Morgan Keegan Maintains Perform, Lowers Estimates on OmniVision

In a research note, Morgan Keegan reiterates its Market Perform rating on OmniVision Technologies, Inc. OVTI but lowers estimates as excess inventory due to demand fall may last 2-3 quarters. Morgan Keegan notes, “January guidance calls for $0.05-0.17/$160-180 million, down 17-27% q/q. This was well below consensus of $0.26/$199.1 million. Management cited the weak macro environment coupled with further reductions from customers. The excess inventory is expected to take 2-3 qtrs to work through. This along with the ramp of BSI-2 could provide further headwinds for margins over the next few qtrs. For FY12 and FY13, we are lowering our estimate to $1.40/$823.8 million and $0.57/$723.7 million from $1.60/$879.1 million and $1.28/$837.2 million, respectively” OVTI closed at $11.19 per share on Tuesday.