I am beginning to take a closer look at AMBA. The quarter was moderately good (not at all spectacular), but included a list of 14 design wins which will provide additional business moving forward. Yet the stock was severely punished because of lowered guidance, as seems to be common this quarter.
The stock is now down 26% from the date I sold my position, with a current P/E of 20.7 (non-GAAP).
This is not yet enough for me to buy a new position. I still have doubts about their competitive advantage and the demand for their products. Management also doesn’t inspire my trust. Nonetheless it is enough for me to begin tracking the company again and to investigate their competition.
I had seen that article. I always view all future projections with a great deal of skepticism, so don’t see the lowered guidance as a bad thing, just a fact to take note of as part of the larger picture. What interests me is the large number of design wins combined with the improving finances. Future possibilities opening up? As I noted, not enough for me to invest in the company again, but enough I am going to watch closer to see what happens.
I don’t like the link to GoPro, however cameras are increasingly important and Ambarella is one of the major suppliers. I suspect the worst of the problems from their GoPro connection are past, but this could continue to slow down growth for awhile.
(Sorry for the delayed response, I missed your reply)
XMFBreakerTinker: Does AMBA provide chips for Nikon? Nikon’s been running national ads as if they were GoPro, focusing on their 360 degree cameras.
Tinker, I have no clue. It sounds as if this is possible, but doing a search I have been unable to identify the chip used in Nikon’s new Keymission cameras. However, I suspect this is not a chip from Ambarella. I suspect there would be at least some hint of Ambarella being involved, and also I suspect the impact on AMBA finances would be higher than we have seen. But all just a guess!