By Dhirendra Tripathi
Investing – Ambarella (NASDAQ:AMBA) shares erased their early losses and were trading higher a day after it announced exceeding its revenue forecast for the quarter ended April 30 and built on it to give an optimistic forecast, supply chain challenges notwithstanding.
Strong demand for its video chips and components, many of which go into automobiles, drove the company’s earnings.
“. . .Our automotive business, led by CV (commercial vehicles), should double this year, and a multi-year period of share gains, in a growing market, has now likely commenced,” said Fermi Wang, president and CEO.
Revenue for the first quarter of fiscal 2022 was $70.1 million, up 28% from $54.6 million in the same period last year.
It had guided for revenue of $67 million to $70 million in its forecast given in March.
The company now sees its revenue between $74 million and $77 million in the ongoing quarter.
Wang said the company’s outlook has taken into account “the worst of the supply-chain challenges from the Texas freeze,” and there will be improvement as “we progress through the second half of the year.”
Ambarella’s net loss per share on GAAP basis narrowed to 30 cents in the quarter ended April 30 from 45 cents in the same period a year ago.