SANTA CLARA, Calif. and MOUNTAIN VIEW, Calif., Jan. 02, 2024 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ:AMBA), an edge AI semiconductor company, and Kodiak Robotics, Inc., a leading autonomous vehicle company focused on trucking and defense, today announced that Kodiak selected Ambarella's CV3-AD685 AI domain control system-on-chip (SoC) as a complete embedded compute solution for its next-generation autonomous vehicles. This SoC provides a complete embedded solution for Kodiak's multi-sensor perception, f ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35667 AMBARELLA, INC. (Exact name of registrant as specified in its charter) Cayman Islands 98-0459628 (State or other jurisd ...

Ambarella, Inc. (NASDAQ:AMBA) Q3 2024 Earnings Conference Call November 30, 2023 4:30 PM ET Company Participants Louis Gerhardy - Vice President, Corporate Development Fermi Wang - President and Chief Executive Officer Brian White - Chief Financial Officer John Young - Vice President, Finance Conference Call Participants Joe Moore - Morgan Stanley Jeremy Kwan - Stifel Matt Myers - Susquehanna Kevin Cassidy - Rosenblatt Securities Neil Young - Needham & Company Martin Yang - Oppenheimer & Company Operator Th ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the period ended July 31, 2023, show a decrease in total assets and shareholders' equity compared to January 31, 2023, with a wider net loss for both the three and six-month periods driven by lower revenue and gross profit, though the company maintains a strong cash and marketable securities position Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | July 31, 2023 | January 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $286,647 | $304,632 | | **Total Assets** | $696,244 | $710,195 | | **Total Current Liabilities** | $74,690 | $83,462 | | **Total Liabilities** | $93,926 | $104,107 | | **Total Shareholders' Equity** | $602,318 | $606,088 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended July 31, 2023 | Three Months Ended July 31, 2022 | Six Months Ended July 31, 2023 | Six Months Ended July 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $62,121 | $80,884 | $124,263 | $171,189 | | **Gross Profit** | $38,462 | $51,064 | $75,981 | $107,611 | | **Loss from Operations** | $(35,339) | $(20,188) | $(70,881) | $(30,686) | | **Net Loss** | $(31,198) | $(23,650) | $(67,100) | $(34,472) | | **Diluted Net Loss Per Share** | $(0.79) | $(0.62) | $(1.70) | $(0.91) | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended July 31, 2023 | Six Months Ended July 31, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $15,187 | $33,003 | | **Net cash used in investing activities** | $(7,969) | $(10,311) | | **Net cash provided by financing activities** | $1,756 | $1,209 | | **Cash, cash equivalents and restricted cash at end of period** | $122,523 | $194,954 | - The company's two largest customers, distributor WT Microelectronics and ODM Chicony Electronics, accounted for approximately **53.9%** and **13.7%** of total revenue, respectively, for the three months ended July 31, 2023[94](index=94&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a significant revenue decline of 23.2% for the quarter and 27.4% for the six months year-over-year, primarily due to customers reducing inventory levels, leading to increased operating losses, while the company focuses on advanced AI and computer vision SoCs for IoT, automotive, and industrial markets - The company's development efforts are focused on creating advanced AI technology, known as computer vision (CV), with its CVflow™ architecture, aimed at a broad range of applications including IP security cameras, automotive ADAS, and industrial/robotic applications[98](index=98&type=chunk) - Future revenue growth is expected to depend significantly on the expansion within camera markets with AI and computer vision technology, particularly in IoT and emerging automotive and industrial markets[100](index=100&type=chunk) - Global economic conditions, including high inflation and uncertainty in customer demand, have led some customers to reduce their inventory levels, which has negatively impacted and may continue to reduce demand for the company's products[107](index=107&type=chunk) [Results of Operations](index=22&type=section&id=Results%20of%20Operations) For the three and six months ended July 31, 2023, revenue decreased significantly compared to the prior year due to lower product shipments and customer inventory reduction, leading to a decline in gross margin from unfavorable product mix and increased inventory reserves, while operating expenses rose due to R&D investment Revenue Performance (in thousands) | Period | Revenue (2023) | Revenue (2022) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Three Months** | $62,121 | $80,884 | $(18,763) | (23.2)% | | **Six Months** | $124,263 | $171,189 | $(46,926) | (27.4)% | - The decrease in revenue was primarily due to lower product unit shipments resulting from customer inventory reduction efforts and lower nonrecurring engineering (NRE) services, partially offset by the continued adoption of higher-priced CV-based solutions[104](index=104&type=chunk)[133](index=133&type=chunk) Gross Margin Performance | Period | Gross Margin (2023) | Gross Margin (2022) | Change | | :--- | :--- | :--- | :--- | | **Three Months** | 61.9% | 63.1% | (1.2)% | | **Six Months** | 61.1% | 62.9% | (1.8)% | - Gross