Fermi Wang: Well, I think it’s really that if you compare to the previous quarter, our other business dropped quickly. And Japan automotive, usually, they just take at a fixed rate and is starting to change the forecast. So, it’s not particularly anything happening in Japan, but it’s really that outside Japan, the drop is significant.
Kevin Cassidy: Okay. Thanks. And just as you are going forward with the consumer, and even as we – consumer surveillance cameras and with large language models being used, is there a time when the input for the consumer will be just their voice, they can program their device? Is that something you are working towards?
Fermi Wang: We are working. Now, just the language, we are working on multi-modality. I think in fact, we think that the ARM for us, for our customers’ application, most important thing is processing text that, also speech as well as image all of them together. That adds the biggest advantage to our customer and also that’s probably one unique function that we can really differentiate against other ARM suppliers.
Operator: Thank you. Our next question comes from the line of Quinn Bolton of Needham & Company.
Neil Young: Hi guys. This is actually Neil Young on for Quinn. Thanks for taking my question. Wanted to ask, so it’s been about a year since you announced the partnerships with Continental and Bosch, when do you believe we will start to hear about design wins from these partnerships?
Fermi Wang: Well, we already announced a design win with Conti. We couldn’t mention the OEM name, but I think we did that. And you should – in fact, I would say that our relationship with Conti continued to improve and we are bidding on projects with OEMs together. In fact, that we cannot announce OEM design win with our customer’s approval. But one thing I can say is that activity with Conti is heavy. And also we continue to believe that the engagement between Conti and us are getting tighter and tighter, both on the hardware design as well as the software design.
Neil Young: Okay, great. Thanks. And just another follow-up. So, there has been some press reports suggesting that Continental is considering divesting its automotive assets, including its autonomous mobility business. How would a divestiture of this business affect your guys’ partnership? Thanks.
Fermi Wang: Well, yes, we heard similar reports. I think one thing I can say is based on our conversation with Conti, we continue to believe this division that we are working with is – continue to be strategically important for both Ambarella and also Conti. And like I have said and with the close development that we continue to have, we didn’t see any signs of slowdown on the Conti side. So, we continue to believe this relationship is important and also the product that we are working on is continually important for both Ambarella and Conti.
Operator: [Operator Instructions] Our next question comes from the line Martin Yang of Oppenheimer & Company.
Martin Yang: Hi. Thank you for taking my question. Just one question, can you maybe comment on the progress for customer design engagement regarding your CV72 products in automotive markets?
Fermi Wang: Yes. CV72 automotive product is designed for Chinese market because it’s not ASO, so that only Chinese – only applicable to the Chinese market. And also last time we talked about, we have multiple Tier 1 design wins, and also, at that time, the last time we talked about multiple – all of the Tier 1s are working on building a demo system to show to OEMs. In fact, one of our Tier 1, just yesterday, demoed live, the broadcast live demo driving a car based on CV72 ECU from the Shanghai Airport to the Downtown Shanghai autonomous driving. So, I think that we continue to make huge progress and we are ready to – in fact, we only start demo to OEMs. And also, like I have said before, I think CV72 position in a very favorable price performance for the middle end of Level 2+ solution in China.
And we continue to believe that we have a competitive solution for that particular market. And we are working closely with the Tier 1 to talk to OEMs. Hopefully, we can announce some design wins soon.
Martin Yang: Thank you, Fermi. A quick follow-up on the CV72 activity, can you maybe remind us on the expected timeframe of design win and shipments?
Fermi Wang: All the projects we are bidding on is production the end of 2025 and the revenue coming from 2026. So, the design win has to be maybe first half of next year and spending 18 months development cycle to get it done.
Martin Yang: Got it. Thank you.
Operator: Thank you. I would now like to turn the conference back to Dr. Fermi Wang for closing remarks. Sir?
Fermi Wang: Thank you and thank you everybody for joining us today. And I am looking forward to talking to you soon. Thank you.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
