Ambarella (AMBA) 28 Feb 232023 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Ambarella's Fourth Quarter Fiscal Year 2023 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. [Operator Instructions] Please be advised that today's conference is being recorded.

to Gerhardy. conference like speaker to now Louis today, would hand over the your I Development. Corporate go Please ahead.

XXXX Thank you fourth year for Katherine. joining results you, Good our quarter day and and thank financial call. fiscal

CEO, me with Dr. President CFO. call the and today White, On Brian Fermi is Wang, and

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

under update no these We to statements. obligation are

risk information and These described assumptions, uncertainties annual potential file more documents are financial in risks, could with as the fully including that as other affect report SEC, the results, we our on factors the well that on Form XXXX January fiscal Form XXXX. year X, XXXX on XX-K filed ending for the December XXXX XX-Q quarter that and also on X, of fiscal April XX, filed year XXXX for third we the

can transcripts, Access and call XXXX on SEC found results, historical release, and Investor to filings our quarter replay Relations press website. fourth today's be our results page the a of fiscal of

will available your will Brian then results the outlook will be quarter, now review for update we financial provide and for Fermi the and questions. business a all

We significant AI XXXX during ongoing fiscal to in our Thank call edge afternoon. Thank you, milestones good Louis. you an achieved transformation our today. company. for And joining

step and first towards first software our important Xrd our of radar, production centralized XD our of On automotive we imaging and edge sampled CVX-AD, SoCs, mass execution stack front, generation of took SoC, our commenced CVX, Xnm AI product IP. the the broadly an commercialization the technology introduced

with global the edge continues interest Bosch On and Continental, and AI business and our with front, as grow. such leaders announced to automotive partnerships strategic customer products we activity

an end vision XX increase of more unique As our from products than to the XXX we of than year and more more computer fiscal was price customers, XX% a more a selling XXXX million the of revenue than our in have driving fiscal CV ago. production, than SoCs with XX% factor shipped SoC than XXX cumulatively of more average up. year, customer firmwide represented

to ASP about expected absolute XXXX, to to fiscal total we continue drive revenue. to in higher. CV continue dollars grow represent is expect In XX% our of to This

and was XXXX negatively and Fiscal outlook. headwinds without became progressed, revenue significant, year results economic our and challenges, as the not its cyclical impacting more

complete annual of half of competitiveness edge technology leadership the up of second the it the in $XXX.X reported current and our we challenges and we globally, scalability a committed to the our and record anything softness do technology remain products, X% don't AI of about million, technical Despite increasingly software. believe the with we new revenue build-out and XXXX, by fiscal customers to recognized has portfolio SoCs year-over-year. of With

encouraged some be to long-term cause to of customer about engagements us the highlight like would that so outlook. I our

of software took our During steps IP. the two QX, commercialization we toward important

CVX IP Continental it full for driving software ADAS and development two cooperation upon announced stack. we domain offer Continentals' embedded with will develop would include on on autonomous software January First, solutions central and applications. full Ambarella jointly The were solutions, companies and building scalable, software end-to-end that stack to AI hardware Ambarella in Ambarella's ADAS controller, Continental's based extending November announcement and their Xth,

inputs, software architecture. CVX raw and radar imaging to data breakthrough Second, LX fusion the architecture systems. believe first ultrasonics. autonomous AI radar AI and and and driving lidar provides this centralized LX other greater controllers planning world's domain We Combining Oculii of sensor the the announced including safer cameras, with in AI-based imaging efficient path XD December XD in central adaptive radar we environmental enables Ambarella's processing perception

to Business re- development our to customers. fit controllers central of enable quarter is with family from the that family it to Bosch perfect stated solutions efficient to flexible be LX was Bosch December, time-to-market strong next momentum in and the the to computing, requires applications. CVX are family of software functions. stacks announced adopt as performance realization scalable ADAS AI they adopting and well create Bosch too. because it LX used plans high as generation their CVX accelerate domain CVX In scalability the for to Ambarella's for

announced CES, family the in to SoC During we for AI production domain CVX-ADXXX, the first central CVX LX of LX vehicles. controllers

SoCs, to CVX-ADXXX capabilities deep processing AI The vision, autonomous additional neural in along and network planning. generation required is computer third previous vector the than engine provide stack overall generation performance for CVX general full radar, includes CVflow XD XXx fusion driving that with including of faster the processing, processing

are proud applications successfully architecture future. have highlights autonomous potentially and of onto note which the efficiency been the driving flexibility to by We in for customers CVX, other the networks next deployed and generation transformer near

joint automotive XXXX and range including and of X with successful we and had solutions, our CES with XXX more meetings a demonstrated customer a automotive than demonstrations many software IOT tier wide partners. We highly

Innovation a Embedded Technologies in CVX Our XXXX CES the Award won category.

