Ambarella Inc (AMBA) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Ambarella's Third Quarter Fiscal Year Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加 Ambarella 財年第三季財報電話會議。 （操作員指示）請注意，今天的會議正在錄音。

I would like to turn the conference over to your speaker, Louis Gerhardy. Please go ahead, sir.

我想將會議交給發言人 Louis Gerhardy。先生，請繼續。

Thank you, Lisa. Good afternoon, and thank you for joining our third quarter fiscal year 2023 financial results conference call. On the call with me today is Dr. Fermi Wang, President and CEO; and Brian White, CFO. The primary purpose of today's call is to provide you with information regarding the results for our third quarter of fiscal year 2023.

謝謝你，麗莎。下午好，感謝您參加我們 2023 財年第三季財務業績電話會議。今天與我一起通話的是總裁兼執行長 Fermi Wang 博士；以及財務長 Brian White。今天電話會議的主要目的是向您提供有關我們 2023 財年第三季業績的資訊。

The discussion today and the responses to your questions will contain forward-looking statements regarding our projected financial results, financial prospects, market growth and demand for our solutions, among other things. 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 these forward-looking statements. We're under no obligation to update these statements. 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 we filed with the SEC, including the annual report on Form 10-K that we filed on April 1, 2022 for fiscal year 2022 ending January 31, 2022, and in the Form 10-Q filed on September 8, 2022 for the second quarter of our fiscal year 2023.

今天的討論和對您的問題的回答將包含有關我們預計的財務業績、財務前景、市場成長和對我們解決方案的需求等的前瞻性陳述。這些聲明受風險、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錯誤的，我們的實際結果可能與這些前瞻性陳述有重大差異。我們沒有義務更新這些聲明。這些風險、不確定性和假設以及可能影響我們財務結果的潛在風險因素的其他資訊在我們向美國證券交易委員會提交的文件中進行了更完整的描述，包括我們於 2022 年 4 月 1 日提交的截至 2022 年 1 月 31 日的 2022 財年的 10-K 表年度提交的年度報告，以及 2022 年 2022 年的年度會計10-Q 表。

Access to our third quarter fiscal 2023 results press release, transcripts, historical results, SEC filings and a replay of today's call can be found on the Investor Relations page of our website.

您可以在我們網站的投資者關係頁面上查看我們的 2023 財年第三季業績新聞稿、成績單、歷史業績、美國證券交易委員會 (SEC) 文件以及今天電話會議的重播。

Fermi will now provide a business update for the quarter. Brian will review the financial results and outlook, and then we'll be available for your questions. Fermi?

Fermi 現在將提供本季的業務更新。布萊恩將回顧財務結果和前景，然後我們將回答您的問題。費米？

Thank you, Louis, and good afternoon. Thank you for joining our call today.

謝謝你，路易斯，下午好。感謝您今天參加我們的電話會議。

Q3 was mostly as expected. While there are material headwinds from an industry-wide semiconductor cyclical downturn, there is no change in our very favorable secular growth outlook for the opportunity enabled by our edge AI endpoint investments. During Q3, in 4 key ways, we demonstrated significant progress to develop these opportunities.

第三季基本符合預期。儘管整個產業半導體週期性衰退帶來了重大阻力，但我們對邊緣 AI 端點投資帶來的機會的長期成長前景非常樂觀，這一點並未改變。在第三季度，我們在四個關鍵方面展示了開發這些機會的重大進展。

First of all, our positive market development momentum continues, highlighted by the November 18 announcement from Continental AG. But after a multiyear evaluation, they became the first to integrate our CV3 SoCs into their ADAS product lineup. Second, our 6-year automotive revenue is $2.3 billion and increased about 28% from the $1.8 billion announced a year ago with approximately $800 million (inaudible) business. This funnel is predominantly driven by our computer vision and the domain controller SoCs. And it's important to note, our automotive SAM over the same period is still 10x the size of this new automotive funnel. So there is plenty of headroom for share gain.

首先，我們的市場發展動能持續向好，大陸集團 11 月 18 日的公告就凸顯了這一點。但經過多年的評估，他們率先將我們的 CV3 SoC 整合到其 ADAS 產品系列中。其次，我們 6 年的汽車收入為 23 億美元，比一年前宣布的 18 億美元增長了約 28%，業務收入約為 8 億美元（聽不清楚）。這個漏斗主要由我們的電腦視覺和網域控制器 SoC 驅動。值得注意的是，我們同期的汽車 SAM 仍然是這個新汽車漏斗的 10 倍。因此，市場佔有率還有很大的成長空間。

Third, our confidence in our customers' product continue to rise as we leverage our historical success with optimized processing for high-bandwidth sensing. This is demonstrated by a total blended SoC ASP, we estimate that will increase about 20% this year. Furthermore, we expect our new SoC like CV5 and the CV3 to commence significantly higher ASPs.

第三，隨著我們利用歷史成功經驗對高頻寬感測進行最佳化處理，我們對客戶產品的信心不斷增強。這體現在總體混合 SoC ASP 上，我們估計今年它將成長約 20%。此外，我們預計我們的新 SoC（如 CV5 和 CV3）的 ASP 將大幅提高。

Fourth, we are on track to reach our goal for CV to be 45% of total revenue this year and with a strong Q4 CV run rate, CV revenue is expected to post strong growth in fiscal 2024 and become a large portion of mix.

第四，我們預計將實現今年 CV 佔總收入 45% 的目標，並且憑藉第四季度強勁的 CV 運行率，CV 收入預計將在 2024 財年實現強勁增長，並成為組合的重要組成部分。

Now I will provide some examples of our market development activity. On November 18, German automotive Tier 1 Continental announced that they will offer Advanced Driver Assistance Systems based on our CV3 AI domain controller SoC family. Our high-performance, power-efficient and scalable SoC portfolio built for ADAS and autonomous application complements Continental's solution for assisted driving and further advanced vehicle automation.

現在我將提供一些我們市場開發活動的例子。 11月18日，德國汽車一級供應商大陸集團宣布，將基於我們的CV3 AI域控制器SoC系列提供高級駕駛輔助系統。我們為 ADAS 和自主應用構建的高性能、節能且可擴展的 SoC 產品組合補充了大陸集團的輔助駕駛和進一步先進的車輛自動化解決方案。

The joint solution is centralized single-chip architecture, enables the next generation of vehicles to more quickly perceive environmental conditions by processing multiple sensor input simultaneously. Supporting sensing modalities include high-resolution cameras, radars and LiDARs as well as ultrasonic sensors.

此聯合解決方案採用集中式單晶片架構，透過同時處理多個感測器輸入，使下一代汽車能夠更快地感知環境狀況。支援感測模式包括高解析度攝影機、雷達和光達以及超音波感測器。

Our integrated SoC enables the early fusion of rear sensor inputs wherein the data from different sensor is combined for advanced vehicle automation. The high scalability of our CV3 SoC family allows vehicle manufacturers to choose the optimal performance level for their system requirements while using the same vehicle architecture. Additionally, these joint solutions low-power consumption reduced cooling requirements, making sustainable energy saving possible while also reducing system costs.

我們的整合 SoC 支援後部感測器輸入的早期融合，其中來自不同感測器的數據被組合在一起以實現先進的車輛自動化。我們的 CV3 SoC 系列具有高度可擴展性，使汽車製造商能夠在使用相同車輛架構的同時選擇適合其係統要求的最佳性能等級。此外，這些聯合解決方案的低功耗降低了冷卻需求，從而實現了可持續的節能，同時降低了系統成本。

Continental's ADAS solution with integrated Ambarella SoC will be showcased for the first time at the CES 2023 in Las Vegas. Also during the quarter, we announced another win in Japan with Toyota, who began shipping its Yaris and Yaris Cross models, featuring a Gentex auto-dimming mirror with integrated digital video recorder. Based on Ambarella's automotive SoC, the new channel video recorder features both from and the rear-facing cameras, as well as an app that allows customers to pull the recorded video directly to their phones.

