Ambarella Inc (NASDAQ: AMBA) shares rose after the company reported stronger-than-expected results for its third quarter.
Figures released Thursday by the Santa Clara-based company revealed third-quarter revenue of 89.1 million, down 11.4% from $100.5 million in the same period in fiscal 2017.
Gross margin under U.S. generally accepted accounting principles (GAAP) for the third quarter of fiscal 2018 was 63.6%, compared with 66.0% for the same period in fiscal 2017.
GAAP net income for the third quarter of fiscal 2018 was $11.7 million, or $0.34 per diluted ordinary share, compared with GAAP net income of $29.0 million, or $0.84 per diluted ordinary share, for the same period in fiscal 2017.
Moreover, Ambarella is offering the following guidance for the fourth quarter of fiscal year 2018, ending January 31, 2018. Revenue is expected to be between $68.0 million and $72.0 million. Gross margin on a non-GAAP basis is expected to be between 62.0% and 63.5%. Operating expenses on a non-GAAP basis are expected to be between $28.5 million and $30.0 million
Also, during the third quarter the company repurchased a total of 269,540 shares for total consideration of approximately $12.8 million. Under the current $50-million repurchase program that was announced in June 2017 and commenced on July 1, the company repurchased a total of 313,959 ordinary shares for total cash consideration of approximately $15.0 million.
Ambarella shares jumped $7.97, or 14.7%, to $62.24, within a 52-week trading range of $40.06 to $65.39.