Wherever machine learning exists so does the potential for broader artificial intelligence (AI) applications. That’s because machine learning is, in effect, a subset of artificial intelligence development and is often used for the early days of training a model through algorithmic disciplines. As a result, machine learning stocks are small yet potentially critical contributors to the future of AI development. Through their proprietary software, they may become even more valuable than they currently appear t ...

Ambarella (AMBA) has lost 7.7% in the year-to-date period against the Zacks Electronic-Semiconductor industry’s growth of 17.2%. The stock’s underperformance reflects the company’s dismal financial performance for the past year as customer inventory correction measures continue to hurt the top line.However, Ambarella is continuously making efforts to gain new customers, which will help it return to its growth trajectory. AMBA recently signed a strategic cooperation agreement with Leapmotor. Both companies w ...

Company Overview - Ambarella Inc. is a semiconductor developer focused on system-on-a-chip (SoCs) for computer vision applications, actively participating in the edge AI revolution [1] - The company's SoCs are utilized in various applications including drones, security cameras, IoT, and advanced driver assistance systems (ADAS) [1] Edge AI and Technology - Edge AI refers to real-time processing on the device itself, offering faster processing, lower latency, and improved security compared to centralized cloud servers [2] - Ambarella's SoCs are designed for edge processing, enabling instantaneous data analysis with low power consumption [2] Financial Performance - For fiscal Q1 2025, Ambarella reported an EPS loss of 26 cents, which was 5 cents better than consensus estimates, while revenues fell 12.3% YoY to $54.47 million, exceeding the $53.98 million consensus [5] - The non-GAAP gross margin was 63.4%, slightly up from 63.1% in the previous year, and the company closed the quarter with $203.3 million in cash and cash equivalents [5] Future Guidance - Ambarella raised its fiscal Q2 2025 revenue guidance to between $60 million and $64 million, surpassing the $59.41 million consensus estimates, with expected non-GAAP gross margins between 62.5% and 64% [6] - The company anticipates revenue growth driven by inventory normalization and the expansion of its AI inference portfolio [8] Market Position and Competition - Ambarella competes with major chip makers such as Mobileye, NVIDIA, and Qualcomm in the computer and technology sector [1] - The CEO noted early signs of growth from AI inferencing at the network edge and multiple customer engagements leading to revenue opportunities [7]

HANGZHOU, China and SANTA CLARA, Calif., June 11, 2024 (GLOBE NEWSWIRE) -- Leapmotor (HKEX: 09863), a technology-driven intelligent electric vehicle company with a full suite of R&D capabilities, and Ambarella, Inc. (NASDAQ:AMBA), an edge AI semiconductor company, recently signed a strategic cooperation agreement. The two companies will focus on creating a first-class intelligent driving experience for the global new energy vehicle market. As part of this cooperation agreement, Leapmotor committed to creati ...

