When Ambarella Inc. (NASDAQ: AMBA) released its most recent quarterly results after the markets closed on Thursday, the company said that it had $0.21 in earnings per share (EPS) and $56.4 million in revenue. The consensus estimates had called for $0.02 in EPS and $52.03 million in revenue, and the fiscal first quarter of last year reportedly had EPS of $0.25 on $62.5 million in revenue.
During the most recent quarter, non-GAAP gross margin was 58.1%, compared with 61.4% in the year-ago period.
At the same time, Ambarella began mass production CV system-on-a-chip (SoC) shipments into the automotive market, and CV25 became the firm’s second CV SoC to generate mass production revenue. Management continues to have strong confidence in the three waves of CV revenue.
Looking ahead to the fiscal third quarter, the company expects to see revenue in the range of $63.0 million to $67.0 million and gross margin of 56.0% to 58.0%. Consensus estimates call for $0.05 in EPS and $55.38 million in revenue for the quarter.
Fermi Wang, Ambarella president and CEO, commented:
Our confidence in our fiscal year 2020 outlook has increased, despite the geopolitical uncertainty. Most importantly, we continue to demonstrate strong progress on our strategy to transform from a pure video processing company to an artificial intelligence (AI) video company.
Shares of Ambarella traded up 17% to $55.61 early Friday, in a 52-week range of $30.00 to $56.65. The consensus price target is $47.38.