Ambarella (AMBA) 27 Feb 242024 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to Ambarella's Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded. I will now hand the conference over to your speaker host, Louis Gerhardy, VP Corporate Development and Investor Relations. Please go ahead.

Thank you, Olivia, and good afternoon, and thank you for joining our fourth quarter and full year fiscal 2024 Financial Results Conference Call.

me Dr. with call the today is On quarter Fermi primary to purpose and CEO; our provide fiscal Young, CFO. The and John fourth for of results with regarding Wang, full information year XXXX. President you the and today's call is today demand to your to and are among things. These for statements our contain questions prospects, financial based responses assumptions. financial and available uncertainties statements subject projected solutions, risks, our results, the information on market discussion will forward-looking The regarding growth and currently and other any these our materially incorrect, results Should of materialize risks or differ assumptions our or should could from uncertainties statements. be these forward-looking prove to actual obligation update under statements. to no We're these well fiscal we risks, fourth SEC. Access more our results today's replay on result other XXXX press are information full release, can factors a Investor file call to page described our and These as be the potential our historical the and in of with SEC financial on Relations and fully quarter filings uncertainties year the results, transcripts, website. documents found as that assumptions risk could affect of today's will of business for on or property the without the reproduced materials written cannot as website a are content The Ambarella's well our and prior our transcribed now be call provide consent. Fermi as posted quarter. update review the and then your we'll and will financial John outlook, for results be all questions. available Bernie?

business help about stabilize navigate our midpoint increased you we range. excess our the and recover. to our today. call guidance to beginning revenue fourth sequentially, slightly joining to of our afternoon. their to for early Thank Thanks you, is and fiscal Thank customers actions our inventory, good Louis, In the and took continued of quarter the exceeded X% we

declined downturn. 'XX, customers For our as cyclical from resulting XX.X% full our the the industry-wide semiconductor year year-over-year fiscal inventory digested revenue

fiscal our to and IoT Looking emerges. cyclical both growth AI year the secular of automotive as to expect grow continue went 'XX, business our strategy to we the ahead and challenges

CVX. of base cumulative XXX AI products our family growth more from is on CVX be installed to to CVX SoCs, in cumulative all XX-nanometer a 'XX. driver have is a currently our that production influence X-nanometer of million key approximately than customers the revenue continue on basis. The Our This the based XX fiscal reached and year have expected customer family

AI time, a family factor higher revenue fiscal to represented production. Our in At is aged revenue processors. influence all-in averaging this of of applications blended our our customers' XX% design AI year-over-year approximately our richer in our business presented new enters price increase AI meetings virtually the mix expected was CVX trend of influence in to key the ASP. The continue, the selling involves total all SoC and particular, and 'XX activity

In than our were was influence certainly XXXX fact, on where for was challenging the all products. Fiscal more based demos, this XX SOC of first of our year most AI the industry.

represented centers, key us do the the process the and the were believe in in we not been achievements developments market by positioned recovery for company's specific there past, is and industry However, industry. as growth training that opportunity has very located we well market a out. serve. GPUs this server In AI for the primarily data plays that leaves

we at the year, age in milestones last we for important processors and achieved last have is understood, inference key the where year. and the role been during exactly X in However, become opportunity particular this has on. Internally, better focused

such have The pave already that X-nanometer double. XXXX mass the more to for now in SoC other half of of approximately we fiscal second X-nanometer than we the shipped Most fact the our year we year. volume in helps our and our First, business, production have way is currently first although family. CVX CVX our of production X-nanometer expect start we in to OEM high-volume units automotive achieved an SoC the at IoT shipments as XXX,XXX expect

Second, market sample as the at CVX-ADXXX well controller this and X-nanometer above domain high-end targeting both Tier in LX for as OEMs is of we CVX production a the our at autonomy. version we China. sample At And end, multiple and the is high Xs central globally. automotive X-nanometer currently evaluation version

far, So success we finding commercial in LX above and are vehicles.

