Ambarella's Milestones and Challenges in Fiscal 2023
2023-12-30
Ambarella Inc., a semiconductor design company, recently held its earnings conference call to discuss the results for the fourth quarter and fiscal year 2023. The call was attended by participants including Louis Gerhardy, Dr. Fermi Wang, and Brian White. The primary purpose of the conference call was to provide information regarding the company's financial results.
During the call, Ambarella highlighted several milestones achieved during fiscal 2023. They announced the sampling of their third generation edge AI SoCs, commenced mass production of their first 5nm SoC, introduced a centralized 4D imaging radar, and took a step towards commercializing their automotive software stack IP. The company also mentioned strategic partnerships with automotive industry leaders such as Bosch and Continental.
In fiscal 2023, Ambarella's computer vision SoCs experienced high demand, with over 13 million units shipped to more than 325 unique customers. Computer vision represented more than 45% of the company's revenue during this period. Ambarella expects continued growth in the computer vision market in fiscal 2024.
The company acknowledged the challenges faced in fiscal 2023, including cyclical and economic headwinds that impacted their revenue results and outlook. However, they emphasized that the softness in revenue was not due to the technical competitiveness of their new technology and products.
Ambarella's presence at the Consumer Electronics Show (CES) was also notable, with several companies showcasing products based on their processors. Kodiak Robotics exhibited a self-driving truck integrating Ambarella's CV2AQ AI vision processor. Autobrains and Seeing Machines demonstrated a combined front ADAS and driver monitoring solution running on a single CVflow SoC. Hyperview selected Ambarella's CV3-AD family to develop high-performance computing autonomous driving platforms.
Looking ahead, Ambarella provided guidance for the first quarter of fiscal 2024. They expect revenue in the range of $60 million to $64 million, down approximately 26% sequentially at the mid-point. The company also expects a non-GAAP gross margin range of 62% to 64% for the first quarter.
Overall, Ambarella remains focused on leveraging its leadership position in edge AI and expects continued growth in the computer vision market. Despite the challenges faced in fiscal 2023, the company is optimistic about the future and the potential of its technology in various industries, including automotive and IoT.