margin decreased due to unfavorable product mix, increased inventory reserves from market weakness, and lower NRE project services[135](index=135&type=chunk) - R&D expenses increased by **4.9%** for the quarter and **10.4%** for the six-month period year-over-year, driven by higher personnel costs, increased SoC development costs due to the timing and number of chips in development, and higher engineering-related expenses[136](index=136&type=chunk) - A tax benefit of **$3.4 million** was recorded for the quarter, compared to a **$3.4 million** provision in the prior year, primarily due to the release of a **$3.6 million** valuation allowance on deferred tax assets of Oculii Corp and a tax benefit for Oculii's current year losses[139](index=139&type=chunk)[140](index=140&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) As of July 31, 2023, the company held $216.5 million in cash, cash equivalents, and marketable debt securities, with net cash from operating activities decreasing to $15.2 million for the first six months of fiscal 2024, though management believes existing cash is sufficient for the next 12 months Cash Flow Summary (Six Months Ended July 31, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $15,187 | $33,003 | | **Net cash used in investing activities** | $(7,969) | $(10,311) | | **Net cash provided by financing activities** | $1,756 | $1,209 | - The decrease in cash from operating activities was primarily due to an increased net loss, partially offset by higher collections of accounts receivable and lower inventory purchases[145](index=145&type=chunk) - The Board of Directors extended the existing share repurchase program through June 30, 2024, with approximately **$49.0 million** available for repurchases as of July 31, 2023, though no shares were repurchased in the six months ended July 31, 2023[71](index=71&type=chunk)[148](index=148&type=chunk) - As of July 31, 2023, the company had manufacturing purchase obligations of **$24.6 million** and future payment commitments for software licenses of approximately **$8.8 million**[152](index=152&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate fluctuations and foreign currency risk, with its investment portfolio subject to interest rate changes without material impact, and foreign currency risk arising from operating expenses in local currencies, for which no hedging instruments are currently used - The company's investment portfolio is exposed to interest rate risk, but this is minimized by investing in a variety of highly liquid, low-credit-risk debt securities, with high interest rates generating higher interest income without a material negative impact[158](index=158&type=chunk) - Foreign currency risk exists as operating expenses in international locations (e.g., Taiwan, China, Europe) are paid in local currencies, while all product sales are denominated in U.S. dollars, and the company does not currently engage in hedging activities[159](index=159&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the Principal Executive Officer and Principal Financial Officer, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of July 31, 2023, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of July 31, 2023, the Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective at the reasonable assurance level[162](index=162&type=chunk) - No changes in internal control over financial reporting occurred during the fiscal quarter ended July 31, 2023, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[163](index=163&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) As of the reporting date, the company is not engaged in any material legal proceedings - The company is not engaged in any material legal proceedings at this time[165](index=165&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) The company identifies numerous risks to its business, including global semiconductor supply shortages, weak economic conditions, reliance on customer design wins and a limited number of major customers, challenges in penetrating new markets, competition, U.S.-China trade tensions, intellectual property litigation, cybersecurity threats, and the cyclical nature of the semiconductor industry - The business is exposed to risks from global semiconductor supply shortages and uncertain macroeconomic conditions, which have led some customers to reduce inventory levels, potentially reducing future demand[173](index=173&type=chunk)[174](index=174&type=chunk) - Revenue is highly dependent on securing 'design wins' with OEMs and the subsequent commercial success of their products, a process that is lengthy, costly, and uncertain[175](index=175&type=chunk)[176](index=176&type=chunk) - A significant portion of revenue comes from a limited number of customers, including distributor WT and ODM Chicony, where the loss of or a substantial reduction in purchases from a significant customer could harm financial results[196](index=196&type=chunk) - The company is subject to U.S. governmental export controls which could impair its ability to compete in international markets, particularly China, with several Chinese customers added to the BIS Entity List, restricting the company's ability to supply them[281](index=281&type=chunk)[282](index=282&type=chunk) - The semiconductor industry is highly competitive and litigious regarding intellectual property, exposing the company to risks of infringement claims from third parties, which could result in significant costs and potential indemnification obligations to customers[314](index=314&type=chunk)[318](index=318&type=chunk) [Other Information](index=58&type=section&id=Item%205.