For LX+ numerous discussions introduced and X China, in wins highway design CVXXAQ, the basic and underway. we opportunity Tier have OEM a we

faster architecture. In software CES to pleased a X+ the more layers scale family, and which costs. higher and allows This a centralized based, primarily a processor the including unveiled planning our get year scale Level and with our in processed development new Consumer the generative applications stack development for range software meetings our new stack generative were [indiscernible] our easily, platform across CVX over row, AI is to X the and the our AI, X-nanometer platform. Innovation to accurate made corporate for radar for processor we'll our more of hosted IoT stack, the a reduce we introduced of continue solution. for new network, options number learning to we from our devices Electronics optimized our Tier we Award assembling deep age strategy the December, out edge applications. for OEM build The we our Third, and processing where year automotive market time offer RADAR resulting servers. Fourth, entire -- the and enabling software turnkey first second customers targeting started at announcements this and software in automotive, fusion receive customer and are to significant X HD autonomous development can is our perception, centrally OEM gen XXX software [indiscernible]. We AI CVX to driving latest We and to

needed, and the this Finally, stored most on the OEM. eliminate important, stale an the we inside data, we real-time software combined own vehicle. for stack improved contact And OEM's maps data property. of in that a and software results map for intellectual with modules to If in perception costs camera may is high-resolution and which available rely reason, the can be use HD result radar create reduce

single on automotive XXX first processor vehicle, ] right. [ demonstrated a time. our During aculite the our stack radar the accounts over domain CS integrate autonomous CVX show, completing for algorithm the own successfully demonstration we running AI a in

as our mainstream includes announced automated The CVX family the and supports expansion autopilot of also a party. feature to radars SoCs. enable cameras Level We addition set CVX-ADXXX with of new that and and XXX processor our sensing CVXADXXX suite X+ such highway the multiple

to GSR In centers. the and uncapped addition meeting X

the well other for radars and additional XXX Level support cameras, as with autopilot urban Additionally, as enables advanced X+ sensors.

to GPU ECUs AI CVX-ADXXX address of Ambarella consumption it vehicle, language vehicles. AI AI our for its and SoCs multimodal smart of announced on-premises CVXXAQ Computer endorsed including full the enabling power offering CVX PCIe and the the The RLM CVX-ADXXX, network edge the We to of along now family And at next-generation as demonstrated a to processor from had business tracking through to was controller it the billion per cards parameters, the introduction low announced partnering care. Qualcomm processor robotics surveillance, to with during of announced security, a covers leading the power up X leading broadly by on based selected on LLM based domain fraction range supports new CVX-ADXX. bring are including a showing SoC, were and our wide QA-for-ege processor market with that markets growing mainstream a age large demonstrated defense the running accrue on solutions. new bringing on of In industrial of AI range vehicle RMs premium X models, address develop devices. China-focused robotics, to partner, with to robotics processors for Gen of and Continental. Kodiak and With IoT the previously new flagship company autonomous multimodal online autonomous on application to well we occasions. capabilities as based announced influence add-in range cutting-edge our autonomous AD we XX well-empowered X applications. This aims SoC This in CES, for our the diverse neural our vehicles. a solutions video applications. Quanta sectors, and the focused passenger health CVX-AD CVXX demand automotive ADAS products

and provide universal that Cooper of developers integration new hardware, seamless Cooper the of our entire of and also software, demonstrate offers Ambea's services platform. models support portfolio We state-of-art introduced fine-tuned SoCs. AI AI

during some expand our highlight products We we now position have to successfully quarter. automotive the announcement Cooper last market. will In custom in the worldwide. I of now the our this deployed to made some important continue IoT market, customers of quickly Chinese

