Ambarella, Inc. Announces Third Quarter Fiscal 2014 Results
Revenue for the third quarter of fiscal 2014 was
Gross margin under U.S. generally accepted accounting principles (GAAP) for the third quarter of fiscal 2014 was 63.7%, compared with 64.5% for the same period in fiscal 2013. For the nine months ended
GAAP net income for the third quarter of fiscal 2014 was
Gross margin on a non-GAAP basis for the third quarter of fiscal 2014 was 63.8%, compared with 64.5% for the same period in fiscal 2013. For the nine months ended
Non-GAAP net income for the third quarter of fiscal 2014 was
Cash and cash equivalents at the end of the third fiscal quarter of 2014 were
"We are very pleased with our execution across major markets as demonstrated by the strong Q3 year-over-year growth of 29%," said Fermi Wang, President and CEO of
"This is an exciting time for our company as we continue to develop products on leading edge technology that we believe will enable us to continue to offer our customers the best resolutions and exceptional compression technology without compromising power efficiency," he said.
Quarterly Conference Call
About
"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 expansion of our target markets, the ability of our technology and product features to gain market acceptance and design wins, our ability to continue to introduce new and enhanced solutions, and the ability of our customer's products to gain market acceptance. 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 success of our business is subject to risks and uncertainties that include, but are not limited to, risks associated with revenue being generated from new customers or design wins, neither of which is assured; our growth strategy; our ability to anticipate future market demands and future needs of our customers; our plans for future products; 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, 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.
The company has provided below reconciliations between its non-GAAP financial measures to its most directly comparable GAAP financial measures.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
(in thousands, except share and per share data) | ||||
(unaudited) | ||||
Three Months Ended |
Nine Months Ended |
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2013 | 2012 | 2013 | 2012 | |
Revenue | $ 45,990 | $ 35,669 | $ 117,641 | $ 89,548 |
Cost of revenue | 16,689 | 12,679 | 43,356 | 28,821 |
Gross profit | 29,301 | 22,990 | 74,285 | 60,727 |
Operating expenses: | ||||
Research and development | 13,476 | 10,802 | 35,767 | 31,631 |
Selling, general and administrative | 5,761 | 4,603 | 16,303 | 12,812 |
Total operating expenses | 19,237 | 15,405 | 52,070 | 44,443 |
Income from operations | 10,064 | 7,585 | 22,215 | 16,284 |
Other income (loss), net | (12) | 137 | (28) | 139 |
Income before income taxes | 10,052 | 7,722 | 22,187 | 16,423 |
Provision for income taxes | 926 | 1,005 | 2,066 | 1,878 |
Net income | $ 9,126 | $ 6,717 | $ 20,121 | $ 14,545 |
Net income per share attributable to ordinary shareholders: | ||||
Basic | $ 0.33 | $ 0.27 | $ 0.73 | $ 0.55 |
Diluted | $ 0.30 | $ 0.25 | $ 0.68 | $ 0.51 |
Weighted-average shares used to compute net income per share attributable to ordinary shareholders: | ||||
Basic | 27,836,086 | 12,068,819 | 27,432,301 | 9,049,864 |
Diluted | 30,355,230 | 13,415,091 | 29,754,837 | 10,506,293 |
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 |
Nine Months Ended |
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2013 | 2012 | 2013 | 2012 | |
(unaudited, in thousands) | ||||
Stock-based compensation: | ||||
Cost of revenue | $ 47 | $ 30 | $ 115 | $ 59 |
Research and development | 1,385 | 905 | 3,259 | 1,979 |
Selling, general and administrative | 1,029 | 550 | 2,286 | 1,403 |
Total stock-based compensation | $ 2,461 | $ 1,485 | $ 5,660 | $ 3,441 |
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RECONCILIATION OF GAAP TO NON-GAAP DILUTED EARNINGS PER SHARE | ||||
(in thousands, except share and per share data) | ||||
Three Months Ended |
Nine Months Ended |
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2013 | 2012 | 2013 | 2012 | |
(unaudited) | ||||
GAAP net income | $ 9,126 | $ 6,717 | $ 20,121 | $ 14,545 |
Two-class method - allocation to participating securities | (8) | (3,474) | (27) | (9,570) |
Treasury stock method - additional allocation to ordinary shares | -- | 155 | 2 | 432 |
GAAP net income - diluted | $ 9,118 | $ 3,398 | $ 20,096 | $ 5,407 |
Non-GAAP adjustments: | ||||
Stock-based compensation expense, net of tax effect | 2,000 | 1,388 | 4,911 | 3,166 |
Two-class method - additional allocation to participating securities | (3) | (631) | (7) | (1,824) |
Treasury stock method - additional allocation to ordinary shares | 1 | 36 | 1 | 116 |
Non-GAAP net income - diluted | $ 11,116 | $ 4,191 | $ 25,001 | $ 6,865 |
GAAP - diluted weighted average shares | 30,355,230 | 13,415,091 | 29,754,837 | 10,506,293 |
Non-GAAP - diluted weighted average shares | 30,355,230 | 13,415,091 | 29,754,837 | 10,506,293 |
GAAP - diluted net income per share | $ 0.30 | $ 0.25 | $ 0.68 | $ 0.51 |
Non-GAAP adjustments: | ||||
Stock-based compensation expense, net of tax effect | 0.07 | 0.10 | 0.16 | 0.30 |
Non-GAAP adjustment to two-class method diluted net income | -- | (0.05) | -- | (0.17) |
Non-GAAP adjustment to treasury stock method diluted net income | -- | 0.01 | -- | 0.01 |
Non-GAAP - diluted net income per share | $ 0.37 | $ 0.31 | $ 0.84 | $ 0.65 |
The difference between GAAP and non-GAAP gross margin was 0.1% for each period other than the third quarter of fiscal 2013 for which there was no difference. The difference was due to the effect of stock-based compensation, as disclosed in the table above, and the associated tax impact recorded for GAAP purposes.
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CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(in thousands) | ||
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2013 | 2013 | |
(unaudited) | ||
ASSETS | ||
Current assets: | ||
Cash | $ 128,051 | $ 100,494 |
Accounts receivable, net | 25,449 | 20,153 |
Inventories | 13,010 | 8,918 |
Restricted cash | 3 | 3 |
Deferred tax assets, current | 1,073 | 1,220 |
Prepaid expenses and other current assets | 1,998 | 2,360 |
Total current assets | 169,584 | 133,148 |
Property and equipment, net | 3,025 | 2,536 |
Deferred tax assets, non-current | 1,105 | 938 |
Other assets | 1,970 | 1,981 |
Total assets | $ 175,684 | $ 138,603 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Current liabilities: | ||
Accounts payable | 14,139 | 7,051 |
Accrued liabilities | 12,066 | 14,042 |
Income taxes payable | 77 | 286 |
Deferred revenue, current | 3,552 | 3,451 |
Total current liabilities | 29,834 | 24,830 |
Other long-term liabilities | 1,427 | 1,441 |
Total liabilities | 31,261 | 26,271 |
Preference shares | -- | -- |
Shareholders' equity: | ||
Ordinary shares | 13 | 12 |
Additional paid-in capital | 103,880 | 91,911 |
Retained earnings | 40,530 | 20,409 |
Total shareholders' equity | 144,423 | 112,332 |
Total liabilities and shareholders' equity | $ 175,684 | $ 138,603 |
CONTACT:Source:Deborah Stapleton 650.470.4200 deb@stapleton.com
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