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)

Undisclosed #1

06/23/15 06:20pm

* ******* ***** ****. * ***'* **** **** **** **** in **** ****'* "****". *'* ******** ******* ***** ***** *** so *********.

*** **** *** **** *** ************ ****? ** **** ***? Btw, ****'* *** "****" ** ***********. ******** ** *** ******** Earth **** ******, *** **** ******.

John Honovich

IPVM | In reply to Undisclosed #1 | 06/23/15 07:40pm

**** *** *** * ****** ************, **** *** *** ****** find **** ** **** *****. **** ******* ****** ** * chips / ******** *** ******* **** *** ********** ** *** world.

Undisclosed #1

In reply to John Honovich | 06/23/15 07:49pm

**** ***** ******* **. :)

*** *** ***** ***********? **** ********?

John Honovich

IPVM | In reply to Undisclosed #1 | 06/23/15 07:52pm

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

"*** ******* *********** ** *** ******** ****** *** ** ******** camera ******* ******* ********* ************ **., ***., *** *************, ***., Grain *****, ***., ******** ***., ********* ***., * *** ****** created **** *** ****** ** ****** *** ********** ** ******* Limited *** ********* ***********, *** ***** *********** ************, ** **** as ********** ********** ********* ** ******** ****** ****, ********* ***** Inc. *** **** ***********"

Undisclosed #1

In reply to John Honovich | 06/23/15 09:34pm

**** *** ************** ****** ********** ********* ***** ********** ** *** ******* *****, it's *********** ***** *** **** ****** ** ** ********** ** Huawei ***** *********'* ********** ** ******** *******.

* ****** ** *** *** **** ** *** *** *********** address ** *** ******....

John Honovich

IPVM | In reply to Undisclosed #1 | 06/23/15 09:39pm

*** '*******'*** *************.

Undisclosed #1

In reply to John Honovich | 08/30/15 06:53pm

**** ** * ****** *****.

Steve Mitchell

06/23/15 06:59pm

**** ******* *** ******** ***** ****** ******** ** * *** growth ******. ****’** ****** ** **** **** ****’** * ******** to ***** *** **** ******** ************* *** ****** *****’* ****** there. **** **** ******* * *** ********** (****) ****-*********.

** *** *** ***** ** ** ** **** **********—**** ** the ********* ******* *** ***** **** *****. ** **** ****** they’re ***** (*** ***) *** **** ** ***** * *** of ******** ** **** ***’* ******* ** ***** *** **** other ***** ********* *** ** *****.

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