%20Other%20Information) During the fiscal quarter ended July 31, 2023, director Christopher Paisley adopted a Rule 10b5-1 trading plan for the potential sale of up to 12,000 ordinary shares - On June 21, 2023, director Christopher Paisley adopted a Rule 10b5-1 trading arrangement for the sale of up to **12,000 ordinary shares**, with the plan extending until June 28, 2024, or until all transactions are completed[339](index=339&type=chunk) [Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including officer certifications required under the Sarbanes-Oxley Act and Inline XBRL data files - The exhibits filed with the report include certifications from the Principal Executive Officer and Principal Financial Officer as required by the Securities Exchange Act of 1934 and Section 1350 of U.S.C. Title 18[344](index=344&type=chunk) - The report includes Inline XBRL documents for financial data tagging, as required by the SEC[342](index=342&type=chunk)

Ambarella, Inc. (NASDAQ:AMBA) Q2 2024 Earnings Conference Call August 29, 2023 4:30 PM ET Company Participants Louis Gerhardy - VP, Corporate Development Fermi Wang - CEO Brian White - CFO Conference Call Participants Christopher Rolland - Susquehanna Quinn Bolton - Needham & Company Joe Moore - Morgan Stanley Matt Ramsay - TD Cowen Ross Seymore - Deutsche Bank Tristan Gerra - Baird Tore Svanberg - Stifel Kevin Cassidy - Rosenblatt Securities Suji DeSilva - ROTH Capital Gary Mobley - Wells Fargo Operator Th ...

Revenue Performance - Revenue for the three months ended April 30, 2023, was $62.1 million, a decrease of 31.2% compared to the same period in the prior fiscal year, primarily due to lower product unit shipments[96] - Revenue for the three months ended April 30, 2023, was $62,142 thousand, a decrease of $28,163 thousand or 31.2% compared to $90,305 thousand for the same period in 2022[123] - The decrease in revenue was primarily attributed to lower product unit shipments due to customer inventory level reductions, partially offset by the adoption of CV-based solutions[124] Operating Loss and Expenses - Operating loss for the three months ended April 30, 2023, was $35.5 million, compared to an operating loss of $10.5 million for the same period in the prior year, driven by decreased revenue and increased operating expenses[96] - Cash flows from operating activities for the three months ended April 30, 2023, were $22.0 million, down from $33.6 million in the same period last year, attributed to increased net loss and inventory purchases[96] - Selling, general and administrative expenses decreased by $1,735 thousand or 8.5% to $18,620 thousand, mainly due to a one-time stock-based compensation expense in the prior year[128] Research and Development - The company anticipates increased research and development expenditures to support the development of innovative video and image processing solutions targeting new markets[92] - Research and development expenses increased by $7,751 thousand or 16.6% to $54,441 thousand, primarily due to increased SoC development costs and personnel expenses[127] - The company anticipates continued investment in research and development to enhance product features and expand offerings[119] Market and Product Strategy - The company expects AI and computer vision functionality to become increasingly important in various markets, including IoT and automotive, which will be critical for future revenue growth[99] - The company has historically concentrated revenue in a small number of end markets, particularly IoT and automotive, and aims to expand into new markets to facilitate revenue growth[103] - Design wins are crucial for revenue generation, but the actual revenue from these wins can vary significantly[99] Financial Position and Cash Flow - As of April 30, 2023, the company had cash, cash equivalents, and marketable debt securities totaling approximately $227.4 million, up from $206.9 million as of January 31, 2023[133] - Net cash provided by operating activities decreased to $22,025,000 for the three months ended April 30, 2023, compared to $33,560,000 in the same period last year[135] - The company reported a net increase in cash, cash equivalents, and restricted cash of $14,200,000 for the three months ended April 30, 2023, compared to $29,596,000 in the same period last year[135] Cost and Margin Analysis - Cost of revenue decreased to $24,623 thousand, down $9,135 thousand or 27.1% from $33,758 thousand in the prior year, resulting in a gross profit of $37,519 thousand[125] - Gross margin for the three months ended April 30, 2023, was 60.4%, a decrease of 2.2% from 62.6% in the same period last year[125] - The company expects fluctuations in gross margin due to changes in customer mix, average selling price, and product mix[117] Supply Chain and Market Dynamics - The company has experienced supply constraints from suppliers like Samsung Electronics, which may impact future product availability[98] - The average selling price of solutions can vary by market and application, influenced by supply and demand dynamics[101] - The company incorporates wireless communication functionality into its solutions, enabling seamless