Ambarella, Inc. Announces Third Quarter Fiscal Year 2017 Financial Results

SANTA CLARA, Calif., Dec. 01, 2016 (GLOBE NEWSWIRE) -- Ambarella, Inc.  (NASDAQ:AMBA), a leading developer of low-power, HD and Ultra HD video compression and image processing semiconductors, today announced financial results for its third quarter of fiscal year 2017 ended October 31, 2016.
  • Revenue for the third quarter of fiscal 2017 was $100.5 million, up 7.8% from $93.2 million in the same period in fiscal 2016. For the nine months ended October 31, 2016, revenue was $222.8 million, down 10.3% from $248.4 million for the nine months ended October 31, 2015.
  • Gross margin under U.S. generally accepted accounting principles (GAAP) for the third quarter of fiscal 2017 was 66.0%, compared with 65.7% for the same period in fiscal 2016. For the nine months ended October 31, 2016, GAAP gross margin was 65.8%, compared with 65.2% for the nine months ended October 31, 2015.
  • GAAP net income for the third quarter of fiscal 2017 was $29.0 million, or $0.84 per diluted ordinary share, compared with GAAP net income of $29.5 million, or $0.87 per diluted ordinary share, for the same period in fiscal 2016. GAAP net income for the nine months ended October 31, 2016 was $39.5 million, or $1.15 per diluted ordinary share. This compares with GAAP net income of $71.4 million, or $2.12 per diluted ordinary share, for the nine months ended October 31, 2015.

Financial results on a non-GAAP basis for the third quarter of fiscal 2017 are as follows:
  • Gross margin on a non-GAAP basis for the third quarter of fiscal 2017 was 66.3%, compared with 65.9% for the same period in fiscal 2016. For the nine months ended October 31, 2016, non-GAAP gross margin was 66.1%, compared with 65.4% for the nine months ended October 31, 2015.
  • Non-GAAP net income for the third quarter of fiscal 2017 was $38.4 million, or $1.11 per diluted ordinary share. This compares with non-GAAP net income of $36.6 million, or $1.08 per diluted ordinary share, for the same period in fiscal 2016. Non-GAAP net income for the nine months ended October 31, 2016 was $68.4 million, or $2.00 per diluted ordinary share. This compares with non-GAAP net income of $90.0 million, or $2.67 per diluted ordinary share, for the nine months ended October 31, 2015.

Based on information available as of today, Ambarella is offering the following guidance for the fourth quarter of fiscal year 2017, ending January 31, 2017:
  • Revenue is expected to be between $84.0 million and $87.0 million
  • Gross margin on a non-GAAP basis is expected to be between 64.0% and 65.5%
  • Operating expenses on a non-GAAP basis are expected to be between $25.5 million and $27.0 million
  • Effective tax rate on a non-GAAP basis is expected to be between 11% and 12%

Ambarella reports gross margin, net income and earnings per share in accordance with GAAP and, additionally, on a non-GAAP basis. Non-GAAP financial information for the third fiscal quarter excludes the impact of stock-based compensation adjusted for the associated tax impact which includes the effect of any benefits or shortfalls recognized.  A reconciliation of the GAAP to non-GAAP gross margin, net income and earnings per share numbers for the periods presented, as well as a description of the items excluded from the non-GAAP calculations, is included in the financial statements portion of this press release.

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