UPDATE: Wedbush Reiterates Neutral Rating, Lowers on OmniVision Technologies Following Mixed FQ1 Results

In a report published Friday, Wedbush analyst Betsy Van Hees reiterated a Neutral rating on

, but lowered the price target from $18.00 to $16.00. In the report, Wedbush noted, “OVTI reported mixed FQ1 (Jul) results of a bottom line beat, but on lower revenue and provided FQ2 (Oct) outlook that missed expectations hurt by a slowdown in smartphone demand and intensifying competition. While FQ1 (Jul) pro forma EPS of $0.55 beat due to a tax benefit, revenue of $374MM (11% Q/Q) was below the Street ($0.43/$377MM) and our ($0.43/$380MM) estimates. FQ1 pro forma GM was flat at 17.7% versus FQ4 (Apr) as some manufacturing cost reductions were offset by an increase in provision for excess and obsolete inventories. FQ1 units shipped increased 11% Q/Q to 208MM up from 188MM in FQ4 largely in-line with our estimate of 208.6MM and DOI decreased 15 days Q/Q to 127 days from 142 days in FQ4.” OmniVision Technologies closed on Thursday at $18.41.