AMBARELLA INC Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q) –

Financial Highlights and Trends
• We recorded revenue of $92.2 million and $241.6 million for the three
market. In
be led
contributed an
• We recorded operating losses of $1.2 million and $17.3 million for the
• We generated cash flows from operating activities of $18.2 million for
• During the three months ended October 31, 2021, we liquidated all of
Factors Affecting Our Performance
We continually monitor the cost of our solutions. As we rely on third-party manufacturers for the manufacture of our products, we maintain a close relationship with these suppliers to continually monitor production yields, component costs and design efficiencies.
Results of Operations
The following table sets forth operating results as a percentage of revenue of each line item for the periods indicated:
Cost of Revenue and Gross Margin
Research and Development
Selling, General and Administrative
Other Income, Net
Other income, net, consists primarily of interest and other income from debt security investments and cash deposits with financial institutions.
Provision for Income Taxes
Comparison of the Three and Nine Months Ended October 31, 2021 and 2020
Cost of Revenue and Gross Margin
90,817 $ 63,078 $ 27,739 44.0 % Gross profit 57,626 34,792 22,834 65.6 %
Cost of revenue increased for the three and nine months ended October 31, 2021, as compared to the same periods in the prior fiscal year, primarily due to increased revenue, partially offset by favorable product mix.
Research and Development
Selling, General and Administrative
Provision (benefit) for Income Taxes
Liquidity and Capital Resources
Cash Flows
The following table summarizes our cash flows for the periods indicated:
Net cash provided by operating activities $ 18,224 $
(5,894 )
Net Cash Provided by Operating Activities
Net Cash Provided by (Used in) Investing Activities
Net Cash Provided by Financing Activities
Stock Repurchase Program
Operating and Capital Expenditure Requirements
Our short- term and long-term capital requirements will depend on many factors, including the following:
• the expansion of our research and development of new technologies and
• our acquisition of complementary businesses, products and technologies.
Contractual Obligations, Commitments and Contingencies
Manufacturing Purchase Obligations
As of October 31, 2021, we had purchase obligations with our independent contract manufacturers of $66.0 million.
Off-Balance Sheet Arrangements
Recent Authoritative Accounting Guidance
See Note 1 of Notes to Condensed Consolidated Financial Statements for information regarding recently issued accounting pronouncements.
Critical Accounting Policies and Significant Management Estimates
There have been no material changes to our critical accounting policies and estimates as compared to the critical accounting policies and estimates described in our Annual Report on Form 10-K for the 2021 fiscal year filed with the SEC on March 31, 2021.
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