Ambarella Shares Up 6% As Q2 Results Top Estimates

(RTTNews) - Semiconductor company Ambarella, Inc. (AMBA) reported Thursday a profit for the second quarter that increased from last year, reflecting improved gross margin and double-digit revenue growth. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

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

"We are delighted with our second quarter financial results. 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," president and CEO Fermi Wang said in a statement.

The Santa Clara, California-based developer of low-power, HD video compression and image processing semiconductors posted net earnings of $9.31 million or $0.29 per share for the second quarter, higher than $6.25 million or $0.21 per share in the prior-year quarter.

Excluding primarily stock-based compensation expense, adjusted earnings for the quarter was $11.94 million or $0.37 per share, compared to $7.69 million or $0.26 per share in the year-ago quarter.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter grew 24.6 percent to $46.97 million from $37.71 million in the same quarter last year, and topped twenty-six Wall Street analysts' consensus estimate of $44.67 million.

Gross margin under for the second quarter improved 320 basis points to 65.0 percent from last year's 61.8 percent.

AMBA closed Thursday's regular trading session at $35.77, up $0.05 or 0.14% on a volume of 1.05 million shares. The stock surged a further $2.28 or 6.37% in after-hours trading.