Ambarella Inc (AMBA) 2023 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Ambarella's Fourth Quarter Fiscal Year 2023 Earnings Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Louis Gerhardy, Corporate Development.

美好的一天，謝謝你的支持。歡迎來到 Ambarella 2023 財年第四季度財報電話會議。 （操作員說明）請注意，今天的會議正在錄製中。我現在想把會議交給今天的演講者，企業發展部門的 Louis Gerhardy。

Thank you, Katherine, and good day, and thank you for joining our fourth quarter and fiscal year 2023 financial results 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 fourth quarter and fiscal year 2023. 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.

謝謝你，凱瑟琳，美好的一天，感謝你加入我們的第四季度和 2023 財年財務業績電話會議。今天與我通話的是總裁兼首席執行官 Fermi Wang 博士；首席財務官布賴恩·懷特 (Brian White)。今天電話會議的主要目的是向您提供有關我們第四季度和 2023 財年業績的信息。今天的討論和對您問題的答復將包含有關我們預計財務業績、財務前景、市場增長的前瞻性陳述以及對我們解決方案的需求等。這些陳述受風險、不確定性和假設的影響。如果這些風險或不確定性中的任何一個成為現實，或者如果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陳述存在重大差異。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 April 1, 2022, for fiscal year 2022 ending January 31, 2022, and also the Form 10-Q filed on December 9, 2022, for the third quarter of fiscal year 2023. Access to our fourth quarter and 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.

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美國證券交易委員會提交的文件中有更全面的描述，包括我們於 4 月 1 日提交的 10-K 表格年度報告, 2022，截至 2022 年 1 月 31 日的 2022 財年，以及 2022 年 12 月 9 日提交的 2023 財年第三季度的 10-Q 表格。訪問我們的第四季度和 2023 財年業績新聞稿、成績單、歷史結果、SEC 文件和今天電話會議的重播可以在我們網站的投資者關係頁面上找到。

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

Fermi 現在將提供本季度的業務更新。布賴恩將審查財務結果和前景，然後我們都會回答您的問題。費米？

Thank you, Louis, and good afternoon. Thank you for joining our call today. We achieved a significant milestone during the fiscal 2023 in our ongoing transformation to an edge AI company. On the technology and product execution front, we broadly sampled the first of our third-generation edge AI SoC, CV3-AD, commenced mass production of our first 5-nanometer SoC, CV5, introduced our centralized 4D imaging radar, and took an important step towards the commercialization of our automotive software stack IP.

謝謝你，路易斯，下午好。感謝您今天加入我們的電話會議。我們在 2023 財年實現了向邊緣 AI 公司持續轉型的重要里程碑。在技術和產品執行方面，我們對第三代邊緣人工智能 SoC 的第一款 CV3-AD 進行了廣泛採樣，開始了我們第一款 5 納米 SoC CV5 的量產，推出了我們的集中式 4D 成像雷達，並取得了重要的進展。邁向我們的汽車軟件堆棧 IP 的商業化。

On the business front, we announced strategic partnerships with global automotive leaders such as Bosch and Continental, and the customer interest and activity with our edge AI products continue to grow. As of the end of the fiscal year, we have cumulatively shipped more than 13 million computer vision SoCs to more than 325 unique customers with more than 230 customers -- 230 customer products in production, an increase of more than 50% from a year ago. CV represented more than 45% of our fiscal 2023 revenue and there was a factor driving our firmwide SoC average selling price up. In fiscal 2024, we expect CV to continue to grow in absolute dollars to represent about 60% of total revenue. This is expected to continue to drive our ASP higher.

在業務方面，我們宣布與博世和大陸等全球汽車領導者建立戰略合作夥伴關係，客戶對我們的邊緣 AI 產品的興趣和活動持續增長。截至本財年末，我們已累計向超過 325 個獨立客戶出貨超過 1300 萬個計算機視覺 SoC，客戶數量超過 230 個——230 個客戶產品在產，比一年前增長超過 50% . CV 占我們 2023 財年收入的 45% 以上，這是推動我們全公司 SoC 平均售價上漲的一個因素。在 2024 財年，我們預計 CV 的絕對收入將繼續增長，佔總收入的 60% 左右。預計這將繼續推高我們的平均售價。

Fiscal 2023 was not without its challenges. And as the year progressed, cyclical and economic headwinds became more significant, negatively impacting our revenue results and outlook. Despite the challenges in the second half of fiscal 2023, we reported record annual revenue of $337.6 million, up about 2% year-over-year. With our technology leadership and scalability of it increasingly recognized by customers globally. We don't believe the current softness has anything to do with the technical competitiveness of our new technology and products. And we remain committed to build out a complete edge AI portfolio of SoCs and the software.

2023 財年並非沒有挑戰。隨著時間的推移，週期性和經濟逆風變得更加明顯，對我們的收入結果和前景產生了負面影響。儘管 2023 財年下半年面臨挑戰，但我們報告的年收入達到創紀錄的 3.376 億美元，同比增長約 2%。憑藉我們的技術領先地位和可擴展性，它越來越受到全球客戶的認可。我們不認為目前的疲軟與我們新技術和產品的技術競爭力有任何關係。我們仍然致力於構建完整的 SoC 和軟件的邊緣 AI 產品組合。

I would like to highlight some of the customer engagements that caused us to be so encouraged about our long-term outlook. During Q4, we took 2 important steps towards the commercialization of our software IP. First, and building upon Continental's November announcement that it would offer ADAS solutions based on Ambarella's CV3 AI central domain controller. On January 4, we announced Continental and Ambarella were extending their cooperation to include the full software stack development for ADAS and autonomous driving applications. The 2 companies will jointly develop scalable end-to-end hardware and software solutions with Ambarella software IP embedded in Continental's full stack.

我想強調一些使我們對我們的長期前景感到鼓舞的客戶參與。在第四季度，我們採取了 2 個重要步驟來實現軟件 IP 的商業化。首先，在大陸集團 11 月宣布將提供基於 Ambarella 的 CV3 AI 中央域控制器的 ADAS 解決方案的基礎上。 1 月 4 日，我們宣布 Continental 和 Ambarella 將擴大他們的合作，以包括 ADAS 和自動駕駛應用程序的完整軟件堆棧開發。兩家公司將聯合開發可擴展的端到端硬件和軟件解決方案，並將 Ambarella 軟件 IP 嵌入大陸集團的全棧中。

Second, we announced in December the world's first centralized 4D image radar architecture. Combining Ambarella's Oculii adaptive AI radar software and the efficient CV3 AI domain controllers enables the central processing and fusion of raw 4D imaging radar data with other sensor inputs, including camera, LiDAR and ultrasonics. We believe this breakthrough architecture provides great environmental perception and safer path planning in AI-based L2 to L4 autonomous driving systems.

其次，我們在 12 月宣布了世界上第一個集中式 4D 圖像雷達架構。結合 Ambarella 的 Oculii 自適應人工智能雷達軟件和高效的 CV3 人工智能域控制器，可以集中處理原始 4D 成像雷達數據並將其與其他傳感器輸入（包括相機、激光雷達和超聲波）融合。我們相信這種突破性的架構可以在基於 AI 的 L2 到 L4 自動駕駛系統中提供出色的環境感知和更安全的路徑規劃。

Business development momentum with our CV3 family was strong in the quarter 2. In December, Bosch announced it plans to adopt the CV3 family of AI central domain controllers for the realization of the next-generation ADAS functions. Bosch requires efficient and flexible high-performance computing as well as the scalability to enable software stack to be reused from Level 2 to Level 4 applications. Bosch stated that they are adopting Ambarella's CV3 family because it is the perfect fit to accelerate time to market and to create a scalable solution for their customers.

