NEW YORK (TheStreet) -- Shares of Ambarella Inc. (AMBA) are higher by 8.19% to $38.70 at the start of trading on Friday, after the company reported an increase in its fiscal 2015 second quarter GAAP net income to $9.3 million, or 29 cents per diluted share, compared to $6.3 million, or 21 cents per diluted share for the same period last year.
The semiconductor company said adjusted net income for the most recent quarter was $11.9 million, or 37 cents per diluted share, from $7.7 million, or 26 cents per diluted share for the fiscal 2014 second quarter.
The company's adjusted earnings topped the 28 cents per share analysts polled by Thomson Reuters were expecting.
Ambarella's revenue grew by 24.6% to $47 million for the fiscal 2015 second quarter, from $37.7 million for the year ago quarter.
The company said it attributes its profit and revenue increase to the "success of our HD and Ultra-HD camera solutions in the expanding IP security camera, UAV and wearable sports camera markets."
Separately, TheStreet Ratings team rates AMBARELLA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMBARELLA INC (AMBA) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."