The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Andrew Edouard Buscaglia - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: I was interested in the -- you're talking about the acquisition helping generate software licensing revenue, and you made the comment about
strengthening ASPs. Have you kind of run some scenarios of what this means for -- broadly for your ASPs and how -- how and when do you expect
that to hit your revenue stream?
Question: Andrew Edouard Buscaglia - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. Interesting. Another question I had is very simplistically, why now. So you -- the company -- I think you said generating $3 million or $4 million
in revenue. What's going to be excited to make this deal now or I guess, more so to wait if you could eliminate some timing risk if, I don't know, if
things don't transpire the way you expect?
Feng-Ming Wang - Ambarella, Inc. - Co-Founder, President, CEO & Executive Chairman
All right. Thank you. I think that's a very important question. In fact, that I would say, tracing back to last year where we rationalize our thinking,
we realize that we're going to do well with our computer vision silicons and we start seeing the first sign of that revenue growth. We ask ourselves
what's -- if we have a chance, what's our next technology we need to integrate into our platform. And it becomes very clear that moving forward
for all our target markets, radar becomes the most meaningful as well as most important sensor modality for us. So that's when we start looking
at the candidate. And throughout the multiple studies, and we identify Oculii being the best in the market that we can find.
And for us, just like what we -- because we talk about this algorithm-first approach, very quickly, we realized that [state] as a partner doesn't help
each other because we need to understand their algorithm, so we can modify our hardware and silicon, accordingly, to make the combined solution
better. So it's the algorithm-first approach that both sides appreciate basically reinforce the need that we need to work together as a company,
instead of 2 separate companies as partners. And that's why we want to move as quickly as possible so we can start pushing the combined road
map out to the market, which will help us -- help both of us.
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