我們的CV3家族在第二季度的業務發展勢頭強勁。去年12月，博世宣布計劃採用CV3家族的AI中央域控制器來實現下一代ADAS功能。博世需要高效靈活的高性能計算以及可擴展性，以使軟件堆棧能夠從 2 級應用程序到 4 級應用程序重複使用。博世表示，他們正在採用 Ambarella 的 CV3 系列，因為它非常適合加快上市時間並為他們的客戶創建可擴展的解決方案。

During CES, we announced CV3-AD685, the first production SoC in the CV3 family of AI central domain controller for Level 2 to Level 4 vehicles. The third generation CVFlow AI engine in CV3-AD685 includes neural network processing that is 20x faster than previous generation of CV2 SoCs, along with additional general vector processing capabilities to provide the overall performance required for full autonomous driving stack processing, including computer vision, 4D radar, deep fusion and planning. We are proud to note next-generation transformer network have been successfully deployed by customers on to CV3, which highlights the flexibility and efficiency of the architecture of autonomous driving and potentially other applications in the near future.

在 CES 期間，我們發布了 CV3-AD685，這是用於 2 級至 4 級車輛的 AI 中央域控制器 CV3 系列中的第一款量產 SoC。 CV3-AD685 中的第三代 CVFlow AI 引擎包括比上一代 CV2 SoC 快 20 倍的神經網絡處理，以及額外的通用矢量處理能力，以提供完全自動駕駛堆棧處理所需的整體性能，包括計算機視覺、4D雷達、深度融合和規劃。我們很自豪地註意到，下一代變壓器網絡已被客戶成功部署到 CV3 上，這凸顯了自動駕駛架構的靈活性和效率以及在不久的將來可能的其他應用。

We had a highly successful CES 2023 with more than 200 customer meetings, and we demonstrated a wide range of automotive and IoT solutions, including many joint demonstrations with our automotive Tier 1 and the software partners. Our CV3 won a CES 2023 Innovation Award in the Embedded Technologies category.

我們在 CES 2023 上非常成功，舉辦了 200 多場客戶會議，我們展示了廣泛的汽車和物聯網解決方案，包括與我們的汽車一級供應商和軟件合作夥伴的許多聯合演示。我們的 CV3 獲得了嵌入式技術類別的 CES 2023 創新獎。

We offered demo rides in our latest EVA cars, featuring a single CV3 central domain controller performing all perception, classification and the path planning functions and the processing both camera and the RADAR data. The EVA car included 15 cameras and 9 radars with industry-leading power efficiency. And together with Continental, we demonstrated a single CV3 connected to 6 8-megapixel cameras and the 4 3-megapixel cameras, while running multiple neural networks on each video stream, utilizing about 10% of the CV3-AD processor.

我們在最新的 EVA 汽車中提供了演示，配備了一個 CV3 中央域控制器，可執行所有感知、分類和路徑規劃功能以及處理相機和雷達數據。 EVA 汽車包括 15 個攝像頭和 9 個雷達，具有行業領先的能效。我們與 Continental 一起展示了連接到 6 個 8 像素攝像頭和 4 個 3 像素攝像頭的單個 CV3，同時在每個視頻流上運行多個神經網絡，使用了大約 10% 的 CV3-AD 處理器。

Other CES highlights included Kodiak Robotics, which exhibited its self-driving truck integrating Ambarella's CV2AQ AI vision processor in the sensor pods on both sides of the truck for the camera perception processing.

CES 的其他亮點包括 Kodiak Robotics，它展示了其自動駕駛卡車，其在卡車兩側的傳感器艙中集成了 Ambarella 的 CV2AQ AI 視覺處理器，用於攝像頭感知處理。

Autobrains and Seeing Machine demonstrated a combined front ADAS and driving monitor solution running on a single CVFlow SoC. The companies' joint offering provides automakers with a streamlined single box multi-camera solution, including up to 8-megapixel forward-facing camera and a 5-megapixel in-cabin camera.

Autobrains 和 Seeing Machine 展示了在單個 CVFlow SoC 上運行的組合前置 ADAS 和駕駛監控解決方案。兩家公司的聯合產品為汽車製造商提供了一種簡化的單盒多攝像頭解決方案，包括高達 8 兆像素的前置攝像頭和一個 5 兆像素的車內攝像頭。

And in February, China-based Hyperview, an autonomous driving technology company, announced that it had selected Ambarella CV3-AD family to develop a high-performance computing autonomous driving platform. The development will pair CV3 with Hyperview's software stack to provide production-ready perception, automated driving and parking solutions. Hyperview has previously achieved mass production with multiple Chinese OEMs, and we are pleased they have chosen to incorporate CV3 into their new products.

而在今年 2 月，總部位於中國的自動駕駛技術公司 Hyperview 宣布已選擇 Ambarella CV3-AD 系列來開發高性能計算自動駕駛平台。該開發將 CV3 與 Hyperview 的軟件堆棧配對，以提供生產就緒的感知、自動駕駛和停車解決方案。 Hyperview 此前已與多家中國 OEM 實現量產，我們很高興他們選擇將 CV3 納入其新產品。

I will now discuss some of our customers' product introductions during the quarter. We are extremely excited to announce our first 4D image radar project will soon be entering mass production at Geely's Lotus Technology unit. Geely intended to leverage the Lotus technology and brand into market for higher-value passenger vehicles. Lotus announced its Eletre pure electric SUV, which includes 2 4D image radars based on Ambarella's Oculii radar technology, one in the front and one in back, providing high-resolution imaging capable of detecting and tracking vehicles within 300 meters and the production within 100 meters, and accurately measuring the speed and the distance of objects.

我現在將討論本季度我們客戶的一些產品介紹。我們非常高興地宣布，我們的第一個 4D 圖像雷達項目即將在吉利的 Lotus Technology 部門投入量產。吉利打算利用蓮花技術和品牌進入更高價值乘用車市場。 Lotus發布了Eletre純電動SUV，包括2個基於Ambarella Oculii雷達技術的4D圖像雷達，一個在前一個在後，提供高分辨率成像，能夠檢測和跟踪300米內的車輛以及100米內的生產，並準確測量物體的速度和距離。

After announcing a CV3 relationship with Bosch Mobility, we were excited to extend the relationship to the CV2 family of SoCs. During CES, Bosch introduced its new connected RideCare platform and the companion fleet camera. Based on our CV25 AI processor, the product was honored as a CES 2023 Innovation Awards Best of Innovation honoree in the in-vehicle entertainment and safety category.

在宣布與博世移動建立 CV3 關係後，我們很高興將這種關係擴展到 CV2 SoC 系列。在 CES 期間，博世推出了其新的互聯 RideCare 平台和配套車隊攝像頭。基於我們的 CV25 AI 處理器，該產品榮獲 CES 2023 創新獎車載娛樂和安全類最佳創新獎。

Amazon Ring, at the show, also introduced its Ring Car Cam based on our H22 chip. The Car Cam features dual-facing cameras and can monitor the car's interior as well as on the road.

在展會上，亞馬遜 Ring 還推出了基於我們 H22 芯片的 Ring Car Cam。車載攝像頭具有雙面攝像頭，可以監控汽車內部和道路。

Garmin also announced the CV25-based dash cam live camera at CES. The camera provides 140 degrees, 1440p HD views and includes live view, theft alerts and location tracking.

Garmin 還在 CES 上發布了基於 CV25 的行車記錄儀實時攝像頭。該攝像機提供 140 度、1440p 高清視圖，包括實時取景、防盜警報和位置跟踪。

In the enterprise security camera market, European market leader, Axis, introduced a number of camera based on our CV25. The M3088-V compact dome camera is an 8-megapixel design with WDR processing and the support for analytics with deep learning at the edge. And the new small form factor M1055 and M1075 box cameras target small stores and residential care applications and feature edge-based deep learning and the 1080p video.

在企業安全攝像頭市場，歐洲市場領導者 Axis 推出了多款基於我們的 CV25 的攝像頭。 M3088-V 緊湊型半球攝像機採用 8 兆像素設計，具有 WDR 處理能力並支持邊緣深度學習分析。新的小型 M1055 和 M1075 盒式攝像機面向小型商店和住宅護理應用，並具有基於邊緣的深度學習和 1080p 視頻。

Korean market leader, Hanwha, introduced 3 new enterprise class models in its 9000 camera series all based on our CV2 AI vision processor. The 4K models include box, bullets and panoramic designs and feature AI-based analytics, including object classification, license plate recognition, and car make and model recognition. Korean-based IDIS also introduced its 6281HX speed dome camera based on our S3L vision processor and featuring 30x optical zoom capability.