on continuing forward on for we particular, while we opportunities CVX of this on its Tech AI AI from we occupancy projections business AI very introduces trends security a awarded are All AI are see advanced we home XX Telus our very SoCs. base automotive priorities over our [ [indiscernible]. In monitoring year, is The the on MAX converting very with and we address: announced secular also the our have market camera look particular ] we our IoT this secular Taiwan-based growth home and cyclical passenger cameras products based driver on are Canadian have market, the distracted market automation have camera AI R&D SoC. And SoC, based opportunities we inference camera with [ IP and channel monitoring aligned car family on based about the detection. In downturn, processor. GAC at also ] not about And color, year million, SoCs currently bully also for a X-megapixel excited our development new [indiscernible] growth RFQs enterprise more models of excited and unveiled electronic this the processing, increased camera industry-wide and that, including our multiple new featuring XK introduced our GAC thermal -- on and by XXXX introduced more on, conclusion, supplier what and SoC in AI automotive in revenue with voice on AI the leader, its IoT we [indiscernible] now achieve includes Gen CVXX in-cabin we To detail. ] in RFIs commercialization IP Auto to results Vivo and based to technology where our strong. system multichannel of full HanhaVision our is During models focused CVX our on returning X remaining passenger process investing. In view based moving based summary, are CVXX and region with years service drive the restore and the and [ safety, And Idis into we attention to intercom based In mirror introduced achieve featuring will SoCs form based we career MX new AI and SoC. In been monitoring the QX working year will XX-VX goal, CVXX. announced into AXX INX CVXXAQ on Korean positive our and monitoring discuss outlook video on multiple we and profitability the CVXX our on ] looking and sensing age. I'm to inference objectives in been including capabilities. the CVXXM car quarter, forward, CVX Tronc developed. combination prolonged the at driver early its full January, market, have and strategic fixed ahead. With an in what business multidirectional [ John, working fiscal key business and and provider doorbell important, business. Furthermore, highly advanced

Fermi. you, Thank

say and year it a reconciliation in for ask for growth to XXXX, and XXXX. I fourth I been first ending review I'm for assume to company I discussing its markets. I'll would quarter as the the April detailed that X full also honored to XXXX, be XXXX. XX, XX, of of the years, I'm role. with help results. very now quarter outlook highlights financial GAAP target begin, that Before a team press the release CFO fiscal financial and like you non-GAAP fiscal the I've to working non-GAAP our for excited today's refer January will ending provide year to results I will pursues

X/X XXXX reporting, adjusted of year XX.X% restructuring expense and IoT revenue non-GAAP compensation the revenue about acquisition-related of have million. for eliminated and taxes. Fiscal with to For decline stock-based along impact about majority decreased was about $XXX.X of of SoCs. XX% total costs, for fiscal revenue declined the our revenue From we and the video revenue large year. processor balance represented of XXXX from the Auto the revenue a XX% declined a for viewing view, product our year. point human was

expense gross XXXX. million totaled margin and for end XXXX, Ending $XXX.X Non-GAAP year. year from versus versus of fiscal at the the marketable the XX.X% XX.X% in cash X.X% million fiscal operating year year. prior was XX.X% in non-GAAP For securities up $XXX.X the increased prior

provision $XX.X $X.X valuation consistent $XX proportion GAAP taxable a by product guidance in for approximately line allowances. between prior slightly QX $XXX,XXX. practice range. QX, below driven non-GAAP diluted with our likely our million, foreseeable down establishing on future. This tax and remain quarters. other The prior the tax $X.X We range. million recorded milestones. QX U.S. development margin by quarter was of required on of in for loss onetime expense million our with prior management based from fiscal and track quarter provision, our United In the historical not net of non-GAAP a approximately up the to allowance tax of the tax tax million, in fiscal noncash a above deferred than share. X% of was adjustment unrealizable to or were continued $XX.X prior XX.X%, revenue interest QX, net guidance charge excluded income $XX non-GAAP certain million, guidance was flat spending $XX.X QX valuation was a and prior fiscal range $X.XX valuation of be For to that to States. and a gross is million. internal fiscal we allowance with noncash on our timing expense deemed changes was year-over-year. Non-GAAP charge was tax more QX reported We from per the GAAP midpoint Non-GAAP operating XX% loss the the This income assets million, and

of for year, full first and year inflow who and the QX for and $XXX.X decreased from logistics million XXX quarter the for the quarter XX% for XXXX. from year was ships multiple million and that the from ODM Capital $X.X cash ago. was our for and increased to in of quarter. Taiwan in million. $XX I'll sheet the cash $XX fulfillment of X for XX XX% XX% for sequentially ODM a revenue outflow for partner tangible and came the now Operating year. We end the while Microelectronics, Fiscal XX were revenue XXXX. I'll million. Chicony, customers or representing XXX had days full to year days. Inventory XX% we to and fiscal our both revenue the the And companies quarter intangible of the X% inventory days in turn sales for of and of securities XXXX. XX% expenditures fiscal year dollars more generated fourth balance $X cash declined full of manufactures marketable Receivables to from in Asia, Now cash decreased million fiscal an flow. QX. declined the for million assets the customers, a $X.X multiple operating in days outlook to discuss quarter prior quarter quarter prior at WT outstanding days,

recover. now begin actions early high industry are inventory in our during the balances, Our and actions the to these to downturn cyclical business and stabilize customers our their navigate enabling have semiconductor helped

million we in to estimate will QX, of be fiscal $XX For the our revenue range total $XX million.

