Shares of Ambarella (NASDAQ:AMBA) tumbled in extended trading Tuesday after it reported first-quarter earnings, in which it said its near-term outlook is pressured.
The fabless semiconductor design company posted adjusted earnings of $0.44 per share, $0.08 above analyst expectations of $0.36. Revenue for the quarter was $90.3 million, below the consensus estimate of $90.08 million. However, revenue grew 29% from $70.1 million in the same period last year.
While revenue missed estimates, the company’s comments on its outlook disappointed investors. Ambarella’s President and CEO, Fermi Wang, said the company’s near-term view is “under pressure with the flare-up of the pandemic in China and resulting lock-down, which is disrupting our orders and our customers’ production, as well as logistics throughout the greater Asia supply-chain.”
Ambarella now sees second-quarter revenue of $78-82 million, well below the consensus of $91.5 million.
“Despite this, our confidence in our AI processor strategy, opportunity and business remains very high. We are excited to have received first silicon of CV3, our first central domain controller, and we expect it will be sampled to key customers over the summer and demonstrate a significant leadership position in both performance and power,” added Wang.
In addition, they expect computer vision revenue to grow significantly to represent about 45% of F2023 revenue, with the richer mix anticipated to continue to drive average selling price higher.
Ambarella stock declined more than 5% following the earnings release.