韓國市場領導者 Hanwha 在其 9000 相機系列中推出了 3 款全新的企業級機型，均基於我們的 CV2 AI 視覺處理器。 4K 模型包括盒子、子彈和全景設計，並具有基於 AI 的分析功能，包括對象分類、車牌識別以及汽車品牌和型號識別。韓國 IDIS 還推出了基於我們的 S3L 視覺處理器並具有 30 倍光學變焦功能的 6281HX 高速球型攝像機。

These representative engagements illustrate how we are successfully leveraging our state-of-the-art video processing heritage into larger, more diverse and higher-quality markets for high-bandwidth processors and software for machine sensing applications. A majority of the early growth we have seen with our edge AI products to date has been for new product cycles in existing IoT markets like access Axis and Hanwha and enterprise security camera engagements I just discussed. But we are encouraged with our early success in critical new areas like the CV3 family of central domain controllers for Level 2 to Level 4 mobility applications. CV3 in a single SoC synergistically leverage the functionality Ambarella has created over the years, camera and the radar processing, deep learning AI and automotive software stack IP.

這些具有代表性的項目說明了我們如何成功地將我們最先進的視頻處理傳統用於更大、更多樣化和更高質量的高帶寬處理器和機器傳感應用軟件市場。迄今為止，我們在邊緣 AI 產品方面看到的大部分早期增長都是針對現有物聯網市場的新產品週期，例如訪問 Axis 和 Hanwha 以及我剛剛討論的企業安全攝像頭業務。但我們對我們在關鍵新領域的早期成功感到鼓舞，例如用於 2 級至 4 級移動應用程序的中央域控制器 CV3 系列。單個 SoC 中的 CV3 協同利用 Ambarella 多年來創建的功能，包括攝像頭和雷達處理、深度學習 AI 和汽車軟件堆棧 IP。

While we are experiencing near-term pressure on our revenue from cyclical and economic factors, we firmly believe our secular growth opportunity remains very positive, and we remain focused on leveraging our leadership position in edge AI. AI is just beginning to transform to so many industries and we expected AI adoption to accelerate over the coming years in the AI edge inference market that is our area of focus.

雖然我們的收入近期因週期性和經濟因素而受到壓力，但我們堅信我們的長期增長機會仍然非常積極，我們仍然專注於利用我們在邊緣人工智能領域的領導地位。 AI 才剛剛開始向許多行業轉變，我們預計未來幾年在我們關注的 AI 邊緣推理市場中 AI 的採用將加速。

Now I will hand it over to Brian. Thank you.

現在我將把它交給布賴恩。謝謝。

Thanks, Fermi. I'll review the financial highlights for the fourth quarter and full fiscal year 2023. I'll also provide a financial outlook for our first quarter fiscal year 2024 and in April 30, 2023. I'll be discussing 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, we have eliminated stock-based compensation expense and acquisition-related costs adjusted for the impact of taxes.

謝謝，費米。我將回顧第四季度和整個 2023 財年的財務亮點。我還將提供我們 2024 財年第一季度和 2023 年 4 月 30 日的財務展望。我將討論非 GAAP 結果並詢問請參閱今天的新聞稿，了解 GAAP 與非 GAAP 結果的詳細對賬。對於非 GAAP 報告，我們已經消除了基於股票的補償費用和根據稅收影響調整的收購相關成本。

Fiscal year 2023 revenue increased 1.7% to $337.6 million. IoT revenue was a little more than 3/4 of total revenue and declined slightly for the year. Auto revenue increased over 10% to represent a little more than 1/4 of total revenue. For fiscal year 2023, non-GAAP gross margin was 63.9%, up 50 basis points from 63.4% in fiscal 2022. Non-GAAP operating expenses increased 17.6% for the year with almost 1/4 of the incremental OpEx coming from Oculii that was acquired in Q4 fiscal year 2022. Ending cash and marketable securities totaled $207 million, up from $171 million at the end of the prior year.

2023 財年收入增長 1.7% 至 3.376 億美元。物聯網收入略高於總收入的 3/4，全年略有下降。汽車收入增長超過 10%，佔總收入的 1/4 多一點。 2023 財年，非 GAAP 毛利率為 63.9%，比 2022 財年的 63.4% 高出 50 個基點。全年非 GAAP 運營支出增長 17.6%，其中近 1/4 的增量運營支出來自 Oculii於 2022 財年第四季度收購。期末現金和有價證券總計 2.07 億美元，高於上年末的 1.71 億美元。

For fiscal Q4, revenue was $83.3 million, in line with the midpoint of our prior guidance range, flat to the prior quarter and down 8% year-over-year. Non-GAAP gross margin for fiscal Q4 was 63.5%, consistent with our prior guidance range of 63% to 64%. Non-GAAP operating expense for the fourth quarter was $46 million, an increase of 6% from the prior quarter, but at the low end of our prior guidance range of $46 million to $49 million. The lower operating expense was driven by expense management actions we took as our revenue outlook softened on customer inventory adjustments.

對於第四財季，收入為 8330 萬美元，與我們先前指導範圍的中點一致，與上一季度持平，同比下降 8%。第四財季的非美國通用會計準則毛利率為 63.5%，與我們之前 63% 至 64% 的指導範圍一致。第四季度非 GAAP 運營費用為 4600 萬美元，比上一季度增長 6%，但處於我們先前 4600 萬至 4900 萬美元指導範圍的低端。較低的運營費用是由我們採取的費用管理措施推動的，因為我們的收入前景因客戶庫存調整而走軟。

Q4 net interest and other income was $1.8 million. Other income was higher than our original forecast, driven primarily by an investment gain. Our non-GAAP tax provision was a benefit of $200,000 or minus 2.3% of pretax income. This was $600,000 better than our original forecast, driven by the mix of pretax income across tax jurisdictions. We reported non-GAAP net income of $8.9 million or $0.23 per diluted share.

第 4 季度淨利息和其他收入為 180 萬美元。其他收入高於我們最初的預測，主要是受投資收益的推動。我們的非 GAAP 稅收撥備是 200,000 美元的收益或稅前收入的負 2.3%。這比我們最初的預測高出 600,000 美元，這是由不同稅收管轄區的稅前收入組合推動的。我們報告的非 GAAP 淨收入為 890 萬美元或每股攤薄收益 0.23 美元。

Now turning to our balance sheet and cash flow. Fiscal Q4 cash and marketable securities increased $8 million to $207 million. DSO increased slightly from 54 days to 57 days, driven by the timing of shipments, while days of inventory decreased from 124 to 116. Cash from operations was $5.1 million, and capital expenditures for tangible and intangible assets was $2 million. Free cash flow, defined as cash from operations less CapEx, was $3 million.

現在轉向我們的資產負債表和現金流量。第四財季現金和有價證券增加了 800 萬美元，達到 2.07 億美元。在發貨時間的推動下，DSO 從 54 天略微增加到 57 天，而庫存天數從 124 天減少到 116 天。運營現金為 510 萬美元，有形和無形資產的資本支出為 200 萬美元。自由現金流（定義為運營現金減去資本支出）為 300 萬美元。

We had 2 logistics and ODM companies represent 10% or more of our revenue in Q4. WT Microelectronics, a fulfillment partner in Taiwan that ships to multiple customers in Asia, came in at 50% of revenue. Chicony, an ODM who manufactures for multiple IoT customers, was 11% of revenue.

我們有 2 家物流和 ODM 公司占我們第四季度收入的 10% 或更多。 WT Microelectronics 是台灣的一家履行合作夥伴，向亞洲的多個客戶發貨，佔收入的 50%。 Chicony 是一家為多個物聯網客戶製造產品的 ODM，佔收入的 11%。

Now I'll discuss the outlook for the first quarter of fiscal year 2024. While customer feedback on the level of end demand remains healthy, customers are aggressively managing down their inventory. Consequently, we have experienced a more pronounced slowdown in bookings, along with customer requests to push out the timing of shipments and backlog. For fiscal Q1, we estimate our revenue to be in the range of $60 million to $64 million, or down approximately 26% sequentially at the midpoint. We expect this to be well below the level of end consumption, supporting drawdown of customer inventory. Visibility beyond our fiscal Q1 is limited. However, we currently do not expect that future quarter revenue would need to decline below the level of our Q1 guidance for customer inventory management purposes.

