Ambarella’s 2020 Financials and Dahua Design Wins Examined

Executive *******

***********'* ** ****** (*****) ******** ****, *** ******* **** ********* *** Dahua *** ******** ** *** ** their ********* ********** *** ********* ** Ambarella *** ******. ***** ** ********** started *** ********** ** ** **** cameras ** **. ******** ******* ********* to ** ~**% ** ***** *******, but ********* ******* ********** ** ** the "**** ********* ******" *** *** company ** *** ****** ****.

Dahua *** ********* "*********" $** ******* ********* **** *********

***** *** ********* *** "*********" ******* their ********* **** *********, ***** **** open ** ************* *** **** ** return ** ********* *** **** *****. In ***** **** ****, ********* ********* ***** *** ********* had ****** ** $** ******* *** worth ** ********* ***** *** ***** work ******* ****, ********* ** **** orders **** *** ***. *******, *** Fermi **** ***** **** ********* ** now *********, *** *** *** **** come **** ** ********* *** **** video *********:

********* *** ***** **** ********* ****** their ********* ***** *** **** **** to ***** **** ***** *********. **'* a ******** ******** ** **.

Dahua *** ********* ******* ***** ** "*** *****" % ** ***** ********* *******

***** *** *********'* ******* ** ********* has ******** *********, ** **** *** trough ** ****, *** ***** **** from *** **% **** ** ****. Dahua *** *********'* ************* ** **** * ***-******-***** ********** of *********'* ***** ********* ** **** *** ****** ** this ************* **. *******, **** ******* **** ** "a *** *****" % ** *********'* total ******* ** **.

**** ******* *** **** **** ******* is "********** * ****** **** *** trend" **** *** **** * ***** where * ***** ***** *. ***-***** supply ***** *** ******* ** ****:

**'* ********** * ****** **** *** trend ** **** **** ****** *** the **** * *****, *****? ** talk ***** **** *** ****** *****, China, ***-***** *** ****** ***** *********, and ** ** *** **** *** trend *********. *******, *** ****** ** HiSilicon ********* ****** ** ** ****** that ******* * ****** ***.

**** **** ********** *********'* "**** ********" in *****:

* ** ******* ** **** ****-*** CV ******, **** ********* ** *** there, **** ** *****, ** **** a **** **** ******** ** ******* solution ** *** *********. *** ***** is * ***** *******. ** ***** I ******** ** ***** ***** *** new ****** ***** *********** ** *****, I ** *** **** ******* ** our ************** **********, ** *** * chance ** *** **** *** ******* customer, ********* ***** *** ******* ******, by ***** *** ** **** *** their ** *******.

******** ***** **** ********* ***** *********'* ability ** ******* **** ** ***** and ********* ** * **-***** *******, Ambarella **** ** ***** ********** ** *** ********** *** ******* is ***** **** ** "**** **** foreign-produced *** ******** ** *** ****** entities ** ********** **** ********** ***."

*****, * ***** ******** ** *********'* revenue ** ***** ** ***-***** ****** manufacturers, ** ~**% ** *********'* ***** revenue ** ** *** ******** ****** market, *** ***** *** ********* **** account *** ****** ~**% ** **** portion ** *******.

Dahua ** *********'* "******* ********" ** *****

********* ****** ***** *** "******* ********" in ***** *** ****** ******** ****** wins ** ** ****:

****** *** *******, *****, *** *****'* second ******* ******** ****** *****, ********* its ********* ** ********* **** ******** product ********. ***** ********* **** ********** of ******** ******** ** **, **** several ** *** ** **** ********.

***** **** ******** "** ** * strong ********" ** **** ******* ***** HiSilicon ********* *** **** ** *** of ** *****, **** ****:

*** ****** *******, * ***** ***** will ******** ** ** * ****** customer *** **, ******* **** *** only ***** ** ***** *********, *** also *** ** ******* ** ******* up. * ******** ** *** **** the ***** ******** ****** ****** ** important *** ** *** ***** **** be *** ******* ******** *****.

No ********* ** ****** **** - ********* ** ** **********

***** ***** **** ** * "******* customer" *** *********, ********* ** ******** to ** * "******* ******** ****** forward", ** ********* *** *** ** "design **** **** ********* ** *** CV ****." **** ********* **** ** likely *** ** *********'* *********** ** using ** **********:

* ***** **** *** ****** ***** situation ** ********** * ******* *** Hikvision. *** * *** ***** **** it's **** ********* ** **** **** they **** ** ****** * ***-*.*. component ** * ****** ********. ****'* probably *** ******* ******* ** *** dealing **** ** **** *****.

New ************ ** ****** ************ **** ********* - ****** *******, ****, *********

********* ********* * ****** ** *** cameras ******** ** ** **** *** Ambarella ****, ********* ************ ******** ******* from ****** *******, ****, *** *********.

** *** ************ ** ****** ******, Ambarella **** ** *** "*** ********* to ******* **** ********* ********* **** HiSilicon ** *** ********* *** **** the ********** ******** ** **** ***** on *** ****** ** ************." *** professional ****** ******* ******** *******:

• *, *, *** *********** ********* ******* cameras: **** *** ***.
• ****** ******* *****-*********** ******, ********* ******, and *** ****** ***** *****: **** CV22, ***, *** ***** ***.
• **** * *** ****** ******** ********* fisheye, ***, ***: **** ****, ***, and *** ***.
• ***************** * ******: **** **** ***.
• ****** *** ****** ******** ******: **** SoC.

New **** ******** ****** ************ **** ********* - *****.***, ********

*** **** ******** *******, ********* ****** it ** "********* ** *** *********** CV ******" ** ********* ****** ******* to ****** "******-******* ******" *** "**** sophisticated ********** *** ****** *********, ****** detection, *** ******* **********."

