ALAB: Shines On Earnings Debut
Key Points
- Significant beat and raise in first public earnings quarter
- 1Q24 revenue $65.3M (+29.2% Q/Q), driven by strong Aries momentum
- Aries (PCIe retimers) benefiting from AI platform ramps across customers
- Taurus 400G deployments ramping in 2H24, biggest opportunity in CY25 with 800G transition
- Announced Aries SCM-based PCIe AEC solution for GPU clustering (rack-to-rack connectivity)
Key Takeaways
- Strong momentum in Aries on next-gen AI platforms with continued PCIe Gen 5 ramps
- Taurus contributing modest revenue from 200G shipments; 400G deployment acceleration expected 2H24
- Aries SCM AEC solution expands TAM from within-rack to across-rack connectivity
- Operational leverage improving as product mix shifts toward higher-margin solutions
Product Momentum
- Aries: Continued strong unit growth driving revenue acceleration
- Taurus: 200G ramp underway, 400G expected significant contribution 2H24
- Aries SCM AEC: Initial revenue expected C2H24, enabling cross-rack GPU connectivity
- All three product families contributing to growth
Valuation & Outlook
- PT remains $85 based on DCF valuation model
- FY24 and FY25 estimates raised due to Aries strength
- Expecting operating leverage expansion as Gen5 ramps continue
Source
- File:
ALAB-Needham-08_May_2024.pdf - Location: Dropbox/2. Semi/Networking/ALAB/
Related
- ALAB | _MOC-networking
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