現在我將討論 2024 財年第一季度的前景。雖然客戶對終端需求水平的反饋仍然健康，但客戶正在積極管理庫存。因此，我們經歷了更明顯的預訂放緩，以及客戶要求推遲發貨和積壓時間的要求。對於第一財季，我們估計我們的收入在 6000 萬美元至 6400 萬美元之間，或按中點順序下降約 26%。我們預計這將遠低於終端消費水平，支持客戶庫存的減少。我們第一財季以外的能見度有限。但是，我們目前預計未來的季度收入不需要下降到我們為客戶庫存管理目的製定的第一季度指導水平以下。

We expect non-GAAP gross margin to be in the range of 62% to 64%, down approximately 50 basis points sequentially, driven by lower volumes. We expect non-GAAP OpEx in the first quarter to be in the range of $47 million to $49 million, with the increase compared to Q4, driven by the annual reset of payroll taxes and R&D for new product development. We estimate net interest income to be approximately $750,000. Our non-GAAP tax expense to be approximately $600,000, and our diluted share count to be approximately 39.9 million shares.

我們預計非 GAAP 毛利率將在 62% 至 64% 之間，在銷量下降的推動下連續下降約 50 個基點。我們預計第一季度的非 GAAP 運營支出將在 4700 萬美元至 4900 萬美元之間，與第四季度相比有所增加，這是受工資稅年度重置和新產品開發研發的推動。我們估計淨利息收入約為 750,000 美元。我們的非 GAAP 稅費約為 600,000 美元，稀釋後的股份數量約為 3990 萬股。

Ambarella will be participating in Susquehanna's Technology Conference on March 2nd and Morgan Stanley's TMT Conference on March 7th. Please contact us for more details. Thank you for joining our call today. And with that, I'll turn the call over to the operator for questions.

Ambarella 將參加 3 月 2 日的 Susquehanna 技術會議和 3 月 7 日的摩根士丹利 TMT 會議。請與我們聯繫了解更多詳情。感謝您今天加入我們的電話會議。有了這個，我會把電話轉給接線員提問。

(Operator Instructions) Our first question comes from Joseph Moore with Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的約瑟夫摩爾。

Great. Thank you. I wonder if you could talk about what the next quarter look like kind of by end market. Your revenues are down to levels that you saw when CV was a pretty small portion of revenue. So it seems like your units are down a lot. Is that true in pro surveillance and consumer surveillance? Is that true in auto? Can you just give us a sense of that end market mix?

偉大的。謝謝。我想知道您是否可以談談下一季度終端市場的情況。當 CV 只佔收入的一小部分時，你的收入會下降到你看到的水平。所以看起來你的單位下降了很多。在專業監控和消費者監控中是否如此？汽車行業是這樣嗎？您能否讓我們了解一下終端市場組合？

I think I will -- I think Brian will talk about the percentage of the total revenue. But I want to make some comments. First of all, I think the inventory correction impact IoT a lot more than auto. So I think that our percentage of revenue tend to auto a little bit. But however, our CV growth continued to maintain, but also I think inventory also impacted CV revenue. But however, like you said, I think total unit number on the video processor is impacted. I think for the reason -- there are multiple reasons. One definitely is because of inventory correction, the more CV are on the video processor side. And also, I think that the -- currently, the 2 Chinese customers had been into Hanwha from 3% last year to 0% this year. The unit number continues to drop. And the third thing is, as you can -- you have seen that we have been really focusing on growing our CV silicon, and we haven't really invested on the low end, the video processor's chip road map. So I think that combination of 3 is the reason that we're seeing the video processor unit number going down.

我想我會——我想布賴恩會談談總收入的百分比。但我想發表一些評論。首先，我認為庫存調整對物聯網的影響遠大於汽車。所以我認為我們的收入百分比傾向於自動一點。但是，我們的 CV 增長繼續保持，但我認為庫存也影響了 CV 收入。但是，正如您所說，我認為視頻處理器的總單元數會受到影響。我認為是有原因的——有多種原因。一個肯定是因為庫存修正，視頻處理器端的 CV 越多。而且，我認為 - 目前，這兩個中國客戶已經從去年的 3% 下降到今年的 0%。單位數量繼續下降。第三件事是，正如你所見——你已經看到我們一直在真正專注於發展我們的 CV 矽，而我們並沒有真正投資於低端視頻處理器的芯片路線圖。所以我認為 3 的組合是我們看到視頻處理器單元數量下降的原因。

Yes. Joseph, just to add, embedded in our Q1 revenue forecast is an assumption that automotive revenue stays approximately flat quarter-over-quarter, which means that all of the sequential decline in revenue is attributable to our IoT business, where we're seeing the significant inventory management actions being taken by our customers.

是的。 Joseph，補充一下，我們第一季度的收入預測中包含一個假設，即汽車收入與上一季度相比大致持平，這意味著所有連續的收入下降都歸因於我們的物聯網業務，我們看到我們的客戶正在採取重要的庫存管理措施。

Okay. That's helpful. And then just as a follow-up. As you look at that IoT business, I feel like the last couple of quarters, you felt like there was inventory reduction there. Do you still think that was the case? And obviously, that's intensifying in the April quarter. But do you think you ship below consumption for the last couple of quarters?

好的。這很有幫助。然後作為後續行動。當你看那個物聯網業務時，我覺得最近幾個季度，你覺得那裡的庫存減少了。你還認為是這樣嗎？顯然，這種情況在 4 月季度正在加劇。但是你認為你在過去幾個季度的出貨量低於消費量嗎？

Yes, I think so. For example, one of our -- we continue to talk to all of our customers on the IoT side. But one of the IoT customers, a big one, basically telling us that they forecast their revenue will grow based on our product line, based on the product line they're using our current silicon, that -- those product line will -- revenue will grow double digit this year. But when we look at the revenue from this product line, we are seeing a double-digit revenue decline on our side. So you can see that definitely there is a mismatch between our customers' growth and our revenue guidance. So I think that definitely is a sign of the inventory correction, and that will -- that's the reason we guided down to Q1.

是的，我想是這樣。例如，我們的一個 - 我們繼續與物聯網方面的所有客戶交談。但是物聯網客戶之一，一個大客戶，基本上告訴我們，他們預測他們的收入將根據我們的產品線增長，根據他們使用我們當前矽的產品線，那些產品線將 - 收入今年將增長兩位數。但是，當我們查看該產品線的收入時，我們看到了兩位數的收入下降。所以你可以看到我們客戶的增長與我們的收入指導之間肯定存在不匹配。所以我認為這絕對是庫存修正的跡象，而且這將是我們引導至第一季度的原因。

We have a question from Ross Seymore from Deutsche Bank.

我們有來自德意志銀行的 Ross Seymore 的問題。

Just one question and one clarification. The question side of things, where do you think true end demand is? If you're going to be down, I don't know, 35% sequentially in the IoT side of things, it's seemingly somewhere around $40 million, plus or minus. How do you guys judge what true end demand is relative to that number?

只有一個問題和一個澄清。問題的一面，你認為真正的終端需求在哪裡？如果你要倒下，我不知道，在物聯網方面連續下降 35%，它似乎在 4000 萬美元左右，上下浮動。你們如何判斷真正的最終需求與該數字相關？

Yes. I think like I said as an example I just gave in a previous question, I think our customers are seeing double-digit growth in their product line, and we've seen double-digit decline on the revenue from our chip side, so I think there's definitely a 30%, probably a little bit more than that, in terms of the true demand differences.

