Ambarella Delivers Strong Growth in Third-Quarter Earnings
Ambarella continued its impressive run, as it reported net income in the third quarter of its 2014 fiscal year of $9.1 million compared to the $6.7 million reported in the third quarter of last year. Its earnings per share grew 20% year over year, from $0.25 per diluted share in the third quarter of the 2013 fiscal year to $0.30 in the most recent quarter.
The semiconductor manufacturer also saw significant gains in its revenue, which was up 29% to $46 million in the most recent quarter, compared to $35.7 million in the prior year. Year to date, Ambarella has seen impressive growth in total revenue, and for the nine months ending on Oct. 30, 2013, its total revenue is up 31% from the $89.5 million last year to $117.6 million this year.
"We are very pleased with our execution across major markets as demonstrated by the strong Q3 year-over-year growth of 29%," said Ambarella President and CEO Fermi Wang. He continued, "Our penetration into the fast growing, professional and consumer IP security markets continued in the quarter, reflecting our strong competitive position, as well as our broad product roadmap. In sports cameras, market leader GoPro introduced 2 new models based on Ambarella technology that deliver industry leading features at both 1080p60 and 4K resolutions."
Yet Ambarella did not only deliver on revenue as its net income is also up year to date, standing at $0.68 per common share, or $20.1 million for the first nine months of the 2014 fiscal year, relative to the $14.5 million, or $0.51 per share, last year. Its margins were down slightly and on a non-GAAP basis they stood at 63.8% in the third quarter relative to 64.5% last year.
Wang added, "[t]his is an exciting time for our company as we continue to develop products on leading edge technology that we believe will enable us to continue to offer our customers the best resolutions and exceptional compression technology without compromising power efficiency."
The article Ambarella Delivers Strong Growth in Third-Quarter Earnings originally appeared on Fool.com.Fool contributor Patrick Morris has no position in any stocks mentioned. The Motley Fool recommends Ambarella. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.