** ** ****, * "***** **** monitoring ****** ***** ******* **** **** production ** * *** ***** ** intelligent ****** ***** ** ****** ****," but ********* *** *** ******** *** specific *******. *****.*** *** ******** **** released ********* **** *** ********* ***. Alarm.com ******** ********** ***** ************* *** ***. ******** ******** ********* **** ***** ************* **** ***.

Ambarella ******* ********* ** *******, ******** ****** ******* ********

********* ** ********** ** ******* *** returned ** ******. ** ******* *** $62.1 *******, ***** ******** *********'* ******** guidance ** $**-** *******. ******* **** 11% **** ** ** ** *** was ** *% ******** ** ** 2019. *************, ** **** ******* *** $56.1 *******, ***** *** **** **% compared ** ** ****.

******** ****** ******* "***** ** **** again ** * ****-****-**** *****" ***** an *********** ****** ** **. ******** camera ********** ****** *** ~**%. **** revenue ********* **+% **** ************ *** year-over-year. ***** ******* "*********** * ******** decline."

Ambarella ******** ******** ********** **** "***** ** **"

********* ** ********** * ********** **** video ** ** ********* *** *** security ****** ****** ** *** **** few ***** *** ***** ********* ** its ******* ** **** ****** ***** when **** ********** *******. ********* ** "in * **** **** ******** ** provide *** **** ********* ** *** market ** **** ***** *** ***-***** customers," **** ****:

* ***** **** ** *** **** few *****, *** ******* ********** *** the ******** ****** ****** ** ***** to ** *** ********** **** * video ******** ** * ** ********. We ******* **** ** *** ** a **** **** ******** **** * technology ***** ** **** ** ******* the **** ******** ** *** ******, both ** ***** *** ***-***** *********.

*******, **** *********** *********** ** *** "low-end ****" ** ***** (*.*. ******):

******* *****, *'* ********* **** **'** be #* ******** ** ***. *** in *****, ** ******** ** *** a ********** ****** ** *** ***-*** side ** ******* ** *** ** solution. *** ** *** ****** *** high-end ****, ** *** ******** *** best ******** **** ****** ***** ** this *****. ** *'* ******* **** we **** ******** ** **** ****** share ** ******** ****** ****** **** the ********** *********.

**** **** ******** **** ***** ** CV ********** ** *** ****** ** IP ********** ** *** ******** ********, with * ***** ****-**:

*'* ******* **** **'** ***** ** see * ******* ********** **** **** 10 ***** *** **** *** ******** camera ************ **** ****** ** *******. We *** ***** ** *** * very ******* ********** **** ***** ** AI ** *** **** ****** ** years.

* ***** **** ********** **** ** fast *** **** ** ******** ** accelerate ** *** **** ****** ** years. *** ** ****, *** ********** is *** ******** ** *** *** projects **** *** ********* **** *** with **, **** *** *** ** based.

Automotive ****** ****** *********** ****** *******

*********'* ********** ****** ****** *** ********** in **** ****, ** ********* ******* the ********** ****** *** ****** "*** most ********* ******" *** *** ******* in *** ****** ****. *******, **** acknowledged ***** * ***** ****-******* **** will **** ********** **** **** *** technology *** ********** ******. *******, ** the **** ****, **** ***** */*+ is * ******** ***********:

*** ******* ** **** *** ***** 5full ***** *** **** ******** ** be *********** ** *** ********** **** as **** ** ** *** ********** side. *** ** ** *** **** people ******** ** ******* ********** ** that *********. *** * ** ******* that **** ** ***** ** ****** an ********* ******, *** * ***** that **********, ****'* ***most ********* ****** *** ** ** *** ****** ****. [emphasis added]

********* "*********** *** **** ******** **** grow ** * **** **** ** significantly ****** **** *** ***** **********." Automotive ** ******** ** ****** ~*/* of *********'* ***** *********** *********** ****** (SAM) ** ******** **** ****:

**** ** ********* ** *** ********** SAM ** ********* ** ** ***** two-thirds ** *** ***** *** ** FY22, ** **** **** $**, ******* to ****** $** ** ****.

*********, ~**% ** ***** ******* ** attributable ** *** ******** ******, ~**% to **********, *** ~**% ** "*****" (e.g. "******** *************" ******** **** ****** cameras, **/**, *** ******** ******). ********* did *** ***** ** *** **** breakdown ** ******* **** ****** ** the ******.

Q1 **** ****** ** ******, ***** ******* "****** *********" *** ** ****

******** ******** ***** **** ****** *********** and ***** ********* **** **** *******, Ambarella ********* **** ****** ** *** a ******* ** ** **** ****** to ***** "****** *************" **** *********. However, ******* ******* ** ***** **** down *******'* *******, ** ** **** supply ***** ** ********, ******** *** effects *** *** ******* ***. ********* said ** ** ******* ** **** up *** ******, ** ***:

*** ********* **** *** **** ****** at ** ** **** *** ** you **** ******** ***** **** ******* Texas ******* *** **** **** ******* of *** ******* *******. * ******* that *** ******* *** **** **** to ***********, *** **** **** ***** and ***********. ** *** ******* ******* with ******* ** **** ** *** impact ** ********. *** ** *****'* any, **** **** ** ******** ** time *****, *** ** *****'* ****** got ********** ** **** ***. ** will ******** ** **** **** *** customers *** **** ********* ** **** sure **** ** ***'* ****** *** bottleneck *** *** *********.

********* ******* ***** **** ******** ********* costs **** *********, **** **** *** passed ** ** ** *********:

*** **** ** *** ********* ********** increased, *** ** **** *** ****** it ** ** *** ******** ***. It's *** * **** ******** *** for ** ***.