The and X CVX our EVA perception, in included latest radar power efficiency. car with industry and radars rides central functions, and demo classification controller offered single cars leading domain data. cameras both path planning all performing and a EVA featuring We XX processing camera

XX% connected And X X we megapixel networks to and six while about multiple the cameras together utilizing stream, each of four CVX-AD demonstrated neural megapixel single Continental, with processor. a CVX cameras, video running on

for of camera Kodiak included its AI both which truck the the highlights processing. truck on self-driving Ambarella's the CVXAQ in vision CES exhibited pods integrating Other Robotics, processor perception sensor sides

megapixel solution demonstrated SoC. CVflow a a single in-cabin driver joint forward-facing Autobrains including The and ADAS X-megapixel X a on offering solution, running Seeing streamlined, camera single-box, companies' a automakers Machines with and up combined provides monitoring and front camera. to multi-camera

provide autonomous February, Hyperview, high autonomous pair have production-ready software In computing parking driving and had CVX driving their automated Hyperview's platforms. Ambarella's to and perception, selected with products. develop development it previously CVX solutions. CVX-AD to new has driving technology with performance company, will are stack production OEMs, they China-based Hyperview that family into incorporate Chinese The multiple announced mass to pleased achieved we chosen an

our now of will customers' I product discuss during quarter. some the introductions

Technology at announce higher and radar the We imaging Geely first vehicles. are our entering Geely's soon to will technology leverage unit. into intends volume passenger the XD Lotus project market excited brand be Lotus to mass extremely production for

Radars Lotus speed capable and which the vehicles based Ambarella's announced within technology, resolution of its one pedestrians measuring two in meters, and XXX tracking XD and back, on within distance includes SUV and Eletre of imaging Oculii radar objects. meters XXX detecting high one and imaging in front pure electric the providing the accurately

the with CVX Bosch extend were CVX relationship announcing to Mobility, the excited the we After SoCs. family relationship of to

In-Vehicle Safety Awards CES, AI & on honored fleet platform a the XXXX was the Best companion Bosch Innovation Innovation of the CVXX processor, category. in and new introduced During Entertainment as honoree connected product our camera. CES Based RideCare its

The show the road. well and our car's can Cam Car Amazon Ring the dual-facing Ring Car as monitor the at features its Cam as interior introduced also cameras based HXX. on

announced at Dash camera views the includes XXXXp Garmin alerts location The live CES. Cam provides also based HD theft CVXX Live and and XXX-degree, view, camera tracking.

with based of deep on cameras processing market for WDR security market, leader a In Axis our is with European the MXXXX-V The at number introduced camera camera X-megpixel learning enterprise support design compact the analytics edge. and dome an CVXX.

residential and stores edge-based learning feature And factor target form applications and small box the cameras care and new MXXXX XXXXP. MXXXX deep small and

Hanwha our recognition. The cameras all new in and introduced and enterprise plate car class leader models XK market including recognition model AI-based bullet classification, box, its processor. models panoramic analytics, CVX designs Korean include make feature on AI license and three based and series object XXXX vision

capability. processor dome XXX also Korea-based introduced its on vision based IDIS speed our featuring XXXXHX optical and SXL zoom camera

are leveraging software high processors engagements our video diverse how into markets machine representative we bandwidth sensing larger, heritage illustrate These for state-of-the-art more for successfully and quality higher applications. processing and

we early central with discussed, for new AI engagements encouraged to the our cycles IoT applications. mobility to-date product success critical but in I new controllers domain in areas, are of markets, just been Techwin camera existing with edge LX of family our security early the CVX has LX A like for the products seen majority like have we enterprise Axis growth and Hanwha

created CVX, the radar automotive leverages single and in functionality the deep – AI, over SoC, a learning software Ambarella and synergistically camera stack IP. perception, has years

in remains opportunity cyclical from we on experiencing leadership remain secular leveraging on AI. factors, near-term growth we very our pressure revenue While firmly we edge positive, are our position and focused believe economic and our

to beginning coming AI many adoption is to so of particular that inference in is accelerate just AI transform AI market over expect area the and our the years, focus. edge industries, in we

