The Chicago Entrepreneur

: Ambarella stock drops more than 10% on weak outlook

Ambarella Inc. shares AMBA fell in the extended session Tuesday after the video component maker’s outlook fell short of expectations despite a better-than-feared loss on the quarter. Ambarella shares dropped more than 10% after hours, following a 5.4% rise in the regular session to close at $81.96. The Santa Clara, Calif.-based company said it expects revenue between $60 million and $64 million in the second quarter, while analysts surveyed by FactSet had forecast revenue of $66.9 million. Ambarella reported a first-quarter loss of $35.9 million, or 91 cents a share, compared with a loss of $10.8 million, or 29 cents a share, in the year-ago period. The adjusted loss, which excluded stock-based compensation expenses and other items, was 15 cents a share, versus net income of 44 cents a share in the year-ago period. Revenue fell to $62.1 million from $90.3 million in the year-ago quarter. Analysts had forecast an adjusted loss of 20 cents a share on revenue of $62 million. Ambarella shares finished Tuesday down 0.3% on the year, versus a 9.5% gain on the S&P 500 index SPX and a 24.4% rally on the tech-heavy Nasdaq Composite Index COMP .

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