Ambarella Looking to Raise $65 Million in IPO

By Beecher Tuttle June 13, 2011

Video camera chip maker Ambarella is seeking to raise as much as $65 million in an initial public offering, according to a recent filing with the U.S. Security and Exchange Commission.

The Santa Clara, Calif.-based company has yet to disclose the number of shares that it will offer or the expected pricing terms.

Founded in 2004, Ambarella manufactures semiconductor processing products that help power a number of video capturing and photo sharing devices, including consumer cameras and IP security cameras. The company's recently released iOne System-on-Chip (SoC) solution – designed specifically for Google's Android platform – has helped it break into the burgeoning smartphone market.

Ambarella noted in its filing that it has shipped more than 15 million of its hallmark SoCs since its inception.

Although not a household name in the tech space, Ambarella has a fairly impressive balance sheet. The company recorded revenues of $94.7 million in the fiscal year ending Jan. 31, 2011, up from $71.5 million in the previous fiscal year. The chip developer said that it recorded net income in each quarter starting with the first three months of fiscal year 2010. Ambarella has also generated cash from operations in each of its last three fiscal years.

“Video content is growing at a significant rate,” the company noted in the SEC filing. “According to the Cisco Visual Networking Index, the sum of all forms of video, including television, video on demand, Internet and peer-to-peer, will be approximately 90 percent of global consumer IP traffic by 2015, and video will comprise 66 percent of total mobile data traffic in 2015, a 35 times increase in traffic over 2010.”

Ambarella joins a host of technology companies that have recently made plans to go public, including Pandora, GroupOn and CafePress. Internet firms like LinkedIn and Yandex have each recently experienced success going down the IPO track.

The joint book-running managers for the Ambarella offering are Morgan Stanley and Deutsche Bank Securities Inc.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.

Beecher Tuttle is a TechZone360 contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.

Edited by Jennifer Russell

TechZone360 Contributor

Related Articles

6 Challenges of 5G, and the 9 Pillars of Assurance Strategy

By: Special Guest    9/17/2018

To make 5G possible, everything will change. The 5G network will involve new antennas and chipsets, new architectures, new KPIs, new vendors, cloud di…

Read More

Putting the Flow into Workflow, Paessler and Briefery Help Businesses Operate Better

By: Cynthia S. Artin    9/14/2018

The digital transformation of business is generating a lot of value, through more automation, more intelligence, and ultimately more efficiency.

Read More

From Mainframe to Open Frameworks, Linux Foundation Fuels Up with Rocket Software

By: Special Guest    9/6/2018

Last week, at the Open Source Summit, hosted by The Linux Foundation, the Open Mainframe Project gave birth to Zowe, introduced a new open source soft…

Read More

Unified Office Takes a Trip to the Dentist Office

By: Cynthia S. Artin    9/6/2018

Not many of us love going to see the dentist, and one company working across unified voice, productivity and even IoT systems is out to make the exper…

Read More

AIOps Outfit Moogsoft Launches Observe

By: Paula Bernier    8/30/2018

Moogsoft Observe advances the capabilities of AIOps to help IT teams better manage their services and applications in the face of a massive proliferat…

Read More