I Thank over now Now, will it to hand you. Brian.

for XXXX. I'll provide for April a highlights ending quarter also year the fourth financial first and Fermi. I'll year review financial fiscal the quarter XXXX our Thanks, fiscal full XX, outlook XXXX. of

you discussing ask results. of reconciliation and will detailed press to to results that for I GAAP refer a non-GAAP today's non-GAAP be release

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

slightly more of than $XXX.X to year. the one-quarter total three-quarters revenue a Auto for increased XX% a Fiscal and million. year revenue. of over was increased to total revenue than X.X% more declined little XXXX represent revenue little revenue IoT

XXXX. with year XXXX. of in almost that basis margin XX OpEx XX.X% coming fiscal acquired Oculii in from fiscal incremental the was expenses operating of one For for year up XX.X%, fiscal QX gross XX.X% points increased was quarter year, XXXX, the non-GAAP from Non-GAAP

from securities $XXX prior million, at Ending totaled end $XXX cash the and year. of up the marketable million

revenue our quarter down range, prior X% the the QX, in million, and mid-point $XX.X fiscal For flat of line prior with to year-over-year. was guidance

gross QX XX.X%, guidance range XX%. of consistent was for prior to XX% Non-GAAP with our margin fiscal

was of expense expense driven our lower Non-GAAP actions we our $XX $XX million inventory prior operating by quarter quarter, on fourth X% revenue prior of adjustments. The range to million, low-end softened guidance as the expense customer from at management took $XX for an increase but the of operating was outlook million.

other our primarily an by QX was driven gain. income original investment than net interest higher million. forecast, and was $X.X Other income

better the than tax a driven non-GAAP original of of benefit Our of our forecast, was X.X% tax across by jurisdictions. This $XXX,XXX $XXX,XXX pre-tax mix pretax was income minus income. or provision

diluted reported income $X.XX $X.X of net or We share. non-GAAP million per

marketable to to flow. and Fiscal to timing our and increased DSO from balance days slightly while shipments, million inventory cash QX turn days, the XX XX XXX I'll Now driven by cash of decreased securities increased of from $X days XXX. sheet million. to $XXX

CapEx, less capital was $X $X.X and million. flow, assets for and expenditures as from from was million cash tangible $X intangible Free operations operations defined million. Cash cash were

and We an Asia, logistics at was had Microelectronics, XX% more two represent customers in revenue. of revenue in Chicony, IoT fulfillment of revenue. ODM that ODM in ships QX. WT to Taiwan our a customers, of XX% or in XX% companies multiple for partner manufactures who multiple came

customer first backlog. bookings, While the end level discuss out aggressively quarter I'll push fiscal customers feedback outlook of experienced down Now, remains more the requests XXXX: Consequently, on in customer year healthy, have are the shipments of we managing slowdown their along for with the in to demand a timing inventory. pronounced of

fiscal of $XX or mid-point. million, the in sequentially to range $XX revenue approximately down we For to QX, XX% our the at estimate be million

the We below supporting well expect consumption, level end inventory. of this drawdown of be customer to

QX fiscal our Visibility is limited. beyond

that expect need However, customer decline level quarter QX the not below guidance we for management currently our revenue purposes. inventory do future of to would

expect points down basis XX driven XX% be XX%, by sequentially, volumes. to in range to of non-GAAP margin gross approximately We the lower

the new QX development. payroll with in quarter in OpEx R&D be $XX compared for first and to driven million, the by annual non-GAAP increase taxes reset $XX expect to range the to million We of the of product

income interest be approximately tax approximately share to non-GAAP XX.X count net diluted $XXX,XXX, our to approximately expense $XXX,XXX our million to estimate We be be and shares.

and on March Please more Ambarella March details. us will conference Susquehanna's Xnd Conference on Stanley's Xth. Technology contact TMT Morgan in participating be for

that, with over will operator Thank you turn to the And call for questions. I joining our for call today. the

Instructions]. [Operator

Joseph question Morgan with comes from Moore Our first Stanley.