是的。我想就像我剛才在上一個問題中舉的例子一樣，我認為我們的客戶在他們的產品線中看到了兩位數的增長，而我們的芯片方面的收入出現了兩位數的下降，所以我就真正的需求差異而言，我認為肯定有 30%，可能比這多一點。

And then I guess as far as the end market stuff, that was helpful that you gave the color for the sequential guide with automotive being flat. But the clarification part of my question, Brian, and maybe I just wrote this down wrong. But for last year and maybe the fourth quarter, if you want to give that sequentially. Can you just remind us what the percentages were? Because I thought you said over 75% was IoT and over 25% was automotive. And obviously, those 2 don't make sense together.

然後我想就終端市場的東西而言，這很有幫助，因為您為順序指南提供了汽車平坦的顏色。但是我的問題的澄清部分，布賴恩，也許我只是寫錯了。但是對於去年，也許是第四季度，如果你想按順序給出。你能提醒我們百分比是多少嗎？因為我記得你說超過 75% 是物聯網，超過 25% 是汽車。顯然，這兩個放在一起沒有意義。

Yes, sure. No, the comment was a little bit less than 75% was IoT and a little bit more than -- or was related to automotive. For the full year, we stated that automotive revenue was up about 10% on a year-over-year basis, while IoT declined slightly. If we look at the fourth quarter, both of those end markets were relatively flat sequentially as was our total revenue between Q3 and Q4.

是的，當然。不，評論略低於 75% 是物聯網，略多於 - 或者與汽車相關。對於全年，我們表示汽車收入同比增長約 10%，而物聯網略有下降。如果我們看一下第四季度，這兩個終端市場都相對持平，第三季度和第四季度之間的總收入也是如此。

And we'll move to our next question. It comes from Matt Ramsay with Cowen.

我們將轉到下一個問題。它來自 Matt Ramsay 和 Cowen。

This is (inaudible) on for Matt Ramsay. I had a quick question. So in regards to your announced partnerships with Conti and Bosch, what's the initial reduction by your OEM customers? And any expectations on when you (inaudible).

這是（聽不清）馬特·拉姆齊 (Matt Ramsay) 的發言。我有一個快速的問題。那麼關於您宣布的與 Conti 和 Bosch 的合作夥伴關係，您的 OEM 客戶最初減少了多少？以及對您何時（聽不清）的任何期望。

I can't hear you well, but I think I understand the question. I think you're asking for our OEM customer engagement for CV3. If that's true, let me tell you. I think after the Bosch and the Conti announcement, we definitely try to engage OEMs through them, but also trying to engage OEM by ourselves. In fact, now we have 2 weapons to engage with customer, one is using CV3 as a domain controller; also using a 4D imagery centralized radar solution to approach OEMs.

我聽不太清楚，但我想我明白你的問題了。我認為您要求我們的 OEM 客戶參與 CV3。如果那是真的，讓我告訴你。我認為在博世和康帝宣布之後，我們肯定會嘗試通過他們來吸引 OEM，但也試圖通過我們自己來吸引 OEM。事實上，現在我們有兩種武器可以與客戶打交道，一種是使用 CV3 作為域控制器；還使用 4D 圖像集中式雷達解決方案來接近 OEM。

So we have been successfully having discussions and also potential engagement with OEM on both fronts. And you can see that the engagement is really probably, I would say, starting 3 months ago, after we sample CV3. So I think that we -- I definitely feel encouraged and very happy with the progress we made and also the number of people we're engaging, but we have -- we don't have any public announcement yet.

因此，我們已經成功地在這兩個方面與 OEM 進行了討論和潛在的接觸。你可以看到，這種參與真的很可能，我想說，從 3 個月前開始，在我們對 CV3 進行採樣之後。所以我認為我們 - 我對我們取得的進展以及我們參與的人數感到非常鼓舞和非常高興，但我們 - 我們還沒有任何公開聲明。

Got it. And I know in regards to the inventory correction, probably not looking to guide beyond the first quarter, but any color that -- like what do you see in terms of the trajectory of the recovery beyond the first quarter for the (technical difficulty).

知道了。而且我知道關於庫存修正，可能不是希望在第一季度之後提供指導，而是任何顏色 - 就像你在第一季度之後的複蘇軌跡中看到的那樣（技術困難）。

Yes, we haven't really guided beyond Q1. But just like we said on the script, I think that we think Q1, from an inventory correction point of view, I think it's a low point. And based on the discussion we had with the customer in terms of their projected revenue, the inventory level and our lead time, I think that we -- that's the best guess we have at this point.

是的，我們還沒有真正超越第一季度。但就像我們在劇本上所說的那樣，我認為我們認為第一季度，從庫存修正的角度來看，我認為這是一個低點。根據我們與客戶就他們的預計收入、庫存水平和我們的交貨時間進行的討論，我認為我們——這是我們目前最好的猜測。

We have a question from Vivek Arya from Bank of America.

美國銀行的 Vivek Arya 提出了一個問題。

Fermi, I'm curious, the announcements you made with the Tier 1s, how exclusive are they? Like does it prevent them from engaging with your competitors in the semiconductor side? And when is the earliest that you think we will see any tangible benefits from those announcements? Is it anywhere in the next 1, 2, 3 years? Or is it like in the '26 plus kind of time frame?

Fermi，我很好奇，你與 Tier 1 一起發布的公告，它們有多獨特？就像它會阻止他們在半導體方面與您的競爭對手接觸嗎？您認為我們最早什麼時候會從這些公告中看到任何切實的好處？它會在未來 1、2、3 年內出現嗎？或者它就像在 26 年之後的那種時間範圍內？

Right. So first of all, I don't think there is any exclusive relationship with any Tier 1 announcement that we had. But however, I'd like to point out any engagement that, for example, Continental will want to work with our software stack. And also -- so that alone is a huge commitment on both sides, both need to put a significant resource. So although we don't have a legal exclusivity, but from a collaboration point of view, I think definitely, this Tier 1 has been identified by us that's an important partner for us, and they probably also think that CV3 can help them in their road map.

正確的。所以首先，我認為與我們擁有的任何一級公告沒有任何排他性關係。但是，我想指出任何參與，例如，Continental 將希望使用我們的軟件堆棧。而且 - 所以僅此一項就是雙方的巨大承諾，雙方都需要投入大量資源。所以雖然我們沒有法律排他性，但從合作的角度來看，我認為肯定的是，這個一級供應商已經被我們確定為我們的重要合作夥伴，他們可能也認為 CV3 可以幫助他們路線圖。

In China, for example, the Hyperview is a similar situation. They have been using our competitor solution. But when they look at CV3 and they think that's a solution that can really differentiate. And the bounce of that software development they need to put on to commit to the project is significant. So I think although there's no exclusivity, but I think, definitely, it's a huge commitment for both sides.

例如在中國，Hyperview 就是類似的情況。他們一直在使用我們的競爭對手解決方案。但當他們查看 CV3 時，他們認為這是一個真正與眾不同的解決方案。他們需要投入到該項目中的軟件開發的反彈非常重要。所以我認為雖然沒有排他性，但我認為，這對雙方來說都是一個巨大的承諾。

Vivek, it's Louis. Just to add that we've said in the past that calendar year '26 would be the first full year of revenue for CV3, and that hasn't changed. We've also talked about, now that we've gotten into accounts like Conti and Bosch with CV3, we look to also promote CV2, which could potentially generate revenue earlier and we did -- Fermi did announce a CV2 and specifically CV25 win with Bosch Mobility, which is our first CV2 family win with Bosch Mobility.

維維克，是路易斯。只是補充一點，我們過去曾說過，26 年日曆年將是 CV3 的第一個全年收入，這一點沒有改變。我們還談到，既然我們已經通過 CV3 獲得了 Conti 和 Bosch 這樣的客戶，我們希望也能推廣 CV2，這可能會更早地產生收入，我們做到了——費米確實宣布了 CV2，特別是 CV25 的勝利Bosch Mobility，這是我們與 Bosch Mobility 一起贏得的第一個 CV2 系列。

Very helpful. And for my follow-up, actually, I had a 2-parter. One, just a clarification with Brian, on receivables, have been kind of creeping up over the last few quarters. Just wondering if there's anything more to read into that?