大陸集團整合 Ambarella SoC 的 ADAS 解決方案將在拉斯維加斯的 2023 年 CES 上首次亮相。此外，在本季度，我們宣布與日本豐田公司達成另一項合作，豐田公司開始發售其 Yaris 和 Yaris Cross 車型，這些車型配備了集成數位視訊錄影機的 Gentex 自動防眩後視鏡。新型通道錄影機基於 Ambarella 的汽車 SoC，配備前置和後置鏡頭，以及一款允許客戶將錄製的影片直接拉到手機上的應用程式。

Mercedes Benz began shipment of vehicle in China and Korea with a car recorder from Korean Tier 1 supplier mobile appliance. Based on Ambarella's H22, the car recorder includes both an ultra-HD front camera and the QHD rear camera. In November, we announced that China-based INVO Tech is in mass production with a driver and an occupant monitoring system that is being delivered to GAC for including its Emkoo SUVs. This system uses a single CV25AQ AI SoC and integrates 1 2-megapixel driver monitoring camera and the 3 2-megapixel occupancy monitoring cameras.

賓士開始在中國和韓國發售配備韓國一級供應商行動裝置的車載記錄器的車輛。該車載記錄器基於安霸的 H22，配備超高清前置攝影機和 QHD 後置攝影機。 11 月，我們宣布中國 INVO Tech 已開始量產駕駛員和乘員監控系統，並將交付給廣汽集團，用於其 Emkoo SUV。該系統採用單一 CV25AQ AI SoC，整合 1 個 200 萬像素駕駛員監視攝影機和 3 個 200 萬像素佔用監視攝影機。

I'm also pleased to announce that our CV25 automotive AI SoC has been chosen for a driver monitoring application at a major Korean automotive OEM, with production expected to begin in 2023. The CV25 was chosen for its highly efficient neural network processing, combined with the very low power consumption.

我也很高興地宣布，我們的 CV25 汽車 AI SoC 已被韓國一家大型汽車 OEM 選中用於駕駛員監控應用，預計將於 2023 年開始生產。 CV25 之所以被選中，是因為其高效的神經網路處理能力，以及極低的功耗。

I will now talk about some of our customer development in the IoT space starting with the enterprise security camera market. During the quarter, Verkada announced its first multi-sensor camera, the CH52-E which use a full Ambarella CV25SAI vision SoC. The camera includes a full independent 5-megapixel sensors to offer customers to wide coverage benefits of a fisheye camera along with the high resolution, high-image clarity over the full camera.

現在我將從企業安全攝影機市場開始，談談我們在物聯網領域的一些客戶開發。本季度，Verkada 發布了其首款多感測器攝影機 CH52-E，該攝影機採用完整的 Ambarella CV25SAI 視覺 SoC。該相機配備完整的獨立 500 萬像素感測器，為客戶提供魚眼相機的廣泛覆蓋優勢以及全相機的高解析度、高影像清晰度。

Motorola Solutions has made a number of acquisitions of video security companies over the last 2 years, with many using Ambarella SoCs. As of the GSX Security Show in September, Motorola announced its new Ava Flex camera based on Ambarella's CVflow AI SoCs. The Ava Flex includes WiFi connectivity and the cloud-based video management for ease of deployment, while supporting AI features such as occupancy accounting and anomaly detection.

摩托羅拉系統公司在過去兩年中收購了多家視訊安全公司，其中許多公司都使用了 Ambarella SoC。截至 9 月的 GSX 安防展，摩托羅拉宣布推出基於 Ambarella CVflow AI SoC 的新型 Ava Flex 相機。 Ava Flex 包括 WiFi 連線和基於雲端的視訊管理，以便於部署，同時支援佔用會計和異常偵測等 AI 功能。

Also at the GSX show, Korean security leader, Hanwha Techwin, introduced multiple cameras based on Ambarella's CV2AI vision SoCs, including new P series dome cameras with 6-megapixel images and AI features and the new T series camera, including vandal proof and bi-spectrum AI thermal models. Other Korea-based customers introduced new models during the quarter included ADAS, introduced new camera for license play recognition based on our CV28 entry-level AI SoC and the Digital Watchdog introducing 5-megapixel and 4K2 models based on our CV22AI SoCs.

此外，在 GSX 展會上，韓國安全領導者韓華 Techwin 推出了基於 Ambarella CV2AI 視覺 SoC 的多款攝影機，包括具有 600 萬像素影像和 AI 功能的新型 P 系列半球攝影機，以及包括防破壞和雙光譜 AI 熱模型的新型 T 系列攝影機。其他韓國客戶在本季推出了新機型，包括 ADAS、基於我們的 CV28 入門級 AI SoC 推出的用於牌照播放識別的新攝像頭，以及基於我們的 CV22AI SoC 推出的 500 萬像素和 4K2 型號的 Digital Watchdog。

And in September, Xiaomi introduced -- launched its latest battery-powered smart door lock block featuring 3D structuralized facial recognition. The smart lock unlocks using 3D biometric facial recognition in less than a second with Ambarella CV28M AI processor, performing both the face recognition and the 3D structuralized processing. The facial smart lock is also BCTC-certified, which meets over the security requirement of financial transactions in China.

9 月，小米推出了最新的電池供電智慧門鎖，具有 3D 結構化臉部辨識功能。這款智慧鎖採用 Ambarella CV28M AI 處理器，透過 3D 生物辨識臉部辨識技術，在不到 1 秒的時間內完成解鎖，同時執行臉部辨識和 3D 結構化處理。臉部智慧鎖也通過了BCTC認證，滿足中國金融交易的安全要求。

In the consumer camera category, Insta360 introduced its X3 360-degree camera based on Ambarella's H22 SoC. The camera includes a 5.7K active HDR video, 72-megapixel photos and AI-based editing.

在消費相機類別中，Insta360 推出了基於 Ambarella 的 H22 SoC 的 X3 360 度相機。相機包括 5.7K 主動 HDR 影片、7200 萬像素照片和基於 AI 的編輯功能。

We are also seeing opportunities in next-generation AI featured video conferencing applications, both for home and commercial use. In China, H3C introduced its MagicHub conferencing system that features an 8K camera and 8K large screen display. The cameras based on our CV52 AI SoC and supports ultrawide angle video capture and advanced AI features.

我們也看到了下一代人工智慧視訊會議應用的機遇，包括家庭和商業用途。在中國，H3C 推出了配備 8K 攝影機和 8K 大螢幕顯示器的 MagicHub 會議系統。這款相機基於我們的 CV52 AI SoC，支援超廣角視訊捕捉和先進的 AI 功能。

In the streaming camera market, Elgato, a unit -- CORSAIR, introduced its Facecam Pro based on our H2 video processor. The Facecam Pro features 4Kp60 video and events features such as pan, tilt, zoom making it ideal for gaming applications as well as solo and group leader conference.

在串流攝影機市場，CORSAIR 旗下的 Elgato 推出了基於我們 H2 視訊處理器的 Facecam Pro。 Facecam Pro 具有 4Kp60 視訊和平移、傾斜、縮放等事件功能，使其成為遊戲應用以及單人和團體領導會議的理想選擇。

Ambarella is also in the process of strengthening its ecosystem of design and development partners to address new markets and expand our customer base. In November, we announced a comprehensive relationship with eInfochips and Arrow Electronic company to expand design and development services for the next generation of CV4-based AI cameras. This leverages eInfochips extensive engineering expertise and resources to support the rapid growth of AI IoT applications including those in robotics, asset control, video conferencing and the health care market.