you I looks by quarter if wonder talk end about like kind what market. could next the of

saw you of Your a that small pretty CV portion revenues are levels was down to the revenue. when

market autos, like pro mix? And just and lot. sense of it So a end surveillance, true? that a consumer seems And true? that give are down units surveillance is you us Is can your that

I think I percentage make the the Brian revenue. will talk of comment. to some But about want total

First correction of think all, a inventory impact than IoT I lot the to auto. more

continue total is to impacted But, little a percentage however, think CV like to said, video the CV I our auto you So, also But also I think think maintain. that unit number processor revenue our inventory bit. tend however, of on revenue. growth But, impacted. I

correction, the One, X% year drop. severe on for Hyperview the focusing think, more thing haven't – I to this and X% customer, processor think on I we and silicon because low growing are Chinese last currently, have reasons. multiple inventory reason processor definitely video seen the And continues on the CV year, the the the also and unit from is, to there we number aside, really third the you have Hanwha, been chip roadmap. really that end video invested our two

that processor number I we're think why So of down. three combination the video seeing is that the reason unit going

is where of taken that forecast business, to customers. revenue revenue inventory sequential is assumption Just stays our in our that an all flat means embedded seeing we're actions revenue in our significant by attributable decline management automotive being the approximately IoT which quarter-over-quarter, that QX

a business, still that's last intensifying as at like you look that that feel you was the shipped And below do consumption as there think case? there. couple like last up, I quarter. felt quarters? you for of think in the reduction couple of Just you quarters, follow Do April was you But the obviously, IoT inventory the

Yeah, so. I think

grow we the of big of product revenue based double line, product on but product our the digit line seeing revenue forecast year. side, all this that based we line, will talk our telling revenue product IoT to For current example, those on double customer IoT one will silicon. when a revenue our grow us their on one, customer, at on Those the digit But they're continue the look we from using are line, they basically side. decline to

guidance. So, customers a revenue there you our definitely growth our mismatch can see between and is that

sign the the the So, I guide inventory we think a reason that's that is of And definitely correction. QX. down

We have Ross question a from Deutsche Seymore Bank. from

clarification. sequentially what minus, in where think guys $XX around you're IoT one you relative is If and I question somewhere question end demand to million do The true of true you or things, judge are side number? that of how down, XX% one things, seemingly plus be is? to Just end know, do you going the don't side demand

customers I I demand double-digit decline revenue think their think seeing a as in gave we're said terms in chip digit previous I growth in I think the our a double line, a just product XX%, there's the example the like for I differences. so and definitely true seeing little question, our that site, on probably more than of

of automotive as I XX% gave because guide but obviously just and quarter, the helpful and fourth give was last I question, were together. what to guess, the maybe you can market remind sequentially, clarification maybe thought as end stuff and don't flat. make was IoT said part the just automotive over sense that But far percentages sequential XX% I two being over and year, if want wrong, you this was the wrote that for color you us those the with my down Brian, the for that you

and little more No, comment than was than little bit the XX% IoT a related less automotive. a to bit was was

year, full the that we while XX% on up slightly. revenue stated about was a IoT automotive declined year-over-year For basis,

and at relatively look QX. those total fourth QX revenue as were between of sequentially, was end you markets If our flat both the quarter,

It comes from Matt Ramsay with Cowen.

for when announce question. and Lannie This In expectation announced had Ramsay. regards [Technical by OEM and Trieu Bosch, what's quick any with assumption is Difficulty]? your initial you I on your Matt Conti should to the on partnerships a customers

I think I understand the didn't but I question. hear well,

customer think definitely the for after the we the engage ourselves. and me let announcement, CVX. through by asking to OEMs tell engagement that's Conti for I trying If our OEM you're engage but Bosch you, true, them, OEM try think I also to

approach to weapons using OEMs. radar, using to In controller, fact, now solution also CVX as customer, we XD a two one's the the radar domain have centralized a engage imaging

very having definitely yet. feel don't on three successfully progress potential any we fronts. the can But is And and ago you we with CVX. really discussion encouraged I So, engaging. with engagement I probably, happy of have and starting been we the we engagement would announcement the made, that and after people have months see also number say, both also sample OEM public

beyond to looking correction, in quarter the first the – you Difficulty]? guide quarter, color see I recovery know of regards to inventory the beyond not trajectory in of first but probably terms any what do like, the [Technical

we like point. low discussion at view, of is revenue, but have we level, of had QX, and the the beyond inventory guide script, think that's terms I And in projected QX, really point. we the point think correction I on on haven't guess from a just inventory I the lead think with the said best we that an time, based We customer think their this the

