Ambarella Inc. Earnings Put the Company on Pace for Another Annual Sales Decline

Camera technology specialist Ambarella (NASDAQ: AMBA) posted second-quarter earnings results this week that edged past management's forecast. The company lowered its 2017 growth guidance, though, because of surprising softness in a few of its key semiconductor markets.

More on that falling outlook in a moment. First, let's take a closer look at the latest results.

Revenue improved by 10% to $72 million, putting the company near the high end of the sales range that CEO Fermi Wang and his executive team issued back in June. As expected, Ambarella lost ground in its sales to GoPro (NASDAQ: GPRO), which remains one of its biggest customers. Sales in the drone market posted a surprising decline, too. However, healthy demand in the IP security camera helped offset those weaknesses.

Source: Fool.com