Yahoo Finance Ambarella (AMBA) Q4 Earnings and Revenues Surpass Estimates
Ambarella AMBA reported fourth-quarter fiscal 2023 non-GAAP earnings of 23 cents per share, which surpassed the Zacks Consensus Estimate of 15 cents. However, the reported figure declined 48.9% from the prior-year quarter’s earnings of 45 cents.
Fourth-quarter revenues declined 7.7% year over year to $83.3 million, mainly due to customer inventory reduction actions. However, the top line exceeded the consensus mark of $83.04 million.
Customer & Market Details
Ambarella had two customers that contributed more than 10% in the reported quarter. WT Microelectronics, a fulfillment partner in Taiwan that serves multiple customers in Asia, accounted for 50% of the company’s revenues. Chicony, a Taiwan-based electronics manufacturer serving multiple IOT customers, represented 11% of the company’s revenues.
The momentum in AMBA’s CV flow system-on-a-chip in professional IP cameras continued in the reported quarter. The company expects to achieve its targeted goal of generating 60% of total revenues from the CV portfolio in 2024.
Ambarella, Inc. Price, Consensus and EPS Surprise
Ambarella, Inc. price-consensus-eps-surprise-chart | Ambarella, Inc. Quote
Operating Details
The non-GAAP gross margin was 63.5%, down 130 basis points (bps) year over year in the fiscal fourth quarter.
On a non-GAAP basis, operating expenses were $46 million, up 6% sequentially. Non-GAAP operating expenses were at low end of the company’s prior guidance of $46-$49 million, mainly due to its expense management actions taken on customer inventory adjustments.
Net inventory was $40.5 million as of Dec 31, 2022, down 10.8% sequentially.
Balance Sheet
As of Jan 31, 2022, Ambarella had cash and cash equivalents & marketable securities of $206.9 million compared with $199 million as of Oct 31, 2022.
Full-Year Highlights
For full-fiscal 2023, Ambarella reported revenues of $337.6 million, indicating a rise of 1.7% year over year.
The company reported non-GAAP earnings of $1.10 per share, reflecting a 31.7% slash.
Non-GAAP gross margin expanded 50 bps to 63.9%.
Q1 2024 Guidance
For the first quarter of fiscal 2024, revenues are expected between $60 million and $64 million. The non-GAAP gross margin is anticipated to be 62-64%.
Non-GAAP operating expenses are projected in the range of $47-$49 million.
Zacks Rank & Key Picks
Ambarella carries a Zacks Rank #3 (Hold). Shares of AMBA have lost 5.5% over the past year.
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