Ambarella Inc (AMBA) 2017 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Ambarella's third FY17 earnings conference call.

女士們、先生們，美好的一天，歡迎參加安霸 2017 財年第三次收益電話會議。

As a reminder, this call is being recorded.

提醒一下，此通話正在錄音。

I would now like to introduce your host for today's conference, Ms. Deborah Stapleton, Investor Relations. Ms. Stapleton, you may begin.

現在我想介紹一下今天會議的主持人，投資者關係部門的 Deborah Stapleton 女士。斯泰普爾頓女士，您可以開始了。

Thank you, Catherine. Good afternoon, everyone, and welcome to Ambarella's third quarter FY17 financial results conference call. Thank you for joining us today.

謝謝你，凱瑟琳。大家下午好，歡迎參加安霸 2017 財年第三季財務業績電話會議。感謝您今天加入我們。

Our speakers will be Dr. Fermi Wang, President and CEO, and George Laplante, CFO. The primary purpose of today's call is to provide you with information regarding our fiscal third quarter. The discussion today, and the responses to your questions will contain forward-looking statements regarding our financial prospects, market growth, and demand for our solutions among other things.

我們的演講者是總裁兼執行長 Fermi Wang 博士和財務長 George Laplante。今天電話會議的主要目的是向您提供有關我們第三財季的資訊。今天的討論以及對您問題的答覆將包含有關我們的財務前景、市場成長以及對我們解決方案的需求等方面的前瞻性陳述。

These statements are subject to risks, uncertainties, and assumptions. Should any of these risks or uncertainties materialize or should our assumptions prove to be incorrect, our actual results could differ materially from those forward-looking statements. We are under no obligation to update these statements.

這些陳述受到風險、不確定性和假設的影響。如果任何這些風險或不確定性成為現實，或者我們的假設被證明是不正確的，我們的實際結果可能與這些前瞻性聲明有重大差異。我們沒有義務更新這些聲明。

These risks, uncertainties and assumptions, as well as other information on potential risk factors that could affect our financial results are more fully described in the documents that we file with the SEC, including the annual report on Form 10-K that we filed on March 25, 2016 for the FY16, and quarterly report on Form 10-Q for our second quarter of FY17 that we filed on September 8, 2016. Access to our third-quarter press results release, historical results, SEC filings, and a replay of today's call can all be found on the Investor Relations portion of our website.

這些風險、不確定性和假設，以及可能影響我們財務業績的潛在風險因素的其他信息，在我們向SEC 提交的文件中進行了更全面的描述，包括我們於3 月份提交的10-K 表格年度報告2016 年2016 財年的10-Q 表格，以及我們於2016 年9 月8 日提交的2017 財年第二季度10-Q 表格的季度報告。請造訪我們的第三季新聞稿、歷史業績、SEC文件以及今天的電話會議可以在我們網站的投資者關係部分找到。

I'll now turn the call over to Dr. Fermi Wang.

我現在將電話轉給 Fermi Wang 博士。

Thank you. Good afternoon, everyone.

謝謝。大家下午好。

We are pleased to announce our first $100 million quarter today. This is the result of a continued momentum in IP security, home monitoring, drones and the automotive camera markets, and the final production ramp of action sports cameras for the holiday season.

今天，我們很高興地宣布我們的第一個季度營收達到 1 億美元。這是 IP 安全、家庭監控、無人機和汽車攝影機市場持續成長勢頭以及運動相機在假期季節最終產量增加的結果。

During the quarter, we were also pleased to enable the introduction of a new generation of products offering 4Kp60 video performance for the first time. In the drone or flying camera market, we continue to enjoy strong design win momentum across multiple product segments and the price points. Since our last call, market leader, DJI introduced a full range of new models featuring Ambarella camera SoC solutions.

在本季度，我們也很高興推出了首次提供 4Kp60 視訊效能的新一代產品。在無人機或飛行相機市場，我們繼續在多個產品領域和價位上享有強勁的設計獲勝動力。自從我們上次通話以來，市場領導者 DJI 推出了採用 Ambarella 相機 SoC 解決方案的全系列新型號。

In September, DJI introduced its Mavic Pro, an extremely compact drone featuring a gimbal stabilized 4K camera, 7 km transmission range, collision avoidance, indoor operation, and a flight time of 27 minutes.

9月，大疆創新推出了Mavic Pro，這是一款極其緊湊的無人機，配備萬向穩定4K相機、7公里傳輸範圍、防撞、室內操作和27分鐘的飛行時間。

The 4K Ultra HD camera supports a full HD live video streaming and a 12 megapixels for photography. In November, DJI introduced two new drones, the Inspire 2 and the Phantom 4 Pro that set a new standard for aerial imaging. Both drones support 4K Ultra HD video at a 60 frames per second, the industry's first models to do so.

4K超高清攝影機支援全高清即時視訊串流和1200萬像素攝影。 11月，大疆創新推出兩款新無人機「悟」Inspire 2和Phantom 4 Pro，為航空成像樹立了新標準。這兩款無人機均支援每秒 60 幀的 4K 超高清視頻，這是業界首款支援該功能的機型。

The Phantom 4 Pro camera features a 1 inch 20 megapixel sensor, 12 stops of dynamic range, mechanical shutter, and the 30-minute flight time. The high end Inspire 2 supports the mounting of Zenmuse cameras, and includes obstacle avoidance and intelligent flight modes. Both the Phantom 4 Pro and Inspire 2 include Ambarella's H1 4K camera SoC which can record video in both H.264 and H.265 video formats.

Phantom 4 Pro 相機配備 1 吋 2000 萬像素感應器、12 級動態範圍、機械快門和 30 分鐘飛行時間。高階Inspire 2支援安裝Zenmuse相機，並具有避障和智慧飛行模式。 Phantom 4 Pro 和 Inspire 2 均配備 Ambarella 的 H1 4K 相機 SoC，可錄製 H.264 和 H.265 視訊格式的影片。

In the wearable sports category, market leader GoPro introduced its new Hero 5 Black and Hero5 Sessions models at $399 and $299, respectively. The new models include 4K Ultra HD video at 30 frames per second, electronic image stabilization, integrated GPS, voice control, and a waterproof housing. The Hero 5 Black includes 12 megapixel photography and supports RAW and HDR modes, while the Hero5 Session supports 10 megapixel photography. Both new models are based on Ambarella's A9SE SoC.

在穿戴式運動類別中，市場領導者 GoPro 推出了新款 Hero 5 Black 和 Hero5 Sessions 型號，售價分別為 399 美元和 299 美元。新型號包括每秒 30 幀的 4K 超高清視訊、電子影像穩定、整合 GPS、語音控制和防水外殼。 Hero 5 Black 包括 1200 萬像素攝影並支援 RAW 和 HDR 模式，而 Hero5 Session 支援 1000 萬像素攝影。這兩款新型號均基於 Ambarella 的 A9SE SoC。

During the quarter, Nikon introduced its Key Mission 170 waterproof action camera. This is the first Nikon camera to be based on an Ambarella solution, and it leverages our A9SE SoC to enable 4K Ultra HD video recording and 8.3 megapixel photography. Also during the quarter, Chinese action camera maker, Eken, started shipping its H8 and H9 families of action sports camera, offering 4K Ultra HD video, Wi-Fi connectivity, and electronic image stabilization at the sub $150 price point. The cameras are based on Ambarella's A12 SoCs.

本季度，Nikon推出了 Key Mission 170 防水運動攝影機。這是第一款基於 Ambarella 解決方案的Nikon相機，它利用我們的 A9SE SoC 來實現 4K 超高清錄影和 8.3 兆像素攝影。同樣在本季度，中國運動相機製造商 Eken 開始發售 H8 和 H9 系列運動相機，以低於 150 美元的價格提供 4K 超高清視訊、Wi-Fi 連接和電子影像穩定功能。這些相機基於 Ambarella 的 A12 SoC。

In non-sports wearable market, Ambarella provide solutions for a variety of body-worn designs, including the majority of the world's police cameras. In November, Snap Inc. introduced Spectacles, these are sunglasses that include a camera that can take 10 seconds snaps, and wirelessly add them to Memories on Snapchat. Spectacles use an Ambarella low-power HD SoC.

在非運動穿戴市場，安霸為各種穿戴式設計提供解決方案，包括全球大多數警用攝影機。 11 月，Snap Inc. 推出了 Spectacles，這是一種太陽眼鏡，配有一個鏡頭，可以拍攝 10 秒的快照，並以無線方式將它們添加到 Snapchat 上的回憶中。 Spectacles 使用 Ambarella 低功耗高清 SoC。

In the home monitoring camera market, we are continuing to see significant growth. During the quarter, a number of leading retail brands introduced new cameras with an increasing focus on a high quality HD video, battery-powered for ease of replacement and embedded with intelligence to minimize the number of false alerts.

