SANTA CLARA, Calif., Feb. 28, 2023 (GLOBE NEWSWIRE) -- Ambarella, Inc. (NASDAQ: AMBA), an edge AI semiconductor company, today announced fourth quarter and full year fiscal 2023 financial results for the period ending January 31, 2023.
- Revenue for the fourth quarter of fiscal 2023 was $83.3 million, down 7.7% from $90.2 million in the same period in fiscal 2022. For the fiscal year ending January 31, 2023, revenue was $337.6 million, up 1.7% from $331.9 million for the fiscal year ending January 31, 2022.
- Gross margin under U.S. generally accepted accounting principles (GAAP) for the fourth quarter of fiscal 2023 was 59.6%, compared with 63.5% for the same period in fiscal 2022. For the fiscal year ending January 31, 2023, GAAP gross margin was 61.9%, compared with 62.7% for the fiscal year ending January 31, 2022.
- GAAP net loss for the fourth quarter of fiscal 2023 was $11.1 million, or loss per diluted ordinary share of $0.29, compared with a GAAP net loss of $9.2 million, or loss per diluted ordinary share of $0.25, for the same period in fiscal 2022. GAAP net loss for the fiscal year ending January 31, 2023 was $65.4 million, or loss per diluted ordinary share of $1.70. This compares with GAAP net loss of $26.4 million, or loss per diluted ordinary share of $0.72, for the fiscal year ending January 31, 2022.
Financial results on a non-GAAP basis for the fourth quarter and full year fiscal 2023 are as follows:
- Gross margin on a non-GAAP basis for the fourth quarter of fiscal 2023 was 63.5%, compared with 64.8% for the same period in fiscal 2022. For the fiscal year ending January 31, 2023, non-GAAP gross margin was 63.9%, compared with 63.4% for the fiscal year ending January 31, 2022.
- Non-GAAP net income for the fourth quarter of fiscal 2023 was $8.9 million, or earnings per diluted ordinary share of $0.23. This compares with non-GAAP net income of $17.9 million, or earnings per diluted ordinary share of $0.45, for the same period in fiscal 2022. Non-GAAP net income for the fiscal year ending January 31, 2023 was $43.1 million, or earnings per diluted ordinary share of $1.10. This compares with non-GAAP net income of $62.2 million, or earnings per diluted ordinary share of $1.61, for the fiscal year ending January 31, 2022.
Based on information available as of today, Ambarella is offering the following guidance for the first quarter of fiscal year 2024, ending April 30, 2023:
- Revenue is expected to be between $60.0 million and $64.0 million
- Gross margin on a non-GAAP basis is expected to be between 62.0% and 64.0%
- Non-GAAP operating expenses are expected to be between $47.0 million and $49.0 million
Ambarella reports gross margin, net income (loss) and earnings (losses) per share in accordance with GAAP and, additionally, on a non-GAAP basis. Non-GAAP financial information excludes the impact of stock-based compensation and acquisition-related costs adjusted for the associated tax impact, which includes the effect of any benefits or shortfalls recognized. A reconciliation of the GAAP to non-GAAP gross margin, net income (loss) and earnings (losses) per share for the periods presented, as well as a description of the items excluded from the non-GAAP calculations, is included in the financial statements portion of this press release.
Total cash, cash equivalents and marketable debt securities on hand at the end of the fourth quarter of fiscal 2023 was $206.9 million, compared with $199.0 million at the end of the prior quarter and $171.0 million at the end of the same quarter a year ago.
“We achieved significant milestones in fiscal 2023 towards our transformation to an edge AI company. CV3-AD, the first processor in our 3rd generation edge AI family, was broadly sampled, we commenced mass production of CV5, our first 5nm SoC, we introduced our centralized 4D imaging radar, and took important steps towards commercialization of our software stack IP,” said Fermi Wang, President and CEO. “Our customers indicate end market demand is healthy, but we are experiencing a more pronounced slowdown as they reduce inventory. Our Q1 revenue is expected to be well below end market consumption, and we currently do not expect these existing cyclical factors to cause future quarter revenue to decline below our Q1 guidance.”
Quarterly Conference Call
Ambarella plans to hold a conference call at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time today with Fermi Wang, President and Chief Executive Officer, and Brian White, Chief Financial Officer, to discuss the fourth quarter of fiscal year 2023 results. A live and archived webcast of the call will be available on Ambarella’s website at http://www.ambarella.com/ for up to 30 days after the call.
About Ambarella
Ambarella’s products are used in a wide variety of human vision and edge AI applications, including video security, advanced driver assistance systems (ADAS), electronic mirror, drive recorder, driver/cabin monitoring, autonomous driving and robotics applications. Ambarella’s low-power systems-on-chip (SoCs) offer high-resolution video compression, advanced image and radar processing, and powerful deep neural network processing to enable intelligent perception, fusion and planning. For more information, please visit www.ambarella.com.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements that are not historical facts and often can be identified by terms such as “outlook,” “projected,” “intends,” “will,” “estimates,” “anticipates,” “expects,” “believes,” “could,” or similar expressions, including the guidance for the first quarter of fiscal year 2024 ending April 30, 2023, and the comments of our CEO relating to end market demand for products incorporating our solutions and economic and cyclical headwinds faced by the Company that may impact the Company’s future revenue, including inventory management by customers. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. Our actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of our future performance.
The risks and uncertainties referred to above include, but are not limited to, risks associated with global health conditions and associated risk mitigation measures; global economic and political conditions, including cyclical headwinds in the semiconductor industry, higher inflation and possible trade tariffs and restrictions; inventory management by our customers; supply chain challenges in the semiconductor industry and markets we serve; revenue being generated from new customers or design wins, neither of which is assured; the commercial success of our customers’ products; our growth strategy; our ability to anticipate future market demands and future needs of our customers, particularly for computer vision applications; our ability to introduce new and enhanced solutions; our ability to gain customer acceptance of our new SoC solutions; our ability to develop, and to generate revenue from, new advanced technologies, such as computer vision functionality; our ability to retain and expand customer relationships and to achieve design wins; the expansion of our current markets and our ability to successfully enter new markets, such as the OEM automotive and robotics markets; anticipated trends and challenges, including competition, in the markets in which we operate; our ability to effectively manage growth; our ability to retain key employees; and the potential for intellectual property disputes or other litigation.
Further information on these and other factors that could affect our financial results is included in the company’s Annual Report on Form 10-K for our 2022 fiscal year, which is on file with the Securities and Exchange Commission. Additional information is also set forth in the company’s quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings the company makes with the Securities and Exchange Commission from time to time, copies of which may be obtained by visiting the Investor Relations portion of our web site at
www.ambarella.com or the SEC's web site at
www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to us on the date hereof. The results we report in our Annual Report on Form 10-K for the fiscal year ending January 31, 2023 could differ from the preliminary results announced in this press release.
