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Ambarella, Inc. (AMBA)
F4Q 2013 Results Earnings Call
March 7, 2013 5:00 PM ET
Deborah Stapleton - Investor Relations
Fermi Wang - President and CEO
George Laplante - Chief Financial Officer
Kevin Cassidy - Stifel
Joe Moore - Morgan Stanley
Quinn Bolton - Needham & Company
Ross Seymore - Deutsche Bank
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As a reminder, this conference call maybe recorded. I would now like to introduce your host for today's conference, Deborah Stapleton, who will introduce our speakers for today. Ma'am, you may begin.
Thank you. Good afternoon, everyone. And welcome to Ambarella's fiscal Q4 and 2013 financial results conference call. Thank you for joining us today. Our speakers will be Dr. Fermi Wang, President and CEO; and George Laplante, CFO.
The primary purpose of today’s call is to provide you with information regarding our fiscal fourth quarter and fiscal 2013 performance. The discussion today and the responses to your questions will contain forward-looking statements regarding our financial prospects, market growth and demand for our solutions, among other things.
These 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 are under no obligation to update these statements. These risks, uncertainties and assumptions, as well as other information are potential risk factors that could affect our financial results are more fully described in the documents that we file with the SEC, including the final prospectus for our initial public offering and the annual report on Form 10-K that we will file for the 2013 fiscal year.
Access to our fourth quarter and fiscal year 2013 financial results press release, historical results, and SEC filings and a replay of today's call can all be found on the Investor Relations portion of our website.
I'll now turn the call over to Fermi Wang. Fermi?
Thank you, Deborah, and good afternoon, everyone. In the last quarter, we continue our strong growth in revenue and the net profit. Q4 revenue was $31.5 million, up 28.3% from the $24.6 million we reported in fourth quarter a year ago. For fiscal 2013, we reported revenue of $121.1 million, up 24.5% from $97.3 million we reported in fiscal year 2012.
Q4 non-GAAP net income was $5 million. This compares with non-GAAP net income of $2.7 million for the same period in the previous year. Non-GAAP net income for fiscal 2013 was $22.7 million. This compares to non-GAAP net income of $13.1 million for the year ended January 31, 2012. We ended the fiscal year with over $1 million in cash and cash equivalents. Therefore we are very pleased with our Q4 and fiscal 2013 financial results.
I would like to discuss some of our products and market highlights then I will turn over to George for more in-depth discussion of our financial performance and our guidance for Q1.
First, let’s look at our professional IP camera business which was a significant growth driver in fiscal 2013. In our professional IP camera security business, we saw significantly year-over-year growth and strong gross margin contribution. We are also enjoying increasing success in China which is the fastest growing security market.
The market continues to grow rapidly, driven by the migration from analog standard definition cameras to digital IP-based high definition cameras. In addition to strong sales of Ambarella existing A5s SoC solution, the company is seeing significant interest in the new S2 SoC solution which we announced last September.
The S2 supports the new 4K Ultra HD resolution video standard includes the opening of wide angle benefits and also provide the performance needed for both security and the business analytics. Ambarella successfully demonstrated the S2 at the China Security Show in Beijing in December.
During the fourth quarter, our customer Hikvision of China introduced a new product line IP cameras based on Ambarella’s A5s. According to IMS Research, Hikvision was a number one global vendor of CCTV and video surveillance equipment in 2011.
In addition to growth in the professional IP camera market, there are also new opportunities in consumer IP camera. These cameras are typically Wi-Fi based and offer with cloud-based service that allows video monitoring using smartphones.
The two example of this product category is Dropcam, a leader in consumer cameras operate outstanding ease-of-use cloud-based video recording and excellent video quality, Dropcam solution is based on Ambarella’s A5s SoC.
An automotive is another market that we saw strong year-over-year growth. In automative aftermarket Ambarella provide solutions for windshield mounted camera recorders.
The market for this product exist in Asia, specifically Russia, China, Korea and Taiwan. Recently this camera product received a significant world-wide attention as multiple cameras capture the flight of the meteor that exploded over Russia.
During Q4, we saw strong year-over-year growth driven both by overwalky growth, as well as customer migration from standard definition to high definition resolution products.
During the Consumer Electronic Show in January Ambarella introduced its new A7L-A automotive camera solution, the new SoC family include the support of both single and dual-view cameras at full 1080p30 HD resolution. The dual-view configuration supports simultaneous recording through the windshield and real window.