Ambarella Inc. shares fell in the extended session Tuesday after the video chipmaker’s outlook fell short of expectations despite a better-than-feared loss on the quarter.
Ambarella shares
AMBA,
dropped nearly 15% after hours, and were last down about 12%, following a 5.4% rise in the regular session to close at $81.96.
The Santa Clara, Calif.-based company said it expects revenue between $60 million and $64 million in the second quarter, while analysts surveyed by FactSet had forecast revenue of $66.9 million.
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“The cyclical headwinds persist and continue to pressure our financial results, but we are taking our inference AI strategy to the next level with our R&D investment focused on the build-out of our CV3 platform as well as new derivatives of our third-generation AI technology,” said Fermi Wang, Ambarella chief executive, in a statement.
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The company makes components like systems-on-chip for high-resolution video compression, image and radar processing, and neural network processing for edge AI applications, advanced driver assistance systems and robotics applications.
Ambarella reported a first-quarter loss of $35.9 million, or 91 cents a share, compared with a loss of $10.8 million, or 29 cents a share, in the year-ago period.
The adjusted loss, which excluded stock-based compensation expenses and other items, was 15 cents a share, versus net income of 44 cents a share in the year-ago period.
Revenue fell to $62.1 million from $90.3 million in the year-ago quarter. Analysts had forecast an adjusted loss of 20 cents a share on revenue of $62 million.
Ambarella shares finished Tuesday down 0.3% on the year, versus a 9.5% year-to-date gain by the S&P 500 index
SPX,
and a 24.4% rally by the tech-heavy Nasdaq Composite Index
COMP,
