Ambarella Speaks on Dahua, Hikvision, and Huawei (Q3 2020)
Now a few months out from Huawei HiSilicon's chip disruption, chip rival Ambarella addresses the current state of supply in its most recent investor call.
In this report, we examine Ambarella's Q3 FY2021 (C2020) investor call, including comments on:
- Huawei HiSilicon supply
- Dahua and Hikvision
- Video surveillance market share dominated by Dahua, Hikvision, and Huawei
- New cameras using Ambarella SoC
- Ambarella CV revenue performance
- Q4 FY20201 outlook
- Risks and opportunities for Ambarella
Executive *******
***********'* ** ****** (*****) ******** ****, *** ******* **** ********* *** Dahua *** ********** ** *** ***** large ******** *********** ** ********* ***** and ******* *** * ******* ********** of *********'* ******* **** ** ******** years. *****, ********* **** **** **** won * ****** ** **** ******* in ** **** ********* **** ******* Controls, *********, ****, *** *********, *** expects *** ******** ** **** ** a ****** ** ********** ********** *************.
Key ****** ********* ******** ** **** *********** ********* *********, ******* ********* **** *** ************
*********'* ****** ******, ************* ********** ******** ** ********* ****** * ****** ** ** ****** controls, **** *** *******, ********* ** Ambarella. ********* ******** "*****'* ***** ****** of ********* *** *****", *** **** of *** ********* ***** ***** **** "the **** *********."
***** *****/********* ****** *** "* *** of ********* ** *********", ******* ********* customers *** ******* *** *** *********, which ********* **** ** ** ***********:
*********, * *******, ** ***'* **** any *****, *** ** ** ******* Hikvision *** * *** ** ********* of ********* *****, ** **** *** continue ** ****. *** *******, *** other ******* ********* ********, * ***** they *** ******* *** ***** *********. And ****'* *** ** *** ****** opportunities **** ** *** ***. *** we ********* **** ** *** * handful ** ******* ************ ******** ****** customers ** *** **** ***** ******, including *****, *** **** ** ******* they *** ***** ** ********* **** up *** ********** **** ** ** Q4 ****** ** **** ****.
*******, ***** ******* ********* **** ** be **** *****-*********, ** **** *** instead *** *** *****-****** ********* **** domestic ***** *** ****** **** ******, such ** *******, *******, ** *********.
Dahua *** ********* ************ ** ********* ******* ******* ***
***** ***** *** ********* ********* *** ~20% ** *********'* ***** ******* * year ***, ******** ** **** * *** ******-***** percentage********* ** ********* ** ***** ********** *** *** ****** ** **** trough ******* **.
********* ******* ***** *** ********* ** continue "******* *******" ***** ******** ********* inventory:
** *** ***** ******** ***** ** estimated *** ************ ******** ****** ********* in *****, *** ******-** ******* $** million ** [*****] **** **** ** FY20. ** **** ******** ***** ***** processor ********* *********, ** ****** ***** orders **** ****** ****, ****** ** some ****** ** * **** ** computer ****** *** ******. ****** **, these *** ********* ******** ******** ** the ***-****** ***** ******* ** *** total *******, ***** **** ****** ** the ****** *** *** *********** ******.
Dahua ****** ********* ****** *****, ******** ** **
***** *********'* ******* ****** **** ***** and ********* **** *** * ****** this ****, ********* ****** **** ** has ******** ****** **** ***** *** shipment ********* ** ** *** ****** SoCs. ********* ******** * ****** ****** of *****'* ******** "**** **** ** on *** ******* **** [***] *** some ******** ** *** ****** ****," but ***** **** "** *****'* **** many ****** ***" ** ** ** likely **** "**** ******** ** **** through *** [*********] *********."
***** ********* **** *** **** *** "design ****" **** ********* *********, ** is ******* *** ************* ** **** together **** ********* ** *** ******:
** *****'* ********* *** ****** **** with ********* ***... ** *** ******, we're ***** ** ******** ** **** with ********* ** *** ***** **'** have *********** ** **** **** ******** vision ************.
** ***** ** *********, *** ******* revenue ******** **** *** ******* *** CV ******* ****** **** **** *******. Hopefully ** *** ******** **** ** use *** ** ********** ** *** future.
******** ***** **** ********* ***** *********'* ability ** ******* **** ** ***** and ********* ** * **-***** *******, Ambarella **** ** ***** ********** ** *** ********** *** ******* is ***** **** ** "**** **** foreign-produced *** ******** ** *** ****** entities ** ********** **** ********** ***."
