Ambarella, Inc. (AMBA) experienced an increase of 16.98% in premarket following the announcement of the third-quarter fiscal year 2022 financial results. However, the last trading session concluded at $179.52 with a decline of 1.28%.
Third Quarter Fiscal Year 2022 Financial Results – Was it a strong quarter?
AMBA reported third-quarter results on 30th November 2021. According to the company reports, the revenue came out to be $92.2 million which is 64 percent. This was more than $56.1 million in the same quarter of fiscal 2021. Moreover, the gross margin for the third quarter of fiscal 2022 was 62.5 percent, compared to 62.0 percent for the same time in fiscal 2021. The GAAP gross margin was 62.4 percent for the nine months ended October 31, 2021. Lastly, for the nine months ended October 31, 2020, GAAP net loss was $47.3 million.
What’s Next?
With the purchase of Oculii, a developer of innovative algorithms for high-resolution imaging radars, AMBA has made another step ahead in the transformation into a deep learning AIoT processing firm. The radar perception market is small, but this deal is crucial because it contributes to Fermi Wang’s long-term objective of providing a more comprehensive AIoT processor to clients.
In addition, the company is happy with the third-quarter performance. The operational execution is solid, but supply dynamics remain challenging to forecast, as component shortages from other firms have become a more substantial and gating element in the performance and outlook.
Acquisition of Oculii by AMBA – What is it?
On 8th November 2021, AMBA stated that the acquisition of Oculii Corp. had been completed finally. The adaptive AI software algorithms developed by Oculii allow radar detection utilizing current manufacturing radar chips. Moreover, AMBA’s addressable market now includes radar recognition and fusion, AI CV perception SoCs for auto and other IoT endpoint applications, such as mobile robots and security. The combination of Ambarella’s camera technology with Oculii’s radar software stack will result in an all-weather, low-cost, and flexible perceptive solution.
What are AMBA’s opinions?
AMBA is excited to have completed this acquisition so fast. And they are looking forward to combining their employees and technology. Moreover, the two businesses have extremely similar cultures, and Ambarella has become one of the few semiconductor companies. It will develop sophisticated camera and radar technologies in-house. This allows them to give better degrees of awareness to the market than was previously possible.
