Biometrics stocks update: Ambarella reports Q3, OneSpan opens cybersecurity R&D center in Montreal
Sales for Ambarella’s biometric cameras and other computer vision solutions increased to $67.9 million in the third quarter of fiscal 2020, up 18.6 percent on a year-over-year basis, positively reflecting the company’s shift of focus to video AI despite an uncertain international trade environment.
For the first nine months of the fiscal year, Ambarella has reported $171.5 million in revenue, 2.9 percent lower than the first nine months of 2019, but the company’s Q4 guidance of $55 million to $59 million would still put towards the high end of, and possibly even above, the full-year revenue estimate of $206 million to $225 million range that KeyBanc raised to forecast to following the company’s Q2 report.
GAAP gross margin declined slightly from 60.4 percent in Q3 2019 to 57.6 percent, and GAAP net loss for the most recent quarter was $4.3 million, or $0.13 per diluted share, as both losses were reduced by more than half, year-over-year. Non-GAAP net income was $11.3 million, or $0.32 per share, well up from $7 million or $0.21 per diluted ordinary share in the same quarter of fiscal 2019.
“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,” says Dr. Fermi Wang, Ambarella 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.”
Dr. Wang and Ambarella CFO Casey Eichler will present a “fireside chat” during the 41st Nasdaq Investor Conference on December 3 in London. The presentation will also be webcast on the company’s investor website, with a repay available for 90 days. The company will then head to San Francisco for the Deutsche Bank 2019 Auto Tech Conference on December 10, where Dr. Wang will present another “fireside chat,” which will likewise be available from the company site.
Another company making international moves and courting investment amid a strategic shift is OneSpan, which has scheduled an Investor Day for December 4 in New York City. The company will deliver presentations from 8:30 to 12:00, with members of the senior management team providing updates on OneSpan’s strategic transformation, growth strategy, and business outlook, according to an announcement. The event will also be webcast to the company’s investor site.
OneSpan has also opened a new operational hub in Montreal, which is now the Chicago-based company’s largest office and research and development center worldwide. The new facility is expected to create 100 jobs in the Montreal area over the next two years, and help position the city as a leader in cybersecurity, according to the announcement. The Greater Montreal region is reported to have an innovative business environment, a large pool of skilled workers, and high-quality university graduates.
“Data breaches, identity theft, and financial fraud have become all too common features of our modern digital life. OneSpan is dedicated to protecting people from financial fraud and stopping billions of dollars in losses for consumers, banks, and businesses. Our new Montréal R&D center and the city’s world class technical talent will play a prominent role in ensuring OneSpan remains at the forefront in preventing fraud in the global financial services industry,” comments Scott Clements, president and CEO of OneSpan.
The announcement was made jointly with Montreal International, a non-profit partnership of government and private entities with a mandate to attract and retain foreign investment in the city.