ASP. And think sales the single

CVX trend. into with ramp-up sampling also this and will that our getting really up the in Now a CVX, production to we ASP expect start I continue

look Great. quick should question CES is year -- we think OpEx. on that some about what Thank or kind excluding I you. of Thank guess, in of And understand next guess, -- I a CES, I the next rate as fiscal for sorry, to January. 'XX? we run you.

about is of guess, QX, fiscal for year. exit which still I our Sure. million. midpoint guidance We're fiscal point this consider $XX.X But velocity the for bottoming the think at out way on about it was budget next would our OpEx at I the

would going additional to to fiscal have chips next that we're into increase. cause Going year, that development number in

throughout So, 'XX. fiscal OpEx increasing been consider. got things to two Number has one, you've

so, some be I QX think quarter's I next forecast basis. And point. And at flat the we give level, at call, then, in on addition could can insight. some about up if additional you OpEx that, what to it would In That's this remained year-over-year more even spending we'll a requirements. have provide

have I of question from is Kevin Next Rosenblatt. Cassidy coming

CVX? scalability have they them expectations end on end, use Continental And low different the the on Congratulations Continental for a the and of solution there solutions? win, are the or to Will high win. maybe X

Yes.

I is right. also, your thank believe you. read all, of First And

CVX structure in fact, to reasons their end they the press line. to family end use software product can from one low they chose apply they it of In release, about is high talk because a

it solution in is And is or or overall included see. still Oculii to be the -- determined? I the Ambarella radar no design,

about In the release, talk we radar. didn't press

So, I'll give the collaborations. potential keep you the talk have when that -- to right we we about radar will more update

again. congratulations Well, great. Okay,

Thank you.

have Svanberg is Tore coming Next Stifel. question of I from

again, and, on had follow-up congratulations I a the win Continental question on that.

the If bit a provide you works strategy obviously, how the on of other obviously, maybe providing expand Because could some others. sales sort little functionalities there? will companies but just you're -- some

a is platform Continental offering? parts solution? context you all So, specifically part that could on the of with is market, are you full how this that add to If a of that go reference particular like little just bit

Yes.

-- all, system system. will that just And domain and be And the the also are software only that of but by is higher-level the is we no the the not to processing provided major Conti all CVX the CVX multiple different modality for the functions well First Conti. chips perception, there take perform talking sensor other but software goal in on about. controller is that that

CVX. to the perspective, the And could sort a going from at space. non-auto to when is like follow-up here timing was starting auto applications. And just into It from question asked of thinking I CVX on venture other a lot least into both start on a about in wondering, you guess I have -- that also platform you're leveraging capacity sounds non-auto reason a question I obviously applications. the because and

CVX. for resources you if applications enough wondering after just I'm to non-auto So, go have

Right.

low in they high multiple use as family robot efficiency. there, the a and And well chips, system if But we as a And whether -- like be provide strategy all, and like silicon end. out are some they today. domain Conti a they design strategy also that in target like definitely, look and one, implementing. well need is cost, can focusing Because resources. matter the we a first there few on have said, the robotics a -- has target application In first you more. we CVX a So to those products functions there market are obviously the robotic is is doesn't space, few limited you as CVX is we and company our some auto, of kind really together better that not which only integrate already of customer robots need but using small to as of controller definitely definitely, performance at lot end, strategic Ambarella in in have Therefore, better CVX processing to have accounts. are a have

work definitely I market to a will that's we continue So on. think

add. It's Louis. funnel we've of part Yes, is that in robotics not Tore, so our global funnel, because applications it's something automotive communicated. separate reflected not I'll a that's good question that just are and

from next here question coming Suji of is Roth. Desilva The

congratulations I'll Continental Quick the for Fermi. my add question perhaps win. on

effort at hinted is versus all be last to that -- customer it's get -- is adopts like almost there incremental you think the that Continental. win? I sounds its Continental if happening in maybe this on is involved question from any in to production, development software CVX so, much that of the needs thereafter, that's how an there customers Ambarella? into CVX or there. the every almost Tore's for And the It leverage But fist

Right.

