Ambarella Inc. (NASDAQ: AMBA) reported a wider loss in the fourth quarter of 2020 due to income tax provision and higher operating expenses. However, the results exceeded analysts’ expectations. Further, the company guided first-quarter revenue above the consensus view.
Net loss was $13 million or $0.39 per share, wider than a loss of $4.5 million or $0.14 per share in the previous year quarter. Adjusted earnings remained flat from last year at $0.14 per share. Revenue jumped by 12% to $57.2 million. Analysts had expected EPS of $0.11 on revenue of $57.18 million.
Looking ahead into the first quarter of 2021, the company expects revenue in the range of $52-57 million and an adjusted gross margin in the range of 57.5-59.5%. The consensus estimates revenue of $49.49 million. Adjusted operating expenses are anticipated to be $33-35 million for the first quarter.
The three waves of AI computer vision revenue, professional security cameras, consumer security cameras, and automotive cameras, are taking shape, with more than a dozen customers in production across the three waves.
The business environment continues to remain under tremendous pressure as new public health issues along with dynamic geopolitical situations created an unusually high degree of uncertainty. However, with AI computer vision expected to reach 10% of total revenue in fiscal 2021, the company’s goal is to grow total revenue for the year.
Total cash, cash equivalents and marketable securities on hand at the end of the fourth quarter increased by 13% year-over-year to $404.7 million while the total liabilities stood at $79.2 million.
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