Wednesday, May 25, 2011

OmniVision Technologies (NASDAQ: OVTI): Q4 Earnings Preview 2011

OmniVision Technologies Inc. (NASDAQ: OVTI) is scheduled to release its fiscal fourth-quarter earnings after the closing bell on Thursday, May 26, 2011. Analysts, on average, expect the company to report earnings of 65 cents per share on revenue of $254.48 million. In the year ago quarter, the company reported earnings of 18 cents per share on revenue of $157.15 million.

OmniVision Technologies, Inc. designs, develops, and markets semiconductor image-sensor devices.  Its main products, image-sensing devices, which it refers to as CameraChip image sensors, capture an image electronically and are used in a number of consumer and commercial mass-market applications. 

In the preceding fourth-quarter, the New York-based company's net income was $44.72 million, or 75 cents per share, compared to $4.95 million, or 9 cents per share, in the year-ago quarter. On an adjusted basis, the company earned 84 cents a share in the fourth quarter. Revenue increased to $265.68 million from $156.93 million last year. Analysts, on average, had expected the company to report earnings of 58 cents per share on revenue of $241.74 million. 

At its last earnings call in February, the company said that it expects GAAP fourth-quarter earnings in the range of 48 cents and 61 cents per share. Non-GAAP earnings is expected in the range of 57 cents and 0 cents per share. Quarterly revenues are expected in the range of $240 million to $260 million.

OmniVision specializes in making camera chips for digital devices. The company's CMOS imaging technology enables superior image quality in many of today's consumer and commercial applications, including mobile phones, notebooks, netbooks, and webcams, security and surveillance, entertainment, digital still and video cameras, automotive, and medical imaging systems. With a customer list that includes Apple's (NASDAQ: AAPL) iPhone and iPad lines, Motorola Mobility (NYSE: MMI) , and Research In Motion (NASDAQ: RIMM), OmniVision finds itself at the top of the heap for imaging.The company claims 28% market share in all CMOS markets; its closest competitor is Samsung with 20% market share. The camera phone market is OmniVision’s core market, where the company continues to benefit from the rapid growth in smartphones. The company has not only maintained its leadership position in the camera phone market, but has also successfully expanded into other areas. The company recently bought a portfolio of 850 image-sensor patents from Eastman Kodak (NYSE: EK). 

Given that the tablet market is growing in leaps and bounds and OmniVision sensors are designed into many of them, the category should see some strong growth this year. In February, the company's management stated that tablets incorporating its sensors would ship later this year. 

Full Disclosure: None.
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