Ambarella, Inc. Announces First Quarter Fiscal Year 2017 Financial Results
- Revenue for the first quarter of fiscal 2017 was
$57.2 million , down 19.5% from$71.0 million in the same period in fiscal 2016. - Gross margin under
U.S. generally accepted accounting principles (GAAP) for the first quarter of fiscal 2017 was 64.2%, compared with 64.7% for the same period in fiscal 2016. - GAAP net income for the first quarter of fiscal 2017 was
$1.8 million , or$0.05 per diluted ordinary share, compared with GAAP net income of$18.9 million , or$0.56 per diluted ordinary share, for the same period in fiscal 2016.
Financial results on a non-GAAP basis for the first quarter of fiscal 2017 are as follows:
- Gross margin on a non-GAAP basis for the first quarter of
fiscal 2017 was 64.6%, compared with 64.8% for the same period in fiscal 2016.
- Non-GAAP net income for the first quarter of fiscal 2017 was
$11.4 million , or$0.34 per diluted ordinary share. This compares with non-GAAP net income of$23.7 million , or$0.71 per diluted ordinary share, for the same period in fiscal 2016.
Total cash, cash equivalents and marketable securities on hand at the end of the first fiscal quarter of 2017 was
Stock Repurchase
"We are pleased with our execution during the first fiscal quarter of 2017, as we introduced our first 14nm IP camera SoC and continued to see strong design win momentum for our new 4K and HEVC SoC families across all market segments," said Fermi Wang, CEO of
Quarterly Conference Call
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"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements that are not historical facts and often can be identified by terms such as "outlook," "projected," "intends," "will," "estimates," "anticipates," "expects," "believes," "could," or similar expressions, including the comments of our CEO relating to headwinds in the wearable sports market, the potential impact on our business caused by the disruption of supply of image sensors to our customers, and our anticipation of future revenue growth. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. Our actual results could differ materially from those predicted or implied and reported results should not be considered as an indication of our future performance.
The risks and uncertainties referred to above include, but are not limited to, risks associated with revenue being generated from new customers or design wins, neither of which is assured; the commercial success of our customers' products; our growth strategy; our ability to anticipate future market demands and future needs of our customers; our ability to introduce new and enhanced solutions; our ability to retain and expand customer relationships and to achieve design wins; our ability to successfully enter new markets; anticipated trends and challenges, including competition, in the markets in which we operate; our ability to effectively manage growth; our ability to retain key employees; and the potential for intellectual property disputes or other litigation.
Further information on these and other factors that could affect our financial results is included in the company's Annual Report on Form 10-K for our 2016 fiscal year, which is on file with the
Non-GAAP Financial Measures
The company has provided in this release non-GAAP financial information including non-GAAP gross margin, net income, and earnings per share, as a supplement to the condensed consolidated financial statements, which are prepared in accordance with generally accepted accounting principles ("GAAP"). Management uses these non-GAAP financial measures internally in analyzing the company's financial results to assess operational performance and liquidity. The company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting and analyzing future periods. Further, the company believes these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key financial metrics that the company uses in making operating decisions and because the company believes that investors and analysts use them to help assess the health of its business and for comparison to other companies. Non-GAAP results are presented for supplemental informational purposes only for understanding the company's operating results. The non-GAAP information should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP measures used by other companies.
