Ambarella Inc. (AMBA – Snapshot Report), a leading developer of chips for the high-definition capture market, reported is Q2 fiscal 2016 earnings after the bell Tuesday. Last quarter, the supplier for GoPro (GPRO) beat the Zacks Consensus Estimate by 24.44%.

AMBA’s technology is used in GoPro’s first person point-of-view cameras, allowing users to take personal action and sports-related videos. GoPro has since partnered with Google (GOOGL) for its “Helpouts” services, which provide users a help in completing tasking like playing the piano via a camera.

AMBA is intrinsically linked to GoPro, and this partnership will drive the company’s results this quarter. However, the company has been criticized for its dependency on GoPro, as some investors are concerned about severe commoditization risks and stiff competition going forward.

Going into today, the Earnings ESP for AMBA was at 0%, meaning we haven’t seen much estimate revision activity recently. Currently, AMBA has a Zacks Rank #3 (Hold), although we could see movement in the ranking based on today’s news.

We’ve highlighted some of the key figures from this just-released earnings report below:

Earnings: AMBA reported a Q2 EPS of 72 cents, which missed the Zacks Consensus Estimate of 73 cents.

Revenue: AMBA posted quarterly revenues of $84.5 million, which beat our consensus estimate of $80 million

Key Stats to Note: For the six months ended July 31, 2015, revenue was $155.2 million, up 76.6% from $87.9 million for the six months ended July 31, 2014.

Stock Price: Shares of AMBA closed down about 6.8% today, and they’ve fallen another 1.5% in after-hours trading.

 

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