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Investors soured on Ambarella shares after the chipmaker –which supplies the likes of GoPro — issued a disappointing sales outlook for the current quarter.
The California-based company said it expects sales in the range of $62.5m to $64.5m in the current quarter, below analysts’ estimates of $69.6m. The announcement sent its shares 4 per cent lower to $56.53 in extended trading
That accompanied a 29 per cent rise in fourth-quarter revenues to $87.5m, just above analysts’ estimates of $86.1m. In December, the company had guided towards sales in the range of $84m to $87m, missing analysts’ estimates of $90.3m at the time.
Profits rose to $18.4m, or 53 cents a share, in the three months ended in January, compared with $5.1m or 15 cents a share in the year-ago period. That topped expectations for earnings of 48 cents. Adjusting for one-time items, Ambarella said it earned 92 cents, eclipsing expectations of 74 cents.
Ambarella’s sales were hurt last year as wearable camera maker GoPro’s revenues were pressured by increased competition from smartphones and as negligible revenues from its media partnerships prompted it to shuttered its media division.