video streaming and sharing capabilities[105] Tax and Obligations - For the three months ended April 30, 2023, the provision for income taxes increased to $1,646,000, a 301.5% increase from $410,000 in the same period last year[131] - As of April 30, 2023, the company had purchase obligations with independent contract manufacturers amounting to $22.9 million[143] Share Repurchase and Investment - The company has approximately $49.0 million remaining available for repurchases under the share repurchase program through June 30, 2023[140] - The current inflationary environment and high interest rates have not had a material impact on the company's investment portfolio and financial position[133] - The company expects operating and capital expenditures to increase as it expands business activities and enhances information technology platforms[141] - The company has not engaged in any off-balance sheet arrangements as of April 30, 2023[145]

Financial Data and Key Metrics Changes - For Q1 fiscal year 2024, revenue was $62.1 million, down 25% from the prior quarter and down 31% year-over-year [19][20] - Non-GAAP gross margin for Q1 was 63.1%, consistent with prior guidance [20] - Non-GAAP operating expense was $46.2 million, slightly below prior guidance [20] - The company reported a non-GAAP net loss of $6 million or $0.15 loss per diluted share [21] Business Line Data and Key Metrics Changes - Total Automotive revenue was approximately flat sequentially, while IoT revenue saw a sharp decline due to customer inventory reduction actions [19] - The CV2 family is expected to account for approximately 60% of total revenue in fiscal year 2024 [9] - The CV3 platform is anticipated to significantly increase average selling prices (ASP), with expectations of 5 to 20 times higher ASP compared to CV2 [10] Market Data and Key Metrics Changes - The serviceable available market (SAM) for the company is projected to exceed $4 billion in fiscal year 2024 and approach $10 billion by fiscal year 2028 [7] - The company is focused on deep learning AI processors and software, with a shift towards AI inference as the market matures [8] Company Strategy and Development Direction - The company is transforming into an AI-focused entity, with AI representing 45% of total revenue last year and an estimated 60% this year [6] - The CV3 platform is a major leap forward, targeting mobility applications and bundling software IP with hardware [10][11] - The company aims to leverage partnerships with Tier 1 suppliers like Bosch and Continental to enhance market credibility and development efforts [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged significant headwinds from the semiconductor industry cyclical downturn but remains focused on AI development [6] - The company expects inventory corrections to continue, impacting revenue until new product design wins are realized [32] - Management is optimistic about long-term growth opportunities in edge inference AI despite near-term financial pressures [18] Other Important Information - Cash and marketable securities increased by $20.5 million to $227.4 million in Q1 [21] - Days sales outstanding (DSO) improved from 57 days to 43 days, indicating better cash flow management [21] Q&A Session Summary Question: Inventory drawdown with customers - Management noted that customer demand appears healthy, but inventory corrections are ongoing, with no clear end in sight [25][26] Question: Automotive-grade win with Continental - The win is automotive-grade, involving both CV3 SoC and co-developed software IP [27][28] Question: Revenue levels and inventory correction - Management believes current revenue is approximately 25% to 30% below realistic levels and expects recovery post-inventory correction [31][32] Question: Timing for automotive business growth - Management anticipates growth in the automotive sector once inventory corrections are completed, particularly in the ADAS market [33][34] Question: Geopolitical impact on Chinese market - Management believes the impact on the automotive market is less severe compared to security, with U.S. components still dominant in high-end automotive [38] Question: Software acquisition and product roadmap - Management confirmed they have the necessary components for Level 2 Plus and Level 3 applications, focusing on a flexible software platform [40] Question: AI server inference market entry - Management is optimistic about entering the AI server inference market, leveraging existing silicon and software expertise [50][51] Question: Cash flow and R&D investments - Management does not foresee the need to raise additional cash, citing a strong cash position and positive free cash flow history [79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35667 AMBARELLA, INC. (Exact name of registrant as specified in its charter) | --- | --- | --- | |----------------------------------- ...

Ambarella, Inc. (NASDAQ:AMBA) Q4 2023 Results Earnings Conference Call February 28, 2023 4:30 PM ET Company Participants Louis Gerhardy - Vice President, Corporate Development Fermi Wang - Chief Executive Officer Brian White - Chief Financial Officer Conference Call Participants Joseph Moore - Morgan Stanley Ross Seymore - Deutsche Bank Lannie Trieu - Cowen and Company Vivek Arya - Bank of America Tore Svanberg - Stifel Financial Gavin Kennedy - Jefferies Kevin Cassidy - Rosenblatt Securities Brian Ruttenbu ...