Ambarella Inc (NASDAQ:AMBA) shares are trading lower in Tuesday’s after-hours session after the company reported second-quarter results and issued weak guidance. Here’s a rundown of the report.
- Q2 Revenue: $62.12 million beat estimates of $62.05 million
- Q2 EPS: loss of 15 cents beat estimates for a loss of 21 cents
Revenues were down 23% year-over-year. Gross margin came in at 61.9%. The company ended the quarter with $216.5 million of cash, equivalents and marketable debt securities, down from $227.4 million sequentially.
“The near-term environment is very challenging, as customers are now more aggressively reducing their inventory, and we are now seeing some pockets of weak end-market demand, which further complicates our customers’ efforts to reduce their inventory,” said Fermi Wang, president and CEO of Ambarella.
“We anticipate our customers’ inventory levels will normalize by the end of the year and set us up for a return to growth in the next fiscal year.”
Outlook: Ambarella anticipates third-quarter revenue of $50 million, plus or minus 4%, versus estimates of $67.6 million. Adjusted gross margin is expected to be between 62% and 64%.
See Also: Box Stock Tumbles On Q2 Earnings: What’s Driving The Action After Hours?
AMBA Price Action: Ambarella shares were down 12.8% after hours at $66.07 at the time of writing, per Benzinga Pro.
Photo: axonite from Pixabay.