在家庭監視器市場，我們繼續看到顯著的成長。本季度，許多領先的零售品牌推出了新的攝像頭，越來越注重高質量高清視頻，電池供電，易於更換，並嵌入智能功能，以最大限度地減少誤報數量。

Leading European electronics manufacturer Bosch announced its entry into the smart home IoT market with the introduction of two Ambarella-based consumer IP cameras. The Bosch 360 Indoor Camera offers a full 360 degree coverage, while the Bosch Outdoor Camera integrates an HD camera into a light fixture. The cameras offer two-way voice communications, intelligent image analysis to avoid false alarms, and are supported by Bosch's smart camera apps, and cloud storage service.

歐洲領先電子製造商博世宣布進軍智慧家庭物聯網市場，推出兩款基於 Ambarella 的消費級 IP 攝影機。 Bosch 360 室內攝影機提供 360 度全方位覆蓋，而博世室外攝影機則將高清攝影機整合到燈具中。這些攝影機提供雙向語音通訊、智慧影像分析以避免誤報，並得到博世智慧攝影機應用程式和雲端儲存服務的支援。

And in August, Nest began shipping its Nest Cam Outdoor camera, building upon the success of its existing Nest Indoor Camera model. Supporting 24/7 streaming, the new water-resistant model has 3 megapixels resolution, 8 times zoom, night vision and two-way audio. The camera can also detect if a human is present, enabling it to send a special alert to a user's smart phone including a picture of the event.

8 月，Nest 在現有 Nest 室內攝影機型號的成功基礎上，開始發售 Nest Cam Outdoor 攝影機。新的防水型號支援 24/7 串流媒體，具有 300 萬像素解析度、8 倍變焦、夜視和雙向音訊。該相機還可以偵測是否有人在場，從而能夠向用戶的智慧型手機發送包含事件圖片的特殊警報。

In September, Canary introduced its new Flex battery-powered IP camera based on Ambarella's S2L SoC. This indoor/outdoor weatherproof HD security camera can be used wire-free or plugged in to provide ultimate flexibility in camera placement. It includes advanced features such as night vision, wide-angle viewing, two-way audio, encryption, and it eliminates the need for a separate base station.

9 月，Canary 推出了基於 Ambarella S2L SoC 的新型 Flex 電池供電 IP 攝影機。這款室內/室外防風雨高清安全攝影機可以無線使用或插入使用，以提供攝影機放置的最大靈活性。它包括夜視、廣角觀看、雙向音訊、加密等高級功能，並且無需單獨的基地台。

Also during the quarter, SimpliSafe introduced its first camera, sold for only $99 as an add-on to the Simplisafe Security System. Based on our S2LM SoC. This indoor camera offer intelligent motion-based recording, 30-day video storage, and a seamless integration with Simplisafe's DIY security system. In the professional security camera market, we are seeing continuous growth in IP security cameras, as well as new opportunities in cameras supporting HD video over existing analog coaxial cable, a technology commonly referred to as analog HD or HD CCTV.

同樣在本季度，SimpliSafe 推出了首款攝像頭，作為 Simplisafe 安全系統的附加組件，售價僅為 99 美元。基於我們的 S2LM SoC。這款室內攝影機提供智慧運動記錄、30 天視訊存儲，並與 Simplisafe 的 DIY 安全系統無縫整合。在專業安全攝影機市場，我們看到IP安全攝影機的持續成長，以及透過現有類比同軸電纜支援高清視訊的攝影機的新機遇，這種技術通常稱為類比高清或高清CCTV。

During the quarter, Chinese security giant, Dahua, began shipping its next generation of analog HD solution including true 4 megapixel cameras in bullet and eyeball form factors. Leveraging Ambarella's S2LM SoC for advanced image processing, the cameras offer excellent image quality over existing coaxial cable, and support wide dynamic range processing to capture image details in high contrast lighting conditions.

本季度，中國安防巨頭大華開始發售其下一代類比高清解決方案，包括真正的子彈型和眼球型 400 萬像素攝影機。這些相機利用 Ambarella 的 S2LM SoC 進行高級影像處理，透過現有同軸電纜提供卓越的影像質量，並支援寬動態範圍處理，以在高對比度照明條件下擷取影像細節。

Dahua also introduced its latest IP camera, the HDW4830, 8 megapixel eyeball network camera based on Ambarella's S3L SoC. The camera includes 4K video and can support both H.264 and H.265 video formats. Also during the quarter, network solutions supplier, Ubiquiti, began shipping its UniFi G3 and G3 dome IP cameras based on Ambarella's S2LM SoCs. The cameras support full HD video, indoor and outdoor operation, while hybrid cloud technology enables secure local storage, and the convenient remote access without additionally licensing or maintenance fees.

大華也推出了最新的IP攝影機HDW4830，這是基於Ambarella S3L SoC的800萬畫素眼球網路攝影機。該攝影機包含 4K 視頻，可支援 H.264 和 H.265 視頻格式。同樣在本季度，網路解決方案供應商 Ubiquiti 開始銷售基於 Ambarella S2LM SoC 的 UniFi G3 和 G3 半球 IP 攝影機。這些攝影機支援全高清視訊、室內和室外操作，而混合雲技術可實現安全的本地儲存和方便的遠端訪問，無需額外的許可或維護費用。

In the automotive video camera business, we are seeing accelerating adoption of dash camera video recorders by car manufacturers. Automotive OEMs are responding to consumer interest in Asia and Eastern Europe, and are now offering OEM branded video recorders as original equipment, and as dealer fit options. During the quarter, Mercedes-Benz started shipping its integrated eCall system featuring an Ambarella-based HD camera for incident recording.

在汽車攝影機行業，我們看到汽車製造商越來越多地採用行車記錄器。汽車原始設備製造商正在響應亞洲和東歐消費者的興趣，現在提供原始設備製造商品牌的錄影機作為原始設備和經銷商安裝選項。本季度，梅賽德斯-奔馳開始交付其整合 eCall 系統，該系統配備基於 Ambarella 的高清攝像頭，用於事件記錄。

European regulation requires that all new car be equipped with eCall technology starting from April 2018. In the event of a serious accident, eCall automatically connects to an emergency center for voice communication with optional pre-event recording and the live video footage. Initially the camera is being provided as a built-in standard feature for Mercedes-Benz cars sold in Russia.

歐洲法規要求從 2018 年 4 月開始，所有新車均配備 eCall 技術。如果發生嚴重事故，eCall 會自動連接到緊急中心進行語音通信，並可選配事前錄音和即時視訊片段。最初，該攝影機作為在俄羅斯銷售的梅賽德斯-奔馳汽車的內建標準功能提供。

Also during the quarter Japanese automotive giant, Toyota, introduced a family of dealer fit drive recorders based on Ambarella's A7LA and A12A SoCs. Supporting full HD video recording at 30 frames per second, the cameras provides drivers with the reliable video and audio evidence in case of accidents. And in November, Chinese automaker, Changan introduced its new CS95 SUV at the Guangzhou auto show. The new model features an integrated full HD drive recorder based on Ambarella's S2L SoC.

同樣在本季度，日本汽車巨頭豐田推出了一系列基於 Ambarella 的 A7LA 和 A12A SoC 的經銷商適合行車記錄器。支援每秒30幀的全高清視訊錄製，在發生事故時為駕駛員提供可靠的視訊和音訊證據。 11月，中國汽車製造商長安在廣州車展上推出了新款CS95 SUV。新型號配備了基於 Ambarella S2L SoC 的整合式全高清行車記錄器。

And in automotive aftermarket, Thinkware, the leading Korean video recorder manufacturer introduced its flagship Quantum model with two channel Quad HD video recording. It offers twice the number of pixels of standard full HD video recorders, and features integrated event departure warning, forward collision warning and a night video recording.

在汽車售後市場，韓國領先的錄影機製造商Thinkware推出了具有兩通道四路高清錄影功能的旗艦Quantum型號。它提供的像素數量是標準全高清錄影機的兩倍，並具有整合事件偏離警告、前方碰撞警告和夜間錄影功能。

Looking forward, we see significant opportunities for computer vision technology across multiple markets including drone, IP security camera and automotive cameras. Ambarella is continuing to invest heavily in computer vision development, using the pioneering computer vision and autonomous vehicle work done by our combined Ambarella and the VisLab teams. We remain on track to tape-out our first computer vision chip in the beginning of next year.

展望未來，我們看到電腦視覺技術在多個市場（包括無人機、IP 安全攝影機和汽車攝影機）的巨大機會。 Ambarella 繼續大力投資電腦視覺開發，利用我們 Ambarella 和 VisLab 聯合團隊完成的開創性電腦視覺和自動駕駛車輛工作。我們仍有望在明年初流片我們的第一個電腦視覺晶片。

And on November 8, the Italian Prime Minister Matteo Renzi visited VisLab, citing them as an example of a successful Italian start-up, with a strong vision and solid execution. Mr. Renzi reached the facility in Parma onboard VisLab's latest vehicle prototype driving in autonomous mode, together with Alberto Broggi, Ambarella's Italian general manager. Mr. Renzi was impressed by the smoothness of the ride, and commented positively on the vision that VisLab has developed in the past 20 years.

