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Shares of Ambarella, Inc. Rise on Q1 Earnings Surprise

Source: Ambarella.

Shares of video-processing semiconductor developer Ambarella (NASDAQ: AMBA  ) rose in after-hours trading today after the company reported results for the first quarter of fiscal year 2015. Shares were up about 0.6% as of 5 p.m.

Sales increased 21% year-over-year, landing at $40.9 million. Adjusted earnings jumped 19% to stop at $0.25 per diluted share. Analysts had expected earnings of $0.21 per share on $40 million in sales. Ambarella more than met the Street's consensus targets.

Non-GAAP gross margins shrank 1.3 percentage points year-over-year. R&D expenses increased by 14%, somewhat slower than the 19% increase in total operating expenses.

With this quarter on the books, Ambarella has $155.6 million of cash equivalents and short-term investments on hand, up from $104.3 million a year ago. Inventories decreased about 4% to $10.0 million.

In a prepared statement, Ambarella CEO Fermi Wang explained that his company's growth rested on high demand for its high-definition security camera products.

"We are very pleased with the financial results of our first fiscal quarter of 2015," Wang said. "We believe the expanding markets for innovative, high definition professional and consumer cameras will continue to give us the opportunity to grow our revenues in the year ahead."

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Editor's Note: A previous version of this article incorrectly stated that Ambarella's cash equivalents and short-term investments amounted to $143.4 million in Q1 2013. The Fool regrets the error.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 04, 2014, at 10:25 AM, TMFZahrim wrote:


    "Ambarella has $155.6 million of cash equivalents and short-term investments on hand, up from $143.4 million a year ago."

    The $143.4 million balance is actually from the last quarter. Ambarella's cash equivalents have risen from $104.3 million at the end of Q1, fiscal 2014.

    Sorry for the confusion.


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Anders Bylund

Anders Bylund is a Foolish Technology and Entertainment Specialist. Where the two markets intersect, you'll find his wheelhouse. He has been an official Fool since 2006 but a jester all his life.

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