Ambarella slumps on weak Q2 outlook

Ambarella

31/05/2023 11:28

(Updates)
    **  Shares of chip company Ambarella Inc  AMBA.O  fall 19.4%
to $66.02 premarket
    ** Co forecasts Q2 revenue of $60 mln to $64 mln, below
analysts' estimates of $65.5 mln - Refinitiv data
    ** Says expect to continue to see customer inventory
adjustments in Q2, with its automotive & IoT segment revenue to
be ~flat sequentially
    ** In Q1, AMBA reported a 31% fall in revenue to $62.1 mln,
but slightly above estimates of $62.01 million
    ** Posts Q1 adj loss of $6 mln vs adj net income of $17.1
mln last year
    ** KeyBanc Capital Markets downgrades AMBA to "Sector
Weight" from "Overweight" as it sees limited traction in design
contracts in the non-China automotive segment
    ** "The pivot to pursue AI inferencing is concerning, and we
fear it could be a distraction from ultimately securing greater
success in auto with CV3 (Computer Vision 3)" - brokerage
    ** Stock has inched 0.33% lower this year through Tuesday

 (Reporting by Ashwini Raj and Akash Sriram in Bengaluru)
 ((Ashwini.Raj@thomsonreuters.com))