The stock price of Ambarella closed $57.88 per share, down by 4.72% today. The stock declined further by more than 1% to $57.03 per share during the extended trading around 4:30 PM, after releasing its financial results for the third quarter.
Ambarella is a developer of low-power, HD, and Ultra HD video compression and image processing semiconductors.
The Electron Global Fund was up 2% for September, bringing its third-quarter return to -1.7% and its year-to-date return to 8.5%. Meanwhile, the MSCI World Utilities Index was down 7.2% for September, 1.7% for the third quarter and 3.3% year to date. The S&P 500 was down 4.8% for September, up 0.2% for the third Read More
Ambarella 3Q financial results
During the third quarter, Ambarella achieved a GAAP net income of $29.5 million or $0.87 per share, up from $0.57 per share in the same period a year ago. The company’s revenue was $93.2 million, an increase of 41.9% from $65.7 million last year.
Wall Street analysts expected the company to deliver average earnings of $0.86 per share on $89.9 million in revenue for the quarter.
On non-GAAP basis, Ambarella’s net income was $36.6 million, or $1.08 per compared with $22.1 million or $0.68 per share in the same quarter last year.
Ambarella said its GAAP gross margin was 65.7%, higher than its 63.3% gross margin in the same period last year. The company ended the quarter with $276.7 million in total cash, cash equivalents, and marketable securities, up from $186.5 million in the same period a year earlier.
In a statement, Fermi Wang, president and CEO of Ambarella, said the strong financial results of the company during the quarter showed their success in expanding revenues in new markets including flying cameras and security monitoring. The company also expanded into existing markets for professional IP security cameras and automotive aftermarket dash cameras.
“Although we expect these markets to continue their strong annual growth, we are experiencing near-term headwinds in the wearable sports market, which is expected to negatively impact revenue in Q4 of this year,” added Wang.
For the fourth quarter, Ambarella expected to achieve revenue in the range of $65 million to $67 million. Its non-GAAP net income is expected to be around $15 million to $17 million. The company expected its gross margin to be between 63% and 64.5%.
Wang said, “Despite the near-term headwinds, we are very pleased by the wide range of new cameras introduced by customers during the third quarter, and by our introduction of three new SoC families that will drive the next generation of innovative camera products.”