11 月 8 日，義大利總理馬泰奧·倫齊 (Matteo Renzi) 參觀了 VisLab，並稱其為義大利新創企業的成功典範，擁有強大的願景和紮實的執行力。 Renzi 先生與 Ambarella 義大利總經理 Alberto Broggi 一起乘坐 VisLab 最新的自動駕駛汽車原型車抵達帕爾馬工廠。 Renzi先生對騎乘的平穩性印​​象深刻，並對VisLab過去20年發展的願景給予正面評價。

With that, I will now I hand it over to George for more details on the financials and our Q4 guidance.

現在，我將把它交給喬治，以獲取有關財務狀況和第四季度指導的更多詳細資訊。

Thanks, Fermi, and good afternoon, everyone. Today I will start with a review of the financial highlights for the third quarter of FY17 ending on October 31, 2016, and then review the financial outlook for Q4 of FY17 that ends on January 31, 2017.

謝謝費米，大家下午好。今天我將先回顧截至2016年10月31日的2017財年第三季的財務亮點，然後回顧截至2017年1月31日的2017財年第四季的財務前景。

During the call, I'll discuss non-GAAP results, and ask that you refer to today's press release for a detailed reconciliation of GAAP to non-GAAP results. For non-GAAP reporting for Q3, we have eliminated stock-based compensation expense adjusted for the impact of taxes.

在電話會議期間，我將討論非 GAAP 業績，並請您參考今天的新聞稿，以了解 GAAP 與非 GAAP 業績的詳細調節情況。對於第三季的非公認會計準則報告，我們消除了根據稅務影響進行調整的基於股票的補償費用。

Our Q3 2017 revenue of $100.5 million represents an increase of 7.8% from the $93.2 million of revenue in the same period in the prior year. In the third quarter, consumer security and wearable cameras demonstrated strong year-over-year growth.

我們 2017 年第三季的營收為 1.005 億美元，比去年同期的 9,320 萬美元成長了 7.8%。第三季度，消費者安全和穿戴式相機表現出強勁的年成長。

In the wearable market, we saw strong year-over-year and sequential growth led by the production ramp of the new GoPro Hero 5 line of cameras, as well as the non-sports wearables such as police cameras. As a reminder, the comparison to prior year revenues for GoPro is somewhat difficult, as a significant portion of the product launches occurred in Q2, rather than Q3 last year.

在穿戴式裝置市場，我們看到了強勁的同比和環比成長，這主要得益於新型 GoPro Hero 5 系列攝影機以及警用攝影機等非運動穿戴裝置的產量成長。需要提醒的是，與去年 GoPro 的收入進行比較有些困難，因為產品發布的很大一部分發生在第二季度，而不是去年的第三季度。

On a year-over-year basis, estimated revenues in the IP security market returned to growth, with the professional security recovering with strong sequential growth, and home security demonstrating strong year-over-year and sequential growth. The drone market was down both year-over-year and sequentially, primarily due to the timing of product launches as manufacturers continue to incur delays in the launch of new products, or incurred production issues causing a failure to meet market demand.

與去年同期相比，IP安全市場的預期收入恢復成長，其中專業安全領域恢復強勁，環比增長，家庭安全則呈現強勁的同比和環比增長。無人機市場年比及季比均下滑，主要是因為製造商持續延後新產品的推出，或出現生產問題導致無法滿足市場需求，導致產品發表的時間安排不佳。

The Q3 automotive aftermarket revenues were down year-over-year, primarily as a result of continued softness in China. The impact of the Sony sensor shortage in Q3 was in line with our expectations, with $2 million to $3 million revenue either lost or delayed. We now expect the shortage to continue, but at a slowing pace through Q4 for certain sensors with the impact primarily affecting new product launches by customers.

第三季汽車售後市場營收年減，主要是因為中國市場持續疲軟。第三季索尼感測器短缺的影響符合我們的預期，損失或延遲了 200 萬至 300 萬美元的收入。我們現在預計短缺將持續下去，但某些感測器的短缺速度將在第四季度放緩，其影響主要影響客戶的新產品發布。

Non-GAAP gross margin for Q3 was 66.3%, compared to 67.1% in the immediately preceding quarter, and 65.9% in the third quarter of the prior year. Gross margin in the quarter was higher than anticipated, primarily due to the benefit received of approximately $1.1 million from the recovery and sale of inventory previously written down due to yield lost through the manufacturing process. We expect one more quarter of positive margin impact from the inventory recovery, but in a lesser amount. Excluding this impact, product margins were in line with our expectations.

第三季非 GAAP 毛利率為 66.3%，上一季為 67.1%，去年第三季為 65.9%。本季毛利率高於預期，主要是由於先前因製造過程中產量損失而減記的庫存回收和銷售帶來了約 110 萬美元的收益。我們預期庫存恢復將再對利潤率產生四分之一的正面影響，但幅度較小。排除此影響，產品利潤率符合我們的預期。

Non-GAAP operating expenses for the third quarter were $24.2 million, compared to $23 million for Q2 2017, and $23.1 million for Q3 of the prior year. As expected, Q3 OpEx increased from the previous quarter, due primarily to higher chip development costs, as we invest more in the 14 nanometer process node.

第三季非 GAAP 營運費用為 2,420 萬美元，而 2017 年第二季為 2,300 萬美元，上年第三季為 2,310 萬美元。正如預期的那樣，第三季度營運支出較上一季度有所增加，主要是由於我們在 14 奈米製程節點上投入更多，晶片開發成本更高。

Non-GAAP net income for Q3 was $38.4 million or $1.11 per diluted ordinary share, compared with non-GAAP net income of $36.6 million, or $1.08 per diluted ordinary share for the same period in the previous year. The non-GAAP effective tax rate in Q3 2017 was 9.6%. In the third quarter, the non-GAAP diluted -- earnings per diluted ordinary share are based on 34.6 million diluted shares, as compared to 33.9 million diluted shares for Q3.

第三季非 GAAP 淨利為 3,840 萬美元，即每股稀釋普通股 1.11 美元，而去年同期非 GAAP 淨利潤為 3,660 萬美元，即每股稀釋普通股 1.08 美元。 2017 年第三季的非 GAAP 有效稅率為 9.6%。第三季度，非公認會計準則稀釋後每股稀釋普通股收益基於 3,460 萬股稀釋股票，而第三季稀釋後股票為 3,390 萬股。

Total headcount at the end of Q3 was 658, compared to 654 at the end of the previous quarter, with about 82% of our employees dedicated to engineering. Approximately 72% of our total headcount is located in Asia, primarily in Taiwan and China. We ended Q3 with cash and marketable securities of $372.1 million, adding $43 million of cash from operations in the quarter.

第三季末的總員工人數為 658 人，而上一季末的員工總數為 654 人，其中約 82% 的員工專門從事工程工作。我們約 72% 的員工分佈在亞洲，主要是台灣和中國大陸。第三季結束時，我們的現金和有價證券為 3.721 億美元，本季營運現金增加了 4,300 萬美元。

Total accounts receivable at the end of Q3 were $41.4 million, or about 37 days sales outstanding. This compares to accounts receivable of $33.6 million, or 47 days sales outstanding, in the prior quarter. Net inventory at the end of Q3 was $23.3 million, or about 59 days of inventory, compared to $20.9 million, or 82 days of inventory at the end of Q2. Accounts receivable and inventory remain in line with Company targets.

第三季末的應收帳款總額為 4,140 萬美元，相當於約 37 天的未清銷售額。相比之下，上一季的應收帳款為 3,360 萬美元，即 47 天的未清銷售額。第三季末的淨庫存為 2,330 萬美元，約 59 天的庫存，而第二季末的淨庫存為 2,090 萬美元，即 82 天的庫存。應收帳款和庫存與公司目標一致。

WT Microelectronics, our Asia logistics supplier, represented approximately 54% of our revenue in the quarter, compared to 68% for the same period in the previous year. During the quarter for the first time, we commenced significant shipments of chips directly to GoPro rather than their ODMs, in support of the launch of the Hero 5 products.

我們的亞洲物流供應商文曄科技占我們本季營收的約 54%，去年同期為 68%。在本季度，我們首次開始直接向 GoPro 而不是他們的 ODM 供應大量晶片，以支援 Hero 5 產品的發布。

As a result, GoPro represented approximately 30% of our revenue in Q3 of FY17, compared to 1% for the same period in the prior year. To avoid any misunderstanding, please note that the 1% of revenue generated from GoPro direct shipments in the prior year did not include chips shipped to GoPro's various ODMs, either directly or through WT Microelectronics for production of their camera products.

因此，GoPro 約占我們 2017 財年第三季營收的 30%，而去年同期為 1%。為避免任何誤解，請注意，上一年 GoPro 直接出貨產生的 1% 收入不包括直接或透過文曄科技運送給 GoPro 各 ODM 生產其相機產品的晶片。

I would now like to discuss the outlook for Q4 of FY17. We expect revenues for our fourth quarter ending January 31, 2017, to be between $84 million and $87 million, representing an increase of between 24% and 28%, respectively, from Q4 of last year.

我現在想討論一下 2017 財年第四季的展望。我們預計截至 2017 年 1 月 31 日的第四季營收將在 8,400 萬美元至 8,700 萬美元之間，較去年第四季分別成長 24% 至 28%。

We are anticipating solid year-over-year growth in drones and wearable sports cameras, with flat revenues from IP security and automotive markets. The automotive market now includes revenues from video recorders in both the OEM and aftermarket channels.