We both auto. and in expect growth sequential IoT

We of be QX to the XX.X% non-GAAP gross expect fiscal to in XX%. margin range

tax our Technology in million be we able income City the New quarter $X.X and estimate group expect quarters. We employee-related expense XX.X range new one-on-one million, driven count diluted million. approximately share to in increase to were the to be our expenses, in Conference. York in participating delay be compared of fireside $XX which to a development Susquehanna's February XX, by the be non-GAAP million will on QX, previous to approximately first to costs and net chat non-GAAP approximately to We and at product interest in $XXX,XXX $XX hosting in meetings shares. Ambarella be with OpEx

Stanley's We Conference in San hope on in in participating We Morgan TMT participate in will X. ROTH we to the Francisco March Monday, March also Conference will XX, California. On be Southern X turn Please joining you our I call call for at over to these today. that, us you of see details. Thank questions. the And with more contact for for operator events. will the

[Operator from Instructions] the Bolton coming question Now line Quinn first of from Needham.

Neil Young is This Bolton. for Quinn on

volume that inventory delays project as planned which So and inventory OEMs you Tier you projects, improvement will thought How's get I well sense issue. you a from starting had progressing in if that were of would? that are you of improvement ahead I out as so, said called seeing more inventory the then should -- it reductions resume an you projects where And to say, these follow-up. Xs is And soon?

quarter So what you referring to are a before? we said

Yes.

So final December, I early provide think in think in November, guidance this year. we provide for when I we our

I some think there's X also some and delayed from are new decisions a project there talk got is out also for Tier also, OEM pushed we about projects inventory. and

what seen push consistent seeing like with new I delay I don't think think we development is have are last think updates. year, we new still further in out. and said what or in there's a project we of terms December I haven't November no

Okay.

any improvements? auto So on inventory, aren't side, the regarding you seeing

haven't improvement, getting it's there are seen We any we not worse. but -- saying is

follow-up. And Okay. for my then

then And update China. wins case, you the remarks, just discussion maybe the from how China. Tier in So come see in I heard CVX and design environment you'll think you're when wins? multiple do you opening in say those that's about revenue believe Xs talked demand I you the in your the multiple with first past, the revenue have would engaged on from way. If already first on an

Right.

those CVXXAQ, first from call. calendar -- low talked parking. will expected basically plus CVXXAQ ADAS that example, of have addressing the a the wins low previous is design we about year revenue we end the was So have been in for XXXX And -- that this be the in we first smart X+ basically, that family for and a level of CVX for Level

new that's with wins already we now. we're in working market design OEM Tier with on and China, So right and X design have working the

I because China, So are point in China driving think be for to other development autonomous what in faster that development the see and -- think I everybody I the that believe continue think the market area EV in in I we of X than also of but focus view, China areas. we think happened

So that's our CV can faster China monetize definitely we in believe we any technology other area. than

Our next of line question with coming Christopher Rolland from Susquehanna. the

Maybe has import more NX Just about a does server compute anyone or into you multiple or this then Have meet restrictions on Chinese combining any product. large as the appliance? And you well? how about thoughts for chips considered be for your could guys. this talked lastly,

Right.

So for chip and with will PCIe first can but Definitely, the single-chip of first server -- X, to point, solution can it high-end that's of card so are all, And our a a partners be meet new chip a future. the single-chip has serve to if in can customer, demoed we looking you to the demand of solution, we is will provide better multiple current today example, in aged see direction -- I we our a even with your multiple side we a solution the solution. that that, of we all, building go a multiple do chips put want that is at. we far, solution. believe lot maybe believe current together customers. But terms definitely But technically, for

total our much on consumption, the In a of our higher or at And is as although similar achieve we regulation, competition. that lower our our we than terms architecture, bandwidth to can low number top as bandwidth number of performance provide American think performance. top because our but lower well can and smaller the very use power that's architecture high I strength

