What happened

Shares of Ambarella (NASDAQ:AMBA) have tanked today, down by 11% as of 1:45 p.m. EDT, after the company reported fiscal first-quarter earnings. The results beat expectations but guidance left a little to be desired.

So what

Revenue in the fiscal first quarter came in at $54.6 million, slightly ahead of the $54 million in sales that analysts were modeling for. That translated into adjusted net income of $1.3 million, or $0.04 per share. Wall Street was expecting the video-processing chipmaker to post an adjusted net loss of $0.27 per share.

Red stock chart going down

Image source: Getty Images.

"I want to thank our employees for safely and quickly adapting to the challenging environment," CEO Fermi Wang said in a statement. "The unprecedented combination of geopolitical and public health risks, and the associated economic downturn, limit visibility and cause the duration, severity and impact to be unknown."

Now what

Ambarella repurchased $1 million worth of stock during the quarter and the company's board authorized a $50 million increase to the buyback program. There is currently $49 million remaining in total authorization available.

In terms of guidance, Ambarella expects revenue in the fiscal second quarter to be approximately $50 million, plus or minus 6%. The high end of that forecast ($53 million) would still be shy of the $55.5 million in sales that analysts are expecting. Adjusted gross margin should be in the range of 59% to 60.5%, and adjusted operating expenses should be $31 million to $33 million.