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OmniVision: What analysts are saying
Mark LaPedus
2/25/2011 12:51 PM EST
SAN JOSE, Calif. - CMOS image sensor vendor OmniVision Technologies Inc. had a strong quarter.
The company also dismissed rumors about yield issues. Revenues for the third quarter of fiscal 2011 were $265.7 million, as compared to $239.5 million in the second quarter of fiscal 2011, and $156.9 million in the third quarter of fiscal 2010.
GAAP net income attributable to OmniVision in the third quarter of fiscal 2011 was $44.7 million, or $0.75 per diluted share, as compared to net income attributable to OmniVision of $28.9 million, or $0.50 per diluted share in the second quarter of fiscal 2011, and net income attributable to OmniVision of $5.0 million, or $0.09 per diluted share in the third quarter of fiscal 2010.
Based on current trends, the company expects fiscal fourth quarter 2011 revenues will be in the range of $240 million to $260 million and GAAP net income per share attributable to OmniVision common stockholders will be between $0.48 and $0.61 per diluted share.
Here's what analysts are saying about the results:
Doug Freedman, an analyst from Gleacher & Co. (GLCH), said: OVTI reported January revenue and pro-forma EPS of $266 million and $0.84 verses GLCH at $244 million and $0.58 (vs. the Street at $242 million and $0.58). Recall guidance was for $0.50-$0.63 on revenue of $230-$250 million.
Yield Issues? Not really. Recall that concerns, including our own, in the
near-term revolved around yield issues due to the lack of supply seen in the
marketplace, thus causing investors to become worried about the health of
the BSI ramp. What the tea leaves did not see was that short supply and
strong upcoming production ramps reflected the need to fill depleted inventory
given the strong demand at the OEM and VAR level (a record 194 million units
shipped in FQ3, vs. our 170 million assumption). However, our concern regarding
the lack of 1.1-micron BSI-2 product is due to a lack of customer demand, and
is not related to a technology limitation. BSI-2 will ramp with the 8mp 8830
1.4-micron pixel sensor.
We are hard-pressed not to believe OVTI share is approaching the mid-30 percent market share level given another record quarter for units. In our view, the read-through on low supply (evidenced this quarter) is that this market is in need of 2-3 vendors to support growing TAM outside of general C.E. applications (automotive, security, industrial, video conferencing) and that Sony and Samsung emergence would not present a material risk to margins, as capacity is clearly being stretched to accommodate a sensor market that could reach 2.5 billion units in CY11 (we see OVTI units +23 percent year-over-year to 787 million in CY11).''
Hans Mosesmann, an analyst with Raymond James & Associates Inc., said: ''OmniVision continues to see significant demand for its CMOS sensors in a market where the company enjoys leadership in back-side illumination (BSI) technology, which has become a de facto standard in next generation smartphones and tablets. Design win activity with 'tier 1' OEMs is strong for next generation BSI-2 with a volume ramp
later this summer a dynamic that puts to rest the fears of having lost the Apple business and the concerns over 'yields.'
Demand remains robust (record 194 million units), inventories low (perhaps too low), 'BSI' ramp continues to pervade more of the company's portfolio on CMOS sensors. Management indicated that design wins continue to be strong for BSI-2 including tier 1 strategic OEMs, which should go a long way in calming Apple 'socket' jitters in this company's next round of product launches.
With BSI-2 set for volume ramp expected in late summer (on track), the company has also put the 'yield' issue to bed in our opinion. There may have been some confusion regarding the pixel size of BSI-2, which is capable of enabling a 1.1-micron pixel that is smaller than current BSI products using a 1.4 micron
pixel size (better light sensitivity). Early products of BSI-2 will be with 1.4 micron pixels, which no doubt would facilitate a faster volume ramp from a manufacturing perspective.''
The company also dismissed rumors about yield issues. Revenues for the third quarter of fiscal 2011 were $265.7 million, as compared to $239.5 million in the second quarter of fiscal 2011, and $156.9 million in the third quarter of fiscal 2010.
GAAP net income attributable to OmniVision in the third quarter of fiscal 2011 was $44.7 million, or $0.75 per diluted share, as compared to net income attributable to OmniVision of $28.9 million, or $0.50 per diluted share in the second quarter of fiscal 2011, and net income attributable to OmniVision of $5.0 million, or $0.09 per diluted share in the third quarter of fiscal 2010.
Based on current trends, the company expects fiscal fourth quarter 2011 revenues will be in the range of $240 million to $260 million and GAAP net income per share attributable to OmniVision common stockholders will be between $0.48 and $0.61 per diluted share.
Here's what analysts are saying about the results:
Doug Freedman, an analyst from Gleacher & Co. (GLCH), said: OVTI reported January revenue and pro-forma EPS of $266 million and $0.84 verses GLCH at $244 million and $0.58 (vs. the Street at $242 million and $0.58). Recall guidance was for $0.50-$0.63 on revenue of $230-$250 million.
Yield Issues? Not really. Recall that concerns, including our own, in the
near-term revolved around yield issues due to the lack of supply seen in the
marketplace, thus causing investors to become worried about the health of
the BSI ramp. What the tea leaves did not see was that short supply and
strong upcoming production ramps reflected the need to fill depleted inventory
given the strong demand at the OEM and VAR level (a record 194 million units
shipped in FQ3, vs. our 170 million assumption). However, our concern regarding
the lack of 1.1-micron BSI-2 product is due to a lack of customer demand, and
is not related to a technology limitation. BSI-2 will ramp with the 8mp 8830
1.4-micron pixel sensor.
We are hard-pressed not to believe OVTI share is approaching the mid-30 percent market share level given another record quarter for units. In our view, the read-through on low supply (evidenced this quarter) is that this market is in need of 2-3 vendors to support growing TAM outside of general C.E. applications (automotive, security, industrial, video conferencing) and that Sony and Samsung emergence would not present a material risk to margins, as capacity is clearly being stretched to accommodate a sensor market that could reach 2.5 billion units in CY11 (we see OVTI units +23 percent year-over-year to 787 million in CY11).''
Hans Mosesmann, an analyst with Raymond James & Associates Inc., said: ''OmniVision continues to see significant demand for its CMOS sensors in a market where the company enjoys leadership in back-side illumination (BSI) technology, which has become a de facto standard in next generation smartphones and tablets. Design win activity with 'tier 1' OEMs is strong for next generation BSI-2 with a volume ramp
later this summer a dynamic that puts to rest the fears of having lost the Apple business and the concerns over 'yields.'
Demand remains robust (record 194 million units), inventories low (perhaps too low), 'BSI' ramp continues to pervade more of the company's portfolio on CMOS sensors. Management indicated that design wins continue to be strong for BSI-2 including tier 1 strategic OEMs, which should go a long way in calming Apple 'socket' jitters in this company's next round of product launches.
With BSI-2 set for volume ramp expected in late summer (on track), the company has also put the 'yield' issue to bed in our opinion. There may have been some confusion regarding the pixel size of BSI-2, which is capable of enabling a 1.1-micron pixel that is smaller than current BSI products using a 1.4 micron
pixel size (better light sensitivity). Early products of BSI-2 will be with 1.4 micron pixels, which no doubt would facilitate a faster volume ramp from a manufacturing perspective.''
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