Ambarella Inc (AMBA) has reported an 1.41 percent fall in profit for the quarter ended Oct. 31, 2016. The company has earned $29.04 million, or $0.84 a share in the quarter, compared with $29.46 million, or $0.87 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $38.44 million, or $1.11 a share compared with $36.64 million or $1.08 a share, a year ago.
Revenue during the quarter grew 7.82 percent to $100.49 million from $93.20 million in the previous year period. Gross margin for the quarter expanded 27 basis points over the previous year period to 66 percent. Total expenses were 70.47 percent of quarterly revenues, up from 67.46 percent for the same period last year. That has resulted in a contraction of 301 basis points in operating margin to 29.53 percent.
Operating income for the quarter was $29.67 million, compared with $30.33 million in the previous year period.
“We are very proud to have achieved more than $100 million in revenue in the quarter, a new milestone,” said Fermi Wang, chief executive officer of Ambarella. “We saw continued revenue growth in IP security, home monitoring and the automotive camera markets, as well as a ramp in revenue from action sports cameras for the holiday season. We were also pleased to enable the introduction of a new generation of products, offering 4Kp60 video performance for the first time,” he said.
Working capital increases sharply
Ambarella Inc has recorded an increase in the working capital over the last year. It stood at $381.66 million as at Oct. 31, 2016, up 26.44 percent or $79.81 million from $301.85 million on Oct. 31, 2015. Current ratio was at 7.37 as on Oct. 31, 2016, up from 7.09 on Oct. 31, 2015.
Cash conversion cycle (CCC) has decreased to 4 days for the quarter from 55 days for the last year period. Days sales outstanding went down to 38 days for the quarter compared with 44 days for the same period last year.
Days inventory outstanding has decreased to 31 days for the quarter compared with 73 days for the previous year period. At the same time, days payable outstanding went up to 66 days for the quarter from 62 for the same period last year.
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