The $3 Billion Camera Chip Manufacturer - Ambarella

Author: 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.

* *** ******** ** ********, *****, *******, ********* *** **** other ******* ***** ************ ************* ** ** *** **** - first *** *** *** ********* ***** ***** *** *** ****** of *** ****** ****** ** *** *********.

** **** ****, ** ****************.

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

Financials ********

********* **** ****** ** ****, ***** **** *** *******'* ***** has ********* ****%+, ******** ** $* *** *****, *** ** $100 *** *****.

*** ******* *** $*+ ******* ****** **************, ~** ***** ***** $218 ******* *** ******* ** ****. *** ******* ** ****** profitable ** ~**% *** ****** *** *** **** ******* ****** of ~**%.

******, ***** ********* ** **** ****** * ******* ** *** past ****, ***** * ******** **** ****** * ****** ******* their ********* '**********'. ********** / *************, **** **** ****** *** ** *********'* markets ***** ***** ****** *** ********. *********'* **** **** ***** mainstream ******** ** ***** (***** ** *** * ****** *******, with* $*+ ******* *********).

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

*** **** ******* ******** ** **** ******** **** **:

"*** ******* ********* ** *** *** *** *** ****** ********** commoditization *** ******* ********, ***** ********** ** *** **** *** stalls *** ******* ******** ** *** **** *** ** *******.... But *** **** ********* *** ******** ***** ** **** ***** for ** ******* *** ****** * ******* ********... *** ****** ** inexpensive *****-****, ***-**** ******* ********* ** *** **** ******** ** suppliers. ***** **** ***** *** ******* ***** ** *** ** platform, *** ***** ****** *** ****** ************ ** ***** *****."

*** ****, ** **** ******* ** **, ** ********* * major ***** *** *** ********. ** ** *** ******* ** is ** **** **** ** * ***** ****** ** ******** growth ** ********** *** **** ********.

** *** *********, **** **** ****** ** ***** ******* / projecting *********'* ****** ********* ** ** ~$*.* ******* *** ** the *** ** **** ****, ***** ***** *****, ******** ** almost *** ******** *************, ** * ****** ****** *******.

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

** *** *** ** **** *** ** *** ************ ******, Amberalla *** **** **** ****. ******* ** *** *** ************ who ******* ***** *** ***** (****, *******, ***.), ********* *** become *** '********' *** ****** *** *******. **** **** **** some *********, *.*., ***** ****** ** ****** (*********).

*********, *** ************ *************, ** **** **** ****** ***********. ***** is ********** * *** ** ******** ***.*** *** *********'* *** ** ****** ****** ** ** *********** *****. *******, ********* ** *** the ***** ** * ****** ** ***** ************* *** ************** *** *.*** **** *********. *** '****' ******* ** ** **** ** ************ ** even *** ********* *.*** ** ******* *** ********* ***** *** will ******** ******* *********** ********* ******* *******.

**** ******* ** ******* ******** / ******** ***** *** *** deliver ********* *******.**** ****** ********* ************** **** *** ******** ***********, ********* ** *********. *******, ********* says ** ****** ***** / ******* **********, ****** ** ******* to ** **** ***** ****** ************* ****** / **** ********* of ****

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

Alexa Guard Expands Amazon's Security Offerings, Boosts ADT's Stock on Sep 21, 2018
Amazon is expanding their security offerings yet again, this time with Alexa Guard that delivers security audio analytics and a virtual "Fake...
UTC, Owner of Lenel, Acquires S2 on Sep 20, 2018
UTC now owns two of the biggest access control providers, one of integrator's most hated access control platforms, Lenel, and one of their...
BluePoint Aims To Bring Life-Safety Mind-Set To Police Pull Stations on Sep 20, 2018
Fire alarm pull stations are commonplace but police ones are not. A self-funded startup, BluePoint Alert Solutions is aiming to make police pull...
SIA Plays Dumb On OEMs And Hikua Ban on Sep 20, 2018
OEMs widely pretend to be 'manufacturers', deceiving their customers and putting them at risk for cybersecurity attacks and, soon, violation of US...
Axis Vs. Hikvision IR PTZ Shootout on Sep 20, 2018
Hikvision has their high-end dual-sensor DarkfighterX. Axis has their high-end concealed IR Q6125-LE. Which is better? We bought both and tested...
Avigilon Announces AI-Powered H5 Camera Development on Sep 19, 2018
Avigilon will be showcasing "next-generation AI" at next week's ASIS GSX. In an atypical move, the company is not actually releasing these...
Favorite Request-to-Exit (RTE) Manufacturers 2018 on Sep 19, 2018
Request To Exit devices like motion sensors and lock releasing push-buttons are a part of almost every access install, but who makes the equipment...
25% China Tariffs Finalized For 2019, 10% Start Now, Includes Select Video Surveillance on Sep 18, 2018
A surprise move: In July, when the most recent tariff round was first announced, the tariffs were only scheduled for 10%. However, now, the US...
Central Stations Face Off Against NFPA On Fire Monitoring on Sep 18, 2018
Central stations are facing off against the NFPA over what they call anti-competitive language in NFPA 72, the standard that covers fire alarms....
Hikvision USA Starts Layoffs on Sep 18, 2018
Hikvision USA has started layoffs, just weeks after the US government ban was passed into law. Inside this note, we examine: The important...

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