2022-12-01 | NDAQ:AMBA | Press Release

SANTA CLARA, Calif., Dec. 01, 2022 (GLOBE NEWSWIRE) — Ambarella, Inc. (NASDAQ: AMBA), an edge AI imaginative and prescient silicon corporate, nowadays introduced monetary effects for its 3rd quarter of fiscal yr 2023 ended October 31, 2022.

• Earnings for the 3rd quarter of fiscal 2023 was once $83.1 million, down 10% from $92.2 million in the similar duration in fiscal 2022. For the 9 months ended October 31, 2022, earnings was once $254.3 million, up 5% from $241.6 million for the 9 months ended October 31, 2021.
• Gross margin beneath U.S. usually approved accounting rules (GAAP) for the 3rd quarter of fiscal 2023 was once 62.2%, in comparison with 62.5% for a similar duration in fiscal 2022. For the 9 months ended October 31, 2022, GAAP gross margin was once 62.6%, in comparison with 62.4% for the 9 months ended October 31, 2021.
• GAAP internet loss for the 3rd quarter of fiscal 2023 was once $19.8 million, or loss according to diluted peculiar percentage of $0.51, in comparison with GAAP internet benefit of $0.8 million, or income according to diluted peculiar percentage of $0.02, for a similar duration in fiscal 2022. GAAP internet loss for the 9 months ended October 31, 2022 was once $54.3 million, or loss according to diluted peculiar percentage of $1.42. This compares with GAAP internet lack of $17.2 million, or loss according to diluted peculiar percentage of $0.47, for the 9 months ended October 31, 2021.
  

Monetary effects on a non-GAAP foundation for the 3rd quarter of fiscal 2023 are as follows:

• Gross margin on a non-GAAP foundation for the 3rd quarter of fiscal 2023 was once 63.5%, in comparison with 63.1% for a similar duration in fiscal 2022. For the 9 months ended October 31, 2022, non-GAAP gross margin was once 64.0%, in comparison with 62.9% for the 9 months ended October 31, 2021.
• Non-GAAP internet source of revenue for the 3rd quarter of fiscal 2023 was once $9.5 million, or income according to diluted peculiar percentage of $0.24. This compares with non-GAAP internet source of revenue of $22.2 million, or income according to diluted peculiar percentage of $0.57, for a similar duration in fiscal 2022. Non-GAAP internet source of revenue for the 9 months ended October 31, 2022 was once $34.1 million, or income according to diluted peculiar percentage of $0.88. This compares with non-GAAP internet source of revenue of $44.3 million, or income according to diluted peculiar percentage of $1.15, for the 9 months ended October 31, 2021.

In line with data to be had as of nowadays, Ambarella is providing the next steering for the fourth quarter of fiscal yr 2023, finishing January 31, 2023:

• Earnings is anticipated to be between $81.0 million to $85.0 million.
• Gross margin on a non-GAAP foundation is anticipated to be between 63.0% and 64.0%.
• Running bills on a non-GAAP foundation are anticipated to be between $46.0 million and $49.0 million.
  

Ambarella reviews gross margin, internet source of revenue (loss) and income (losses) according to percentage according to GAAP and, moreover, on a non-GAAP foundation. Non-GAAP monetary data excludes the affect of stock-based reimbursement and acquisition-related prices adjusted for the related tax affect, which incorporates the impact of any advantages or shortfalls identified. A reconciliation of the GAAP to non-GAAP gross margin, internet source of revenue (loss) and income (losses) according to percentage for the classes introduced, in addition to an outline of the pieces excluded from the non-GAAP calculations, is integrated within the monetary statements portion of this press liberate.

General money, money equivalents and marketable debt securities readily available on the finish of the 3rd quarter of fiscal 2023 was once $199.0 million, in comparison with $197.9 million on the finish of the prior quarter and $457.8 million on the finish of the similar quarter a yr in the past. Ambarella absolutely liquidated its debt safety investments by means of the top of the 3rd quarter of fiscal 2022 to finance the purchase of Oculii Corp. Throughout Q2 fiscal 2023, the corporate resumed its funding in debt securities.

“Our Q3 effects had been most commonly as anticipated, in spite of the fabric headwinds from the semiconductor business cyclical downturn,” stated Fermi Wang, President and CEO. “We maintained a excessive degree of center of attention on creating our edge AI endpoint merchandise which we see proceeding to provide very favorable secular expansion alternatives. Continental AG was once the primary corporate to announce the combination of CV3 into their ADAS product traces, and extra CV3 updates are expected within the subsequent a number of quarters. Our projected car earnings funnel grew roughly 28% from a yr in the past.”

Quarterly Convention Name

Ambarella plans to carry a convention name at 4:30 p.m. Japanese Time / 1:30 p.m. Pacific Time nowadays with Fermi Wang, President and Leader Government Officer, and Brian White, Leader Monetary Officer, to speak about the 3rd quarter of fiscal yr 2023 effects. The decision may also be accessed by means of dialing 877-304-8963 in the United States; world callers will have to dial 760-666-4834. Please dial in ten mins previous to the scheduled convention name time. A reside and archived webcast of the decision can be to be had on Ambarella’s website online at http://www.ambarella.com/ for as much as 30 days after the decision.

About Ambarella

Ambarella’s merchandise are utilized in all kinds of human and laptop imaginative and prescient programs, together with video safety, complex motive force help techniques (ADAS), digital replicate, force recorder, motive force/cabin tracking, self sufficient riding and robotics programs. Ambarella’s low-power systems-on-chip (SoCs) be offering high-resolution video compression, complex symbol processing and robust deep neural community processing to permit clever belief, fusion and central processing techniques to extract precious knowledge from high-resolution video and radar streams. For more info, please seek advice from www.ambarella.com.

