The $3 Billion Camera Chip Manufacturer - Ambarella

By: John Honovich, Published on Jun 23, 2015

A key supplier to Avigilon, Bosch, Dropcam, Hikvision and many other notable video surveillance manufacturers is in the news - first for its sky rocketing stock price and now becaue of the fierce debate on its valuation.

In this note, we examine Ambarella.

* *** ******** ** Avigilon, *****, *******, ********* and **** ***** ******* video ************ ************* ** in *** **** - first *** *** *** rocketing ***** ***** *** now ****** ** *** fierce ****** ** *** valuation.

** **** ****, ** examine*********.

[***************]

Financials ********

********* **** ****** ** 2012, ***** **** *** company's ***** *** ********* 1600%+, ******** ** $* per *****, *** ** $100 *** *****.

*** ******* *** $*+ billion ****** **************, ~** times ***** $*** ******* USD ******* ** ****. The ******* ** ****** profitable ** ~**% *** income *** *** **** revenue ****** ** ~**%.

******, ***** ********* ** down ****** * ******* in *** **** ****, since * ******** **** issued * ****** ******* their ********* '**********'. ********** / *************, that **** ****** *** of *********'* ******* ***** plays ****** *** ********. Ambarella's **** **** ***** mainstream ******** ** ***** (which ** *** * public *******, ***** $*+ ******* *********).

The ******** *******

*** **** ******* ******** of **** ******** **** is:

"*** ******* ********* ** the *** *** *** facing ********** *************** *** pricing ********, ***** ********** on *** **** *** stalls *** ******* ******** in *** **** *** is *******.... *** *** many ********* *** ******** going ** **** ***** for ** ******* *** become * ******* ********... *** influx ** *********** *****-****, low-cost ******* ********* ** put **** ******** ** suppliers. ***** **** ***** has ******* ***** ** the ** ********, *** 1080p ****** *** ****** commoditized ** ***** *****."

*** ****, ** **** thereof ** **, ** certainly * ***** ***** for *** ********. ** do *** ******* ** is ** **** **** be * ***** ****** in ******** ****** ** widespread *** **** ********.

** *** *********, **** this ****** ** ***** calling / ********** *********'* market ********* ** ** ~$1.3 ******* *** ** the *** ** **** year, ***** ***** *****, relative ** ****** *** security *************, ** * richly ****** *******.

Ambarella ** ************

** *** *** ** high *** ** *** surveillance ******, ********* *** done **** ****. ******* of *** *** ************ who ******* ***** *** chips (****, *******, ***.), Ambarella *** ****** *** 'standard' *** ****** *** cameras. **** **** **** some *********, *.*., ***** recent ** ****** (*********).

*********, *** ************ *************, do **** **** ****** forthcoming. ***** ** ********** a *** ** ******** in*.*** *** *********'* *** S3 ****** ****** ** ** significant *****. *******, ********* is *** *** ***** as * ****** ** Asian ************* *** ************** *** *.*** **** Hisilicon. *** '****' ******* to ** **** ** availability ** **** *** Hisilicon *.*** ** ******* and ********* ***** *** will ******** ******* *********** bandwidth ******* *******.

**** ******* ** ******* interest / ******** ***** who *** ******* ********* savings.**** ****** ********* ************** **** *** ******** development, ********* ** *********. However, ********* **** ** offers ***** / ******* techniques, ****** ** ******* to ** **** ***** camera ************* ****** / take ********* ** ****

Comments (8)

3 billion seems high. I can't even find them here in last year's "Yole". I'm guessing because their chips are so expensive.

How much are they are surveillance play? Do they say? Btw, here's the "Yole" by application. Security is the smallish Earth like planet, far left middle.

They are not a sensor manufacturer, ergo why you cannot find them on that chart. They produce system on a chips / encoders and partner with the Omnivisons of the world.

That would explain it. :)

Who are their competitors? Just SonySung?

From their 10K:

"Our primary competitors in the wearable sports and IP security camera markets include HiSilicon Technologies Co., Ltd., Geo Semiconductor, Inc., Grain Media, Inc., Movidius Ltd., Socionext Inc., a new entity created from the merger of system LSI businesses of Fujitsu Limited and Panasonic Corporation, and Texas Instruments Incorporated, as well as vertically integrated divisions of consumer device OEMs, including Canon Inc. and Sony Corporation"

With all the uproar about Huawei Networking equipment being controlled by the Chinese state, it's interesting there has been little or no opposition of Huawei owned HiSilicon's prominence in security cameras.

I wonder if the SOC gets to put the destination address on the packet....

The 'Chinese' own Omnivision too.

This is a better chart.

Many outside the industry still assume security is a hot growth market. They’re likely to hear that they’re a supplier to these big name security manufacturers and assume there’s growth there. From that respect I can understand (some) over-valuation.

We are all going to go to H265 eventually—even if the bandwidth savings are being over hyped. In that regard they’re ahead (for now) but will be under a lot of pressure if they can’t compete on price and when other major suppliers get on board.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Most Recent Industry Reports

NJ Law Requires Apprenticeship For Public Works Integrators on May 24, 2019
Few integrators do a formal apprenticeship program. However, now a NJ law is requiring any integrator on public works projects (such as state...
Security / Privacy Journalist Sam Pfeifle Interview on May 24, 2019
Sam Pfeifle is best known as the outspoken former Editor of Security Systems News. After that, he was publications director at the International...
Verkada Video Quality Problems Tested on May 23, 2019
Verkada suffers from numerous video quality problems, not found in commercial IP cameras, new IPVM testing of Verkada vs Axis and Hikvision...
Average Frame Rate Video Surveillance 2019 on May 23, 2019
What is the average frame rated used in video surveillance systems? In IPVM's 2011 statistics, the average was 6-8fps increasing to ~10fps in...
Access Control Job Walk Guide on May 22, 2019
Significant money can be saved and problems avoided with an access control job walk if you know what to look for and what to ask. By inviting...
ASCMA / Monitronics Declares Chapter 11 Bankruptcy Plan on May 22, 2019
Monitronics is entering into Chapter 11 bankruptcy. The company, also called Ascent Capital Group Inc., aka ASCMA, aka Brinks Home Security,...
US Considers Sanctions Against Hikvision and Dahua on May 22, 2019
The US government is considering blacklisting "up to 5" PRC surveillance firms, including Hikvision and Dahua, Bloomberg reported, with human...
Dahua USA Celebrates 5 Years of Errors on May 21, 2019
Dahua USA is, in their own words, 'celebrating' 5 years in North America or as trade magazine SSN declared: Dahua Technology finds success in...
Axis ~$150 Outdoor Camera Tested on May 21, 2019
Axis has released the latest in their Companion camera line, the outdoor Companion Dome Mini LE, a 1080p integrated IR model aiming to compete with...
Covert Facial Recognition Using Axis and Amazon By NYTimes on May 20, 2019
What if you took a 33MP Axis camera covering one of the busiest parks in the US and ran Amazon Facial Recognition against it? That is what the...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact