The stock of Cerebras Systems (CBRS) is down 17% after the chipmaker delivered its second earnings report as a publicly traded company.
Cerebras, which held its initial public offering (IPO) in May of this year, reported mixed financial results that disappointed Wall Street.
The company, which makes semiconductors and software to power artificial intelligence (A.I.), announced an earnings per share (EPS) loss of -$0.05 U.S., which beat the loss of -$0.17 U.S. expected among analysts.
However, revenue in the period totaled $180 million U.S., which fell short of the $194 million U.S. forecast on Wall Street.
The company posted a net loss of $450.5 million U.S. after achieving a profit of $309.5 million U.S. a year ago. Most of the loss was due to stock-compensation costs of $386.6 million U.S.
Management said they expect revenue of $214 million U.S. to $216 million U.S. in the current quarter.
The company also raised its full-year guidance and said it expects revenue of $880 million U.S. to $890 million U.S., up from a previous outlook of $855 million U.S. to $865 million U.S.
Cerebras is trying to challenge leading chipmaker Nvidia (NVDA) in the A.I. market, especially for inference processors.
In recent weeks, Cerebras announced a partnership with Nvidia rival Advanced Micro Devices (AMD), with joint products from the two companies going into production later this year.
Cerebras went public on the Nasdaq (NDAQ) exchange in May, raising $6.4 billion U.S. from the share sale.
The chipmaker said that it has a backlog of $25.4 billion U.S. in performance obligations, which it said was a sign of strong demand.
Prior to today, CBRS stock had declined 6% since going public in May and was trading at $262.06 U.S. per share.
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