“Secure harbor” remark beneath the Personal Securities Litigation Reform Act of 1995

This press liberate incorporates forward-looking statements that don’t seem to be historic information and regularly may also be known by means of phrases corresponding to “outlook,” “projected,” “intends,” “will,” “estimates,” “anticipates,” “expects,” “believes,” “may just,” “will have to,” or equivalent expressions, together with the steering for the fourth quarter of fiscal yr 2023 finishing January 31, 2023, and the feedback of our CEO in relation to headwinds within the semiconductor business, our secular expansion alternatives, possible client acceptance of our CV3 SoC, and our earnings alternatives within the car marketplace as represented by means of the corporate’s projected gross sales funnel. The fulfillment or luck of the issues lined by means of such forward-looking statements comes to dangers, uncertainties and assumptions. Our precise effects may just fluctuate materially from the ones predicted or implied and reported effects will have to no longer be thought to be as a sign of our long run efficiency.

The hazards and uncertainties referred to above come with, however don’t seem to be restricted to, dangers related to international well being stipulations and related possibility mitigation measures; international financial and political stipulations, together with cyclical headwinds within the semiconductor business, upper inflation and imaginable business price lists and restrictions; provide chain demanding situations within the semiconductor business and markets we serve; earnings being generated from new shoppers or design wins, neither of which is confident; the economic luck of our shoppers’ merchandise; our expansion technique; our talent to look forward to long run marketplace calls for and long run wishes of our shoppers, in particular for laptop imaginative and prescient programs; our talent to introduce new and enhanced answers; our talent to achieve buyer acceptance of our new SoC answers; our talent to expand, and to generate earnings from, new complex applied sciences, corresponding to laptop imaginative and prescient capability; our talent to retain and enlarge buyer relationships and to succeed in design wins; the growth of our latest markets and our talent to effectively input new markets, such because the OEM car and robotics markets; expected traits and demanding situations, together with pageant, within the markets wherein we perform; our talent to successfully set up expansion; our talent to retain key staff; and the potential of highbrow belongings disputes or different litigation.

Additional data on those and different elements that would impact our monetary effects is integrated within the corporate’s Annual Record on Shape 10-Ok for our 2022 fiscal yr, which is on report with the Securities and Trade Fee. More information can also be set forth within the corporate’s quarterly reviews on Shape 10-Q, annual reviews on Shape 10-Ok and different filings the corporate makes with the Securities and Trade Fee every so often, copies of that could be received by means of visiting the Investor Family members portion of our internet website at www.ambarella.com or the SEC’s internet website at www.sec.gov. Undue reliance will have to no longer be positioned at the forward-looking statements on this liberate, which might be in accordance with data to be had to us at the date hereof. The consequences we file in our Quarterly Record on Shape 10-Q for the 3rd fiscal quarter ended October 31, 2022 may just fluctuate from the initial effects introduced on this press liberate.

Ambarella assumes no legal responsibility and does no longer intend to replace the forward-looking statements made on this press liberate, with the exception of as required by means of legislation.

Non-GAAP Monetary Measures

The corporate has supplied on this liberate non-GAAP monetary data, together with non-GAAP gross margin, internet source of revenue (loss), and income (losses) according to percentage, as a complement to the condensed consolidated monetary statements, which might be ready according to usually approved accounting rules (“GAAP”). Control makes use of those non-GAAP monetary measures internally in examining the corporate’s monetary effects to evaluate operational efficiency and liquidity. The corporate believes that each control and buyers get pleasure from referring to those non-GAAP monetary measures in assessing its efficiency and when making plans, forecasting and examining long run classes. Additional, the corporate believes those non-GAAP monetary measures are helpful to buyers as a result of they enable for higher transparency with appreciate to key monetary metrics that the corporate makes use of in making working selections and as the corporate believes that buyers and analysts use them to assist assess the well being of its trade and for comparability to different corporations. Non-GAAP effects are introduced for supplemental informational functions just for figuring out the corporate’s working effects. The non-GAAP data will have to no longer be thought to be an alternative choice to monetary data introduced according to GAAP, and is also other from non-GAAP measures utilized by different corporations.

With appreciate to its monetary effects for the 3rd quarter of fiscal yr 2023, the corporate has supplied underneath reconciliations of its non-GAAP monetary measures to its maximum at once related GAAP monetary measures. With appreciate to the corporate’s expectancies for the fourth quarter of fiscal yr 2023, a reconciliation of non-GAAP gross margin and non-GAAP working bills steering to the nearest corresponding GAAP measure isn’t to be had with out unreasonable efforts on a forward-looking foundation because of the excessive variability and coffee visibility with appreciate to the fees excluded from those non-GAAP measures. We think the variety of the above fees to have a vital, and doubtlessly unpredictable, affect on our long run GAAP monetary effects.

The next tables provide main points of stock-based reimbursement and acquisition-related prices integrated in every practical line merchandise within the condensed consolidated statements of operations above:

The adaptation between GAAP and non-GAAP gross margin was once 1.3% and zero.6%, or $1.1 million and $0.5 million, for the 3 months ended October 31, 2022 and October 31, 2021, respectively. The adaptation between GAAP and non-GAAP gross margin was once 1.4% and zero.5%, or $3.3 million and $1.2 million, for the 9 months ended October 31, 2022 and October 31, 2021, respectively. The variations had been because of the impact of stock-based reimbursement and the amortization of acquisition-related prices.

Touch:

Louis Gerhardy

408.636.2310

[email protected]