我們預計無人機和穿戴式運動相機將實現年比穩健成長，而 IP 安全和汽車市場的收入將持平。汽車市場現在包括 OEM 和售後市場通路中錄影機的收入。

We estimate Q4 non-GAAP gross margins to be between 64% and 65.5%, compared to 66.3% in Q3 of this fiscal year, and 64.1% in Q4 of the prior year. As I mentioned earlier, we are expecting a positive gross margin impact from the recovery of previously written-off inventory in Q4, but to a lesser amount than previous quarters.

我們預計第四季非 GAAP 毛利率在 64% 至 65.5% 之間，而本財年第三季為 66.3%，上一年第四季為 64.1%。正如我之前提到的，我們預計第四季之前註銷的庫存的恢復將對毛利率產生積極的影響，但影響程度會低於前幾季。

We expect non-GAAP OpEx in the fourth quarter to be between $25 million and $27 million, with an increase from Q3 primarily coming from increased chip development costs associated primarily with the initial development programs in the new 10-nanometer process technology. We expect the non-GAAP effective tax rate to be approximately 11.5% in the quarter, and estimate our diluted share count for Q4 to be approximately 35.3 million shares.

我們預計第四季度的非GAAP 營運支出將在2,500 萬美元至2,700 萬美元之間，較第三季的成長主要來自於晶片開發成本的增加，這主要與新的10 奈米製程技術的初始開發計劃相關。我們預計本季非 GAAP 有效稅率約為 11.5%，並估計第四季度稀釋後股本數量約為 3,530 萬股。

Although we expect to return to growth for the full year of FY18, our current visibility of Ambarella inventory levels held at our primary consumer product customers indicates there is a potential for a negative impact to revenue in the early part of FY18. Whether we realize such an impact, and the scope of any impact will largely depend upon the holiday sell-through in these markets.

儘管我們預計 2018 財年將全年恢復成長，但我們目前對主要消費品客戶的安霸庫存水準的了解表明，2018 財年初期的收入可能會受到負面影響。我們是否意識到這種影響以及影響的範圍將在很大程度上取決於這些市場的假期銷售情況。

Once we have a better understanding of the holiday sell-through and related impact on our customer's year end inventory levels of our chips, we can be more specific in our annual guidance for next year. I anticipate providing a more detailed outlook on our year end earnings call.

一旦我們更了解了假期銷售情況以及對客戶晶片年終庫存水準的相關影響，我們就可以在明年的年度指導中更加具體。我預計在年終財報電話會議上提供更詳細的展望。

Today, the Company announced that its Board of Directors has authorized an extension of the duration of its share repurchase program initially announced in June 2016. Under the extended program, Ambarella is authorized to continue to repurchase up to an aggregate of $75 million of ordinary shares until June 30, 2017.

今天，公司宣布，董事會已授權延長最初於 2016 年 6 月宣布的股票回購計劃的期限。根據延長計劃，Ambarella 被授權繼續回購總計最多 7500 萬美元的普通股至 2017 年 6 月 30 日。

In June, the Company repurchased a total of 405,089 shares in the open market for a total cash consideration of approximately $20.2 million, or $49.80 per share. Since that time, the Company has not repurchased any additional shares.

6 月份，該公司在公開市場上回購了總計 405,089 股股票，總現金對價約為 2,020 萬美元，即每股 49.80 美元。自此之後，公司沒有回購任何額外股份。

Although the repurchase program does not obligate the Company to acquire any particular amount of ordinary shares, we will continue to evaluate the opportunity to repurchase shares for the remainder of the extended period. Any repurchases of shares will be funded from Company's working capital.

儘管回購計畫並未要求公司收購任何特定數量的普通股，但我們將繼續評估在延長期限的剩餘時間內回購股票的機會。任何股份回購都將由公司的營運資金提供資金。

I would like to thank everyone for joining our call today, and now we will turn it back to the operator to manage the Q&A session.

我要感謝大家今天加入我們的電話會議，現在我們將把它轉回給接線生來管理問答環節。

Catherine, go ahead, please?

凱瑟琳，請繼續吧？

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Matt Ramsay, Canaccord Genuity.

馬特拉姆齊 (Matt Ramsay)，Canaccord Genuity。

Good afternoon, guys. Thank you very much. George, maybe you could, I know you provided some detail in your prepared script, but maybe you could walk us through a little bit more, the moving parts on a segment basis for the guidance. I know the guide is impacted by a number of things. It sounds like a bit more weakness in the drone market than I had anticipated, and obviously some seasonality with some of the consumer customers. So any additional granularity on a per segment basis that you can give on the January outlook would be really helpful. Thank you.

下午好，夥計們。非常感謝。喬治，也許你可以，我知道你在準備好的腳本中提供了一些細節，但也許你可以向我們介紹更多一點，以分段為基礎的移動部分以提供指導。我知道該指南受到許多因素的影響。聽起來無人機市場比我預期的更加疲軟，而且顯然有些消費者客戶存在季節性。因此，您可以對一月份的前景提供任何按細分市場劃分的額外粒度都會非常有幫助。謝謝。

Well, I think I'd mentioned that drones and wearable would be strong during the Q4. I think professional security, although it's flat year-over-year that does, I think, show a continuation of strength in China, that we saw in Q3. So I think we're reasonably happy there. And on the home security market, that continues to be really strong for us in the quarter.

嗯，我想我已經提到無人機和穿戴式裝置在第四季將會表現強勁。我認為專業安全雖然同比持平，但我認為這確實顯示出我們在第三季度看到的中國的持續強勢。所以我認為我們在那裡相當高興。在家庭安全市場上，本季我們的表現仍然非常強勁。

So I don't think there was really any surprises in the quarter. We saw drones come back a little bit in Q4. We will see it, we think, and home security and sports cameras remains strong.

所以我認為本季並沒有真正的驚喜。我們看到無人機在第四季有所回升。我們認為，我們會看到這一點，家庭安全和運動相機仍然很強大。

All right. Thanks. Fermi, it was good to hear you discuss some of the traction in the automotive market for the data recording application. I think you mentioned Mercedes, and some dealer outfitting at Toyota being two of the newer customers, in addition to some that you had in the past. I guess, two things.

好的。謝謝。 Fermi，很高興聽到您討論汽車市場對數據記錄應用的一些吸引力。我想你提到了梅賽德斯和豐田的一些經銷商裝備，除了你過去擁有的一些客戶之外，他們也是兩個新客戶。我想，有兩件事。

One, maybe you could talk about a little bit about the revenue per car opportunity for that application, and how the data recording application might lead to some, I don't know, mirror application, and other camera applications at the same OEMs. Is there a direct correlation as to how we should see that pipeline develop against those OEMs over time? Thanks.

第一，也許您可以談談該應用程式的每輛車機會的收入，以及數據記錄應用程式如何可能導致一些（我不知道）鏡子應用程式以及同一 OEM 的其他相機應用程式。隨著時間的推移，我們應該如何看待針對這些 OEM 的管道開發是否有直接關聯？謝謝。

Right. I think, as you know they're, every brand has multiple different models, and we start shipping with some of the models, but not all of the models. So I think the revenue ramp is going to take a while, but we're very excited that we finally get into those models. In terms of the ASPs, it really depends on the quality level.

正確的。我認為，正如您所知，每個品牌都有多種不同的型號，我們開始發貨某些型號，但不是所有型號。因此，我認為收入成長需要一段時間，但我們非常高興最終進入這些模式。就 ASP 而言，這實際上取決於品質等級。

As you know that some of the car require temperature, and some of the car need a AEC-Q100, and some of the car might even require [ISO] compliance in the future. So all of those quality point have different price points associated with it. What I can say is, at right now, for the current model, we are looking at high single-digit. And probably, in the future you could go to a AEC-Q, it can potentially be higher than that.

如您所知，有些汽車需要溫度，有些汽車需要 AEC-Q100，有些汽車將來甚至可能需要 [ISO] 合規性。因此，所有這些品質點都有不同的與之相關的價格點。我能說的是，目前，對於目前的模型，我們正在尋找高個位數。也許，將來你可以參加 AEC-Q，它可能會比這個更高。

Got it. That's helpful. And George, I'll just finish up with this, and I'll get back in the queue. You obviously gave some forward commentary about inventory levels of your chips at your customers into next year. Anything that you can give us that might quantify that potential impact, and how conservative are you trying to be with that outlook going forward, given the lack of visibility of the sustained sell-through of some of the products? Thanks.

知道了。這很有幫助。喬治，我會完成這個，然後我會回到隊列中。顯然，您對明年客戶的晶片庫存水準做出了一些前瞻性評論。您可以給我們任何可以量化潛在影響的資訊嗎？鑑於某些產品的持續銷售情況缺乏可見性，您對未來的前景有多保守？謝謝。

Yes. I think, I really can't give any more, or I can't quantify it any better, I don't think at this point. But I think you have to realize, first, that we have a higher concentration of consumer revenue in the second half of this year, and it is across multiple markets. And I think each customer, they vary their inventory levels from suppliers based on a multitude of factors such as cost or lead times.

