Ambarella stock rallies 13% as chip maker swings to quarterly profit, sales rise 64%

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Shares of Ambarella Inc. AMBA, -1.28% rallied more than 13% in the extended session Tuesday after the maker of chips for videocameras and other products swung to a profit in its fiscal 2022 third quarter, with sales above expectations despite shortages that have become “more significant.” Ambarella said it earned $800,000, or 2 cents a share, in the quarter, contrasting with a loss $17.1 million, or 49 cents a share, in the year-ago period. Adjusted for one-time items, the company earned 57 cents a share. Revenue rose 64% to $92.2 million, the company said. FactSet consensus called for earnings of 49 cents a share on sales of $90 million. The company guided for fiscal 2022 fourth-quarter revenue between $88.5 million and $91.5 million, gross margins between 63% and 64%, and operating expenses between $39 million and $41 million. “Our operational execution remains strong, yet supply dynamics remain difficult to predict, as shortages of other companies’ components has become a more significant and gating factor to our results and outlook,” Chief Executive Fermi Wang said in a statement. Shares of Ambarella ended the regular trading day down 1.3%.

This article was originally published by Marketwatch.com. Read the original article here.

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