Ambarella (NASDAQ: AMBA) reported Q4 EPS of $0.14, $0.10 better than the analyst estimate of $0.04. Revenue for the quarter came in at $51.1 million versus the consensus estimate of $50.92 million.

• Revenue for the fourth quarter of fiscal 2019 was $51.1 million, down 28% from $70.6 million in the same period in fiscal 2018. For the fiscal year ending January 31, 2019, revenue was $227.8 million, down 23% from $295.4 million for fiscal year ending January 31, 2018.
• Gross margin under U.S. generally accepted accounting principles (GAAP) for the fourth quarter of fiscal 2019 was 60.0%, compared with 64.3% for the same period in fiscal 2018. For the fiscal year ending January 31, 2019, GAAP gross margin was 60.7%, compared with 63.6% for the fiscal year ending January 31, 2018.
• GAAP net loss for the fourth quarter of fiscal 2019 was $4.5 million, or loss per diluted ordinary share of $0.14, compared with GAAP net income of $1.3 million, or earnings per diluted ordinary share of $0.04, for the same period in fiscal 2018. GAAP net loss for the fiscal year ending January 31, 2019 was $30.4 million, or loss per diluted ordinary share of $0.93. This compares with GAAP net income of $18.9 million, or earnings per diluted ordinary share of $0.55, for the fiscal year ending January 31, 2018.

Financial results on a non-GAAP basis for the fourth quarter of fiscal 2019 are as follows:

• Gross margin on a non-GAAP basis for the fourth quarter of fiscal 2019 was 60.6%, compared with 64.7% for the same period in fiscal 2018. For the fiscal year ending January 31, 2019, non-GAAP gross margin was 61.2%, compared with 64.0% for the fiscal year ending January 31, 2018.
• Non-GAAP net income for the fourth quarter of fiscal 2019 was $4.5 million, or earnings per diluted ordinary share of $0.14. This compares with adjusted non-GAAP net income of $16.4 million, or earnings per diluted ordinary share of $0.47, for the same period in fiscal 2018. Non-GAAP net income for the fiscal year ending January 31, 2019 was $24.5 million, or earnings per diluted ordinary share of $0.73. This compares with adjusted non-GAAP net income of $80.3 million, or earnings per diluted ordinary share of $2.32, for the fiscal year ending January 31, 2018.

“Strategically, fiscal 2019 was one of the most important years in Ambarella’s 15 year history as the company continued to execute on its transformation from a pure video processing company to a computer vision company,” said Fermi Wang, President and CEO. “We taped-out and sampled three 10nm computer vision system-on-a-chip devices and commenced mass production of one of the devices, all in the fiscal year. Despite the decline in our consumer electronics business, and the geopolitical and macroeconomic headwinds, we have and will continue to focus our investment on computer vision. While it is early in the computer vision adoption cycle, we are excited about expanding our portfolio and having more customers enter mass production."

GUIDANCE:

Ambarella sees Q1 2020 revenue of $47 million, versus the consensus of $50 million.

• Gross margin on a non-GAAP basis is expected to be between 59.0% and 60.0%
• Non-GAAP operating expenses are expected to be between $30.5 million and $32.5 million

For earnings history and earnings-related data on Ambarella (AMBA) click here.