With respect to its financial results for the first quarter of fiscal year 2017, the company has provided below reconciliations between its non-GAAP financial measures to its most directly comparable GAAP financial measures.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(in thousands, except share and per share data) | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
2016 | 2015 | |||||||
Revenue | $ | 57,157 | $ | 71,013 | ||||
Cost of revenue | 20,450 | 25,095 | ||||||
Gross profit | 36,707 | 45,918 | ||||||
Operating expenses: | ||||||||
Research and development | 24,466 | 16,583 | ||||||
Selling, general and administrative | 10,893 | 9,010 | ||||||
Total operating expenses | 35,359 | 25,593 | ||||||
Income from operations | 1,348 | 20,325 | ||||||
Other income | 27 | 27 | ||||||
Income before income taxes | 1,375 | 20,352 | ||||||
Provision (benefit) for income taxes | (408 | ) | 1,498 | |||||
Net income | $ | 1,783 | $ | 18,854 | ||||
Net income per share attributable to ordinary shareholders: | ||||||||
Basic | $ | 0.05 | $ | 0.61 | ||||
Diluted | $ | 0.05 | $ | 0.56 | ||||
Weighted-average shares used to compute net income per share attributable to ordinary shareholders: | ||||||||
Basic | 32,428,047 | 31,099,081 | ||||||
Diluted | 33,950,736 | 33,472,309 | ||||||
The following table presents details of stock-based compensation expense included in each functional line item in the condensed consolidated statements of operations above:
Three Months Ended | ||||||||
2016 | 2015 | |||||||
(unaudited, in thousands) | ||||||||
Stock-based compensation: | ||||||||
Cost of revenue | $ | 245 | $ | 124 | ||||
Research and development | 6,719 | 3,094 | ||||||
Selling, general and administrative | 4,337 | 2,264 | ||||||
Total stock-based compensation | $ | 11,301 | $ | 5,482 | ||||
RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS PER SHARE | |||||||
(in thousands, except share and per share data) | |||||||
Three
Months Ended | |||||||
2016 | 2015 | ||||||
(unaudited) | |||||||
GAAP net income | $ | 1,783 | $ | 18,854 | |||
Non-GAAP adjustments: | |||||||
Stock-based compensation expense | 11,301 | 5,482 | |||||
Income tax effect | (1,645 | ) | (675 | ) | |||
Non-GAAP net income | $ | 11,439 | $ | 23,661 | |||
GAAP - diluted weighted average shares | 33,950,736 | 33,472,309 | |||||
Non-GAAP - diluted weighted average shares | 33,950,736 | 33,472,309 | |||||
GAAP - diluted net income per share | $ | 0.05 | $ | 0.56 | |||
Non-GAAP adjustments: | |||||||
Stock-based compensation expense | 0.34 | 0.17 | |||||
Income tax effect | (0.05 | ) | (0.02 | ) | |||
Non-GAAP - diluted net income per share | $ | 0.34 | $ | 0.71 | |||
The difference between GAAP and non-GAAP gross margin was 0.4% and 0.1%, or
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(unaudited, in thousands) | |||||||||
2016 | 2016 | ||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 267,959 | $ | 268,056 | |||||
Marketable securities | 55,852 | 39,837 | |||||||
Accounts receivable, net | 30,501 | 39,408 | |||||||
Inventories | 17,921 | 18,167 | |||||||
Restricted cash | 8 | 7 | |||||||
Prepaid expenses and other current assets | 3,845 | 4,170 | |||||||
Total current assets | 376,086 | 369,645 | |||||||
Property and equipment, net | 3,567 | 3,448 | |||||||
Deferred tax assets, non-current | 6,541 | 4,626 | |||||||
Intangible assets, net | 4,173 | 4,178 | |||||||
26,601 | 26,601 | ||||||||
Other assets | 2,085 | 2,117 | |||||||
Total assets | $ | 419,053 | $ | 410,615 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | 16,347 | 14,175 | |||||||
Accrued liabilities | 17,395 | 23,778 | |||||||
Income taxes payable | — | 787 | |||||||
Deferred revenue, current | 6,092 | 10,077 | |||||||
Total current liabilities | 39,834 | 48,817 | |||||||
Other long-term liabilities | 2,767 | 12,342 | |||||||
Total liabilities | 42,601 | 61,159 | |||||||
Shareholders' equity: | |||||||||
Preference shares | — | — | |||||||
Ordinary shares | 15 | 15 | |||||||
Additional paid-in capital | 190,031 | 176,306 | |||||||
Accumulated other comprehensive income (loss) | 20 | (7 | ) | ||||||
Retained earnings | 186,386 | 173,142 | |||||||
Total shareholders' equity | 376,452 | 349,456 | |||||||
Total liabilities and shareholders' equity | $ | 419,053 | $ | 410,615 | |||||
Contact:Source:Deborah Stapleton 650.470.4200 deb@stapleton.com
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