Ambarella Inc . (NASDAQ:AMBA), a semiconductor design company, announced the approval of its Amended and Restated 2021 Equity Incentive Plan following a shareholder vote during its 2024 Annual Meeting held on June 12. The updated plan, which had been previously approved by the company's Board of Directors, subject to shareholder approval, aims to provide a structure for compensating directors, officers, and employees with equity-based awards.
The approval came alongside the election of two Class III Directors, Dr. Hsiao-Wuen Hon and Christopher B. Paisley, to serve until the 2027 annual meeting. The election results showed a considerable number of votes withheld, particularly in Paisley's case, with 5,373,649 votes withheld compared to 22,151,293 votes for.
Moreover, shareholders ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2025. The proposal passed overwhelmingly with 33,136,111 votes for and 257,511 against.
An advisory vote to approve executive compensation also passed, with 24,544,925 votes for and 3,173,912 against. This non-binding vote reflects shareholder sentiment on the company's executive pay practices.
The approval of the Amended and Restated 2021 Equity Incentive Plan saw 17,910,750 votes for and 9,857,058 against, indicating some shareholder reservations despite the plan's passage.
The meeting had a strong attendance, with over 81% of outstanding shares represented. The full text of the Amended and Restated 2021 Plan is included in the company's Form 8-K filing with the Securities and Exchange Commission.
This information is based on a press release statement.
In other recent news, Ambarella Inc. has been in the spotlight due to its strong financial outlook and performance. The semiconductor company reported a narrower than expected loss per share of $0.26 for the April quarter, surpassing the anticipated $0.31 consensus loss view. Despite a 12% sales decline, Ambarella's revenue guidance for the July quarter is projected to be between $60 million and $64 million, exceeding the forecasted $59 million.
CFRA has raised its price target on Ambarella shares to $60 from the previous $50 while maintaining a Hold rating. This updated 12-month target price is based on Ambarella's January fiscal year 2026 sales projection of $323 million. CFRA has also adjusted its fiscal year 2025 loss per share estimate to $0.76 from $0.87, while maintaining the fiscal year 2026 loss per share at $0.05.
In other recent developments, Ambarella's focus on artificial intelligence (AI) and the automotive sector is expected to drive significant growth. The company anticipates a 30% increase in AI inference revenue in fiscal 2025. Ambarella's net cash position remains strong at $203 million, despite a non-GAAP net loss of $10.5 million in Q1.
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