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When Ambarella Inc. (NASDAQ: AMBA) released its fiscal second-quarter financial results after the markets closed on Thursday, the fabless semiconductor design company said that it had $0.25 in earnings per share (EPS) and $62.5 million in revenue. The consensus estimates had called for $0.13 in EPS on revenue of $62.3 million. In the same period of last year, it said it had EPS of $0.56 and $71.6 million in revenue.

During the most recent quarter, the gross margin was 61.4%, compared with 63.0% for the same period in the previous fiscal year.

On the books, Ambarella’s cash and cash equivalents totaled $295.3 million at the end of the quarter, down from $346.7 million at the end of the previous fiscal year.

Looking ahead to the fiscal third quarter, the company expects to see revenue between $55.5 million and $58.5 million, with a gross margin of 59.0% to 60.5%. Consensus estimates call for $0.29 in EPS and $72.0 million in revenue for the quarter.

Fermi Wang, president and CEO, commented:

While we are disappointed with our near term outlook, we remain confident that our decision to focus on computer vision applications in the IP security, automotive and robotics AI markets is the correct strategy and is already bearing fruit. We have delivered our CV22 and CV2 computer vision chips to customers and their evaluation results are very encouraging. We believe our excellent neural network processing performance combined with the low power of our solutions gives us a strong competitive position in our target markets. Moreover, we continue to expand our computer vision product family to deliver solutions that more fully address the growing market opportunity.

Shares of Ambarella traded down 8.7% early Friday at $36.29, with a consensus analyst price target of $53.89 and a previous 52-week range of $37.10 to $66.23.