Ambarella Inc. (NASDAQ: AMBA) released its most recent quarterly results after the markets closed on Tuesday. The company said that it had $0.01 in earnings per share (EPS) and $47.2 million in revenue, compared with consensus estimates that called for a net loss of $0.05 per share and $47.01 million in revenue. The fiscal first quarter of last year had $0.13 in EPS and $56.94 million in revenue.
During the most recent quarter, non-GAAP gross margin was 59.6%, compared with 61.8% in the year-ago period.
The firm noted that recent order pull-ins from security camera customers in China, triggered by geopolitical factors, are affecting revenue and gross margin. As a result, Ambarella’s guidance for the second quarter now calls for revenues in the range of $51.0 million to $53.0 million and non-GAAP gross margin of 57% to 59%.
Overall, analysts expect a net loss of $0.02 per share and $48.81 million in revenue for the fiscal second quarter.
Fermi Wang, Ambarella president and CEO, commented:
Our team continues to build the foundation for the multi-billion dollar growth opportunity in the AI and computer vision (CV) market. Despite the increasingly volatile and uncertain geopolitical environment, which we continue to highlight, Ambarella’s execution remains strong. We expect mass production revenue in the current quarter from our second CV device, CV25, and with multiple CV devices now in production, with more CV design wins, and with new technology and products in development, we see three CV revenue waves taking shape; first in the professional security camera market, followed by the consumer security camera market and the automotive market.
Shares of Ambarella traded up 4% to $41.11 early Wednesday, in a 52-week range of $30.00 to $52.12. The consensus price target is $46.78.