Ambarella 也正在加強其設計和開發合作夥伴生態系統，以應對新市場並擴大我們的客戶群。 11月，我們宣布與eInfochips和Arrow Electronic公司建立全面合作關係，以擴展下一代基於CV4的AI相機的設計和開發服務。這利用 eInfochips 豐富的工程專業知識和資源來支援人工智慧物聯網應用的快速成長，包括機器人、資產控制、視訊會議和醫療保健市場。

This representative engagement, a majority of which are based on our higher-value CV SoCs, provide insight into the early and the continued success of our strategy. In Q4 alone, we expect to ship close to 2 million units of CV2 family SoCs and the outlook for the CV2 family remain very positive. Now with the CV3 and CV5, we are establishing new CV product cycles building upon our proven CV2 family and further expanding the functionality and the value or ASP we can earn.

此次代表參與大部分基於我們更高價值的 CV SoC，為我們策略的早期和持續成功提供了洞察。僅在第四季度，我們預計 CV2 系列 SoC 的出貨量將接近 200 萬台，並且 CV2 系列的前景仍然非常樂觀。現在有了 CV3 和 CV5，我們正在成熟的 CV2 系列基礎上建立新的 CV 產品週期，並進一步擴展功能和我們可以獲得的價值或 ASP。

Continental was early and the first to validate this new CV trend from Ambarella. And in the next several quarters, we anticipate sharing more about our customer progress. CV3 in a single SoC synergistically ties all the functionality Ambarella has established over the years: cameras and radar perception, deep learning AI and surface tech IP. It began 18 years ago when we established our camera perception process and reputation, and we are now addressing higher-value edge AI opportunities serving megatrends such as security, safety and automation. This machine-sensing opportunity are incremental and much larger than the human viewing market.

大陸集團很早就率先驗證了安霸的這一新 CV 趨勢。在接下來的幾個季度中，我們期待分享更多有關客戶進度的資訊。單一 SoC 中的 CV3 協同結合了 Ambarella 多年來建立的所有功能：攝影機和雷達感知、深度學習 AI 和表面技術 IP。這一切始於 18 年前，當時我們建立了攝影機感知流程並建立了聲譽，現在我們正在抓住更高價值的邊緣人工智慧機遇，服務於安全、保障和自動化等大趨勢。這種機器感知的機會是漸進的，並且比人類觀看市場大得多。

So we see a very favorable secular opportunity in place. We have the right strategy to address it, and we are continuing to demonstrate early signs of success. We intend to continue to invest the majority of our R&D to fully realize those market opportunities, leveraging our leadership position in the AI endpoint market.

因此，我們看到了一個非常有利的長期機會。我們有正確的策略來解決這個問題，我們正在繼續展示成功的早期跡象。我們打算繼續投入大部分研發資金，充分利用我們在人工智慧終端市場的領導地位，充分實現這些市場機會。

With that, Brian will now provide our prepared financial comments.

現在，Brian 將提供我們準備好的財務評論。

Thanks, Fermi. I'll review the financial highlights for our fiscal third quarter and provide a financial outlook for our fourth quarter ending on January 31, and in 2023. I'll be discussing non-GAAP results and ask to refer to today's press release for a detailed reconciliation of GAAP to non-GAAP results. For non-GAAP reporting, we have eliminated stock-based compensation expense and acquisition-related costs adjusted for the impact of taxes.

謝謝，費米。我將回顧我們第三財季的財務亮點，並提供截至 1 月 31 日的第四季以及 2023 年的財務展望。我將討論非 GAAP 結果，並請參考今天的新聞稿，以了解 GAAP 與非 GAAP 結果的詳細對帳。對於非公認會計準則報告，我們已消除股票薪酬費用和根據稅務影響進行調整的收購相關成本。

Revenue for fiscal Q3 was $83.1 million, in line with the midpoint of our prior guidance range, up 3% from the prior quarter and down 10% year-over-year. Both IoT and auto product revenue increased sequentially. Kitting issue constraints improved. However, customer inventory reduction actions resulted in subseasonal revenue results as we had expected.

第三財季營收為 8,310 萬美元，與我們先前預期範圍的中點一致，較上一季成長 3%，較去年同期下降 10%。物聯網和汽車產品收入均較上季成長。配套問題限制得到改善。然而，正如我們預期的那樣，客戶的庫存減少行動導致了低於季節性的收入結果。

Non-GAAP gross margin for fiscal Q3 was 63.5%, in line with our prior guidance range of 63% to 64%. Non-GAAP operating expense for the third quarter was $43.5 million, a decrease of 1% from the prior quarter and below our prior guidance range of $44 million to $46 million. The lower than forecasted OpEx was aided by favorable FX impacts on our foreign spending.

第三財季非公認會計準則毛利率為 63.5%，符合我們先前預測的 63% 至 64% 的範圍。第三季非公認會計準則營業費用為 4,350 萬美元，較上一季下降 1%，低於我們先前預測的 4,400 萬美元至 4,600 萬美元範圍。低於預期的營運支出得益於外匯對我們海外支出的有利影響。

Q3 net interest and other income was $1.4 million comprised of approximately $800,000 of interest income plus $600,000 of other income. Our non-GAAP tax provision was $1.2 million or 11.4% of pretax income. This was higher than our original forecast and typical range, primarily due to taxable FX gains in foreign jurisdictions. We reported non-GAAP net income of $9.5 million or $0.24 per diluted share.

第三季淨利息和其他收入為 140 萬美元，其中包括約 80 萬美元的利息收入和 60 萬美元的其他收入。我們的非公認會計準則稅務準備金為 120 萬美元，佔稅前收入的 11.4%。這高於我們最初的預測和典型範圍，主要是由於外國司法管轄區的應稅外匯收益。我們報告的非公認會計準則淨收入為 950 萬美元，即每股攤薄收益 0.24 美元。

Now turning to our balance sheet and cash flow. Fiscal Q3 cash and marketable securities increased $1 million to $199 million. DSO increased from 43 to 54 days, driven by the timing of revenue shipments and days of inventory decreased from 125 to 124 days. Cash from operations was $6 million and capital expenditures for tangible and intangible assets were $5 million. Free cash flow, defined as cash from operations less CapEx, was $1 million, and free cash flow on a trailing 4-quarter basis was 12.5%.

現在轉向我們的資產負債表和現金流。第三財季現金和有價證券增加 100 萬美元，達到 1.99 億美元。由於收入出貨時間的安排，DSO 從 43 天增加到 54 天，庫存天數從 125 天減少到 124 天。營運現金流為 600 萬美元，有形和無形資產的資本支出為 500 萬美元。自由現金流（定義為經營活動產生的現金減去資本支出）為 100 萬美元，過去 4 季的自由現金流為 12.5%。

We had 2 logistics and ODM companies represent 10% or more of our revenue in Q3. WT Microelectronics, a fulfillment partner in Taiwan that ships to multiple customers in Asia, came in at 62% of revenue. Chicony and ODM who manufactures for multiple IoT customers with 11% of revenue.

我們有兩家物流和 ODM 公司在第三季占我們收入的 10% 或更多。文曄微電子 (WT Microelectronics) 是台灣的一家履行合作夥伴，為亞洲的多個客戶發貨，其收入佔比為 62%。群光電子和ODM為多個物聯網客戶製造產品，佔營收的11%。

I'll now discuss the outlook for the fourth quarter of fiscal year 2023. Q4 is typically seasonally slow, down to the high single digits sequentially. But this year, the alleviation of some supply constraints is releasing pent-up demand, which we expect to enable our revenue to remain approximately flat sequentially in the range of $81 million to $85 million.

