Ambarella ( AMBA Quick Quote AMBA - Free Report) reported a first-quarter fiscal 2024 non-GAAP loss of 15 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 20 cents. However, the reported figure compared unfavorably with the year-ago quarter’s earnings of 44 cents per share.
First-quarter revenues declined 31% year over year to $62.1 million, mainly due to customer inventory reduction actions across its IoT end market. However, the top line was in line with the consensus mark.
Customer & Market Details
Ambarella had two customers that contributed more than 10% in the reported quarter. WT Microelectronics, a fulfillment partner in Taiwan that serves multiple customers in Asia, accounted for 49% of the company’s revenues. Chicony, a Taiwan-based electronics manufacturer serving multiple IoT customers, represented 16% of Ambarella’s revenues.
The momentum of AMBA’s CV flow system-on-a-chip in professional IP cameras continued in the reported quarter. The company expects to achieve its targeted goal of generating 60% of total revenues from the CV portfolio in 2024.
The non-GAAP gross margin was 63.1%, down 70 basis points year over year in the fiscal first quarter.
On a non-GAAP basis, operating expenses were $46.2 million, up $200,000 sequentially. Non-GAAP operating expenses were lower than the company’s prior guidance in the band of $47-$49 million, mainly due to its expense management actions and the timing of spending between quarters.
As of Apr 30, 2023, Ambarella had cash and cash equivalents & marketable securities of $227.4 million compared with $206.9 million as of Jan 31, 2023.
For the second quarter of fiscal 2024, revenues are expected between $60 million and $64 million. The non-GAAP gross margin is anticipated at 62.5-64.5%.
Non-GAAP operating expenses are projected in the range of $48-$50 million.
Zacks Rank & Stocks to Consider
Ambarella currently carries a Zacks Rank #3 (Hold). Shares of AMBA have declined 0.4% year to date (YTD).
Some better-ranked stocks from the broader technology sector are
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