Strategic Cooperation Agreement - Leapmotor and Ambarella signed a strategic cooperation agreement to create a first-class intelligent driving experience for the global new energy vehicle market [1] - Leapmotor will develop an advanced intelligent driving solution based on Ambarella's CV3-AD family of automotive AI domain controller SoCs [1] - The collaboration aims to achieve technical verification and installation of CV3-AD SoCs on new passenger-vehicle models, offering affordable and superior intelligent electric vehicles [1] Ambarella's CV3-AD SoC Family - CV3-AD SoCs are scalable, high-performance, and low-power AI domain control SoCs based on a 5nm automotive-grade process technology [2] - The SoCs comply with ASIL-B/D functional safety standards and support centrally processed environmental sensing suites [2] - They integrate a high-quality image signal processor for ultra-low latency, low noise, and high dynamic range images [2] - CV3-AD SoCs provide hardware AI acceleration and centralized fusion of raw LiDAR and millimeter-wave radar data [2] - Leapmotor confirmed the specifications, performance, and reliability of CV3-AD SoCs and praised Ambarella's support [2] Leapmotor's Vision and Product Strategy - Leapmotor focuses on technology and intelligence to provide the best value-for-money with superior intelligent vehicle electrification [3] - The company aims to be in the first echelon of the industry in terms of intelligent driving [3] - Leapmotor believes the partnership with Ambarella will accelerate the upgrading and iteration of product intelligence and create safer and more practical advanced intelligent driving functions [4] Ambarella's Perspective on the Partnership - Ambarella is honored to partner with Leapmotor, emphasizing the need for higher AI performance, lower power consumption, and comprehensive support for advanced algorithms in advanced intelligent driving systems [4] - CV3-AD SoCs demonstrate proven performance in mainstream advanced intelligent driving systems and help simplify product design, improving electric vehicle range and reducing battery costs [4] Future Collaboration Plans - Leapmotor and Ambarella plan to explore more possibilities for intelligent driving technology cooperation, including addressing challenges and expanding the global market [4] - The companies aim to bring higher-value intelligent driving solutions to global users [4] About Leapmotor - Leapmotor is a Chinese NEV company with full-suite independent R&D capabilities in core NEV technologies [5] - The company develops, manufactures, and sells NEVs, produces EIC core components, and provides vehicle internet solutions based on cloud computing [5] - Leapmotor launched a "dual-model layout of battery electric + extended range" in 2023 and has mass-produced four electric vehicles, including T03, C11, C01, and C10 [5] - In 2023, Leapmotor delivered 144,155 units [5] About Ambarella - Ambarella's products are used in human vision and edge AI applications, including video security, ADAS, electronic mirrors, drive recorders, driver/cabin monitoring, autonomous driving, and robotics [6] - The company's low-power SoCs offer high-resolution video compression, advanced image and radar processing, and powerful deep neural network processing [6]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Ambarella's unaudited condensed consolidated financial statements for the quarter ended April 30, 2024, show total assets decreased to **$638.7 million** and net loss increased to **$37.9 million** [Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of April 30, 2024, total assets decreased to **$638.7 million** from **$657.7 million**, primarily due to reduced cash and marketable securities, while total liabilities also decreased to **$83.2 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | April 30, 2024 | January 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $266,907 | $280,157 | | Cash and cash equivalents | $131,810 | $144,914 | | **Total assets** | **$638,660** | **$657,655** | | **Total current liabilities** | $72,245 | $82,979 | | Accounts payable | $16,470 | $28,503 | | **Total liabilities** | **$83,235** | **$97,784** | | **Total shareholders' equity** | **$555,425** | **$559,871** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended April 30, 2024, revenue decreased by **12.3%** to **$54.5 million**, resulting in a wider net loss of **$37.9 million** or **($0.93)** per share Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended April 30, 2024 | Three Months Ended April 30, 2023 | | :--- | :--- | :--- | | Revenue | $54,473 | $62,142 | | Gross Profit | $33,160 | $37,519 | | Loss from Operations | $(39,445) | $(35,542) | | Net Loss | $(37,932) | $(35,902) | | Diluted Net Loss Per Share | $(0.93) | $(0.91) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash outflow from operating activities was **$15.0 million** for the three months ended April 30, 2024, a reversal from the prior year's inflow, primarily due to a higher net loss and working capital changes Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended April 30, 2024 | Three Months Ended April 30, 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(14,951) | $22,025 | | Net cash provided by (used in) investing activities | $2,135 | $(8,210) | | Net cash (used in) provided by financing activities | $(288) | $385 | | **Net (decrease) increase in cash** | **$(13,104)** | **$14,200** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, financial instruments, and segment reporting, highlighting high revenue concentration with **WT Microelectronics** and **Chicony** accounting for **62%** and **13%** of revenue respectively - The company operates in a single reporting segment focused on the development and sales of low-power, HD, Ultra HD video compression, image processing, and AI computer vision solutions[94](index=94&type=chunk) - Revenue concentration remains high. For the three months ended April 30, 2024, distributor **WT Microelectronics** accounted for **62%** of revenue and ODM **Chicony** accounted for **13%**[97](index=97&type=chunk) - On May 29, 2024, the Board of Directors approved a twelve-month extension of the existing share repurchase program