Ambarella Inc. (NASDAQ: AMBA) reported its third-quarter results Thursday after the market close as $0.68 in earnings per share and $65.7 million in revenue, against Thomson Reuters consensus estimates of $0.54 in earnings per share and $62.54 million in revenue. The third quarter from the previous year had $0.37 in earnings per share and $45.99 million in revenue.

Ambarella is a developer of low-power, HD video compression and image processing semiconductors.

Gross margin was reported as 63.4%, compared to the same period in the previous year of 63.8%. Net income for the third quarter was $22.1 million, nearly doubling the third quarter in the previous year of $11.1 million.

Total cash and cash equivalents at the end of the third quarter were $186.5 million, versus $128.1 million at the end of the same quarter a year ago.

Fermi Wang, President and CEO of Ambarella, said:

Our products for wearable sports and IP security cameras once again delivered strong revenue growth in the quarter, while the automotive aftermarket market also increased, reflecting strength in China and Korea. We also are very pleased with our progress in newer markets, such as wearable, home security and quadcopters cameras.

Stifel made a bold call and maintained a Buy rating for Ambarella, while also raising its price target to $62 from $47, on the day before earnings came out.

Shares of Ambarella closed Thursday down 1% at $55.54. Following the release of the earnings report, the initial response in the after-hours market was negative and shares were down 3% at $54.00.

The consensus analyst price target is $43.38, and the 52-week trading range is $21.60 to $58.00. Ambarella has a market cap of roughly $1.6 billion.

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