Over the Long-Term
There are two parts to the company to pay attention to:
Listen in to hear what management plans to do/has already done to right the ship with its Makerbot consumer printer subsidiary—the cause of the wide miss and pre-release.
Check on organic growth rates for the company sans Makerbot, should management choose to disclose that number. The company believes this number can be north of 25% for years to come.
Over the Long-Term
Gross margins have trended down from over 66% in the past to just over 63% last quarter. Should it fall below the 61%, it would represent a potential commoditization of Ambarella’s chips.
Listen in to see how the launch of the company’s S2 chip, which is popular in the IP security camera industry, fared. The IP security opportunity is rather large, and has enormous potential for Ambarella.
Over the Long-Term
Same store sales is the most vital metric to watch. The company expects mid-to-high single digit losses, so a decrease of just 1% or 2% would be a positive sign.
No one will have a bigger impact on the stock’s future performance than its new CEO. Listen it to see how close the company is to finding a replacement.
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