AMBA cc notes

I give it a try on my notes from the cc. i had a hard time understanding Dr. Wong. My notes may not be accurate. I am not repeating figures from press release.

2 big issues are customer concentration and competition.

Customer concentration went from 86% to 91% for the big two. Biggest decreased from 69% to 64% and smaller increased from 17% to 27%. That is the only thing that concerned me.

Competition catching up because of inability to further progress was denied. Wong said many other ways in addition to resolution to produce a higher end product.

Shares of stock was 31.8M now 33.5M will increase to 33.9M

A/R was 40.2M or 57 days sales outstanding now 39.2M 50 days sales outstanding

Inventory was 21.7M or 72 days increased to 25.8M or 86 days. Increase was to support increasing demand.

Expect rev in 2Q 2016 to be 79M-83M a 68%-77% YOY increase. Low teens growth for 3Q and mid teens for 4Q.

Drone market really growing and will be greater than 10% of total revenues. Strong new and traditional markets.Securities camera market up more than 100% YOY. Expects additional volume in Drone and home security. Consumer side has big potential growth .

Gross margins guided 63.5%-65% vs previous 64.8%-65.1%. Previously guided 59-62% margins for 2Q 2016 now expect greater than 62%.

Nongaap NI 26-28M for 2Q

Interested in M&A activity and will use cash on hand or cash plus stock. Did not indicate an interest in raising capital now.

Clear market growth in China and taking market share in Korea. Police cameras growing in China.Current markets-core is growing well.

Hope I got most of this right. Harder than I thought to take notes and understand what was being said.

Overall, I sensed a very upbeat attitude with lots of growth opportunities. No questions about insider selling.

This is my second largest position behind NFLX and I am holding all even though my basis is $17.18. 1YPEG is .33 which is awfully good.

Fool on,