We from have a Bank question Arya from Vivek of America.

see exclusive made your we to announcements? the you the Is And think curious next Or semiconductor earliest three the years? will of side? it I'm from benefits them with timeframe? in when announcements competitors engaging the Xs, you plus in Fermi, XXXX is kind tier anywhere the that are in Like, does those prevent is one with from it any tangible it they? how like the

X any we don't think relationship I have. tier any there's exclusive with all, announcement of First that

that, software stack. for However, I'd with example, like to work point out, want Continental, to any engagement we our

commitment Both on that alone sides. sides is So, resource. put significant to need huge both a a

in collaboration important legally has point And by roadmap. their us. definitely, don't we CVX they also I as from identified although of think, them a probably us think have exclusivity, for X view, can So, partner been a but tier help those that

a differentiate. balance a can been CVX, look our commit solution In that's similar really is they when using They And the they at solution. of competitive need the But Hyperview they have China, software is they development for their situation. think significant. to project example, the

definitely, I for although compliment both sides. no there's So think, a but I think, huge exclusivity, it's

Louis. It's

Conti CVXX potentially add we've year is to also Bosch talked that, which did also year win earlier. Mobility. look Fermi first that XXXX and we've generate of but full accounts which about, family to changed, that Mobility, Just and with like CVX, CVX we've revenue CVX for to CVX revenue said we the in calendar Bosch could specifically first now and into be CVX, announce promote would past win our with the that a And with gotten Bosch hasn't

follow I parter. been kind on a actually, Brian quarters. last up, creeping clarification my two For over just receivables, had have the One, up with few of

Just wondering if there's more read anything into to that.

revenue, because your The automotive anywhere that we you the that for was to revenue Was I'm started expectations you that last you, when Fermi, main said automotive other growth of saw of that XX%, line between the at semiconductor than a contrasting from your year the year. last I or question, XX% in look different believe range XX% when year. in with companies number

So, growth and puts or thought it revenue look back you what you've line were? the automotive just at was last takes a what your in take with if year,

I'll Fermi. start with the then question, to I guess, over it turn and

You're those right, couple revenue timing receivable. an in really of was that quarters. saw by increase in QX, driven QX, quarters, so of the shipments in accounts DSO, last And uptick the

similar quarter AR was QX that shipment DSO. as we the situation in very at of well. QX fiscal end high us. fairly we loaded had So, had driving level up a of quarter in a And for backend a revenue the Consequently,

that more we've I should return off lift the And softness as level a the we that revenue and, side. DSO. in see So, future, of hopefully, normal to that on to some of think corresponds begins to the a plateaus seen

at our than the beginning year, show definitely, automotive end. growth, the than think at of grow plan, of more XX% the terms I the In we

I that in on to our impact a think China that, reported continued impacted the the in too that that. biggest supply. Japan of customer and the we is And half, lot first shortage by market reason automotive in see of that

automotive So, percent I we that year. the think that's XX-plus deliver early last gave a reason didn't we growth

We Stifel. with Tore have a question from Svanberg

your announcement that nanometer. had X X the had Samsung you question a for first within with CV And introduction obviously, about product I nanometer.

Just you probably more offer you timing, elaborate you more this on worked much be bit little have already on node? color a could great. on would Any with could that how announcement Samsung

with Talking CVX that Foundry about Or about automotive Samsung the we talking chip. CVX that production? use – had the chip you're on Samsung for CVX-AD we announcement Foundry

I'm about no, ADXXX talking the chip. No,

the production up this CVX And called was is CVX-ADXXX chip. for a the Samsung right nanometer our and the announce first that now, What – CES, going And we to foundry CVX our QX be X chip, first last announced X that. we at we we we with Foundry year, chip is for chip. did the already announced – fact, will the Samsung the that family. in production not on first we're nanometer which We that QX, production have ramping of SOC

So, maturity, node the I with process it. from think we're happy

X the that think also, to next nanometer the the is at two the probably expect the yield expecting. level chips. we on three family, And for I CVX to whole we're right going chip,

So, the that be sampling? when would is – XXX

I I chip expect early say would sample the think year. this to we early –

[indiscernible] quarter this year.

