Ambarella Inc (NASDAQ: AMBA) reported upbeat results for its second quarter, but issued weak third-quarter sales guidance.
Thursday, the Santa Clara, California-based company said revenue for the second quarter of fiscal 2019 was $62.5 million, down 12.8% from $71.6 million in the same period in fiscal 2018.
GAAP net loss for the second quarter of fiscal 2019 was $6.9 million, or loss per diluted ordinary share of $0.21, compared with GAAP net income of $3.3 million, or earnings per diluted ordinary share of $0.10, for the same period in fiscal 2018.
Ambarella is offering the following guidance for the third quarter of fiscal year 2019, ending October 31, 2018: Revenue is expected to be between $55.5 million and $58.5 million; Gross margin on a non-GAAP basis is expected to be between 59.0% and 60.5%; Operating expenses on a non-GAAP basis are expected to be between $30.5 million and $32.0 million
Said CEO Fermi Wang, "While we are disappointed with our near term outlook, we remain confident that our decision to focus on computer vision applications in the IP security, automotive and robotics AI markets is the correct strategy and is already bearing fruit.
"We have delivered our CV22 and CV2 computer vision chips to customers and their evaluation results are very encouraging. We believe our excellent neural network processing performance combined with the low power of our solutions gives us a strong competitive position in our target markets."
Shares in Ambarella plummeted, however, $4.17, or 10.5%, to $35.58