很有幫助。實際上，對於我的後續行動，我有兩個人。第一，只是與 Brian 就應收賬款進行的澄清，在過去幾個季度中一直在逐漸增加。只是想知道是否還有其他內容需要閱讀？

And then the main question for me for you, when you look at your automotive revenue, I believe you said 10% last year. Was that in line or different than your expectations when the year started? Because I'm contrasting that with the automotive revenue growth that we saw from a number of other semiconductor companies that was in the range of anywhere between 20% to 45% last year. So just if you take a look back at your automotive revenue growth last year, was it in line with what you thought or what the puts and takes were?

然後是我對你的主要問題，當你看你的汽車收入時，我相信你去年說了 10%。這與您年初時的預期一致還是不同？因為我將其與我們從去年 20% 到 45% 之間的任何其他半導體公司看到的汽車收入增長進行了對比。因此，如果您回顧一下去年的汽車收入增長，它是否與您的想法或看跌期權一致？

I'll start with your question on DSO and then turn it over to Fermi. You're right. So the last couple of quarters, Q4, Q3 saw an uptick in DSO increase in accounts receivable. And that was really driven by the timing of revenue shipments in those quarters. So fiscal Q4 was a very back-end loaded revenue shipment quarter for us. Consequently, we had a high level of AR at the end of the quarter, driving up that DSO. And we had a fairly similar situation in Q3 as well. So I think that corresponds to some of the softness that we've seen on the revenue side. And as that plateaus and hopefully begins to lift off in the future, we should see a return to a more normal level of DSO.

我將從你關於 DSO 的問題開始，然後將其轉交給 Fermi。你說得對。因此，在過去幾個季度，第四季度、第三季度，應收賬款的 DSO 增加了。這實際上是由這些季度的收入出貨時間驅動的。因此，第四財季對我們來說是一個非常後端負載的收入出貨季度。因此，我們在本季度末的 AR 水平很高，從而推高了 DSO。我們在第三季度也有類似的情況。所以我認為這與我們在收入方面看到的一些疲軟相對應。隨著這種穩定並有望在未來開始升溫，我們應該會看到 DSO 恢復到更正常的水平。

In terms of the automotive growth, I think at the beginning of the year, our plan definitely grew more than 10% at the end -- that we show at the end. I think the biggest reason is that in the first half, that automotive markets continue to see impact by the shortage of supply, and we reported a lot of our customer in Japan and in China to that impact on that. So I think that's the reason we didn't deliver the 20-plus percent automotive growth that we planned early last year.

就汽車增長而言，我認為在年初，我們的計劃最終肯定會增長 10% 以上——我們在年底展示了這一點。我認為最大的原因是上半年，汽車市場繼續受到供應短缺的影響，我們向日本和中國的很多客戶報告了這種影響。所以我認為這就是我們沒有實現去年初計劃的 20% 以上的汽車增長的原因。

We have a question from Tore Svanberg with Stifel.

我們有一個來自 Stifel 的 Tore Svanberg 的問題。

Yes. I had a question about the announcement you had with Samsung for 5-nanometer, and obviously, your first CV product in production with the 5-nanometer. I was just hoping you could elaborate a little bit more on timing. How much of your work with Samsung already under this node? And any more color you could offer on that announcement would be great.

是的。我有一個關於你與三星的 5 納米公告的問題，顯然，你的第一個 CV 產品是用 5 納米生產的。我只是希望你能詳細說明一下時間安排。您在這個節點下與三星的合作有多少？如果您能在該公告中提供更多顏色，那就太好了。

You are talking about the announcement we had with Samsung Foundry on the CV3-AD chip that we use Samsung Foundry for that automotive CV3 chip? Or you're talking about CV5 production?

您是在談論我們與 Samsung Foundry 就 CV3-AD 芯片發布的公告，我們使用 Samsung Foundry 生產該汽車 CV3 芯片？或者你在談論 CV5 生產？

No, no, I'm talking about the AD685 chip.

不不不，我說的是AD685芯片。

Yes, yes. So what we did was we announced that we -- at the CES, we announced our first CV3-AD685 chip, which is the first production with the SoC for CV3 family, and we announced that our sensor will be the foundry for the chip. And right now, this is not our first 5-nanometer sensor foundry chip. We already have a 5-nanometer chip called CV5 that we assemble -- in fact, go into production of Q3, Q4 last year, and we are ramping up the production on that. So from the process node maturity, I think we're happy with it. I think the yield is right at the level we are expecting. And also, we expect that CV3 chip or the whole family probably going through on the 5-nanometer for the next 2 to 3 chips.

是的是的。所以我們所做的是我們宣布我們 - 在 CES 上，我們宣布了我們的第一款 CV3-AD685 芯片，這是第一款用於 CV3 系列的 SoC 產品，我們宣布我們的傳感器將成為該芯片的代工廠。現在，這不是我們的第一個 5 納米傳感器代工芯片。我們已經組裝了一個名為 CV5 的 5 納米芯片——事實上，去年第三季度、第四季度投入生產，我們正在提高產量。因此，從流程節點成熟度來看，我認為我們對此感到滿意。我認為收益率正好在我們預期的水平。而且，我們預計 CV3 芯片或整個系列可能會在接下來的 2 到 3 個芯片中經歷 5 納米。

Got it. So the 685 is -- I mean, when would that be sampling?

知道了。所以 685 是——我的意思是，那將在什麼時候進行採樣？

I think we expect to sample the chip early -- I would say, early this year.

我想我們希望儘早對該芯片進行採樣——我會說，今年年初。

Very good.

非常好。

The second quarter of this year, sorry.

今年二季度，不好意思。

Got it. And just as a follow-up. Obviously, the software stack IP is a pretty big deal. I mean, obviously, you talked about the partnerships with Bosch and Continental. But as you continue to develop that software stack, are you starting to see some potential revenue streams nonhardware related?

知道了。並作為後續行動。顯然，軟件堆棧 IP 非常重要。我的意思是，很明顯，您談到了與博世和大陸集團的合作夥伴關係。但是隨著您繼續開發該軟件堆棧，您是否開始看到一些與硬件無關的潛在收入流？

Non-auto related? Can you ask?

非汽車相關？你能問嗎？

Yes. So is there a possibility you could actually just sell the software stack to some partners without selling CV3?

是的。那麼，您是否有可能實際上只將軟件堆棧出售給一些合作夥伴而不出售 CV3？

Well, I think first of all, for the 4D image radar we just announced with Geely, right, that's our software running on the TI chip, which is a unique opportunity because that project started before the acquisition was -- before the acquisition. After the acquisition, when we look at the combined technology being Oculii and the CV -- and our CV3 domain controller, we believe the centralized radar is probably more meaningful and probably provide better benefits to our customers. So we are focusing on centralized radar right now. So from a 4D image radar, I think all the software revenue will be associated with our own chip. We don't have a plan to run the software stack on other chips.

好吧，我認為首先，對於我們剛剛與吉利宣布的 4D 圖像雷達，這是我們在 TI 芯片上運行的軟件，這是一個獨特的機會，因為該項目在收購之前就開始了——在收購之前。收購後，當我們審視 Oculii 和 CV 的組合技術——以及我們的 CV3 域控制器時，我們相信集中式雷達可能更有意義，並可能為我們的客戶提供更好的利益。所以我們現在專注於集中式雷達。所以從4D圖像雷達來看，我認為所有的軟件收入都將與我們自己的芯片相關聯。我們沒有計劃在其他芯片上運行軟件堆棧。

And our next question comes from David Kelley with Jefferies.

我們的下一個問題來自 Jefferies 的 David Kelley。

This is Gavin Kennedy on for David Kelley. Nice to hear your team achieved more than 45% overall CV mix in this fiscal year. And I believe you said you expect 60% mix next year. Can you provide us with more details on the key drivers here? And then related, can you remind us of your thoughts on expected ASP trajectory?