about we've our were we these like what a on see with good on the size, not products customers do. And and of out gen found SoC. feedback models many AI watt aware and AI CES had run market could really LLM sub-XX and discussions just terms customers, In can products, Lava many Gen at so afterwards that we efficiently

sub-XX the of the sizing this a follow-up, this wait little lot how that down has bit And you they're until use good, watt out Chris? feedback especially triggered figures to have discussions our to further so to a and product. But And process. doing a going market customers we're is going SoC. Do the put we're really with some on

revigorate Yes. Maybe what AI much could focus of and next there's market? on now be refresh camera kind so for have you you are Do functionality, to mean, edge if AI with that, that this I with kind around we funnel what like your rates Maybe as for growth auto, that could products? describe gen, kind market? but like a growth opportunity. in of talking cameras that visibility of of into market And kind that all security to well the

discussion. Well, of the for haven't prior Gen our like it SAM, we AI for updated kind

bit in the of still but CAGR insight we're about, market market, but we that if that in terms low the into that X-year I'll to of those CAGR, products, was So building Fermi. you the SAM not a teens any off to the kind up AI take pass and numbers going Gen a of that include we're of SAM to thinking longer funnel, range, sizing prior in that does for this little put talked -- will, and sort momentum

Yes.

for a portion really although continue of we opportunity, importance new and us, camera platform. This is that to continue there's underestimate a important camera In to security a fact, a we we about big for develop security auto of AI revenue, for never market because application is but and talk our lot we huge believe the us.

new for CVXX, we'll For the chips near this and in future. the market example, we announce announced

the and security be be believe we the think in line. mainstream high-end on I AI -- the want demand to player continue So continue and to performance player we the product that dominant camera to grow,

Ramsay question line And Matt Cowen. our coming with TD the of from next

you guess, not an the I given And on follow with wanted me getting on and low-power initial from of up inference. to to perspective. Fermi, the architecture some surprise good team I feedback engineering LX a inference I the on guess, feedback it's

-- invest B to business you on there's if trying willing over see correction, model willing kind the is, XX is business to good my to where out. to product investments can also you're where capital XX long guess this figure point ramp NRE P&L given product. this start what's people the question next really that you on sort I to just I for software? during potentially a at get arrangements, business and time, are point that to payment you you need, the big So build limitations the A here, get around you something going potential customers guys now get and are could And I'm some over of with that willing I'm side of as trying given and is. interacting the ramp customers do months but from is the you feedback are could this to what software that cetera? Are be the are the to you scale et to understand given the discussions to right big

Right.

good I point. think So make a you

partnership NRE to be that's to open it's any LX numbers. for including the I from kind think why are for for us. we But business of going development, model, significant

the can you the in on ship. the existing with first deal can our also fact, already software, And investment generation software on particularly think we customer the demand. customers, address tools be show of leveraged LX, we our some our silicon for that and and I can

done. of from investment our So think our view, point X is I of majority that for

roadmap And Cooper other we purposes, forward. So for apply definitely at our to but we directly example, -- defined the the development. real look we if question our for Cooper is although LX moving what's development,

So or let's for our AI talk about LLM roadmap. Gen

continue invest the is, want PR right? where need this, think and to chips I from of we difficulty we to in do view, R&D that's it's for new to if maybe point a -- even think I software. new

I So possible we look that NDA. that partnership the a at to an well as of view, you from point with including agree scenarios, all as have

of clear future so part the not map. for the data on the LLM for based pay -- a some our it's device think I feedback, that or cost. But only payment the for current it's NRE become of So want and us very existing will the for not -- the LRM customer the center. as road is and current customer to LLM to penetrate

think I to to to need we that be And this develop sometime figure customer. our out map year. So flexible for that have we road a

by me. and clearly couple to a quarters as all question, under-shipping in been for thoughts have inventory margin I the guys are pretty built, you Thank the customer the there with you're guess right that. for working do that sell-through significant follow-up consistent last base had my to where you now, levels revenue you're the of through burn they that

what's way what's particularly estimate have we've that right after size gone in to asked currently just inventory? a camera maybe level designs the is and won, now but I steady we've have you to businesses? What revenue early Do the business you straight down and now as So Do that feel the up you've sell-through that? X through had last the steady state security too sell-through months. inventory it of market for more what and burn the you're this way kind quarter, ask, was the correction? on I of What's under-shipping mean then sell-through with the an to now

