Ambarella Inc (NASDAQ: AMBA) stock fell over 13.4% on June 6th, 2018 (as of 1:29 PM GMT-4; Source: Google finance) after the company gave weaker outlook, though posted better than expected results for the first quarter of FY 19. For the second quarter of FY 19, AMBA expects revenue to be in the range of US$60mln to US$64mln. The current consensus revenue estimate is US$69.1mln for the quarter ending July 31, 2018. Further, for the second quarter of FY 19, AMBA expects gross margin on a non-GAAP basis to be between 59.0% and 61.0%. Operating expenses on a non-GAAP basis are expected to be between $32.0 million and $33.5 million.
AMBA in the first quarter of FY 19 has reported the adjusted earnings per share of 13 cents, beating the analysts’ estimates for the adjusted earnings per share of 9 cents. The company had reported 11.2% fall in the adjusted revenue to $56.9 million in the first quarter of FY 19, beating the analysts’ estimates for revenue of $56.2 million. The company has posted the non-GAAP net income for the first quarter of fiscal 2019 of $4.5 million compared with adjusted non-GAAP net income of $15.3 million for the same period in fiscal 2018.
Moreover, during the first quarter 2019, AMBA continued to make steady progress in automotive and IP security markets with a strong design win momentum and the revenue growth. The development and the rollout of the CV solutions is also progressing well and in line with the plan shared. During the first quarter 2019, the company delivered working silicon on two new computer vision SoCs, CV22 and the CV2 based on the new CVflow architecture and offering significant increases in combination of Neural Network or CNN processing performance. Additionally AMBA are seeing interest in camera systems enabling higher level of autonomy including level 2 to 3 and the supporting features including lane keeping assist, advanced cruise control and parking assist. The company is also engaged with emerging leaders in the development of fully autonomous vehicles leveraging the stereovision technology to develop for EVA.
In the first quarter of FY19, the company has repurchased a total of 437,448 shares for total consideration of approximately $20.6 million. Under the current $50 million repurchase program that was announced in June 2017 and commenced on July 1, 2017, the company has repurchased a total of 818,154 ordinary shares at an average price of $47.54 for total cash consideration of approximately $38.9 million.