Ambarella Shares Slide Amid Revenue, Profit Fall

Ambarella Inc., a key chip supplier to struggling GoPro Inc., saw shares slip after hours on Thursday with sales and profit posting a quarterly fall though results were better than expected.

Shares of the company, down about 20% over the past year, slipped 4.6% in post-market trading to $68.50

Ambarella makes image-processing chips used in digital camera products. The company counts law enforcement, home security and drones among its markets, but its business with GoPro is significant.

In July, GoPro Inc. extended its string of quarterly losses as the company struggles to find new buyers for its action-video cameras beyond its traditional sports-addicted customers.

For the quarter ended in July, Ambarella reported profit fell to $8.6 million, or 25 cents a share, from $23.1 million, or 68 cents a share, a year earlier. On an adjusted basis, earnings were 54 cents a share, down from 88 cents a share.

Sales fell 22.6% to $65.1 million.

Analyst surveyed by Thomson Reuters had expected adjusted profit of 38 cents a share on $64 million in revenue.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

(END) Dow Jones Newswires

September 01, 2016 20:35 ET (00:35 GMT)

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