這是大衛凱利的加文肯尼迪。很高興聽到您的團隊在本財年實現了超過 45% 的整體 CV 組合。我相信你說過你預計明年會有 60% 的混合。您能否在這裡向我們提供有關關鍵驅動因素的更多詳細信息？然後相關的，你能提醒我們你對預期 ASP 軌蹟的想法嗎？

Yes. So I think the driver for the CV growth continue because I think even our CV2 family continue to grow. For example, we are showing a lot more customers and more products, as I mentioned in our script. So the CV2 family is going to continue to drive the growth of the CV revenue.

是的。所以我認為 CV 增長的驅動力仍在繼續，因為我認為甚至我們的 CV2 家族也在繼續增長。例如，正如我在腳本中提到的，我們展示了更多的客戶和更多的產品。因此 CV2 家族將繼續推動 CV 收入的增長。

On top of that, we announced CV5 will be in production -- already was production later last year and will ramp up revenue this year. So that will help on driving the CV revenue. On top of that, when we are assembling CV3, then you talk about IES and plus other CV3-related development IES. So those things combined what continue to drive the CV revenue. On the ASP side, like we said before, we continue to expect our ASP will continue to grow in the next several years because the CV5 ASP is higher, CV3 ASP is even higher. So that will continue to give us a very healthy growth on our ASP side.

最重要的是，我們宣布 CV5 將投入生產——去年晚些時候已經投入生產，並將在今年增加收入。因此，這將有助於推動 CV 收入。最重要的是，當我們組裝 CV3 時，您會談論 IES 以及其他與 CV3 相關的開發 IES。所以這些東西結合起來繼續推動 CV 收入。在 ASP 方面，正如我們之前所說，我們繼續預計未來幾年我們的 ASP 將繼續增長，因為 CV5 ASP 更高，CV3 ASP 甚至更高。因此，這將繼續為我們的 ASP 方面帶來非常健康的增長。

Got it. And then switching gears. I think last quarter you expect -- you said that you expected operating expenses to ramp through fiscal year '24 given increased spending requirements to support chip development. Is this still the case? And if so, can you just walk us through your OpEx -- the OpEx drivers here?

知道了。然後切換齒輪。我認為上個季度你預計 - 你說你預計運營支出將在 24 財年增加，因為支持芯片開發的支出需求增加。現在還是這樣嗎？如果是這樣，您能否帶我們了解一下您的 OpEx——這裡的 OpEx 驅動程序？

Right. So in our guidance for fiscal Q1, you see it sequential increase of about $2 million from fiscal Q4. Over half of that sequential increase is associated with the reset of payroll taxes that impacts all companies at the beginning of a new calendar year. The remainder of that increase is related to increased R&D activity associated with the build-out of the CV3 product family. We're going to hold off on providing a full year outlook for OpEx at this point in time. I can tell you that we are very seriously managing our operating expenses in light of the soft revenue environment that we're in currently. We're doing that with a focus on preserving the timing of our new product introductions. So it's a paramount importance that we get our products out on time. But in any other area where we can squeeze expense, we're taking those actions. So it will be a little bit dynamic as we move through the year and as we get a better feel for how the revenue materializes. And so at this point, we won't be providing guidance on OpEx beyond Q1.

正確的。因此，在我們對第一財季的指導中，您會看到它比第四財季連續增加了約 200 萬美元。這一連續增長的一半以上與新日曆年開始時影響所有公司的工資稅的重置有關。其餘增長與 CV3 產品系列擴建相關的研發活動增加有關。目前，我們將暫緩提供 OpEx 的全年展望。我可以告訴你，鑑於我們目前所處的軟收入環境，我們正在非常認真地管理我們的運營費用。我們這樣做的重點是保持新產品推出的時間。因此，我們按時推出產品至關重要。但在我們可以壓縮開支的任何其他領域，我們正在採取這些行動。因此，隨著我們度過這一年並且我們對收入如何實現有了更好的了解，它會有點動態。因此，在這一點上，我們不會在第一季度之後提供有關 OpEx 的指導。

Our next question comes from Kevin Cassidy with Rosenblatt Securities.

我們的下一個問題來自 Rosenblatt Securities 的 Kevin Cassidy。

Just some -- if you can provide more details around the inventory correction. And clearly, it's in the IoT products. But how much of it is the CV products versus the human interface, some kind of the older devices?

只是一些 - 如果您可以提供有關庫存更正的更多詳細信息。很明顯，它在物聯網產品中。但其中有多少是 CV 產品與人機界面，某種較舊的設備？

So I think it's definitely IoT is more severely impacted than the auto industry. But if you look at between the video processor and CV, I would say that the video processor is impacted more. I think that's the reason for people who have a traditional product, they haven't updated so that they usually feel comfortable to build a lot more inventory in the last 2 years. And that's where we're seeing that the video processor definitely has more inventory out there than the computer business chip.

所以我認為物聯網肯定比汽車行業受到的影響更嚴重。但如果你看一下視頻處理器和 CV，我會說視頻處理器受到的影響更大。我認為這就是擁有傳統產品的人的原因，他們沒有更新，因此他們通常會在過去 2 年中建立更多的庫存。這就是我們看到視頻處理器的庫存肯定比計算機業務芯片更多的地方。

That makes sense. Okay. And have your lead times stopped coming in? Or are there still improvements ahead?

這就說得通了。好的。你的交貨時間停止了嗎？或者還有改進的地方嗎？

We continue to improve. We're still looking at roughly 30 weeks on average because we have a 5-nanometer and 10-nanometer. Those lead time is definitely longer, much longer than 14- or 28-nanometer process node -- and low lead times dropped at 30 weeks on -- as well as 16-nanometer -- 14-nanometer and 28-nanometer lead times are a little shorter than that, and we'll continue to see the improvement from the foundry side.

我們繼續改進。我們仍然平均需要大約 30 週，因為我們有 5 納米和 10 納米。那些交貨時間肯定更長，比 14 或 28 納米工藝節點長得多——而且交貨時間在 30 週後下降了——以及 16 納米——14 納米和 28 納米的交貨時間是比這短一點，我們將繼續看到代工方面的改進。

Okay. Great. Maybe if I could ask just one more. You're still staying above your corporate target for gross margin. Will it be volumes as they come back that you expect gross margins to come back into that 59% to 62% range?

好的。偉大的。也許我可以再問一個。您仍然高於公司的毛利率目標。您預計毛利率會回到 59% 到 62% 的範圍內嗎？

Yes, I think as we look forward to -- for the rest of this fiscal year, we would expect gross margin to be in a similar range as we delivered last fiscal year. In Q1, we're a little bit lower. Obviously, the revenue is down substantially. So we don't have a lot of fixed costs in the company so that the gross margin is not very volatile as it relates to volumes. But when they move significantly, we will see some impact. But I think we're likely to remain at the high end of that model range that you mentioned for the rest of this fiscal year.

是的，我認為正如我們所期待的那樣——在本財年的剩餘時間裡，我們預計毛利率將與上一財年保持在相似的範圍內。在第一季度，我們有點低。顯然，收入大幅下降。因此，我們公司沒有太多固定成本，因此毛利率與銷量相關時波動不大。但當它們大幅移動時，我們會看到一些影響。但我認為我們可能會在本財年的剩餘時間內保持在您提到的模型範圍的高端。

And our next question comes from Brian Ruttenbur with Imperial Capital.

我們的下一個問題來自 Imperial Capital 的 Brian Ruttenbur。

Yes. A couple of quick questions on the security side of the business. I assume the year fiscal '23 ended with roughly 60% to 65% of total revenue from security. Can you just confirm that? And then number two, if you could talk a little bit about the commercial demand in the market, what you're seeing and if you're seeing any let up in that area?

是的。關於業務安全方面的幾個快速問題。我假設 23 財年結束時安全總收入的大約 60% 到 65%。你能確認一下嗎？然後第二，如果你能談談市場上的商業需求，你看到了什麼，如果你看到那個領域有任何鬆懈？

So the -- I think the security -- the total IoT revenue is roughly 75%, maybe a little below 75%. And that including both enterprise security camera, consumer security camera as well as other revenue we talked about, haven't break down that. So the total number of IoT is 74%. From the end demand side, like I said, most of our customers, especially enterprise customers, they continue to see revenue growth potential for this year. We talk to many customers, and they still are optimistic that they are going to grow 10% to 15% with the annual run rate for their product lines. So that's -- I don't think that end demand, at least from based on what we have seen, is not a problem at this point.