是的。我想，我真的不能再給更多了，或者說我無法更好地量化它，我現在不這麼認為。但我認為你必須意識到，首先，今年下半年我們的消費者收入更加集中，而且分佈在多個市場。我認為每位客戶都會根據成本或交貨時間等多種因素來改變供應商的庫存水準。

So I really, so depending on how each of our customers are able to burn off their supply of Ambarella chips by year end, it will determine the impact to our early FY18 revenues. And I think it's a bit early right now to be able to quantify that. But I just want to be clear. Really, our inventory levels at customers are not necessarily a definitive indication of our customers' success in selling their own products, primarily because they all carry different inventory levels.

所以我真的，所以取決於我們每個客戶如何能夠在年底前消耗掉他們的 Ambarella 晶片供應，這將決定對我們 2018 財年早期收入的影響。我認為現在量化這一點還為時過早。但我只想說清楚。事實上，我們在客戶處的庫存水準並不一定能明確表明我們的客戶是否成功銷售自己的產品，主要是因為他們的庫存水準各不相同。

All right. Fair enough. Thanks again, guys.

好的。很公平。再次感謝你們。

Thank you.

謝謝。

Thank you. Kevin Cassidy, Stifel.

謝謝。凱文·卡西迪，斯蒂菲爾。

Thank you, and congratulations on the great results. For your guidance, maybe George, the description is for year-over-year. Can you say what's the change quarter-over-quarter? Which part of your markets are dropping down, to come up with the down 15% quarter over quarter? Is it just seasonal?

謝謝您，並祝賀您取得如此好的成績。為了給您指導，也許喬治，描述是針對逐年的。您能說一下季度季比的變化嗎？您的市場的哪一部分正在下降，導致季度環比下降 15%？僅僅是季節性的嗎？

Yes. You would see most of the markets -- our historical run rates, we've seen Q4 drop from Q3, and this is a fairly normal quarter, so almost across the board. Probably with the exception of our OEM auto business, most of the other markets drop between Q3 and Q4. So I think this is actually very normal.

是的。你會看到大多數市場——我們的歷史運行率，我們看到第四季度比第三季度有所下降，這是一個相當正常的季度，所以幾乎全面。可能除了我們的OEM汽車業務之外，其他大部分市場在第三季和第四季之間都在下降。所以我覺得這其實是很正常的。

And the home security market is fairly new for you, so is that a -- do you know what the seasonality is there? Is that typically a January weak quarter?

家庭安全市場對您來說相當新，所以您知道那裡有什麼季節性嗎？這通常是一月份的疲軟季度嗎？

I think it's going to be in the future. It is not so much this year. We're seeing a sequential ramp through the whole year including Q4.

我想未來也會如此。今年沒有那麼多。我們看到全年都在連續成長，包括第四季。

Okay.

好的。

In that market, there's still a big chunk of the retail portion in there, so eventually I think you're going to see more seasonality in the future.

在這個市場中，仍然有很大一部分零售部分，所以最終我認為未來你會看到更多的季節性。

Okay. And maybe just one other question on gross margin guidance. If you excluded the previously written-off inventory, what would gross margin have been?

好的。也許只是關於毛利率指引的另一個問題。如果排除之前沖銷的庫存，毛利率是多少？

It ends up just over 65%.

最終比例剛好超過 65%。

Okay. Great. Thank you.

好的。偉大的。謝謝。

Thank you. Suji De Silva, Roth Capital.

謝謝。蘇吉·德席爾瓦，羅斯資本。

Hi, Fermi. Hi George. Congratulations on the strong results here. Looking ahead perhaps further to FY18, can you talk about which two or three segments you're thinking would have the most growth opportunity? I know there's a lot of visibility challenge near term, but maybe a longer-term thought there?

嗨，費米。嗨喬治。在這裡祝賀您取得的優異成績。展望 2018 財年，您能否談談您認為哪兩到三個細分市場將擁有最大的成長機會？我知道近期會遇到很多可見性挑戰，但也許有一個更長期的想法？

Well, I'll give it a try. I think that, first of all, if you look at, follow the sign, I still think that drone become a bigger chunk of our business, and I definitely think from a dollar sign point of view, I think that drone can give us more dollar growth. If you look at the percentage of growth, I really think that consumer IP security camera, as well as the Ultra OEM business, both of them are going to show very strong growth in percentage-wise. So those three areas, definitely are things that we're focusing on right now. And of course, there are other wild cards in there that we can talk about, for example. We talked about that we do -- we are working on the VR cameras, it's really very hard to make a judgment on how big that market is, that's why we're being conservative on that.

好吧，我會嘗試一下。我認為，首先，如果你看一下，遵循這個標誌，我仍然認為無人機成為我們業務的更大一部分，我絕對認為從美元符號的角度來看，我認為無人機可以為我們帶來更多美元增長。如果你看一下成長的百分比，我真的認為消費者 IP 安防攝影機以及 Ultra OEM 業務，它們都將在百分比方面表現出非常強勁的成長。所以這三個領域肯定是我們現在關注的重點。當然，例如，還有其他我們可以討論的通配符。我們談到了我們所做的事——我們正在研究 VR 相機，很難判斷這個市場有多大，這就是為什麼我們對此持保守態度。

Okay. And then, another long-term question, the computer vision chip that's coming around the corner here. Which of the end markets that it could target, do you think, would be one of the first ones for that, to start showing up in?

好的。然後，另一個長期問題，即將出現的電腦視覺晶片。您認為它可以瞄準的哪個終端市場將是最先開始出現的市場之一？

I will guess it's going to be drones, because there's an obvious demand for high-performance computer vision chip in the drones. So although the market is not big, but definitely there is the requirement for the high-performance computer vision chip, is very clear.

我猜會是無人機，因為無人機對高性能電腦視覺晶片的需求顯而易見。所以雖然市場不大，但是對於高性能的電腦視覺晶片肯定是有需求的，是非常明確的。

Okay. And then, this last clarification perhaps for George. So are the drone program push-outs related to the Sony image sensor shortage, or are those two not related?

好的。然後，這最後的澄清也許是為了喬治。那麼，無人機項目的推出是否與索尼影像感測器短缺有關，或者兩者沒有關係？

Not related to Sony at this time.

目前與索尼無關。

Okay. Great. Thanks, guys.

好的。偉大的。多謝你們。

Thank you. Quinn Bolton, Needham & Company.

謝謝。奎因·博爾頓，李約瑟公司。

Hello guys, congratulations on the first $100 million revenue quarter. I just wanted to come back to the professional security, George. If I heard you, I think you said it was going to be flat year on year. If that's the case, can you talk to us? Obviously I would've thought you would have seen a growth trend in that market, just given the move toward IP cams. Is it the Sony CMOS image sensors that still are drag and keeping that business only flat year on year, or can you talk about the dynamics in professional security a little bit more?

大家好，恭喜您第一個季度收入達到 1 億美元。我只是想回到專業保安崗位，喬治。如果我聽到你的話，我想你說過，今年的情況將會持平。如果是這樣的話，你能和我們談談嗎？顯然，只要考慮到 IP 攝影機的發展，我就認為您會看到該市場的成長趨勢。是Sony CMOS 影像感測器仍拖累業務，讓業務同比持平，還是您能多談談專業安全領域的動態？

Sure. There's two things. There is some impact from the Sony sensor, particularly at the low end of the professional security market in China. And the second one, which is actually more significant. If you go back to a year ago, there was a significant ramp in China coming into year end.

當然。有兩件事。索尼感測器帶來了一些影響，特別是在中國的低端專業安防市場。第二個，其實更重要。如果你回到一年前，你會發現中國在年底時出現了顯著的成長。

So there was, I think it was to a certain degree a bubble, because we saw that drop off significantly in Q1 and Q2. And now we've seen it recover back to normal levels. So I think being flat year over year is actually a positive as it relates to the China market, because last year's was somewhat artificially inflated.

所以，我認為這在某種程度上是一個泡沫，因為我們看到第一季和第二季泡沫顯著下降。現在我們看到它恢復到正常水平。因此，我認為同比持平實際上對中國市場來說是一個積極的因素，因為去年的市場有些人為地誇大了。

Got it. And then a similar question on the drones. I think you said it would be up year on year, but your comments, I think you said on a sequential basis, really only automotive would be flat. So just wanted to see if you could clarify that outlook for the drones into the January quarter on a sequential basis?

知道了。然後是關於無人機的類似問題。我想你說過它會逐年上升，但你的評論，我想你說過，在連續的基礎上，實際上只有汽車行業會持平。所以只是想看看您是否可以按順序澄清一月季度無人機的前景？

Well, we're struggling a little bit on the drone market because there's so many product delays, and there are some issues with manufacturing in the customer area. So we're struggling a little bit about getting the exact numbers there. We think it can be -- it's going to be down a little bit sequentially, which you would expect. But I think it's -- a lot of it is driven by manufacturing issues, product delays, not necessarily, we don't want to make it sound like there is a demand issue in the marketplace. Because in some cases, some of the products are selling very well, and there's back order on the products, they just can't get them into the marketplace.

