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Ambarella's (AMBA) Q1 Earnings & Revenues Top Estimates
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Ambarella (AMBA - Free Report) reported first-quarter fiscal 2022 non-GAAP earnings of 23 cents per share, handily outpacing the Zacks Consensus Estimate by 35.29%. The reported figure jumped significantly from the prior-year quarter’s earnings of 4 cents per share.
Meanwhile, revenues of $70 million beat the consensus mark of $69 million and increased 28% year over year. Recovery in the automotive and other markets was a positive. Ambarella’s top-line growth was also driven by improvement in the security-camera business.
Ambarella had two customers that contributed more than 10% in the reported quarter. WT Microelectronics, a fulfillment partner serving multiple customers, accounted for 63% of the company’s revenues. Chicony, a Taiwanese OEM, which manufactures for multiple customers, contributed 16%.
Moreover, the company noted that it continues to gain SoC share in the professional security-camera market outside China. Momentum in Ambarella’s CV flow SoCs in professional IP cameras across all geographies continued in the reported quarter.
Operating Details
Ambarella reported non-GAAP gross margin of 62.9%, up 380 basis points (bps) year over year in the first quarter.
A healthy customer mix supported by impressive operational execution aided gross-margin expansion during the first quarter and offset the higher expenses incurred to overcome supply-chain challenges.
On a non-GAAP basis, operating expenses were $35.4 million, up 6% sequentially. Seasonal increase in payroll taxes and increased headcount led to the increase.
Total headcount at the end of the first quarter was 803, with about 81% of the employees dedicated to engineering. Roughly 66% of Ambarella’s total headcount is located in Asia.
Net inventory was $33.1 million as of Apr 30, 2021, up 26.8% sequentially.
Balance Sheet & Cash Flow
As of Apr 30, 2021, Ambarella had cash and cash equivalents & marketable securities of $435.5 million compared with $440.7 million as of Jan 31, 2021.
During the first quarter, the company generated an operating cash outflow of $4.5 million.
Guidance
For second-quarter fiscal 2022, revenues are expected between $74 million and $77 million. Non-GAAP gross margin is anticipated to be 61-62%. Non-GAAP operating expenses are projected at $36-$37.5 million.
Zacks Rank & Stocks to Consider
Ambarella currently carries a Zacks Rank #3 (Hold).
The long-term earnings growth rate for Silicon Motion Technology Corporation, Lam Research and LG Display is currently pegged at 8%, 32.8% and 32.56%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Ambarella's (AMBA) Q1 Earnings & Revenues Top Estimates
Ambarella (AMBA - Free Report) reported first-quarter fiscal 2022 non-GAAP earnings of 23 cents per share, handily outpacing the Zacks Consensus Estimate by 35.29%. The reported figure jumped significantly from the prior-year quarter’s earnings of 4 cents per share.
Meanwhile, revenues of $70 million beat the consensus mark of $69 million and increased 28% year over year. Recovery in the automotive and other markets was a positive. Ambarella’s top-line growth was also driven by improvement in the security-camera business.
Ambarella, Inc. Price, Consensus and EPS Surprise
Ambarella, Inc. price-consensus-eps-surprise-chart | Ambarella, Inc. Quote
Customer & Market Details
Ambarella had two customers that contributed more than 10% in the reported quarter. WT Microelectronics, a fulfillment partner serving multiple customers, accounted for 63% of the company’s revenues. Chicony, a Taiwanese OEM, which manufactures for multiple customers, contributed 16%.
Moreover, the company noted that it continues to gain SoC share in the professional security-camera market outside China. Momentum in Ambarella’s CV flow SoCs in professional IP cameras across all geographies continued in the reported quarter.
Operating Details
Ambarella reported non-GAAP gross margin of 62.9%, up 380 basis points (bps) year over year in the first quarter.
A healthy customer mix supported by impressive operational execution aided gross-margin expansion during the first quarter and offset the higher expenses incurred to overcome supply-chain challenges.
On a non-GAAP basis, operating expenses were $35.4 million, up 6% sequentially. Seasonal increase in payroll taxes and increased headcount led to the increase.
Total headcount at the end of the first quarter was 803, with about 81% of the employees dedicated to engineering. Roughly 66% of Ambarella’s total headcount is located in Asia.
Net inventory was $33.1 million as of Apr 30, 2021, up 26.8% sequentially.
Balance Sheet & Cash Flow
As of Apr 30, 2021, Ambarella had cash and cash equivalents & marketable securities of $435.5 million compared with $440.7 million as of Jan 31, 2021.
During the first quarter, the company generated an operating cash outflow of $4.5 million.
Guidance
For second-quarter fiscal 2022, revenues are expected between $74 million and $77 million. Non-GAAP gross margin is anticipated to be 61-62%. Non-GAAP operating expenses are projected at $36-$37.5 million.
Zacks Rank & Stocks to Consider
Ambarella currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Silicon Motion Technology Corp. (SIMO - Free Report) , Lam Research Corp. (LRCX - Free Report) and LG Display Co., Ltd. (LPL - Free Report) , all sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Silicon Motion Technology Corporation, Lam Research and LG Display is currently pegged at 8%, 32.8% and 32.56%, respectively.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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