Yes.

to very are numbers. hard we So understand trying

give So you thoughts. let me my

we I of the all I statistics we roughly bottom, quarter the do at look at at think a and that reach are shipped the number $XX the hard for million number the million. And peak, when the is when we shipped $XX probably X comfortable we numbers and that to we to to level. feel go that that definitely probably model midpoint us, built, working the we level of

million I the for equalized. number roughly the get $XX shooting everything in range So when think is probably we are

our the from with Svanberg line Stifel. coming of Tore And question next

year in growth sort the on little 'XX, both still just there's progress. talked far yes. and inventory, could for this you think us linger question takes My fiscal you bit some you and auto year. on you're a the us But the about expecting me, especially first more auto as side. I you in give puts growth IoT. you segments to see can as the of to in probably Obviously, hoping was give more both so expect Any how color

You talking CVX about are or?

Overall. No.

expect year. grow segments You both mentioned you to this

Yes. sort you could if dynamics. just So more the of

Right.

about IoT think for the first. So -- talk let's I

product I been think to that the from inventory particularly going behind the continue, for we XX% to us. growing we're after line CVX -- close have IoT, that we it's momentum of the year, that believe CV pretty is will CVX with revenue family last clear problem and

I for about be probably that think that you did we Last family But I us. if importantly, X.X growth the think to more think at drive us. script, growth year, I going for meaningful it. we in million CX consider start CVX we're talk units. will this that So could And the also, ASP, point, year, will ramping. double And

think that's on IoT I square the So side.

Those some in I OMS, CVX delivering revenues in a a to portion our in sorry, announce to win but partnership be also side, our NREs, CVX early partnership think that will of customers our First have ADAS, and -- of revenue announcing are design start with announced the mirror there. role we definitely automotive CMS, On CVX, play that in we with -- also on that electronic samples the and definitely revenue, recorders. automotive big continue all, continue we

try be market with believe So a be line, process. a on and space, more our continued the I small are the the at in the think although that automotive looking we I from automotive market. still to throughout current We're But feedback big the weak along one to we player design wins. the overall, that based growth

think So I that's automotive also feel how will that growth this year. we have comfortable

in video Yes, point growth. all 'XX, our fiscal will more XXX% a view inference business fiscal product down -- about 'XX. really products, substantially, will to than mentioned, be rate AI from CVX will million. in Do dropped the Tore, That it almost it's in fiscal John of off processor of our have means of you was as which a... video $XX processors 'XX, decline taper begin in That

Yes, That very helpful. was

just was you pretty you your And when is that more it how was available. I it at have does important piece it of because development that an samples the now business Cooper my secure platform activity with the seem that As was like obviously, but follow-up, helping was development I CES. readily missing, impressed I wondering pie platform saw

easy or for all to much to function fact, eager software X lot and different development tells different chip. on transfer silicon our are algorithm AI lens. get through put from the but a it's existing this software hands become about the Ambarella platform In to like them Cooper also, chip they now it's because a very me customers to how easy And

only for whole is So even I our development comfortable not us for existing important and work development but the make faster. this more their also think for customer customers. And that

in can algorithm the new software even we So on we customer, to their that run it environment for on convert can customers. But for customer chip will an is I for our the designers. our keep quickly think important both LLM part, help also provide are -- the to us

coming And question Ross Seymore our next line Bank. Deutsche with from of the

them for calendar you looking that pricing or walk from you about mentioned or a to of due think backwards year the I for in through as kind to ranges? again to expect ASP 'XX? CVX magnitude . even what itself. much orders in How 'XX? calendar do And of When CVX ASP tailwind be just CVXX going Can you us

Right.

