Shares of digital video technology provider Ambarella ( AMBA ) are up $1.15, almost 5%, at $25.80, in late trading after the company yesterday reported fiscal Q1 revenue and profit that topped analysts’ expectations and forecast this quarter’s revenue higher as well.

Revenue in the three months ended in April rose to $40.9 million, yielding EPS of 25 cents. Analysts had been modeling $40 million and 21 cents.

Gross margin declined in the quarter to 62.7% from 64% a year earlier.

CEO Fermi Wang said the company was “very pleased” with the results, citing, “continued growth in our security IP-camera business.” "We believe the expanding markets for innovative, high definition professional and consumer cameras will continue to give us the opportunity to grow our revenues in the year ahead.”

On a conference call following the report, the company projects revenue of $43.5 million to $45.5 million this quarter, in line with consensus’s $44.5 million.