Sorry.

you follow non-hardware partnerships Continental, continue software the some a as up, and is talked as to you've but IP stack, about stack deal. that see potential starting to with are the streams, develop revenue a pretty big Bosch software related? Obviously, Just obviously, you

related? Non-auto

So, there software without possibility to a some you could just sell partners the stack actually is CVX? selling

announced meaningful more for our probably we look XD customers. I between with to combined just at on acquisition, our chip, imaging and better think, technology the controller, and we right, unique, Geely, before because the the Oculii CVX all, benefits radar our is project the that After started the first domain believe centralized provide when probably is that running radar, which acquisition. we TI software actually, of that

on So, now. radar centralized we're focusing right

plan chips. all with have the be on revenue think XD to run stack radar, imaging the associated So software will software I a for other don't our own the We chip.

Jefferies. David And our question Kelley with from next comes

team Gavin than with just overall to XX% I is next provide this more Can you fiscal Kelley. related, can key Nice thoughts year. mix us And said here. for on year. believe your hear in CV trajectory? expected Kennedy remind details the mix that expect ASP on drivers more you on you This XX% then of achieved you David us

Yes.

think I our grow. continue think I CV family for because CVX that to even driver the growth continue

For a example, are more customer our showing script. mentioned more as lot we and I product, in

continue in CVX family was to drive announced revenue revenue. of growth the production that, be On already, and up CVX was the year, So, year. of the this – will there going to we CV top in production last later ramp

will that on So, revenue. driving help CV the

when that, you drive of to sampling plus what top so [indiscernible], things development other development, talk are CVX then On CVX, revenue. continue combined, the those we about [indiscernible] CV of related

the will grow next the ASP is side, said in our ASP to ASP like ASP continue we years because higher, before, On to continue even the CVX CVX higher. we expect several is

our So side. a that give on will very healthy continue growth us ASP to

the spending you quarter can OpEx think to that said through here? to us you the fiscal walk development. so, this support increased XXXX, operating you Is just expenses given case? still drivers And if I ramp gears, requirements expected year last Switching through the chip

of CVX the calendar that new family. to the R&D of guidance increase product beginning of taxes that with build sequential the from fiscal at is about sequential out activity of reset half QX. companies increase QX, increase related our see million of a increased The remainder fiscal is In you of payroll with associated all Over year. for that $X the associated the impacts

seriously this environment off you a a on hold can't soft We're the OpEx full providing product revenue on doing of timing we're introductions. expenses to our I in very in outlook the tell in going with time. of point managing light new currently. preserving are that We're at focus that we that our year for operating

paramount can get a products taking it's area time. So But actions. importance our any expense, squeeze we that other those where we're on in we out

we dynamic for materializes. through the revenue So, a a it'll better get we be little how move as year as and bit the feel

providing beyond will point, QX. this guidance we OpEx be on at So,

comes Securities. question Kevin with Rosenblatt next from Our Cassidy

kind If the but of around the you versus much the interface, is clearly, CV correction can provide details it's some inventory and, older the products, more devices. human products IoT in how the it of

severely IoT CV, between is that you at the I think, and I most processor will auto But say video impacted industry. more. definitely, processor look is the than impacted if the video

a more usually And think feel for have lot the that's have inventory I updated, out more that reason last has inventory chip. product build comfortable that's computer in years. processor a seeing video the than we're they traditional they where definitely people the vision to two who so the there

And times that? Or stopped in still coming there lead improvements are in? have your

at XX definitely much to improve. because nanometer lead continue We those are and Those weeks at XX XX or XX looking We're weeks. nanometer – average XX longer still have roughly nanometer on roughly we process a is nanometer. X than time longer, And nodes. times lead

little that, the foundry XX to shorter and improvement continue and nanometer XX lead nanometer, a we'll side. are than see times the big on For

you one range [Technical XX% into they XX% ask I will Maybe you're corporate if as above that be come target volumes could more, your to back It to expect staying for margins come gross just that gross margins. Difficulty]. still back

fiscal delivered in be substantially. would down I bit a revenue look we rest range In for Obviously, we similar margin to year, this last a lower. the as gross forward QX, little is think the of we're Yeah, fiscal as expect we year.