we which CVX, one a for this our competitors. onto software role And -- development. that is to to versus people believe I porting talking is well think focused of the about strategy all, the relationship this -- business this engineering our And have our to of really factored and Conti, providing that our think as a we one that headcount we customers setting software. first about into the helping we -- many model strategic in support porting our is I we have So our on it's this X their up years, we of planning are and we had tier are provide been support plugging really are need group as

we in us. concern And kind potential we So customers. for to for need of I the that all think service this do that's continue not expect of to a fact,

helps, for your Brian year. at lingering post factored purely next question as constraint Are as us supply or there chain year Is about then kind demand? well you issues quarter the point? first are Brian, Okay. guided that a behind into softening a those statement below And that for this perhaps. of guidance Fermi. That seasonal XQ,

desire to issues us, think of customers reduce the and significantly. What do we impact supply are, So, continued don't that and our anticipate that's that QX for revenue part times on is we we those chain part, see shortening the lead most inventory something levels. to behind

that's at we're think really QX that the as this So, about we contemplating point. impact

that coming David O'Connor here question BNP. of have from I next is The

CV on you mentioned side my this year. XX% or penetration. Fermi, from reiterated One Great. the for

update rate so for of us follow-up. what year run would give at next Just on I year? kind can to baseline any exit you wondering, be the of have And this a

One But the are one year's markets; haven't they the we forecast. as of bigger revenue David, enabling disclosed the Yes. the well next as new we is expect run a for that total become rate say our that is I ASPs. new their many can other continue CV reasons. to portion

we cannot our that I business. that from about we our chip that opportunity portion we're about CV existing CVX can talking new is really But processor of the comes video CVX about particularly And think address. excited course, replacing opportunity new previous application growth today very address. our and I'm Of processor that video talk

Thanks you're by one talked Okay. customers. for about Brian, the and that do the cleared? for QX. -- that. you we or Got sub-seasonal as there, it. inventory in exit And that inventory be reduced seeing Brian you an a expect on follow-up, maybe customers should expect QX Can

great a That's question.

it's have one don't think that we great to. visibility I

good at provide not I'm within period, some we in and will bottom why and impacts this We have on want speculate be think things near those I to so point. to go when going that. in that issues certainly, and for we that anticipate terms term, visibility. that's time So there when feel on don't But of a that the away,

of question here Craig-Hallum. the coming I Richard And Shannon from is next have

the how the of I'll the the if side here. Maybe business has two, the over you next you talk year a on over both bigger last that where a here sides Thanks. will or year, maybe question of that into business? security gone be great time? picture Maybe to penetration of CV ask IoT think can go over the do perspective Fermi, And

Right.

a think question. I great So, that's

see about security and also wins security We on the -- and markets, design professional of in to talking the others. consumer we're strong continue all IoT

-- it's said driven of about is like I -- some we I driven talked it before, today. think by that new applications

which which metrics line. enabled identify market this And applications -- a is product are also, really introduced lock, XD example, about new conferencing, new talking is For CV by video face. to face we like other Xiaomi using

new to space, on the But zero IoT So security the space. highlight of -- China, same basically outside we are well. IoT I again U.S. particularly time, play that at have the doing with think we in regulation, I want quite camera China in

I next revenue talk to I zero that's be something highlight about, and us will year. about think for want [indiscernible] we

second that My on Okay. Continental is update. question here. for Perfect. Thanks

and angle, within that one the in solution mentioned today from both having past calls regarding vision-related all it and at you Looking and really both without addresses a here. opportunities, car

contemplated maybe and/or cases Continental or from cases As other week you look here I have mention OEMs two here? Is use I that a through kind the both, release will use didn't external press and of scanned being is that that too coming But quickly. offering, do of and others interior have that you because see any something whatever, see you funnel discuss, the can ago, you don't? full there, through indoor I've

Right.

is basically ADAS. release, external focus on the application, Conti for And they So, price one mainly for use. only ADAS is which

to press the one to is -- complete road possible from believe they a release goes application, opportunity that internal. only we I However, just one do we offer and that map Conti want between external us. I for appreciate say And that targeted that

Thank all Okay. from enough Fair for you. that guys. me, update. That's

Thank you.

is of question Deutsche coming from next Seymore I have Ross The Bank.

on This Ross of is behalf DJ Seymore. [ph] Sebastian

to I the implied hoping letting ask thanks the on some and sort your for question color of guide. off, revenue for Thanks. IoT segments, between a split both and But, was quarter just First get auto here. reported the me

split approximate IoT about XX-XX would versus be The automotive.

year? you we mean, that should about the a foreseeable changing that see sort for significantly, the do think of future? of write Cool. dynamic are split quick to next guys still And just going follow-up. or we sort How I going same into

like said, said, building. that for any be expect that Well, continue I expecting. the to we're which we year. guidance next we should we are I because haven't like given auto increase funnel will But trend the percentage And

would Go sir. ahead, for to you the Dr. your question. Wang session. today's And to that concludes turn over I like Fermi Q&A remarks. closing Thank for call

or you and thank And time consideration. hope at of see your Thank one the for events. and goodbye. Thank to you. you, We coming you all other CES

today's conference concludes call. This

You all day. have great and of a hang may everyone your rest up