Ambarella (NASDAQ: AMBA) reported Q3 EPS of $0.32, $0.12 better than the analyst estimate of $0.20. Revenue for the quarter came in at $67.9 million versus the consensus estimate of $65.03 million.

Financial results on a non-GAAP basis for the third quarter of fiscal 2020 are as follows:

• Gross margin on a non-GAAP basis for the third quarter of fiscal 2020 was 58.1%, compared with 60.9% for the same period in fiscal 2019. For the nine months ended October 31, 2019, non-GAAP gross margin was 58.5%, compared with 61.4% for the nine months ended October 31, 2018.
• Non-GAAP net income for the third quarter of fiscal 2020 was $11.3 million, or earnings per diluted ordinary share of $0.32. This compares with non-GAAP net income of $7.0 million, or earnings per diluted ordinary share of $0.21, for the same period in fiscal 2019. Non-GAAP net income for the nine months ended October 31, 2019 was $18.8 million, or earnings per diluted ordinary share of $0.55. This compares with non-GAAP net income of $20.0 million, or earnings per diluted ordinary share of $0.59, for the nine months ended October 31, 2018.

“Our October 15th update provided clarity on one trade issue faced by the company, though other foreign policy, trade and IP matters remain outstanding, with a wide range of potential outcomes,” said Fermi Wang, President and CEO. “Despite the geopolitical and trade uncertainties, in Q3 we demonstrated continued progress toward our transition to a video AI company, with mass production shipments into the automotive and security camera markets continuing to ramp. Our family of computer vision (“CV”) products all contributed to the early revenue ramp and we shipped pre-production parts and development systems to more than 50 customers in the quarter.”

GUIDANCE:

Ambarella sees Q4 2020 revenue of $55-59 million, versus the consensus of $55.65 million.

Based on information available as of today, Ambarella is offering the following guidance for the fourth quarter of fiscal year 2020, ending January 31, 2020:

• Revenue is expected to be between $55.0 million and $59.0 million
• Gross margin on a non-GAAP basis is expected to be between 56.5% and 58.5%
• Operating expenses on a non-GAAP basis are expected to be between $29.5 million and $31.5 million

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