Ambarella Shares Fall As 'Cyclical Headwinds Persist'

Ambarella Inc AMBA shares are trading lower in Tuesday's after-hours session after the company issued a weak second-quarter forecast.

What Happened: Ambarella reported first-quarter revenue of $62.14 million, which narrowly beat estimates for revenue of $62.01 million, per Benzinga Pro. The company reported a quarterly loss of 15 cents per share, which came in ahead of estimates for a loss of 21 cents per share. 

Revenues were down 31% year-over-year. Margins were down to 60.4% from 62.6% year-over-year. 

The company ended the quarter with $227.4 million in cash, equivalents and marketable debt securities.

"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 3^rd generation AI technology," said Fermi Wang, president and CEO of Ambarella.

Ambarella expects second-quarter revenue to be between $60 million and $64 million versus estimates of $67.17 million.

The company is a developer of semiconductor processing solutions for high-definition video capture, sharing and display. 

See Also: Why Hewlett Packard Enterprise (HPE) Shares Are Sliding After The Bell

AMBA Price Action: Ambarella shares were down 11% after hours at $72.95 at the time of publication, according to Benzinga Pro.

This illustration was generated using artificial intelligence via MidJourney.