所以——我認為安全——物聯網總收入大約是 75%，可能略低於 75%。包括企業安全攝像頭、消費者安全攝像頭以及我們談到的其他收入在內，還沒有細分。所以物聯網總數是74%。從終端需求方面，就像我說的，我們的大多數客戶，尤其是企業客戶，他們繼續看到今年的收入增長潛力。我們與許多客戶交談過，他們仍然樂觀地認為，他們的產品線的年運行率將增長 10% 到 15%。所以那是——我不認為最終需求，至少從我們所看到的來看，在這一點上不是問題。

Okay. Are you seeing any let up in demand on the IoT on the consumer side or residential side on the security cameras? We're seeing a drop in that area, but we're seeing demand on the commercial security, IoT dramatically up.

好的。您是否看到安全攝像頭在消費者端或住宅端對物聯網的需求有所減弱？我們看到該領域有所下降，但我們看到對商業安全和物聯網的需求急劇上升。

So on the consumer side, that -- I think it's definitely lower, but it's not -- it does -- the drop doesn't explain what we are seeing from our customers drop of demand. So a drop of the PO to us. So I really think that on the consumer side, it's a little weaker than the enterprise side. But like you say, enterprise side, we haven't seen any drop at all.

因此，在消費者方面，我認為它肯定會降低，但事實並非如此 - 下降並不能解釋我們從客戶需求下降中看到的情況。所以給我們一點採購訂單。所以我真的認為在消費者方面，它比企業方面弱一點。但就像你說的，企業方面，我們根本沒有看到任何下降。

Our next question comes from Quinn Bolton with Needham & Company.

我們的下一個問題來自 Needham & Company 的 Quinn Bolton。

I just want to come back, I guess, to Ross's question about how much you're undershipping, and Fermi, I think you said you thought you might be undershipping by as much as 30%, which would sort of imply -- revenue could be well more than $10 million higher, or consumption well more than $10 million higher than where you're guiding for fiscal Q1. I just want to make sure that I've got those numbers right.

我想我只想回到羅斯關於你出貨不足多少的問題，費米，我想你說過你認為你可能出貨不足 30%，這有點暗示——收入可能比您為第一財季指導的水平高出 1000 萬美元以上，或消費高出 1000 萬美元以上。我只是想確保我得到了正確的數字。

The number is right, but that's for 1 customer. So what the average -- we cannot generalize that comment because we -- not a lot of customer is telling us where the inventory is or where's their projected growth is. But this 1 potential customer, we have a lot of visibility. So I think that we can -- from that 1 data point, we think that 30% is what we're looking at.

號碼是正確的，但那是給 1 位顧客的。因此，平均水平是多少——我們不能一概而論，因為我們——沒有多少客戶告訴我們庫存在哪里或他們的預計增長在哪裡。但是這 1 個潛在客戶，我們有很多知名度。所以我認為我們可以——從那 1 個數據點，我們認為 30% 就是我們正在尋找的。

Got it. But that's 1 customer specifically. It's -- you don't necessarily want to generalize that?

知道了。但這具體是 1 個客戶。它是 - 你不一定想概括它？

Correct.

正確的。

Got it. Okay. Longer term, obviously, I think a lot of the excitement around the stories around the automotive side. I'm just wondering, you only update your auto pipeline once a year. Are there any other milestones you think investors can track on your -- as you make progress to securing the CV3 design wins with either Continental or Bosch or OEMs directly?

知道了。好的。顯然，從長遠來看，我認為圍繞汽車方面的故事有很多令人興奮的地方。我只是想知道，您每年只更新一次汽車管道。您是否認為投資者可以追踪任何其他里程碑 - 當您在直接與大陸集團或博世或原始設備製造商一起確保 CV3 設計獲勝方面取得進展時？

Well, I think any announcement the customer -- need to get -- our customers' approval. And we probably need to think about whether we want to give people hint about design without mentioning names, but that's definitely a decision we do make. We haven't done that for -- throughout the whole 10 years as a public company, so we need to think about it. But I think that's why I think tracking our announcement and tracking our annual -- formal update is probably the best way at this point.

好吧，我認為客戶的任何公告都需要得到我們客戶的批准。我們可能需要考慮是否要在不提及名字的情況下給人們關於設計的暗示，但這絕對是我們做出的決定。作為一家上市公司，我們已經整整 10 年沒有這樣做了，所以我們需要考慮一下。但我認為這就是為什麼我認為跟踪我們的公告和跟踪我們的年度正式更新可能是目前最好的方式。

And our last question comes from Richard Shannon with Craig-Hallum.

我們的最後一個問題來自 Richard Shannon 和 Craig-Hallum。

I want to ask one kind of a 2-parter here on ASPs and growth here. I can't remember if you mentioned what the growth number was for fiscal '23. If you have that one, I'd love to hear it. And then kind of responding to your response and -- or coming back in response to another question here about how to think about it for this year, you just talked about growth. Can we think about an ASP growth in percentage terms similar to last year? Or how should we characterize that?

我想在這裡問一個關於 ASP 和增長的 2 夥伴。我不記得你是否提到過 23 財年的增長數字。如果你有那個，我很想听聽。然後有點回應你的回應 - 或者回到這裡回答另一個關於今年如何考慮它的問題，你剛剛談到了增長。我們可以考慮與去年類似的百分比形式的 ASP 增長嗎？或者我們應該如何描述它？

I think that 2 years ago, our ASP probably roughly around $10. And this year, we are above $10 by a healthy margin. So I think that growth, like I said, will continue. And I think this year, we're going to see a similar growth rate on the ASP side.

我認為 2 年前，我們的 ASP 大概在 10 美元左右。而今年，我們的利潤率超過了 10 美元。所以我認為，正如我所說，增長將繼續下去。我認為今年，我們將在 ASP 方面看到類似的增長率。

That's helpful.

這很有幫助。

Another part of the question?

問題的另一部分？

No, I think you covered it, at least it sounds like. Yes, I think it's probably enough detail for there. Second question here, as we try to model this CV being 60% of sales in this current fiscal, you're up from 45%, which is pretty significant growth, I've been trying to model this between IoT and automotive. And could we see CV be a majority of your IoT business or a clear majority of your business this year? It seems like it would have to be.

不，我想你涵蓋了它，至少聽起來是這樣。是的，我認為它可能已經足夠詳細了。這裡的第二個問題，當我們嘗試將此 CV 建模為本財年銷售額的 60% 時，你從 45% 上升，這是非常顯著的增長，我一直在嘗試在物聯網和汽車之間建模。我們能否看到 CV 成為您今年物聯網業務的大部分或您業務的絕大部分？似乎必須如此。

Well, I think that's the right assumption. I think among -- we talked about we shipped 13 million CV associate cumulatively right now. And there's a very healthy portion of that is automotive. So I think that's one part of the answer. The other part of the answer is yes, I think that particularly on the enterprise security camera side, we definitely expect that a majority of our [CV] will be on the revenue side, majority of our CV -- majority of our enterprise revenue will be based on CV.

好吧，我認為這是正確的假設。我認為 - 我們談到我們現在累計運送了 1300 萬個 CV 助理。其中有一個非常健康的部分是汽車。所以我認為這是答案的一部分。答案的另一部分是肯定的，我認為特別是在企業安全攝像頭方面，我們肯定希望我們的大部分 [CV] 將在收入方面，我們的大部分 CV - 我們企業收入的大部分將基於簡歷。

There are no other questions in the queue. I would now like to turn the conference back to Dr. Fermi Wang for closing remarks.

隊列中沒有其他問題。我現在想把會議轉回 Fermi Wang 博士作閉幕詞。

Yes. I just want to thank everybody who attend today's meeting. I will talk to you next time. Thank you.

是的。我只想感謝參加今天會議的每一個人。下次我會和你談談。謝謝。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。