Ambarella, Inc. has announced an extension of its share repurchase program following the release of its first-quarter fiscal year 2024 financial results
Ambarella, Inc., an AI semiconductor company, recently released its financial results for the first quarter of fiscal year 2024. Despite facing some challenges, the company remains optimistic about its future prospects and is taking strategic measures to enhance shareholder value. In line with this, Ambarella has announced an extension of its share repurchase program.
Ambarella reported a revenue of $62.1 million for the first quarter of fiscal 2024, which represents a 31% decrease compared to the same period last year. The gross margin for the quarter stood at 60.4% under U.S. GAAP, slightly lower than the previous year. The company also reported a net loss of $35.9 million on a GAAP basis for the quarter.
However, on a non-GAAP basis, Ambarella achieved a gross margin of 63.1% and a net loss of $6.0 million. The company remains focused on improving its financial performance and has provided guidance for the second quarter of fiscal year 2024, projecting revenue between $60.0 million and $64.0 million, with a non-GAAP gross margin expected to be between 62.5% and 64.5%.
Ambarella's President and CEO, Fermi Wang, expressed enthusiasm about the company's recent win with Continental, securing a significant partnership in a Level 4 commercial vehicle application. Ambarella is leveraging its CV3 platform, along with its autonomous driving software stack IP, to deliver innovative solutions for the automotive industry. Wang also highlighted the introduction of CV72, a 5nm derivative of the CV3 SoC family, which has garnered substantial interest from IoT and automotive applications.
To further demonstrate its confidence in the company's future prospects, Ambarella's Board of Directors has approved an extension of the share repurchase program for an additional twelve months, ending on June 30, 2024. This program allows Ambarella to repurchase its own shares in the open market. Notably, the company did not repurchase any shares in the first quarter of fiscal 2024. As of now, approximately $49.0 million remains available for share repurchases under this program. It is important to note that Ambarella is not obligated to acquire any specific number of ordinary shares and may suspend the repurchase program at its discretion.
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