So be price that's is Then that we're -- family. can the the think digit that we also high think CVXX the probably the similar line. to high to only probably gross have with CVX talking And teens. margin in AIoT, about the line. CVX can the single maintain ASP, in the I $XX That's and very range anywhere not that's a mentioned, high family, healthy low rate, it's ASP range, and but about run CVX, anywhere CVX, talk our a to from different the product average for we a that we CVX, for effect but range. And price we that we product from XXs XXs

CVX, ASP $XXX $XX talk from think from then the the -- anywhere about and is to CVX-XXX. I So to CVXX we

ASP changes. So let's idea of give you just an

percentage think a some increases to if need your true sides average within sizable prior $XX we sort to seems second it million roughly half sell-through to numbers? And it second on is that of Obviously, get question number. sequential little talked guidance you products trajectory And of the the abate? first guess on both I a relatively of in that shipping be about think will Do about like have Or then talked more business. But you in guess well And just ramping? about kind your X business. is in if about kind the about those first growing Great. kind quarter year so, a inventory of a and that the new of you dynamic? demand, the bit we of of the both basis so half those the is sides versus headwinds the I you of half,

Right.

our And the I predicting, think at as it's booking, what didn't reasonable. our going that seen that First our We this feel overall, current and Street I well the think $XX also QX QX, any we growth look on guidance. But with demands with number guide we QX that be I to we million of about I also -- we're have when have customer our quarter all, comfortable believe as based believe guidance. to and is that talk in year guidance.

momentum haven't is the we QX, booking, QX, course, enough there. seen Of however, but

think we're provided we that high yet. to haven't So I'm quarter of I And guidance any growth, going comfortable quarter-to-quarter on grow. in that terms to our

follow to just on ASP Ross, And up question. the Yes.

CVX the looking in lower grew revenue the fiscal course, the of versus some really Then in ASP within CVXs. year-over-year. into of Our CV. But fiscal XX% depends family, 'XX. and video end next won't it we on 'XX year, ratio even to the contributing CVX have of mix processor CVXs about of the

be now. say much increase, So how but to it's hard just some it should

the question from line next coming Our Kevin Cassidy with Securities. Rosenblatt

the results. strong Congratulations on

is your what guess, talking on considered edge What being still processor? at? about the landscape? some as it, I are even as is to an the they're the designs Just you're of that GPU one, customers And looking alternative competitive

less low with we we And much SoC lower case. believe really to higher with but just considered, I when that, as do an need Well, consumption. power this being ambition think compare performance a considered. you that the GPU NGP power to an in consistent I is be when some however, Qualcomm But very processor, low we definitely to consumption. come the and That's deliver them, market. And automotive space, them compare to can to like have

believe do we are I very at similar automotive So our looking competitors like market.

leverage process. out lot X-nanometer of the a getting of the Great.

below got looking You've in ranges go price anything parts, lots with performance Is your now? map there the to X-nanometer. road of X-nanometer

Yes, to. we have

of future. I selections no near I I really force driven talk whether that whether final think cost we stay hearing performance start at chance process next-generation the long. also in about that metal there's One requirement. definitely think however, it's for justify the and by can X the we us our is But things. you'll believe But

Joe Instructions] with And from coming Stanley. [Operator line our Moore next the Morgan

second you're some you the the half talk year. that CVX of about addressing for applications Fermi, you what alluded to start there? OEM to Great. in ramp Can wins had

feel we have truck several EV are mention for the yet. we to about their years, And but not product, comfortable customer -- share we to allow we I since we Western that definitely close announce an case that feel It's this talk should space. working names. us to think this doesn't just with But in customer -- to on I and news, been yet and

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So -- your just where do the you around about draw can talk of are -- there you line or that kind to do what opportunities coprocessors participation? of

be -- very on our have you XG age, leverage sorry, Qualcomm both because phone XG, cloud use of our phone -- server run Since but even you opportunity most connect and space limited into for in products still might that MediaTek that are able LLM my Right. can to LLM the side. connectivity the the eager on LLM the functions to it the is you idea is some come feel LLM. introducing NVIDIA to to the I so because and Qualcomm at

cloud. because not a the purely also model of us, there, has It's the but becomes MediaTek share cellphone market age. that, ange not in only advantage terms with So Qualcom, a opportunity limited for really is combination and of usage

So going the like sensitive feeling applications latency-sensitive the look battery focusing before. that just and what my on to devices at we had is are also pure we edge

time. And remarks. Dr. I'm questions queue at to turn I closing call for Wang showing no further the now back in any will this the Fermi over

And you Thank Yes. different next all you to to talk a you. conference for and us in or I forward want of looking today to joining time. thank

participation. Ladies for and Thank on for your today. our you gentlemen, conference that does

disconnect. now may You