Ambarella Beats Q1 Expectations

reported better-than-expected results for the first quarter on Tuesday. The Santa Clara, California-based company reported quarterly net income of $18.9 million, or $0.56 per share, versus $5.3 million, or $0.17 per share, in the year-ago quarter. Excluding items the company's earnings surged to $0.71 per share from $0.25 per share. Its revenue jumped 73.5 percent year-over-year to $71 million from $40.9 million. However, analysts were expecting earnings of $0.59 per share on revenue of $67.36 million. The average estimate among 42 Estimize users was for earnings of $0.64 per share and revenue of $68.53 million. Gross margin for the first quarter widened to 64.7 percent, from 62.5 percent. At the end of the first fiscal quarter, the company had $235.2 million in total cash, cash equivalents and marketable securities on hand, versus $155.6 million at the end of the year-ago quarter. "We enjoyed a strong first quarter with revenue up 73.5 percent from the same period last year," said Fermi Wang, president and CEO of Ambarella. "In addition to continued growth from our existing wearable, IP security and automotive video recorder camera markets, we see increased activity across a wide range of home monitoring cameras including models by U.S. service providers, as well as from quadcopters or flying cameras. We look forward to continued success, as we enable the next generation of intelligent HD and Ultra HD cameras." Ambarella shares gained 1.61 percent to $93.69 in the after-hours trading session.