我現在將討論 2023 財年第四季的前景。第四季通常是一個季節性的緩慢期，環比下降到高個位數。但今年，一些供應限制的緩解正在釋放被壓抑的需求，我們預計這將使我們的收入與上一季基本持平，在 8,100 萬美元至 8,500 萬美元之間。

Looking into next fiscal year, industry-wide component availability is anticipated to improve further. And as our lead times to customers continue to contract toward normal levels, we expect customers to continue reducing the amount of inventory they're willing to carry. Macroeconomic concerns are also rising at our customers. Considering the cyclical macro inputs, we anticipate our fiscal 2024 Q1 revenue to be down more than our normal seasonality would suggest.

展望下一財年，預計全行業的零件供應情況將進一步改善。隨著我們向客戶交付產品的時間不斷縮短至正常水平，我們預計客戶將繼續減少他們願意持有的庫存量。我們的客戶對宏觀經濟的擔憂也日益加劇。考慮到週期性的宏觀輸入，我們預計 2024 財年第一季的營收降幅將超過正常季節性所暗示的水平。

Back to our fiscal Q4 outlook. We expect non-GAAP gross margin to be between 63% and 64%, flat to the prior quarter. We expect non-GAAP OpEx in the fourth quarter to be in the range of $46 million to $49 million, with the increase compared to Q3 driven by the continued build-out of new advanced CV3 SoCs and CES marketing activities. We estimate net interest and other income to be approximately $700,000, our non-GAAP tax rate to be in the range of 5% to 10%, and our diluted share count to be approximately 39.5 million shares.

回到我們的第四季財政展望。我們預計非公認會計準則毛利率將在 63% 至 64% 之間，與上一季持平。我們預計第四季度非 GAAP 營運支出將在 4,600 萬美元至 4,900 萬美元之間，與第三季相比有所增長，這得益於新的先進 CV3 SoC 的持續建設和 CES 行銷活動。我們估計淨利息和其他收入約為 70 萬美元，我們的非 GAAP 稅率在 5% 至 10% 之間，我們的稀釋股數約為 3,950 萬股。

Ambarella will be participating in Arete's Future Series Technology Conference on December 5, NASDAQ's London Investor Conference on December 6, Imperial Capital Security Investor Conference on December 15 and Needham's Growth Conference on January 10. Sell-side analysts are also offering small group tours of our CES demos between January 4 and January 7 in Las Vegas. Please contact us for more details.

Ambarella 將參加 12 月 5 日舉行的 Arete 未來系列技術會議、12 月 6 日舉行的納斯達克倫敦投資者會議、12 月 15 日舉行的帝國資本安全投資者會議以及 1 月 10 日舉行的 Needham 增長會議。賣方分析師也將於 1 月 4 日至 1 月 7 日期間在拉斯維加斯組織小團體參觀我們的 CES 演示。請聯絡我們以了解更多詳情。

Thank you for joining our call today. And with that, I'll turn the call over to the operator for Q&A.

感謝您今天參加我們的電話會議。說完這些，我將把電話轉給接線生進行問答。

(Operator Instructions) The first question that we have today is from Matt Ramsay of Cowen.

（操作員指示）我們今天的第一個問題來自 Cowen 的 Matt Ramsay。

First of all, Fermi, for yourself and the whole team, congratulations on the Continental deal. I wanted to ask a few details about how that came together. It seems like even in your pre-silicon simulation results and all of those things that they had been evaluating the CV3 platform for a while, and no doubt that they were one of the early sampled customers of CV3. So just maybe if you could walk us through how you went from simulated performance and power and capability metrics for CV3 on to sampled products on to the press release that they had and sort of the scope of the wins that you might have with Continental?

首先，費米，我代表您本人和整個團隊祝賀與大陸集團達成交易。我想詢問一些關於這一切是如何發生的細節。似乎即使在您的矽前模擬結果和所有這些事情中，他們也已經對 CV3 平台進行了一段時間的評估，毫無疑問，他們是 CV3 的早期抽樣客戶之一。那麼，您能否向我們介紹一下，您是如何從 CV3 的模擬性能、功率和能力指標，到樣品產品，再到他們的新聞稿，以及您與大陸集團合作可能取得的勝利範圍？

And then I guess on the detail side, you updated your automotive funnel up 28% and from $600 million to $800 million on one business. Is the -- how is the Continental deal and potential customer wins from that relationship contemplated in the changes to your automotive funnel?

然後我想在細節方面，您將汽車漏斗更新了 28%，並將一項業務的銷售額從 6 億美元增加到了 8 億美元。您在改變汽車銷售管道時是如何考慮與大陸集團的交易以及該關係為潛在客戶帶來的利益的？

Right. Well, first of all, thank you. I think that's definitely helpful. I think the Conti -- we have been working with Conti for a long time, even before we are tape-out and also produce our first-generation CV2 (inaudible) to Conti. As you can see, this is a long process because really, our claim of our CV2 performance and the power efficiency it's hard to digest if you don't see a real silicon. And with CV2 we prove to them the efficiency of our architecture, and we can deliver what we promised.

正確的。嗯，首先謝謝你。我認為這絕對有幫助。我認為 Conti——我們與 Conti 合作了很長時間，甚至在我們流片之前，並且還向 Conti 生產了我們的第一代 CV2（聽不清楚）。如您所見，這是一個漫長的過程，因為如果您沒有看到真正的矽片，我們對 CV2 性能和功率效率的聲明實際上很難被接受。透過 CV2，我們向他們證明了我們架構的效率，並且我們可以兌現我們的承諾。

And -- but as you know, CV2 is good for ADAS for the Level 2 car, but for the Level 2+, Level 3, obviously, they need a more powerful chip like CV3. And we start talking to them about CV3, I would say, 2 years ago with just a PowerPoint and our simulation. And of course, because with CV2 silicon, we can really justify how we achieve the performance and power efficiency with our CV3 silicon and plus our simulation.

而且——但正如你所知，CV2 適用於 2 級汽車的 ADAS，但對於 2+ 級、3 級，顯然他們需要像 CV3 這樣更強大的晶片。我記得兩年前我們就開始和他們談論 CV3 了，當時只用了一個 PowerPoint 和我們的模擬。當然，因為有了 CV2 矽片，我們才能真正證明如何利用 CV3 矽片以及我們的模擬來實現性能和功率效率。

But the deal is really closed when we sampled our CV3 chip and the development platform to them and verified our claims on the performance and power efficiency. And I think that's the time that we really have a major breakthrough with Conti and they are totally convinced our claim and decide to move forward with this relationship. And I think -- that's one reason.

但當我們向他們提供 CV3 晶片和開發平台樣品並驗證了我們對性能和功率效率的要求時，交易才真正完成。我認為這是我們與康蒂真正取得重大突破的時候，他們完全相信我們的主張，並決定繼續推進這項合作關係。我認為——這是一個原因。

The other reason is that I think we are one of the very few companies showing our -- from the -- we have a solution on the very low end of like the driver mirror assistance to the e-mirrors to a Level 2 front cameras to Level 2+, Level 3 level 4. We have a silicon road map to cover the whole space that our customers want with a single software base. I think that's another reason that really, I think our customers like Conti appreciate and that helped us to secure this deal.