嗯，我們在無人機市場上遇到了一些困難，因為有很多產品延遲，而且客戶領域的製造存在一些問題。因此，我們在獲得確切的數字方面遇到了一些困難。我們認為它可能會連續下降一點，正如你所期望的那樣。但我認為，這很大程度上是由製造問題、產品延遲造成的，但不一定，我們不想讓它聽起來像是市場上有需求問題。因為在某些情況下，有些產品賣得很好，但產品出現了延期交貨，他們就是無法將其推向市場。

Great. And then the last, maybe for Fermi. Sounds like the drone market will be the first market to adopt your machine vision solution as it comes to market next year. Just wondering, it looks like DJI, obviously that's the 800 pound gorilla in that space, uses Movidius. Would you target trying to take that socket, or do you see growth opportunities at other OEMs? Just how do you position against the incumbent on the machine vision chips at your largest drone customer?

偉大的。最後一個，也許是費米。聽起來無人機市場將是第一個採用您的機器視覺解決方案的市場，因為您的機器視覺解決方案將於明年上市。只是想知道，看起來 DJI（顯然是那個空間中的 800 磅重的大猩猩）使用了 Movidius。您的目標是嘗試佔領該市場，或者您是否看到其他原始設備製造商的成長機會？您如何定位您最大的無人機客戶的機器視覺晶片領域的現有產品？

Right. In fact, I would say that we are trying to sell our solution to all potential OEMs there, and DJI included. We know that Movidius is in there, but competition is competition. We need to -- I think we have a better chip, and we are targeting to try to win as many design wins as possible in the drone space.

正確的。事實上，我想說的是，我們正在嘗試將我們的解決方案出售給所有潛在的原始設備製造商，其中包括大疆創新。我們知道 Movidius 就在那裡，但競爭就是競爭。我們需要——我認為我們有更好的晶片，我們的目標是在無人機領域贏得盡可能多的設計勝利。

Great. Thank you.

偉大的。謝謝。

Thank you.

謝謝。

Thank you. Ross Seymore, Deutsche Bank.

謝謝。羅斯·西莫爾，德意志銀行。

Thanks for letting me ask a question. Some of the questions about the fourth quarter sequentials, George, could you just right-size this on describing those end markets for the third quarter, for the actuals, just so we know what to grow off of?

謝謝你讓我問一個問題。關於第四季序列的一些問題，喬治，您能否根據實際情況調整第三季終端市場的規模，以便我們知道成長的基礎？

You mean as far as the percent of the revenue in there for Q3?

您的意思是第三季營收的百分比？

Yes. Or just if sequentials, which grew, which shrank, any precision you have on that would be helpful.

是的。或者，如果連續序列增長、收縮，那麼你對此的任何精確度都會有所幫助。

Yes. If you're looking at, the biggest growth sequentially has got to be in sports cameras. The launch going from near zero at GoPro to a full launch, so that's the most significant step up in the quarter.

是的。如果你仔細觀察的話，你會發現連續成長最快的是運動攝影機。 GoPro 的發布從接近零到全面發布，因此這是本季最重要的一步。

If you look at professional security, that was the second largest step up because we saw, as you remember, a slow down in professional security to -- in China in the first half. So those two were the largest step-up. And then, if you look at home consumer, security has been steadily growing through the year. So those are the major step ups in the quarter.

如果你看一下專業安全，這是第二大進步，因為正如你所記得的，我們看到上半年中國的專業安全放緩。所以這兩個是最大的進步。然後，如果你看看家庭消費者，你會發現安全性這一年一直在穩定成長。這些是本季的主要進步。

As we look into the quarter itself, even if we take out the benefit of selling written-off inventory, you still would have been at the high end of your mix. If China was coming back, if the consumer security business was doing what it was doing, why was the mix at the high end of what you guys had originally guided?

當我們審視本季本身時，即使我們扣除出售註銷庫存的好處，您仍然處於組合的高端。如果中國正在回歸，如果消費者安全業務正在做它正在做的事情，為什麼混合會處於你們最初指導的高端？

Really in the new chip in sports cameras. They're solid margins there.

確實在運動相機的新晶片中。他們在那裡有穩固的利潤。

And then as we look forward, I guess this one is for Fermi. You talked a lot about the OEM traction that you're having with the embedded dash cams. Talk a little bit about -- do you believe that has a benefit of you guys getting a better relationship with those same OEMs, as far as the computer vision chip? Are they going to be similar enough relationships that the investments that you're putting in now, in to the OEM dash cams will benefit the CV side of things going forward? Or are they sufficiently different?

然後當我們展望未來時，我想這就是費米的。您多次談到了嵌入式行車記錄器對 OEM 的吸引力。談談—就電腦視覺晶片而言，您認為與這些原始設備製造商建立更好的關係有好處嗎？它們之間的關係是否足夠相似，以至於您現在對 OEM 行車記錄器進行的投資將有利於 CV 方面的發展？或者它們有足夠的不同嗎？

Well, in fact, I would say that is reversed. We get a better relationship with OEMs starting by acquiring VisLab, and we can introduce to OEMs, that when they are trying to find the recorders, they remember Ambarella as part of that. So (inaudible) already in the recorders, we showed them a very strong roadmap on the recorder side. So I think really our CV investment, our acquisition of VisLab help us to establish ourselves as viable supplier to multiple OEMs.

嗯，事實上，我想說的是，情況正好相反。透過收購 VisLab，我們與 OEM 建立了更好的關係，我們可以向 OEM 介紹，當他們試圖尋找記錄器時，他們會記得 Ambarella 是其中的一部分。因此（聽不清楚）已經在記錄器中，我們向他們展示了記錄器方面非常強大的路線圖。因此，我認為我們的 CV 投資以及對 VisLab 的收購確實幫助我們成為多個 OEM 的可行供應商。

Great. Thank you.

偉大的。謝謝。

Thank you.

謝謝。

Thank you. Jagadish Iyer, Summit Redstone.

謝謝。賈加迪什·艾耶，峰會紅石。

Yes, thanks for taking my question. Two questions I have. First, George, I just wanted to drill down on the IP security camera in the US, what kind of success have you had so far, and how should we think about its margins? And then I have a follow-up.

是的，感謝您提出我的問題。我有兩個問題。首先，喬治，我只是想深入了解美國的網路安全攝像頭，到目前為止你們取得了哪些成功，我們該如何看待它的利潤？然後我有一個後續行動。

Yes, IP security in the US for us is really dominated by the home security market, and those are at the low end of the margin profile for the Company.

是的，對我們來說，美國的智慧財產權安全確實由家庭安全市場主導，而這些市場處於公司利潤狀況的低端。

But how about growth in terms of looking at like annual growth in the segment, if you look at say, in the October quarter of this year versus the last year?

但是，如果看看今年十月季度與去年相比，該細分市場的年度成長如何？

Well, it's one of our fastest-growing markets. A very high percentage growth rate, but off a very small base. So we haven't given percentage growth rate.

嗯，這是我們成長最快的市場之一。成長率非常高，但基數很小。所以我們沒有給出百分比成長率。

Okay. That's fair enough. And then, I just want to understand -- and this is -- maybe I misunderstood this. But if you look at historically GoPro has Q4 as one of the strongest quarters in the Company history. So I just wanted to understand, given your guidance, is there a big step up for you guys, or have they already purchased everything predominantly in your most recent October quarter?

好的。這很公平。然後，我只是想了解——這是——也許我誤解了這一點。但如果你回顧 GoPro 的歷史，第四季是公司歷史上最強勁的季度之一。所以我只是想了解，根據你的指導，你們是否有很大的進步，或者他們是否已經主要在最近的十月季度購買了所有東西？

Well, the largest quarter for any of the consumer product companies is Q3. But we also have some revenues, holiday season revenues that occur earlier in Q4. So you do see an overlap there into Q4.

嗯，對於任何消費品公司來說，最大的季度是第三季。但我們也有一些收入，也就是第四季早些時候出現的假日季節收入。所以你確實看到第四季有重疊。

Okay. Fair enough. Thank you.

好的。很公平。謝謝。

Thank you. Charlie Anderson, Dougherty & Company.

謝謝。查理安德森，多爾蒂公司。

Yes. Thanks for taking my questions. I just want to go back to, if the quad copter, and we've seeing product delays there, is that by definition sort of absolved from this inventory overhang into the first half of the year, so drones are not impacted? And it sounds like that's not the case, so I just want to clarify that. And then secondly, on consumer IP security, having crossed over that 10% threshold, and what's the outlook going forward, as a percent of revenue?

是的。感謝您回答我的問題。我只想回過頭來，如果四軸飛行器，我們已經看到產品延遲，那麼根據定義，今年上半年的庫存積壓是否可以得到緩解，因此無人機不會受到影響？聽起來好像並非如此，所以我只是想澄清一下。其次，在消費者 IP 安全方面，已經突破了 10% 的門檻，未來的前景如何（佔收入的百分比）？

Yes, on the -- let's start with the consumer, it is right at that 10% level now. So it's getting, it's been growing pretty steadily, and we see that becoming a bigger part of our overall IP security. On the drones, there we -- it hasn't all sorted out yet. There is a potential in certain areas, that there could be excess inventory, depending on how the manufacturing process works itself out.

