Ambarella (AMBA, Financial) is continuously witnessing solid IP security cameras growth, propelled by expanding demand for greater resolution and superior feature-filled cameras in the professional camera markets coupled with rising demand for cloud-based home monitoring and security cameras. The professional camera market and home market demanding security are expected to expand considerably and accelerate revenue and earnings growth for Ambarella, going forward.
There’s impressive ongoing volume growth in all the geographic regions, with the highest growth estimated in China, enabled by market leaders such as Hikvision.
Gaining traction with new products
In the second quarter, Ambarella experienced healthy shipping of its 4K or ultra-HD cameras declared at ISC West 2014 Security Exposition in April by some leading professionals. Apart from its 4K capabilities, S2 is also capable to dewarp images for allowing 180 degree or 360 degree panoramic viewing, is gaining extreme popularity for the newest camera generations.
For instance, Bosch which is a key supplier of IP surveillance cameras located in Germany launched its innovative DINION IP ultra 8000 MP category of cameras, showcasing 12 megapixels, 4K ultra-HD and higher dynamic range abilities.
Further, Ambarella is witnessing solid interest for its innovative S2L IP camera SoC category, launched in the ISC West Exposition. The S2L features an extensive angle lens dewarping, better dynamic range processing, and the company’s SmartAVC low bitrate streaming technology.
In the second quarter, Ambarella enhanced the range of S2L product offerings by introducing the innovative S2LM, having lesser form factor and low power solution targeted towards security camera and home monitoring applications.
An increase in demand will lead to better performances
There’s also rising demand for security IP camera and home monitoring applications, driven by remote viewing through tablets or smartphones and Cloud-based video storage offerings. Apart from cameras that are already available in the retail market such as the offerings from Philips and Dropcam, Ambarella continues to witness fresh opportunities with service providers in Europe and the U.S.
This market is basically propelled by the demand for HD video remote monitors operated through smartphones and higher monitoring capabilities like activity detection. Ambarella is believed to be already very well-positioned for providing SoC solutions meeting each of these requirements.
In the wearable sports camera market, Ambarella’s second-quarter sales were propelled by solid demand from GoPro, with its extremely popular silver, white and black Hero 3 plus camera models. This market is expected to grow continuously with more and more customers beginning to explore greater applications for hands-free cameras apart from action sports.
For the quadcopter or UAV market, developers are continuously offering integrated high definition cameras for aerial video recording with the app gaining popularity for these products. In the quarter, Ambarella supplied both the A9s and A5 camera SoCs for the leading category of HD and ultra HD cameras.
Ambarella is also viewing higher revenue growth possibilities in wearable police cameras market.
Ambarella is believed to witness solid sales for the wearable security cameras in Europe and the U.S. apart from the Asian markets.
In Korea, Thinkware is a key supplier of automotive camera recorders and released its QSD 900 two channel dash cameras leveraging Ambarella’s A7LA automotive camera SoC.
Conclusion
Hence, Ambarella is making smart moves to grow the business in a number of areas, making it a smart investment for the long run.