另一個原因是，我認為我們是極少數展示我們解決方案的公司之一——從——我們有一個非常低端的解決方案，例如駕駛員後視鏡輔助系統、電子後視鏡、2 級前置攝像頭、2 級以上、3 級和 4 級。我們有一個矽片路線圖，可以用單一軟體基礎覆蓋客戶想要的整個空間。我認為這是另一個原因，我認為我們的客戶如 Conti 非常欣賞這一點，這幫助我們達成了這筆交易。

And also, like Louis said, we are expecting -- continue to do more business development, and we hope we can continue to give you updates in the next quarter in terms of our CV3 business development.

而且，就像路易斯所說的那樣，我們期待——繼續進行更多的業務開發，我們希望能夠在下個季度繼續為您提供有關 CV3 業務開發的最新資訊。

In terms of potential design wins, I think because the Conti press release can talk about, I will leave the -- them to answer this question, but I have to believe that with -- because Conti is such reputable and a large customer and they have credibility from the OEM customer that will definitely -- between Conti and us, we should be able to get design wins for our OEMs and will gradually show up in our sales funnel in the near future.

就潛在的設計勝利而言，我認為因為 Conti 的新聞稿可以談論，我將讓他們來回答這個問題，但我必須相信 - 因為 Conti 是如此有信譽並且是一個大客戶，並且他們擁有來自 OEM 客戶的信譽，這肯定會 - 在 Conti 和我們之間，我們應該能夠為我們的 OEM 獲得勝利，並將在不久的銷售渠道中逐漸出現。

I really appreciate it. Just I guess a final clarification on my first question and then sort of a follow-up for Brian. So just to clarify, you guys raised the automotive revenue 6-year funnel from $1.8 billion to $2.3 billion and the One business from $600 million to $800 million. Is the Conti relationship contemplated in both of those numbers, one of those numbers? I'm just trying to -- if you could be a bit precise on what you guys are assuming in the funnel from that relationship? And did it materially change when the deal was announced.

我真的很感激。我想對我的第一個問題做最後的澄清，然後對 Brian 進行跟進。因此，需要澄清的是，你們將汽車業務的 6 年收入漏斗從 18 億美元提高到了 23 億美元，將 One 業務的收入從 6 億美元提高到了 8 億美元。這兩個數字或其中一個數字是否都考慮了 Conti 關係？我只是想──你能不能精確地說明一下你們對這段關係的假設？當交易宣佈時，情況是否發生了實質變化？

And I guess my follow-up for Brian, you talked about maybe underperforming normal seasonality as you go into fiscal Q1. Do you -- maybe the last couple of years have been very strange seasonally for the whole semiconductor space, given shortages and all kinds of other things going on. If you could -- maybe give us a little bit of clarity about what you're assuming normal seasonality is for fiscal Q1.

我想我對布萊恩的後續問題是，您談到了進入財政第一季時可能表現不及正常的季節性。您是否認為——考慮到短缺和各種其他因素，過去幾年整個半導體領域的季節性變化可能非常奇怪？如果可以的話—請您稍微解釋一下您對第一財季的正常季節性有何看法。

I will take on the first question, and I will ask Brian to take on the second question. The first question is about our -- how Conti play into the 2 numbers. I think Conti's contribution with the current funnel is little, and there are some of them -- but however, I think that we expect that this number of Conti's impacts in our funnel will start showing up in the next funnel of next year. And also, we expect that we don't have any Conti contribution in One business yet.

我將回答第一個問題，並請 Brian 回答第二個問題。第一個問題是關於我們——康蒂如何發揮這兩個數字。我認為 Conti 對當前漏斗的貢獻很小，但也有一些貢獻 - 但是，我認為我們預計 Conti 對我們漏斗的影響數量將在明年的下一個漏斗中開始顯現。此外，我們預計 Conti 尚未對 One 業務做出任何貢獻。

And related to your question on normal seasonality in Q1, of course, normal is difficult to define. But the way we looked at it is taking a 5-year average. And in that case, the 5-year average for Q1 would be a sequential decrease of 4%. And so as we sit here today, we think that the decrease going into Q1 will be greater than that number. We don't have perfect visibility at this point to what it will be, but we want to provide as much outlook as we can at this time.

至於您關於第一季正常季節性的問題，當然，正常很難定義。但我們看待這個問題的方式是採用 5 年的平均值。在這種情況下，第一季的 5 年平均值將連續下降 4%。因此，今天我們坐在這裡，我們認為第一季的降幅將大於這個數字。目前我們還無法完全預見未來會如何，但我們希望盡可能提供一些展望。

The next question will be coming up shortly, one moment please. And that question will be coming from David Kelley of Jeffries.

下一個問題即將出現，請稍等。這個問題將由 Jeffries 的 David Kelley 提出。

Maybe to follow up on the funnel discussion. You announced a couple of pretty meaningful driver monitoring wins, an e-mirror win as well. So how should we think about maybe framing it as the interior contribution to the auto funnel versus, say, the ADAS and autonomous contribution to that funnel growth.

也許是為了跟進漏斗討論。您宣布了幾項非常有意義的駕駛員監控勝利，以及電子後視鏡勝利。那麼，我們應該如何考慮將其定義為對汽車漏斗的內部貢獻，而不是 ADAS 和自動駕駛對漏斗成長的貢獻。

So first of all, as you can see, for those kind of design wins, the design cycle is much shorter than ADAS because they are not really safety sensitive. So that for ADAS projects, we usually look at in China, more than 2 years development, outside China up to 4-year development. For this kind of internal design, usually, you can think about a 12- to 18-month cycle that you can get into production. So that's why you start seeing more of those design wins. And that's definitely an area that we want to be really having high market share, and that's what we are doing. But that doesn't mean we don't focus on ADAS. In fact, on the contrary, I believe that we are doing well with ADAS as well as Level 2+. And hopefully, we can give you more design win activity in the future.

首先，正如您所看到的，對於這類設計勝利，設計週期比 ADAS 短得多，因為它們對安全性並不敏感。因此，對於 ADAS 項目，我們通常在中國需要 2 年以上的開發時間，在中國以外則需要長達 4 年的開發時間。對於這種內部設計，通常，您可以考慮 12 到 18 個月的週期才能投入生產。這就是為什麼你開始看到更多這樣的設計勝利。這絕對是我們想要真正擁有高市佔率的領域，而這正是我們正在做的事情。但這並不意味著我們不關注ADAS。事實上，恰恰相反，我認為我們在 ADAS 和 Level 2+ 方面做得很好。希望我們將來能為您提供更多設計獲勝活動。

Okay. Got it. And maybe a quick follow-up to your point on kind of the time line of adoption. And specific to Conti, very early days as you demonstrate with them to customers. But any early thoughts on time line to eventual revenue contribution with this partnership? Are you seeing OEMs push to accelerate development to integration into production time line faster in ADAS and autonomous as well?

好的。知道了。也許我可以快速跟進您關於採用時間表的觀點。具體到 Conti，在早期階段，您就與他們一起向客戶進行了演示。但是對於此次合作最終帶來收入貢獻的時間表您有什麼初步想法嗎？您是否看到 OEM 也在努力加速 ADAS 和自動駕駛領域的開發，以更快地將其整合到生產時間軸中？

Well, First of all, I will leave Conti to answer the potential revenue that they can generate with this relationship. But like we said before, any CV3 design win will take 3, 4 years to get to revenue. And I don't think the time line has changed.

好吧，首先，我將讓康蒂來回答他們透過這種關係可以產生的潛在收入。但就像我們之前說的，任何 CV3 設計勝利都需要 3 到 4 年的時間才能產生收益。我不認為時間線改變了。

Okay. Got it.

好的。知道了。

The next question that we have will be coming from Joe Moore of Morgan Stanley.