是的，我們從消費者開始，現在正好處於 10% 的水平。因此，它一直在相當穩定地成長，我們看到它正在成為我們整體 IP 安全的重要組成部分。在無人機方面，我們——一切都還沒有解決。某些領域可能會出現庫存過剩的情況，具體取決於製造過程本身的情況。

And Charlie, this is Fermi, just to add one more comment there. The consumer IP security camera percentage, because what we should [allow] the chip to [Tiger Vision] [Dahua] and those chips using both the professional and consumer, it's hard for us to determine the ratio in those two accounts. So it's hard for us to get a very accurate estimation of how big is our consumer market for now.

查理，我是費米，只是想再補充一則評論。消費者IP安全攝影機的比例，因為我們應該[允許]晶片給[Tiger Vision][大華]以及那些同時使用專業和消費者的晶片，我們很難確定這兩個帳戶的比例。所以我們目前很難非常準確地估計我們的消費市場有多大。

Yes, the number I quoted was actually our North American number.

是的，我引用的號碼實際上是我們的北美號碼。

Yes, and don't forget Bosch too, right? Now that they are selling consumer IP (laughter)

是的，別忘了博世，對吧？現在他們正在出售消費者IP（笑聲）

That's right.

這是正確的。

Yes. So Fermi, I just want to go back on your comment about drones being the big grower next year. Are you seeing something from a feature set standpoint, from a price standpoint that underpins your bullishness on that end market next year?

是的。費米，我只想回顧一下您關於無人機明年將成為主要種植者的評論。從功能集的角度、從價格的角度來看，您是否看到了一些支撐您對明年終端市場的看漲情緒的東西？

I think you hit it both, absolutely correctly. I think that the customer demands with better feature, and the price erosion are the drivers for this growth. And on the price erosion, it's very clear. Last year, most of the DJI drones above [$1,000]. Now we're talking, looking at anywhere between $499 to $999 as the mainstream. And we see a lot of [the selfie] drones at anywhere between $299 and $499 price range. So I think that price point definitely a big driver.

我認為你兩者都擊中了，絕對正確。我認為客戶需要更好的功能，而價格的下降是這種成長的驅動力。關於價格侵蝕，這一點非常明顯。去年，大多數 DJI 無人機的價格都在 [1,000 美元] 以上。現在，我們將 499 美元到 999 美元之間的價格視為主流。我們看到很多[自拍]無人機的價格在 299 美元到 499 美元之間。所以我認為價格點絕對是一個很大的推動因素。

At the same time, we continue to see a lot of our customers trying to innovate. For example, on the camera side, DJI announced a 4K p60. That 60 frames per second is absolutely critical for the high-flying drones to capture excellent video. Because when you move so fast, frame rate matters.

同時，我們繼續看到許多客戶嘗試創新。例如相機方面，大疆發布了4K p60。每秒 60 幀對於高空飛行的無人機捕捉精彩影片絕對至關重要。因為當您移動得如此之快時，幀速率很重要。

At the same time, you see a lot of people trying to do a computer vision, so that you can have autonomous drone in the future. So even from a feature point of view, I think there is continuous innovation in the product. So both the upgrade of features, as well as the price erosion are the drivers for the growth.

同時，你會看到很多人試圖做電腦視覺，這樣你就可以在未來擁有自主無人機。所以即使從功能的角度來看，我認為產品也有持續的創新。因此，功能的升級以及價格的下降都是成長的驅動力。

Great. Thanks so much.

偉大的。非常感謝。

Thank you.

謝謝。

Thank you. Brad Erickson, Pacific Crest Securities.

謝謝。艾瑞克森 (Brad Erickson)，太平冠證券 (Pacific Crest Securities)。

Hi, guys. Thanks for taking my questions. Just a couple follow-ups here. First, I just need a clarification, George, from your prepared remarks. You mentioned that there could be this negative impact to first half FY18, just depending on the holiday sell-through. So I just wanted to clarify if you meant that the impact could result in negative revenue year-over-year in either of this quarters, or if you just meant negative relative to your current expectations? Thanks.

嗨，大家好。感謝您回答我的問題。這裡只是一些後續行動。首先，喬治，我需要對你準備好的發言進行澄清。您提到，僅取決於假日銷售情況，可能會對 2018 財年上半年產生負面影響。因此，我只是想澄清一下，您的意思是這種影響可能會導致本季度任何一個季度的收入同比出現負數，還是只是指相對於您當前的預期而言是負數？謝謝。

Yes, negative to my current expectations. If you look at the impact, we're talking more or less in that individual market what the impact of our Q1 is, and not necessarily on the total quarter revenue yet.

是的，對我目前的期望來說是負面的。如果你看看影響，我們或多或少談論了對個別市場第一季的影響，而不一定是對季度總收入的影響。

Got it. And then I'm assuming within this guidance, the January quarter guidance, you're assuming drones to still be down, correct? Is that the case?

知道了。然後我假設在這個指導中，一月份季度的指導中，你假設無人機仍然處於下降狀態，對嗎？是這樣嗎？

Well, there's a potential for it. We think it has also the potential to be growing, if we can get through some of these manufacturing, and get the ramps going.

嗯，有潛力。我們認為，如果我們能夠完成其中一些製造工作並啟動產能，它也有成長的潛力。

Got it. That's helpful. And then regarding the growth next year. You said overall the Company expects to return to growth. And I think Fermi may have added that drones would be also a grower there. I think drones probably, close to doubled this year for you guys. Are you guys materially expanding the number of customers that's driving the growth next year? Or is it really just your customer is dropping in price point, as Fermi just talked about earlier? Is it more of customer expansion, or more just unit expansion from existing customers, driving the drone growth next year? Thanks.

知道了。這很有幫助。然後關於明年的成長。您說總體上公司預計將恢復成長。我認為費米可能還補充說，無人機也將成為那裡的種植者。我認為今年無人機的數量可能接近翻倍。你們是否大幅增加了推動明年成長的客戶數量？或者真的只是你的客戶的價格下降了，正如費米之前談到的？推動明年無人機成長的更多因素是客戶擴張，還是現有客戶的單位擴張？謝謝。

I think both, but we've definitely increased the number of customers. In fact, we announced multiple in the last conference call. We talked about [Unique] and also talked about some other customers in China. So the number of customers is definitely expanding. But however, the big winner in this market is DJI, and we do expect that DJI continue to expand to other unit sales next year. And I think that's probably the biggest driver.

我認為兩者都是，但我們確實增加了客戶數量。事實上，我們在上次電話會議中宣布了多個消息。我們談到了[Unique]，也談到了中國的一些其他客戶。所以客戶數量肯定在擴大。不過，這個市場的大贏家是大疆創新，我們預期大疆創新明年將繼續擴大到其他單位的銷售。我認為這可能是最大的驅動力。

Got it. That's helpful. Thanks.

知道了。這很有幫助。謝謝。

Thank you. Richard Shannon, Craig-Hallum.

謝謝。理查德·香農，克雷格·哈勒姆。

Hi, guys. Thank you for taking my question as well. Maybe a first question for George, just on the comment about inventories in the first half. Was that across multiple sectors, or just consumer and what breadth of customer base are you referring to here?

嗨，大家好。也感謝您提出我的問題。也許是喬治的第一個問題，關於上半場庫存的評論。是跨越多個行業，還是只是消費者？您在這裡指的是多大範圍的客戶群？

Consumer. I think, when you look at the concentration of consumer in the second half, you have home security, you have wearable, you have drones. So there's a lot of consumer- based companies that we're monitoring the sell-through.

消費者。我認為，當你看下半年消費者的集中度時，你有家庭安全、你有穿戴裝置、你有無人機。因此，我們正在監控許多基於消費者的公司的銷售情況。

Is this different than what you've seen in past years around this timeframe, or is there some new development here that's driving this commentary?

這與您在過去幾年在這個時間範圍內看到的情況是否有所不同，或者這裡是否有一些新的發展推動了這一評論？

Well, we have seen it in the past years, but it's been with fewer customers, and less of an impact. So this year with more of the customers involved, we're being more cautious I think, in trying to monitor. It's a little difficult for us to monitor sell-through, particularly in markets like home security. We get very little data on that, that's current.

嗯，我們在過去幾年已經看到過這種情況，但客戶較少，影響也較小。因此，今年隨著涉及的客戶越來越多，我認為我們在嘗試監控時會更加謹慎。對我們來說監控銷售量有點困難，特別是在家庭安全等市場。我們得到的這方面的數據非常少，這是最新的。

Okay. That helps. I was actually going to ask a question about that, but I think that just answers that. Maybe a question again for you, George, on gross margins here. You guys continue to exceed, not only your quarterly guidance, but also your longer-term model here.