through June 30, 2025, with approximately **$49.0 million** available for repurchases[98](index=98&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **12.3%** year-over-year revenue decrease to **$54.5 million** and a widened operating loss, emphasizing strategic focus on AI and computer vision for future growth [Overview](index=19&type=section&id=Overview) Ambarella focuses on developing low-power SoCs with its **CVflow™ architecture** for AI processing in edge devices, targeting future growth in IoT, automotive ADAS, industrial, and robotics markets - The company's strategic focus is on advanced AI technology, specifically its **CVflow™ architecture**, to enable edge devices to visually perceive their environment and make decisions[102](index=102&type=chunk) - Future revenue growth is expected to depend significantly on expanding within camera markets with computer vision technology, particularly in the Internet of Things (**IoT**), automotive **ADAS**, industrial, and robotics markets[103](index=103&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) Operational results show a **12.3%** YoY revenue decrease to **$54.5 million** despite a slight gross margin increase to **60.9%**, leading to an increased operating loss Revenue Comparison (in thousands) | Period | Revenue | Change Amount | Change % | | :--- | :--- | :--- | :--- | | Q1 FY2025 | $54,473 | $(7,669) | (12.3)% | | Q1 FY2024 | $62,142 | | | - Gross margin increased slightly to **60.9%** from **60.4%** YoY, primarily due to sales of inventory that was previously reserved and lower adverse purchase commitments[130](index=130&type=chunk) - R&D expense decreased by **0.6%** YoY to **$54.1 million**, and SG&A expense decreased by **0.8%** YoY to **$18.5 million**, both primarily due to lower personnel costs[131](index=131&type=chunk)[132](index=132&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) As of April 30, 2024, the company held **$203.3 million** in cash and marketable securities, with a **$15.0 million** net cash outflow from operations, but believes existing cash is sufficient for the next 12 months - The company had cash, cash equivalents, and marketable debt securities of approximately **$203.3 million** as of April 30, 2024[136](index=136&type=chunk) - Net cash used in operating activities was **$15.0 million**, a significant decrease from the **$22.0 million** provided by operating activities in the same period last year, primarily due to reductions in working capital and a higher net loss[138](index=138&type=chunk)[139](index=139&type=chunk) - The share repurchase program was extended through June 30, 2025, with **$49.0 million** available. No shares were repurchased in the quarter[142](index=142&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's market risk disclosures since its Annual Report on **Form 10-K** for the fiscal year ended January 31, 2024 - There have been no material changes to the market risk as described in the company's 2024 **Form 10-K**[148](index=148&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of April 30, 2024, due to a previously identified material weakness in accounting for income taxes, for which remediation is ongoing - Management concluded that disclosure controls and procedures were not effective as of April 30, 2024, due to a previously identified material weakness[150](index=150&type=chunk) - The material weakness relates to the company not designing and maintaining effective controls over the accounting for income taxes, specifically a lack of tax personnel with the appropriate skills and experience to assess complicated tax matters[151](index=151&type=chunk) - A remediation plan is underway, which includes implementing enhancements to existing control activities, improving documentation standards, and increasing technical oversight and training[152](index=152&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not engaged in any material legal proceedings at this time - The company is not currently engaged in any material legal proceedings[155](index=155&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) This section details numerous risks including dependence on customer design wins, failure to penetrate new markets, intense competition, supply chain issues, customer concentration, and the previously disclosed material weakness in internal controls - Business Risk: Success is highly dependent on customers designing Ambarella's solutions into their products and the commercial success of those end products[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) - Market Risk: Failure to penetrate new markets, such as automotive OEM and **ADAS**, or if target markets like AI and computer vision do not grow as expected, could harm revenue[162](index=162&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk) - Supply Chain & Customer Concentration Risk: The company relies on a limited number of customers (**WT** and **Chicony** accounted for **62%** and **13%** of revenue, respectively) and third-party manufacturers, and is subject to supply chain disruptions and inventory forecasting challenges[178](index=178&type=chunk)[179](index=179&type=chunk)[236](index=236&type=chunk) - Internal Control Risk: A material weakness was identified in internal control over financial reporting as of January 31, 2024, related to the accounting for income taxes, which could result in a material misstatement in financial statements if not remediated[279](index=279&type=chunk)[280](index=280&type=chunk) [Other Information](index=58&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a **Rule 10b5-1** or non-**Rule 10b5-1** trading arrangement during the fiscal quarter ended April 30, 2024 - No director or officer adopted or terminated a **Rule 10b5-1** or non-**Rule 10b5-1** trading plan during the quarter ended April 30, 2024[320](index=320&type=chunk) [Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the **Form 10-Q**, including certifications by the CEO and CFO and **Inline XBRL** documents - This section lists the exhibits filed as part of the Quarterly Report, including officer certifications required under the **Sarbanes-Oxley Act** and **Inline XBRL** data files[321](index=321&type=chunk)[322](index=322&type=chunk)