我們的下一個問題來自摩根士丹利的喬·摩爾。

I wonder if you could talk to the pace at which that funnel can start to turn to revenue. I think it's a 6-year kind of time line that you talked about how -- I assume that's pretty back-end loaded given that your number is so much bigger than what you're shipping now, but can you just give us a sense for how quickly that revenue can roll in? And then how much of that is still -- I don't want to -- I don't want to be too precise, but I know there's probability waiting on some of it. Can you talk to how much of that we should think is still as being a probability weighted event?

我想知道您是否可以談談該管道開始轉化為收入的速度。我認為您談到的是一個 6 年的時間線——考慮到您的數量比現在發貨的數量大得多，我認為這是非常後端負載，但您能否讓我們了解一下這些收入能多快滾滾而來？那麼其中有多少仍然是——我不想——我不想太精確，但我知道其中有一些可能性在等待著。您能否談談我們應該認為其中有多少仍然是機率加權事件？

Joe, yes. So the methodology behind the funnel and how we discount both One and pipeline didn't change from our prior practice. And with regards to the distribution of the revenue through the 6 years of the funnel, it's not linear, as you can imagine. It's exponential in shape where the sixth year is much higher than the first year. And the reason for that would be the time to revenue that Fermi was just describing in a prior question, but it's also very significantly driven by increased penetration rates of these new technologies.

喬，是的。因此，漏斗背後的方法以及我們如何對 One 和管道進行折扣與我們之前的做法相比並沒有改變。至於整個 6 年的收入分配，正如您所想像的，它並不是線性的。它呈指數形式，第六年比第一年高得多。原因可能是費米在先前的問題中所描述的收入實現時間，但這也在很大程度上受到這些新技術滲透率提高的推動。

And then most importantly, it's actually the higher ASP of the products that we'll be selling in each of these 6 years. For example, CV3 contributes revenue in years 5 and 6 like we expect, the ASP per chip is much higher than it would be for, say, a DMS, CMS win with a CV25 product. So those are the factors that caused it to be exponential in shape, not linear.

最重要的是，這 6 年內我們銷售的產品的平均售價實際上更高。例如，CV3 像我們預期的那樣在第 5 年和第 6 年貢獻收入，每晶片的平均銷售價格遠高於 CV25 產品贏得 DMS、CMS 的平均銷售價格。這些因素導致它呈指數形狀，而不是線性形狀。

The next question that we have is coming from Kevin Wang of Stifel.

我們的下一個問題來自 Stifel 的 Kevin Wang。

This is Jeremy Kwan calling on behalf of Tore from Stifel. I guess maybe a question first on the ASPs. Can you give us any more color in terms of where they stand today? And I understand once the Q3 starts contributing that's going to go up even more significantly. But can you help us -- just give us more details on where they are today and where you see that? And when you said it's going to grow 20% this year. Is that for the fiscal year or...

我是 Jeremy Kwan，代表 Stifel 的 Tore 打電話來。我想也許首先要問的是有關 ASP 的問題。您能否向我們詳細介紹他們目前的狀況？我知道，一旦第三季開始貢獻，這個數字將會更加顯著。但是您能幫助我們嗎—請向我們提供更多關於他們目前所在位置以及您看到的情況的詳細資訊？當你說今年它將成長 20% 時。這是針對財政年度還是.....

Yes. I think the comments for this fiscal year, it was at high single digits and now I think it's beyond -- above $10 ASP right now. And the major contribution comes from the increased sales of our Conti relationship. And in fact, that's probably the biggest items, which help us to continue to get a higher ASP. Now with the CV5 really getting into a ramp-up in production and we start sampling CV3, I also expect that our ASP will continue to this up trend.

是的。我認為對本財年的評論是高個位數，現在我認為它已經超出了——目前的平均售價超過 10 美元。主要貢獻來自於我們與 Conti 合作的銷售額成長。事實上，這可能是最大的項目，它幫助我們繼續獲得更高的 ASP。現在，隨著 CV5 真正進入產量提升階段，並且我們開始對 CV3 進行採樣，我預計我們的 ASP 將繼續保持這一上升趨勢。

Great. And I guess, a quick question on the OpEx. I understand some of that is CES for next year -- or next -- sorry, in January. I guess, excluding CES, what kind of run rate should we think about as we look to fiscal '24?

偉大的。我想問關於 OpEx 的一個簡單問題。我知道其中一些是明年的 CES——或者下一個——對不起，是 1 月的。我想，除了 CES 之外，當我們展望 24 財年時，我們應該考慮什麼樣的運行率？

Sure. We're still bottoming out on our OpEx budget for next fiscal year. But I guess the way I would think about it at this point is consider the exit velocity of our guidance for fiscal Q4, which at the midpoint was about $47.5 million. Going into next fiscal year, we're going to have additional chips in development that would cause that number to increase.

當然。我們下一財年的營運支出預算仍處於最低水準。但我想我現在考慮這個問題的方式是考慮我們對財政第四季的指導退出速度，中間值約為 4750 萬美元。進入下一個財政年度，我們將開發更多晶片，這將導致這個數字增加。

So you've got 2 things to consider. Number one, OpEx has been increasing throughout fiscal '23. And so even if OpEx remained flat at the Q4 forecast level, it would be up on a year-over-year basis. And then in addition to that, we'll have some additional spending requirements. That's about what I could give you at this point in next quarter's call. I think we can provide some more insights.

所以您需要考慮兩件事。首先，整個 23 財年的營運支出一直在增加。因此，即使營運支出與第四季預測水準持平，但年比來看仍會上升。除此之外，我們還會有一些額外的支出需求。這就是我在下個季度的電話會議上可以給您提供的資訊。我認為我們可以提供更多見解。

Next question I have is coming from Kevin Cassidy of Rosenblatt.

我的下一個問題來自 Rosenblatt 的 Kevin Cassidy。

Congratulations on the Continental win. And on the Continental win, are there expectations for them to use the scalability of CV3? Will they have a low-end solution and the high end or maybe 3 different solutions?

恭喜大陸隊獲勝。對於大陸隊的勝利，他們是否期望利用 CV3 的可擴展性？他們是否會有低端解決方案和高端解決方案，或者可能有 3 種不同的解決方案？

Yes. First of all, thank you. And also, I believe you read is right. In fact, in their press release, they talk about one of the reasons they choose CV3 family is because they can use same software structure to apply it from low end to high end product line.

是的。首先，謝謝你。而且，我相信你讀的是正確的。事實上，在他們的新聞稿中，他們談到選擇 CV3 系列的原因之一是他們可以使用相同的軟體結構將其從低端應用到高端產品線。

I see. And is the Oculii or no, Ambarella radar solution included in the overall design? Or is it still to be determined?

我懂了。整體設計中是否包含 Oculii 或 Ambarella 雷達解決方案？還是還有待確定？

In the press release, we didn't talk about radar. So I'll keep that -- we will give you more update when we have the right to talk about the potential radar collaborations.

在新聞稿中，我們沒有談論雷達。所以我會保留這一點——當我們有權談論潛在的雷達合作時，我們會向您提供更多更新。

Okay. Great. Well, congratulations again.

好的。偉大的。好吧，再次恭喜你。

Next question I have is coming from Tore Svanberg of Stifel.

我的下一個問題來自 Stifel 的 Tore Svanberg。

I had a follow-up question on the Continental win and even, again, congratulations on that. If you could just expand a little bit on sort of the -- how the sales strategy works there? Because obviously, you're providing some functionalities, but obviously, maybe some other companies will provide others. So is this like a full reference platform that Continental is offering? If you could just add a little bit of context on how you go to market, specifically with all the parts that are part of that particular solution.

