Ambarella Q2 Profit Rises

(RTTNews) - Semiconductor company Ambarella Inc. (AMBA), Thursday reported an increase in profit for the second quarter, thanks mainly to a surge in revenues and strong gross margins. Both earnings and revenues for the quarter trumped Wall Street estimates.

Santa Clara, California-based Ambarella's second-quarter profit rose to $9.3 million or $0.29 per share from $6.3 million or $0.21 per share last year.

Adjusted income for the second quarter improved to $11.9 million or $0.37 per share from $7.7 million or $0.26 per share last year. On average, nine analysts polled by Thomson Reuters expected earnings of $0.28 per share for the quarter. Analysts' estimates typically exclude special items.

Ambarella said revenues for the second quarter grew 24.6 percent to $47.0 million from $37.7 million last year. Analysts had a consensus revenue estimate of $44.67 million for the quarter.

Commenting on the results, CEO Fermi Wang said, "We achieved revenue of $47.0 million reflecting the success of our HD and Ultra-HD camera solutions in the expanding IP security camera, UAV and wearable sports camera markets."

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

Second-quarter gross margin advanced to 65.0 percent to 61.8 percent last year.

AMBA closd Thursday's trading at $35.77, up $0.05 or 0.14%, on the Nasdaq. The stock further gained $1.08 or 3.02% in after-hours trade.