Ambarella **** *********, *****, ****** **** ******** ** ******** ****** *****
*********'* ***,***** ****, **** ** ********** ******** "*********, Dahua, ****************, [*****] *** ****** *** ***** largest ******** ****** ********; ***** ***** will ******** ** **** ******** ** the ****** *****." *** ******* ********* to ** **** **** ***** *******, not ******.
**** ****** *** ** ******** ** an ******* ******** ***** *** **** 2 ****** ************* ***** **** **** market ***** ** ********* ***** ***** a ******* *** ***** ***** *************. While **** * ************* *** ********* gain ****** *****, **** **** ** difficult *** **** ** ***** * level **** ***** ********* *********, *****, and ******:
***** ***** **** ******** ** **** majority ** *** ****** *****. **** because ** ***** ****, *** *** momentum, *** ***** ******* ********* **** already ****. * ***** **'* -- all *** ****** **** **** * chance ** ******** ***** ****** ***** but *** **** *** *** ** the ***** ** **** **** *** challenge *** ****** ***** ** *********, Dahua, ********[*******].
***** ******* ** *** '********' ** the *****, ** ~$*** ******* ****** revenue, **** *** ***** * ***** or **** ** ***** ** ***** China ***** ************ ************* **** ** Longse, ********, ******, ***, ******, ***
New ****** ************ **** *********
********* ********* * ****** ** *** cameras ******** ** ** **** *** Ambarella ****, ********* ******* **** ******* Controls, *********, ****, *********, ** **** as **** ******* *** **** ******** cameras:
- ******* ************ ******** **** *********** ******: **** ***************
- *********** ****** ** ******: **** ***************
- ********* ******* ******: **** ************* ** ***
- ********* **** ******* ******* ********-*****: **** ********* ****
********* **** ********* *** **** ******* from******************** ************* *** ****. ******, ********* "******* to *** ** ****** ******** ** the **** ******** ****** ****** **** the **** ****," ** *********** ** Comcast's *** ** ********* **** *** in *** ********** ** **** ******** ******.
Ambarella ******** ** ******* **** **** ** **% ** ***** ******* ****** **** ****
** ******* ** ***** ~**% ** total ******* **** ****, *** ********* "*********** ** ******* **** ********* ***** 25% ** ***** ******* ** ****** year ****." ***** ********* ***** ******* professional ******** ******* ** **** ** the **** ** *** ** ******* next ****, ** *** ******* *** its ****** ** *** **** ******** camera *** ********** ******* ** *** revenue *************.
********* ********* *** *****-**** ***** ********** revenue ******, ******** $*** ******* **** the **** * *****, ** *** Q3 ******** ****. *** **** "*********** programs" **** ******** ********** ** **** or ****. *********'* ********** ******** ******* providing **** *** ******** ****** ********** systems (****) *** "***** ********** ********* for ********** ******** ** **** ** ride ******* *** **** *******," ********* active ****** ********** *** ***** *********.
Ambarella's ******* ********* ** *******
*********'* ** ******* *** $**.* *******, which ******** *** **** *** ** Ambarella's ******** ********. ******* **** **% from ** ** **, *** *** still **** **% ******** ** ** last ****. ********** ******* *** "*****" increased ************ ***** ******** *********. *******, Ambarella ********* **** *** ** ***********, "the ******** **** ** *** ******** is ****** **** **** *******."
Q4 ****** ******* ****** ** ********** *** ******** *******
********* ******* ** ******* ** ** in *** ***** **$** ******* ** $** *******, ****** by ********** *** ******** ******* ******. Automative ******* **** ** ** **% both ****-**-**** *** ************, ********* ***********, as "********** ******* ** ********** **** an ***** ** **** *** * post ******** *******." ******** ******* ** expected ** **** *** ****** ****** sequentially.
Supply ***** ***** *** ***** *********** ****** *** *********
*********, ** **** **** *********, *** also **** ****** ***** ****** ** the ************* ******** ** ********* **** reached ***** ** **** ******** *** manufacturing ***** ******* ** ********* ************* orders ********* **** ********* ****** *** technology ******** ****** *** ******** *** new ** ********. ** *** ** guidance, ********* *********:
** *** ************* ******** ****** ***** tightens, *** ********** ***** ****** ******** in ***** ******* ** ****** ************* lead-times *** **-**** **********.
Shortages / ****** *** ********?
** **** ***** **** ***** ** concern ***** ***** ************ ******* ********* resulting **** ******* **** ****** ********* the **** ** * ***** ********. We **** *** *** **** ****** evidence ** ********** ****** *** ******** to ******* ****.