Ambarella, the computer-vision chipmaker based in Santa Clara, California, surpassed expectations for its fiscal first quarter but left investors disappointed with its outlook.
The company reported a loss of $0.15 on sales of $62.1 million for the quarter ended April 30, beating analysts' forecast of a loss of $0.20 per share on sales of $62 million.
However, Ambarella's guidance for the current quarter fell short, with predicted sales ranging from $60 million to $64 million, compared to Wall Street's consensus estimate of $66.9 million.
CEO Fermi Wang blamed “cyclical headwinds” for the firm’s weaker outlook, but promised investors that Ambarella was “taking (its) inference AI strategy to the next level” with R&D investment focused on the build-out of its CV3 platform as well as new derivatives of third-generation AI technology.
Nevertheless, investors reacted sternly to the disappointing outlook and sent shares of Ambarella plummeting nearly 17% on Wednesday.
Ambarella is a semiconductor design company specializing in computer-vision and image processing technology. It develops system-on-chip (SoC) solutions that enable high-definition video and image capture, analysis, and compression for various applications.
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