Looking ahead into the first quarter of 2021, the company expects revenue in the range of $52-57 million and an adjusted gross margin in the range of 57.5-59.5%. The consensus estimates revenue of $49.49 million. Adjusted operating expenses are anticipated to be $33-35 million for the first quarter.
The three waves of AI computer vision revenue, professional security cameras, consumer security cameras, and automotive cameras, are taking shape, with more than a dozen customers in production across the three waves.
The business environment continues to remain under tremendous pressure as new public health issues along with dynamic geopolitical situations created an unusually high degree of uncertainty. However, with AI computer vision expected to reach 10% of total revenue in fiscal 2021, the company’s goal is to grow total revenue for the year.
Total cash, cash equivalents and marketable securities on hand at the end of the fourth quarter increased by 13% year-over-year to $404.7 million while the total liabilities stood at $79.2 million.
According to a PwC research report, the market for AI-related semiconductors is expected to grow from a current $6 billion in revenues to more than $30 billion by 2022. The semiconductor market is set to recover in 2020 and continue to prosper after a relatively weak 2019.
The industry’s overall growth will be backed by the demand for chips related to the rapidly growing use of AI, according to the PwC report. The memory chips are expected to continue to maintain the largest market share through 2022. Every application market is likely to grow through 2022, led by the automotive and data processing markets.