我對大陸航空的勝利有一個後續問題，甚至再次對此表示祝賀。您能否稍微詳細說明一下那裡的銷售策略是如何運作的？因為很明顯，您提供了一些功能，但顯然，其他公司也許會提供其他功能。那麼這是否就像大陸集團提供的完整參考平台？如果您可以添加一些有關如何進入市場的背景信息，特別是有關該特定解決方案的所有部分。

Yes. First of all, CV3 will be the domain controller for the system that we are talking to Conti about. And the goal is that there is no other major processing chips on that system. And -- but the CV3 will take in multiple different sensor modality and perform not only just the perception, but also all the higher-level software functions that the software is provided by Conti.

是的。首先，CV3 將成為我們與 Conti 討論的系統的網域控制站。目標是該系統上沒有其他主要處理晶片。而且——但 CV3 將採用多種不同的感測器模式，不僅執行感知，還執行 Conti 提供的所有高級軟體功能。

Great. And a follow-up question on CV3. It sounds like you're starting to at least thinking about leveraging that platform into non-auto applications. I was just wondering, both from a sort of capacity and also from a timing perspective, when CVC could start to venture into other non-auto applications. And I guess the reason I asked the question is because you obviously have a lot going on here in the auto space. So I'm just wondering if you have enough resources to go after non-auto applications for CV3.

偉大的。還有一個關於 CV3 的後續問題。聽起來您至少開始考慮將該平台應用到非汽車應用程式中。我只是想知道，從能力和時間角度來看，CVC 何時可以開始涉足其他非汽車應用領域。我想我之所以問這個問題是因為你們在汽車領域顯然有很多事情要做。所以我只是想知道您是否有足夠的資源來處理 CV3 的非汽車應用程式。

Right. So first of all, using CV3 in a robotic application is definitely a strategy that Ambarella is implementing. And like you said, we are a small company. We have limited resources. Therefore, we need to target and be focusing on strategic accounts. In auto, we have done a few, obviously Conti is the first one, there are a few more. But in the robotics space, definitely, our strategy is to have a target customer which has already some products in the market and as well as they really need performance like CV3 family chips, doesn't matter who is high and low end.

正確的。因此首先，在機器人應用中使用 CV3 絕對是 Ambarella 正在實施的策略。正如您所說，我們是一家小公司。我們的資源有限。因此，我們需要瞄準並關注戰略帳戶。在汽車領域，我們已經做了一些，顯然 Conti 是第一個，還有其他幾個。但在機器人領域，我們的策略肯定是擁有一個目標客戶，該客戶已經在市場上擁有一些產品，並且他們確實需要像 CV3 系列晶片這樣的性能，無論誰是高端誰是低端。

Because if you look at a lot of robots out there, they are -- there have multiple processing silicon in that robot today. And definitely, they can use some kind of domain controller like CV3 to integrate those functions together and provide not only the better cost, but also better system design as well as power efficiency. So I think that's definitely a market we will continue to work on.

因為如果你觀察外面的許多機器人，你會發現它們──如今這些機器人中都有多個處理矽片。當然，他們可以使用某種網域控制器（如 CV3）將這些功能整合在一起，不僅提供更好的成本，還提供更好的系統設計和電源效率。所以我認為這絕對是我們將繼續努力的市場。

Yes, Tore, it's Louis. I'll just add. It's a good question because global robotics applications are not part of our automotive funnel, so that is something that's separate and not reflected in that funnel we've communicated.

是的，托爾，我是路易斯。我僅補充一點。這是一個很好的問題，因為全球機器人應用不屬於我們的汽車漏斗的一部分，所以它是獨立的，並且沒有反映在我們所傳達的漏斗中。

The next question I have here is coming from Suji Desilva of ROTH.

我的下一個問題來自 ROTH 的 Suji Desilva。

Fermi, Brian, Louis, I'll add my congratulations on the Continental win. Quick question perhaps for Fermi. I think you hinted at this in the last -- in Tore's question there. But the software development that's involved to get CV3 into production, how much of that is the Continental on its customers versus Ambarella? It sounds like it's almost -- maybe almost all Continental. And if so, is there an incremental effort that needs to be happening for every customer that adopts CV3 thereafter? Or is there any leverage from the fist win?

費米、布萊恩、路易斯，我要對大陸隊的勝利表示祝賀。也許可以快速問一下費米。我認為您在最後——在 Tore 的問題中暗示了這一點。但是，在 CV3 投入生產所涉及的軟體開發方面，大陸集團與安霸集團在多大程度上合作？聽起來幾乎——也許幾乎全部是大陸的。如果是這樣，那麼此後採用 CV3 的每位客戶是否都需要付出額外的努力？或者第一次勝利有什麼優勢嗎？

Right. So first of all, I think our role in this relationship is we are a strategic Tier 2 to Conti, and we are providing support to the -- one of the support we need to provide is porting their software onto our CV3, which we have been talking about this strategy for many years, and we believe we are the one that really focused on this business model versus our competitors. And I think this is it's really about setting up a group people, helping our customers porting software. And that had plugging -- we have factored that into our headcount planning as well as our engineering development. So I think that's not a concern for us. And in fact, we expect that we need to continue to do this kind of service for all of the potential customers.

正確的。首先，我認為我們在這種關係中的角色是，我們是 Conti 的策略二級供應商，我們正在提供支援——我們需要提供的支援之一是將他們的軟體移植到我們的 CV3 上，我們已經談論這個策略很多年了，我們相信，與競爭對手相比，我們是真正專注於這種商業模式的公司。我認為這實際上是為了建立一個團隊，幫助我們的客戶移植軟體。我們已經將其納入員工規劃和工程開發。所以我認為這不是我們關心的問題。事實上，我們希望繼續為所有潛在客戶提供這種服務。

Okay. That helps, Fermi. And then a question for Brian perhaps. Brian, you guided the first quarter next year as well as this year. Are there lingering supply chain post-kitting constraint issues factored into your below seasonal guidance for 1Q? Or are those kind of behind us at that point? Is that purely a statement about softening demand?

好的。這很有幫助，費米。然後也許可以問 Brian 一個問題。布萊恩，您不僅指導了今年的第一季度，還指導了明年的第一季。您對第一季的低於季節性的指導是否考慮到了揮之不去的供應鏈後配對限制問題？或者說這些都已經過去了嗎？這僅僅是關於需求疲軟的聲明嗎？

So we think that those supply chain issues are, for the most part, behind us, and that's something that we don't anticipate to impact our Q1 revenue significantly. What we do see is continued shortening lead times and desire on the part of customers to reduce inventory levels. So that's really the impact that we're contemplating as we think about Q1 at this point.

因此，我們認為這些供應鏈問題在很大程度上已經解決，我們預計這不會對我們的第一季營收產生重大影響。我們確實看到交貨時間不斷縮短，客戶希望降低庫存水準。所以，這確實是我們在考慮第一季時正在考慮的影響。

The next question that I have here is coming from David O'Connor of BNP.

我的下一個問題來自英國國家銀行的戴維·奧康納。

Great. One from my side on the CV penetration. Fermi, you mentioned or reiterated 45% for this year. Just wondering, can you give us any update on what the exit run rate of this year would be set to kind of baseline for next year? And then a follow-up.

偉大的。我這邊有關於 CV 滲透的介紹。費米，您提到或重申了今年的 45%。只是想知道，您能否向我們提供有關今年的退出運行率將作為明年的基準的最新資訊？然後進行後續行動。

Yes, David, we haven't disclosed the run rate as well as the next year's forecast. But I can say that we expect the CV continue to become a bigger portion of our total revenue for many reasons. One is that they are enabling new markets. The other one is their new ASPs. Of course, that portion of our CV growth come from replacing our existing video processor business. But I think that I'm very excited about the new location that we talk about that our previous video processor chip can now address. And particularly CV3 and CV5 opportunity we're talking about today is really new opportunity we can address.