好的。這有幫助。我其實本來想問一個問題，但我認為這只是回答了這個問題。喬治，也許又問你一個關於毛利率的問題。你們不僅繼續超越你們的季度指導，而且超越你們的長期模型。

It sounds like the new products you're selling to your top customers, historical top customer, are favorable. How should we think about gross margins over the next few several quarters, is there a timeframe by which you expect to get more to that long-term model you've consistently talked about for the last few years, or can it stay sustainably above that level?

聽起來您向頂級客戶（歷史頂級客戶）銷售的新產品很受歡迎。我們應該如何考慮未來幾季的毛利率？是否有一個時間框架，您期望在過去幾年中一直在談論的長期模型獲得更多收益，或者它是否能持續保持在該水平之上等級？

I think I'm going to actually put that question off until our year end call. I think mix has so much impact on my margin profile, that I'd really like to see where particularly the first half margin profile will be. I think longer term, we still expect margins to move towards that. The timing is difficult to forecast at this point.

我想我實際上要把這個問題推遲到我們的年終電話會議上。我認為混合對我的利潤狀況影響很大，我真的很想看看上半年的利潤狀況會在哪裡。我認為從長遠來看，我們仍然預期利潤率將朝著這個方向發展。目前很難預測具體時間。

Okay. That's what I figured, but the thoughts are appreciated. One last quick question for me. You talked about some success here, early success you've had with recording applications in automotive. Is that a noticeable and material portion of revenues for automotive yet, or is it still really quite small?

好的。這就是我的想法，但我的想法值得讚賞。最後問我一個問題。您在這裡談到了一些成功，您在汽車錄音應用方面取得的早期成功。這在汽車產業收入中是否佔據了顯著且重要的比例，還是仍然很小？

It's not material yet, but the trend is very clear, that it's not only just a couple of OEMs we're talking about. We are seeing strong momentum in China and in East Europe, I think that, China particularly. So I think this is definitely a trend that we want to continue to follow up, and we have high hope that this continue be our growth driver.

目前還不是實質的，但趨勢非常明顯，我們談論的不僅僅是幾家原始設備製造商。我們看到中國和東歐的強勁勢頭，我認為，特別是中國。所以我認為這絕對是我們想要繼續跟進的趨勢，我們非常希望這繼續成為我們的成長動力。

Okay. Perfect. I think that's all the questions for me. Thank you very much, guys.

好的。完美的。我想這就是我要問的所有問題。非常感謝你們。

Thank you.

謝謝。

Thank you. Joe Moore, Morgan Stanley.

謝謝。喬摩爾，摩根士丹利。

Great. Thank you. I just had one longer-term question on the computer vision side. A lot of the focus lately has been on applying AI to those types of problems, and versus a [mirror-heuristic] approach. Can you talk about that, how that might affect your long-term approach that market? And is there an opportunity for you to be have an [inference] engine into these consumer applications for a [neural] net type approach?

偉大的。謝謝。我只是有一個關於電腦視覺方面的長期問題。最近的焦點很多都集中在將人工智慧應用於這些類型的問題上，而不是[鏡像啟發式]方法。您能談談這可能如何影響您對該市場的長期策略嗎？您是否有機會在這些消費者應用程式中使用[推理]引擎來實現[神經]網路類型的方法？

Well, in fact, that's definitely a possible approach. We're using a [CN] type of approach for our object detection, among other things that, that technology apply to. And that's going to be available on our [CD1] chip. And all of our [follow-on] chip work use a similar type of AI technology. So that's definitely part of our plan. And in fact, that's going to become (inaudible) to be long-term plan here.

嗯，事實上，這絕對是一種可能的方法。我們正在使用 [CN] 類型的方法來進行物件偵測，以及該技術適用的其他內容。這將在我們的 [CD1] 晶片上提供。我們所有的[後續]晶片工作都使用類似類型的人工智慧技術。所以這絕對是我們計劃的一部分。事實上，這將成為（聽不清楚）這裡的長期計劃。

Okay, great. And then, as you think about that computer vision technology. You talked about drones being the first area, what about surveillance? It seems like there's a lot of applications in surveillance as well. How long might that take you to get that into market?

好的，太好了。然後，當你思考電腦視覺技術時。您談到無人機是第一個領域，那麼監視呢？看來監控領域也有很多應用。您需要多長時間才能將其推向市場？

Well, in fact, you are absolutely right. Security cameras also have high demand on the computer vision, but it's in different performance level. For example, drone, you need to have AI type technology to cover 360 degree view. And probably need to have higher resolution.

嗯，事實上，你是完全正確的。安防攝影機對電腦視覺的要求也很高，但性能水平不同。比如說無人機，你需要有AI類的技術來涵蓋360度的視角。並且可能需要更高的解析度。

On the security camera side, the performance requirement is lower than that. So it's very hard to use a single chip to cover both markets. So that's why we keep talking about, we want to use -- building a first chip, and continue to drive [the growth] from there. So you should expect a strong roadmap from us, to address using different chip to address different marketing requirements.

在安全攝影機方面，性能要求低於此。所以用一個晶片來覆蓋兩個市場是非常困難的。這就是為什麼我們一直在談論，我們想要使用——建立第一個晶片，並從那裡繼續推動[成長]。因此，您應該期待我們提供強有力的路線圖，以解決使用不同晶片來滿足不同行銷需求的問題。

Great. Thank you very much.

偉大的。非常感謝。

Thank you.

謝謝。

Thank you. We have a follow-up from Matt Ramsay with Canaccord Genuity.

謝謝。我們有來自 Canaccord Genuity 的 Matt Ramsay 的後續報導。

Thank you for letting me jump back in, guys. George, a couple of things with respect to the guidance, that I just wanted to try to tease out, or maybe clarify further. I think most of us had modeled revenue from your consumer segment down pretty materially in January on a sequential basis, and then probably down again in April.

謝謝你們讓我重新加入，夥伴們。喬治，關於指導的一些事情，我只是想嘗試梳理一下，或進一步澄清。我認為我們大多數人都預測一月份消費者細分市場的收入環比大幅下降，然後四月可能會再次下降。

And so, the commentary that you've provided regarding inventory levels and the risk of visibility in the first half of the year, is that to try to indicate to us that this is -- you should remind us of seasonality? Or is this an indication that things could get materially worse if sell-through doesn't sustain at some of your key customers there? I'm just trying to get an accurate framing of that. And I think that commentary may have surprised some folks, at least the starkness of your commentary there. So just any clarification there would help. Thanks.

因此，您提供的有關上半年庫存水準和可見性風險的評論是試圖向我們表明，您應該提醒我們季節性嗎？或者這是否表明，如果您的一些主要客戶的銷售無法持續，情況可能會變得更糟？我只是想得到一個準確的框架。我認為這種評論可能會讓一些人感到驚訝，至少是你的評論的赤裸裸。因此，任何澄清都會有幫助。謝謝。

Yes. I don't know if I have any added clarification in what the results are, but we have so many consumer customers now, monitoring those sell-throughs is a little difficult. There is a lot of inventory build for the holiday season. So we are being conservative going into the New Year, until we have better visibility on what those inventory levels end up to be.

是的。我不知道我是否對結果有任何補充說明，但我們現在有這麼多消費者客戶，監控這些銷售量有點困難。假期期間庫存增加。因此，進入新的一年，我們將保持保守態度，直到我們更好地了解這些庫存水準的最終結果。

I don't know if I can give you any more specifics around that, and I'm not trying to gauge the level of our concern at this point. We're pointing it out because of the, I think, the high inventory levels that are in the channel right now.

我不知道是否可以向您提供更多具體信息，而且我目前並不想評估我們的擔憂程度。我認為，我們指出這一點是因為目前渠道中的庫存水準很高。

All right. That's fair. And then, just one little follow-up. I know we had talked in the past about the enterprise security camera market, and you've given some trends of how it was in the third and into the fourth quarters. But I think you guys had talked about that being a 15%-ish growth market for the duration of next year. Is that still the expectation that, that market returns to some longer-term sustainable growth? That's it for me. Thanks.

好的。這還算公平。然後，只是一個小小的後續行動。我知道我們過去曾討論過企業安全攝影機市場，您也給出了第三季和第四季的一些趨勢。但我想你們已經討論過明年市場將成長 15% 左右。這仍然是市場回歸長期可持續成長的預期嗎？對我來說就是這樣。謝謝。

Yes. We are currently feel that the professional side of the market will maintain growth, return to growth next year, and this is driven a lot by the recovery in China.

是的。我們目前認為專業市場將保持成長，明年恢復成長，這在很大程度上是由中國的復甦推動的。

Thank you. And I'm showing no further questions at this time. I would like to turn the call back to Dr. Fermi Wang for any closing remarks.

謝謝。目前我不會再提出任何問題。我想將電話轉回給費米·王博士，請其發表結束語。

Thank you. And thanks for joining us today, and a special thanks to our employees for their continued dedication. Goodbye for now. Thank you.

謝謝。感謝您今天加入我們，並特別感謝我們的員工的持續奉獻。暫時再見了。謝謝。

Ladies and gentlemen. Thank you for participating in today's conference. This concludes today's program. You may all disconnect. Everyone, have a great day.

女士們，先生們。感謝您參加今天的會議。今天的節目到此結束。你們都可以斷開連線。大家，祝你有美好的一天。