Core Viewpoint - Ambarella (AMBA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][2]. Earnings Outlook - The Zacks rating upgrade reflects an upward trend in earnings estimates, which is a critical factor affecting stock price movements [1][3]. - Ambarella is expected to earn -$0.85 per share for the fiscal year ending January 2025, showing a year-over-year change of -2.4% [5]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for Ambarella has increased by 0.6%, indicating a positive revision trend [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with a strong historical performance of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [4]. Institutional Investor Influence - Changes in earnings estimates are closely correlated with stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [3]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional buying or selling, which impacts stock prices [3]. Positioning in the Market - The upgrade to Zacks Rank 2 places Ambarella in the top 20% of Zacks-covered stocks based on estimate revisions, suggesting potential for near-term stock price appreciation [7].

Shares of Ambarella (AMBA) have gained 18.6% over the past four weeks to close the last trading session at $56.15, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $72.29 indicates a potential upside of 28.7%.The mean estimate comprises 14 short-term price targets with a standard deviation of $13.04. While the lowest estimate of $50 indicates a 11% decline from the current price ...

Ambarella, Inc. (NASDAQ:AMBA) Q1 2025 Earnings Conference Call May 30, 2024 4:30 PM ET Company Participants Louis Gerhardy - Vice President of Corporate Development Fermi Wang - Chief Executive Officer John Young - Chief Financial Officer Conference Call Participants Christopher Rolland - Susquehanna Joe Moore - Morgan Stanley Kevin Cassidy - Rosenblatt Securities Nick Doyle - Needham and Company Jeremy Kwan - Stifel David O 'Connor - BNP Paribas Richard Shannon - Craig Hallium Capital Kevin Garrigan - West ...

Company Performance - Ambarella reported a quarterly loss of $0.26 per share, better than the Zacks Consensus Estimate of a loss of $0.32, but worse than a loss of $0.15 per share a year ago [1] - The quarterly report showed an earnings surprise of 18.75%, and the company has surpassed consensus EPS estimates in all four of the last quarters [1] - Revenues for the quarter ended April 2024 were $54.47 million, exceeding the Zacks Consensus Estimate by 0.80%, but down from $62.14 million year-over-year [1] Future Outlook - The sustainability of Ambarella's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [2] - Current consensus EPS estimate for the upcoming quarter is -$0.26 on revenues of $59.87 million, and for the current fiscal year, it is -$0.86 on revenues of $251.72 million [4] Industry Context - The Electronics - Semiconductors industry, to which Ambarella belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating potential challenges for stock performance [5] - The performance of Ambarella's stock may also be influenced by the overall outlook for the industry [5]