AMBA announces results…

Apparently up 5% after hours. I haven’t yet read the conference call, but I am about to.


My Notes:

June 2013 – Announced Apr quarter results

Revenue was $40.9 million, up 21% from $33.9 million.

Adj Gross Margin was 62.7%, down slightly from 64.0% and sequentially from 64.1%, but it was better than they predicted.

Adj Net Income was $7.8 million, up 26% from $6.2 million.

Adjusted Earnings were 25 cents, up 19% from 21 cents, and 4 cents better than expected.

Cash and cash equivalents were $155.6 million, up sequentially, and up from $104.3 million a year ago.

“We are very pleased with the financial results of our first fiscal quarter of 2015. We achieved revenue up 21% from the same period last year, driven by continued growth in our IP security camera business. 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.”

Conference Call quotes

Hikvision, one of the world’s largest leading surveillance and equipment suppliers introduced its new line of panoramic IP security cameras based on Ambarella’s S2 camera SoC.

An example of the consumer IP security cameras launched during the quarter is Philips new insite and wireless HD home monitor camera based on Ambarella’s A5s camera SoC. The HD camera includes remote viewing from smartphone or a tablet, wide angle viewing, night vision and motion detection.

Additionally Lorex a leading global supplier of security camera systems based in the U.S. introduced its Little Link portable HD WiFi video baby monitor. Based on Ambarella’s low power A5s camera SoC the Little Link camera enables live remote viewing on smartphones or tablets and is also both portable and cordless allowing the camera to be taken out of the nursery and used in other locations including outdoors.

In the wearable sports camera market our sales continued to be led by GoPro with its successful Hero 3 plus camera models. As expected, given the seasonal nature of this market, our Q1 wearable sports camera revenue was lower than in the previous quarter. In the second half of the year, we expect renewed growth.

In summary we anticipate continued growth in IP security market as cameras continued to transition from analog to digital and for standard definition to high definition.

We also see opportunities in the new UAV or quadcopter markets as manufacturers look to offer integrated HD camera solutions.
In our automotive aftermarket Ambarella provides cameras SoC based solutions for video cameras recorders for dash cams. These cameras are sold primarily to Russia, China, Taiwan, and South Korea.
In general, the automotive video camera market continued to be face economic challenge in Russia and the competitive price pressure at a low end in China. Ambarella is however successfully driving the adoption of cameras with higher image quality and more advanced features and has new design wins with leading brands in Korea, Japan and the Taiwan in addition to existing Chinese customers.

In conclusion, we are very pleased with our first quarter execution and the financial results. We have strong momentum in all our camera markets, including IP security, sports and automotive cameras. The introduction of S2L camera SoC extends our leadership in the security market and were helped define a feature over the next generation of internet connected home security cameras.

Accounts receivable and inventory remain in line with the company targets.

We expect revenues for the July quarter to be between $43.5 million and $45.5 million. This represents an increase of between 15% and 21% over Q2 of last year.