Ambarella Inc (NASDAQ: AMBA) stock surged over 5.4% on March 6th, 2019 (as of 10:38 am GMT-5; Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 19. AMBA in the fourth quarter of FY 19 has reported the adjusted earnings per share of 14 cents, beating the analysts’ estimates for the adjusted earnings per share of 4 cents. The company had reported 28% fall in the adjusted revenue growth to $51.1 million in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $50.9 billion.
Total cash, cash equivalents and marketable securities on hand at the end of the fourth quarter of fiscal 2019 was $358.9 million, compared with $434.6 million at the end of the same quarter a year ago. The non-GAAP operating expenses increased 10%, primarily due to the continuation of the strong R&D investment in the computer vision technology and platforms. Despite this high level of R&D investment, the operating cash flow was a positive $24.5 million for the year. With no debt, cash from marketable securities totaled $359 million or $10.97 per diluted share
Auto revenue declined as the company experienced the anticipated impact of a decline in a major customer’s promotional activity and as the overall tone of the auto market remain cautious. Consumer and other product revenue declined slightly sequentially, exiting the year in the mid-teens as a percentage of total revenue
In the fourth quarter of fiscal year 2019, the company repurchased a total of 104,160 shares for total consideration of approximately $3.5 million. Under the $100 million repurchase program that commenced on June 5, 2018, the company has repurchased a total of 1,792,156 shares for total cash consideration of approximately $68.1 million through January 31, 2019.
For the first quarter of 2020, AMBA expects revenue to be $47.0 million plus or minus 3%, gross margin on a non-GAAP basis is expected to be between 59.0% and 60.0% and Non-GAAP operating expenses are expected to be between $30.5 million and $32.5 million
Meanwhile, in December, Chinese car maker, Geely, introduced its Saiwai car models with 4HD car recording supplied by Tier 1 supplier, Long Haul in the [inaudible] camera SoC. Also, during the quarter, Chinese BAIC introduced new Senova car models with car recorders supplied by Tier 1 supplier, [inaudible] And again, based on Ambarella’s A12A SoC. In the automotive aftermarket, Korean [inaudible] introduced its QXC 3000 camera featuring our H22 SoC and including HDR processing, lane detection warning, and the full collision warning features.