Ambarella Q3 Profit Rises

(RTTNews) - Semiconductor company Ambarella Inc. (AMBA), Thursday reported an increase in profit for the third quarter, thanks mainly to a surge in revenues, with earnings and revenues beating Wall Street estimates.

Santa Clara, California-based Ambarella's third-quarter profit rose to $18.3 million or $0.57 per share from $9.1 million or $0.30 per share last year.

Adjusted income for the quarter improved to $22.1 million or $0.68 per share from $11.1 million or $0.37 per share last year. On average, nine analysts polled by Thomson Reuters expected earnings of $0.54 per share for the quarter. Analysts' estimates typically exclude special items.

Ambarella said revenues for the third quarter jumped 42.8 percent to $65.7 million from $46.0 million last year. Analysts had a consensus revenue estimate of $62.54 million for the quarter.

Gross margin dropped to 63.3 percent from 63.7 percent last year.

Chief executive Fermi Wang said, "Our products for wearable sports and IP security cameras once again delivered strong revenue growth in the quarter, while the automotive aftermarket market also increased, reflecting strength in China and Korea."

Ambarella develops semiconductor processing solutions for video that enable high-definition video capture, sharing, and display.

AMBA closed Thursday's trading at $55.63, down $0.60 or 1.07%, on the Nasdaq. The stock further dropped $1.63 or 2.93% in the after-hours trade.