是的，大衛，我們還沒有透露運行率以及明年的預測。但我可以說，由於多種原因，我們預計 CV 將繼續成為我們總收入中更大的一部分。一是他們正在開拓新市場。另一個是他們的新 ASP。當然，我們 CV 成長的這一部分來自於替換我們現有的視訊處理器業務。但我認為，我對我們談論的新位置感到非常興奮，我們以前的視訊處理器晶片現在可以解決這個問題。我們今天談論的 CV3 和 CV5 機會確實是我們可以抓住的新機會。

Okay. Got it. And maybe as a follow-up, one for Brian on the sub season of Q1. Brian, you talked about inventory and being reduced to customers. Can we expect by -- or do you expect an exit in Q1 that, that inventory that you're seeing their customers should be cleared?

好的。知道了。也許作為後續，Brian 將討論 Q1 替補賽季的問題。布萊恩，您談到了庫存和減少客戶的問題。我們是否可以預期 - 或者您是否預計在第一季度，您看到的客戶的庫存應該會被清理掉？

That's a great question. I think it's one that we don't have great visibility to. So I'm not going to speculate on that. We certainly, in the near term, anticipate that there will be impacts within that time period, and that's why we want to provide some visibility. But in terms of when things bottom and so on and when those issues go away, I don't think we have a good feel for that at this point.

這是一個很好的問題。我認為這是我們不太清楚的問題。所以我不會對此進行猜測。當然，我們預期短期內會產生影響，因此我們希望提供一些可見性。但至於什麼時候事情會觸底，什麼時候這些問題會消失，我認為我們目前還沒有很好的感覺。

And the next question I have here is coming from Richard Shannon of Craig.

我的下一個問題來自 Craig 的理查德·香農 (Richard Shannon)。

Maybe I'll ask a question on the IoT side of the business here. Maybe Fermi, if you can talk bigger picture here over the last year, how the penetration of CV has gone into maybe both sides of the security business? And where do you think that will go over the next year or 2 to be a great perspective over that time?

也許我會在這裡問一個有關物聯網業務方面的問題。也許費米，您可以談談過去一年中更大的情況，CV 的滲透是如何滲透到安全業務的雙方的？您認為未來一兩年內這趨勢將如何發展，因此成為一個很好的前景？

Right. So I think that's a great question. We continue to see strong IoT design wins in -- on all of the markets. We're talking about professional security and the consumer security and also others. The -- I think -- like I said before, it's driven -- some of that is driven by new applications that we talked about today. For example, those face -- the -- Xiaomi introduced a new lock, which is using 3D metrics to identify face. And also, we are talking about other applications like video conferencing, which is really new market-enabled by our CV product line.

正確的。所以我認為這是一個很好的問題。我們繼續看到物聯網設計在所有市場上取得巨大勝利。我們正在討論專業安全、消費者安全以及其他安全。我認為，就像我之前說的，它是由我們今天討論的新應用程式驅動的。例如，小米推出了一款新鎖，它使用 3D 指標來識別人臉。此外，我們也正在討論視訊會議等其他應用，這是我們的 CV 產品線真正推動的新市場。

So I think from IoT space, outside of China, we are doing quite well. But at the same time, I want to highlight again that with the new U.S. regulation, we have basically 0 play in China in the IoT -- particular security MR space. I think that's something I want to highlight about and we talk about Hikvision and Dahua will be 0 revenue for us next year.

所以我認為從中國以外的物聯網領域來看，我們做得相當不錯。但同時，我想再次強調，由於美國的新法規，我們在中國物聯網（特別是安全 MR 領域）基本上沒有任何發展空間。我想這是我想強調的一點，我們談論的是海康威視和大華明年將為我們帶來 0 收入。

Okay. Perfect. My second question is on Continental here. Looking at from one angle, and you mentioned both today and in past calls regarding having a solution that really addresses all vision-related opportunities both within and without the car here. As I look through the Continental press release from whatever a week or 2 ago, I didn't see any mention of kind of indoor use cases there, and maybe I've scanned too quickly. But is that being contemplated here? Is that something you can discuss and/or do you see other OEMs coming through the funnel here that you will have both interior and external use cases because you have that full offering others don't.

好的。完美的。我的第二個問題是關於大陸航空的。從一個角度來看，您在今天和過去的電話中都提到過，有一個解決方案可以真正解決汽車內外所有與視覺相關的機會。當我瀏覽一周或兩週前大陸航空的新聞稿時，我沒有看到任何關於室內使用案例的提及，也許我瀏覽得太快了。但這裡是否正在考慮這一點？您可以討論一下這個嗎？或者您是否看到其他 OEM 透過這裡的管道了解到，您將同時擁有內部和外部用例，因為您提供其他人所沒有的完整產品。

Right. So for the Conti price release, they basically focus on only one application, which is ADAS. And ADAS mainly is for external use. However, I do believe that they appreciate that we offer a complete road map that go from external to internal. And we just say -- I want to say that the press release is targeted only for one application, one possible opportunity between Conti and us.

正確的。所以對於Conti的價格發布，他們基本上只專注於一個應用，那就是ADAS。而ADAS主要還是對外使用。然而，我相信他們很欣賞我們提供的從外部到內部的完整路線圖。我們只是想說——我想說的是，新聞稿僅針對一個應用程序，即 Conti 和我們之間的一個可能機會。

The next question I have is coming from Ross Seymore of Deutsche Bank.

我的下一個問題來自德意志銀行的羅斯·西摩。

This is DJ Sebastian on behalf of Ross Seymore. I was just hoping to get some color on sort of the revenue split between your IoT and auto segments, both for the reported quarter and the implied guide.

我是代表 Ross Seymore 的 DJ Sebastian。我只是希望了解你們的物聯網和汽車部門之間的收入分配情況，包括報告季度和隱含指南。

The approximate split would be about 75-25 IoT versus automotive.

物聯網與汽車的比例約為 75%：25%。

Cool. And just a quick follow-up. How should we sort of think about that going into next year? I mean, do you guys see that dynamic changing significantly? Or are we still going to write sort of the same split for the foreseeable future?

涼爽的。這只是一次快速的跟進。我們該如何考慮明年的情況？我的意思是，你們看到這種動態發生重大變化了嗎？或者在可預見的未來我們仍會寫出同樣的分裂嗎？

Well, like I said, we haven't given any guidance for next year. But like I said, we expect auto percentage will continue to increase because the funnel that we're building, and that should be the trend which we are expecting.

嗯，就像我說的，我們還沒有給出明年的任何指導。但就像我說的，我們預計汽車百分比將繼續增加，因為我們正在建立漏斗，這應該是我們預期的趨勢。

And that concludes today's Q&A session. I would like to turn the call over to Dr. Fermi Wang for closing remarks. Go ahead, sir.

今天的問答環節到此結束。我想將電話轉給 Fermi Wang 博士做最後一次發言。請說，先生。

Thank you, and thank you all for your time and consideration. We hope to see you at CES or one of the other coming events. Thank you, and goodbye.

謝謝大家，也謝謝大家的時間和考慮。我們希望在 CES 或其他即將舉行的活動中見到您。謝謝，再見。

This concludes today's conference call. You all may hang up and everyone have a great rest of your day.

今天的電話會議到此結束。你們都可以掛斷電話了，祝大家今天剩下的時間過得愉快。