Ambarella, Inc. (NASDAQ: AMBA) shares down more than 20% after the semiconductor company reported second quarter results of fiscal year 2018 July 31, 2017. Ambarella is focusing on development of low-power, HD and Ultra HD video compression and image processing semiconductors.
The company reported revenue $71.6 million, up 10.0% from $65.1 million for their second quarter, up 10.0% from $65.1 million in the same period in fiscal 2017. GAAP net income for the second quarter of fiscal 2018 was $3.3 million, or $0.10 per diluted ordinary share, significantly less when compared with GAAP net income of $8.6 million, or $0.25 per diluted ordinary share, for the same period in fiscal 2017.
"During the second quarter, we had solid growth from IP security, both from professional and home monitoring camera markets. We also continued to see growth in our OEM auto business, with strong design win activity and revenue from OEM auto video recorders," said Fermi Wang, CEO of Ambarella. "We continue to invest in the technologies required to deliver future generations of highly intelligent, HD and Ultra HD cameras with particular emphasis on high performance computer vision functionality. We see computer vision as a key differentiator for us in camera markets, including automotive, IP security, drones and robotics, and it is our key area of focus for the future," he said.
Ambarella has provided guidance for the third quarter of fiscal year 2018, ending Oct. 31, 2017, according to which the company expects revenue to be between $87.5 million and $90.5 million.