Video-Tech Provider Ambarella Rises After Results Beat Estimates

Ambarella stock was up after the video-technology provider posted third-quarter results that beat estimates.
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Ambarella  (AMBA) - Get Report shares jumped on Tuesday after the provider of video-compression and image-processing technology posted better-than-expected fiscal-third-quarter results.

Shares of the Santa Clara, Calif., company at last check rose 13% to $74.71.

The company's net loss widened to $17.1 million, or 49 cents a share, from $4.3 million, or 13 cents, in the year-earlier period. 

Adjusted profit for the quarter was 9 cents a share versus 32 cents a year earlier.

Revenue for the quarter ended Oct. 31 dropped 15% to $56 million from $68 million.

A survey of analysts by FactSet produced consensus estimates of a GAAP loss of 41 cents a share, or an adjusted profit of a nickel a share, on revenue of $54.1 million.

Ambarella reported its earnings after the closing bell on Monday.

“Our AI vision portfolio is well-positioned for the megatrends around security, safety and automation, and the pandemic appears to be accelerating the digital transformation,” said President and Chief Executive Fermi Wang in a statement.

"We are announcing a significant automotive revenue funnel and providing a strong CV [computer vision] growth outlook. We have also recently added new CV customers in Asia, expanded our organization and strengthened our position in high volume markets with the introduction of CV28," Wang added.

Total cash, cash equivalents and marketable debt securities on hand at the end of the third quarter went up 3.1% to $423.6 million from $410.7 million in the previous quarter.

For the fourth quarter, the company expects revenue between $56 million and $60 million. The FactSet consensus analyst estimate for the fourth period is $57.4 million.