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Ambarella stock climbed 16% higher Friday as the chip designer reported better-than-expected fiscal second-quarter results and issued strong guidance.
Here’s how the company did compared with LSEG expectations:
- Earnings: 15 cents per share adjusted vs 5 cents per share expected
- Revenue: $96 million vs $90 million expected
Ambarella, which is known for its system-on-chip semiconductors and software used for edge artificial intelligence, said it expects fiscal third-quarter revenue between $100 million and $108 million, beating the LSEG estimate of $91 million.
The company boosted its fiscal-year revenue growth outlook to a range of 31%-35%, to $379 million at the midpoint, which topped the $350 million expected by LSEG.
“After a multiyear period of significant edge AI R&D investment, our broad product portfolio enable us to address a rising breadth of edge AI applications,” CEO Fermi Wang said on a call with analysts Thursday.
Wang singled out strength in “portablevideo,roboticaerialdronesandedgeinfrastructure.”
Edge computing refers to the direct processing and storing of data at the device level instead of those actions being handled remotely in the cloud at a data center.
Ambarella had a net loss of $20 million or a loss of 47 cents per share in the second quarter. That narrowed from the same quarter a year ago, when the company had a net loss of $35 million or a loss of 85 cents per share. Revenue rose 50%.
The company earned 15 cents per share after adjusting for stock-based compensation and the amortization of acquisition-related costs.
In June, Bloomberg reported the company was considering a sale and had held talks with banks. The company’s shares climbed 20% higher on the news.
Ambarella year-to-date stock chart.