Ambarella Tops Q2 Views

Ambarella Inc AMBA reported stronger-than-expected results for the second quarter on Tuesday. The Santa Clara, California-based company posted quarterly net income of $23.1 million, or $0.68 per share, up from $9.3 million, or $0.29 per share, for the year-ago period. Excluding items, non-GAAP net income climbed to $0.88 per share from $0.37 per share. Its revenue for the second quarter climbed 79.3 percent year-over-year to $84.2 million from $47.0 million. However, analysts were expecting earnings of $0.81 per share on revenue of $81.73 million. The average estimate among 44 Estimize users was for earnings of $0.85 per share and revenue of $84.30 million. Gross margin widened to 65.1 percent from 65.0 percent. At the end of the second fiscal quarter, the company had $239.8 million in total cash, cash equivalents and marketable securities, versus $166.5 million at the end of the year-ago quarter. "We enjoyed a very strong second quarter, with a year-over-year revenue increase of 79.3 percent," said Fermi Wang, president and CEO of Ambarella. "Revenue from our existing wearable, IP security and automotive video recorder camera markets grew significantly in the quarter, and we saw solid growth from drones or flying cameras." Ambarella shares fell 1.22 percent to $87.75 in the after-hours trading session.