AMBA: What's In Stock For Ambarella Inc?

Ambarella Inc (AMBA, +9.39%) is a leading company in the field of low power, HD and Ultra
HD video compression and image processing semiconductors.
It announced financial results for first quarter of fiscal year 2016-2017 ended April 30, 2016.
Let's find out what's in store for the investors.

Analysis of Results
Financial results on GAAP basis for 2016-2017 are as follows:
Revenue for the Q1 of this fiscal was US $57.2 million. This marks a fall of 19.5% from US $71
million in 2015-2016. GAAP for Q1 fiscal 2017 was 64.2% compared with 64.7% for same
period in the previous fiscal, according to MarketWatch. GAAP net income for Q1 of fiscal 2017
was 64.2% as against 64.7% for the same period in the previous fiscal. GAAP net income for this
quarter was US $1.8 million or $0.05 per diluted ordinary share with GAAP net income of US
$18.9 million or $ 0.56 per diluted ordinary share for the period 2015-2016.
On non GAAP basis financial results for this fiscal are as follows:
Gross margin on non GAAP basis was 64.6 percent for this fiscal. It was 64.8 percent for the
same period in 2015-2016. Non GAAP net income for Q1, 2017 was US $11.4 million equalling
around US $.34 per diluted ordinary share. The figures for 2015-2016 were US $23.7 million or
$0.71 per diluted share for this quarter.

Implications of GAAP and Non GAAP Indicators

Gross margin, net income and EPS for GAAP and non GAAP basis were shared. Non GAAP
financial information for this quarter excluded the impact of stock based compensation for
associated tax impact including benefits or shortfall acknowledged.
On the whole, total cash, marketable securities and cash equivalent towards the end of Q1 in
fiscal 2017 was US$323.8m.

EPS Information
Current Quarter EPS Consensus Estimate 0.20
Current Year EPS Consensus Estimate 1.36
Estimated Long-Term EPS Growth Rate 13.00
Next EPS Report Date
9/6/2016

Fundamental Ratios
P/E
P/E (F1)
34.09
Trailing 12 Months 23.59
PEG Ratio
2.62
EPS Growth
vs. Previous Year -91.07%
vs. Previous Quarter -84.85%
Sales Growth
vs. Previous Year -19.51%
vs. Previous Quarter -15.90%
Price Ratios
Price/Book
4.26
17.3
Price/Cash Flow
3
Price / Sales
5.04
Source: Zacks
Stock repurchase of over US &75 million of ordinary shares over a six month period
commencing in the second quarter of fiscal 2017 were also announced. The earthquake in Japan
has somewhat lowered chances of profit for this company, apart from its repurchase program, but
the company remains confident of "renewed revenue growth based on our technology leadership,
product roadmap" and market potential, according to CEO of the company, Fermi Wang.

Conclusions
With the absence of supply shortage, Ambarella persists in seeing growth in tandem with its
businesses in the field of drone, home security and automative aftermarket businesses. The
camera chip market is also expected to recover as wearables are in huge demand. Analysts
anticipated the decline in revenue, but given the good performance of the company in a market
segment of wearables, this is a good investment and investors have every reason to celebrate.
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Published at: http://daddyinsider.com/index.php/2016/06/06/amba-whats-stock-ambarella-inc/