of fixed company. a in have lot we costs So the don't

to at I it But mentioned not the likely that we high think will So significantly, of see model gross for of some as year. range they we're that relates fiscal remain you've margin volatile volumes. the this very end move to impact. when But rest is the

Brian question Imperial Ruttenbur with next comes from Capital. our And

in the with year of business, couple revenue assume of then, demand market, security little just A talk you'd questions if quick security, I could you're you roughly up if bit of total And XXXX let XX% two, any commercial from XX% and on number side seeing the confirm seeing, you're that. to that in about the if the a area. ended fiscal what

camera, we security below maybe security total break well roughly as the is revenue, consumer that other think revenue And that. haven't IoT a XX%, about – little enterprise both down XX%. talked as I camera, including

of So the is XX%. number IoT total

From I our see are for year. rate they XX% for the still end that going XX% their grow and are to of like growth continue enterprise to customers, potential optimistic revenue side, demand this product they especially said, most customer, the they to to annual talked with lines. many customers, We

think at we this don't not is that from problem what least at have So I end seen, point. a demand,

side demand but We're security seeing the in seeing Are a the dramatically or demand consumer security drop that seeing in side the on the IoT cameras? we're you up any let up? IoT on in residential commercial on area,

consumer definitely the but explain side, of lower, we – think it's our doesn't are drop for what seeing demand. drop not the customers' On it's I

us. So, PO of the drop to

So, haven't side, weaker the think side. like said, the enterprise than consumer little enterprise But on all. side, you seen drop really we it's a I any at

you. Thank

question from with Our & Company. Bolton Quinn Needham comes next

want just shipping about as make come guiding as And, for more guess, under well I thought I've to more how than than sort got you're those million right. of higher question much shipping. I might by which you to would you're Ross' you XX%, I much said back, XX you sure think or under million Fermi, just imply fiscal revenue higher XX QX. numbers I could want than to be where consumption that well be

one The for number customer. is right, that's but

is. the So projected we where the what's us we because this visibility. comment of customer, where allow the customer telling But or have lot that cannot is the not a growth one average? inventory [indiscernible] is generalize We

that we that can is one think So we think – what I data at. from we're XX% looking that point,

That's one customer specifically.

to want generalize necessarily that? don't You

Correct.

auto update the as milestones lot just of you OEMs a to wondering, think pipeline year. stories around Longer directly? term once other you your around the side. track or design any securing the there with only I – obviously, a make you CVX Bosch Are Continental investors think either automotive can the excitement I'm progress or wins

want make. about I And we we a customer, give to think can about any definitely hints get decision our think need to we announcement probably to a we design [indiscernible], with approval. that's customer's whether need but people

that XX We – haven't the public for done as a throughout company. years whole

our tracking the why it. this announcement that's our and point. tracking about think I to updates way the need at annual we But formal think is best So probably

Richard And our Craig-Hallum. Shannon with last from comes question

what one kind here. if ASPs fiscal number gross and can't was I parter want on a two I to XXXX. mentioned here ask remember of you the for growth

of to think And I'd in to about you just your love or in percentage how responding How ASP response to Can response this think we that? terms similar then another we last that year, growth hear have about about growth? coming year? an you back kind it. should to If it one, question characterize here for talked about to

roughly probably ASP year, our above ago, years margin. $XX. And two that we're a by around think this healthy $XX I

side. like think So ASP I I continue. the think year, see growth, said, will going to on that And growth we're rate this similar I

Another part question? your of

enough you covered I probably No, think detail I there. for it's least think it, Yeah, at sounds like. it

be or CV this be. see a here, as automotive. we it to sales majority XX%, And businesses majority have a this would seems It up clear of is could CV being we of year, this pretty growth. business from trying Second your question and XX% here? IoT fiscal which of like been IoT model try to I've to your significant between model current in

that's CV the right there's think We talk automotive. very SoC about And now. that cumulatively I healthy portion XX of is a million we ship right assumption.

So part answer. I think the one that's of

I particularly that we side, on CV. the be camera majority will The other that security majority on a side, answer based the the will of our shipment of think definitely be – our on revenue revenue part enterprise of is, expect enterprise yes,

are to other remarks. like back to queue. for would no Wang now the closing I the Dr. conference There questions turn Fermi in

to time. you. Yeah. next meeting. you will Thank Well, want thank I today's to just talk who attended everybody I

you conference for Thank This participating. today's call. concludes

now You disconnect. may