Omnivision Technologies Conference Call Highlights

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OmniVision Technologies
OVTI
reported its first quarter highlights on Wednesday. Shares of the company are down a mere one percent. Below are some key highlights from its conference call: Performance Metrics: • We reported fiscal Q2 revenues of $394 million, a decrease of 3% sequentially and 1% year-over-year. • During the quarter we shipped 246 million sensors. On a non-GAAP basis gross margin was 22.2% and net income was $37 million, or $0.60 per diluted share. • We are happy to report an eighth consecutive quarter of gross margin expansion. • Our balance sheet remained strong with cash and short-term investments of $525 million. • A few months ago we received a preliminary non-binding proposal letter from Hua Capital Management Ltd., or HCM. • A Beijing-based investment management company, pursuant to which a group of investors led by HCM proposes to acquire all of the outstanding shares of common stock of the company in cash at $29 per share. • The company's Board of Directors is reviewing and evaluating HCM's proposal. • No decision has been made with respect to the proposed transaction and there's no assurance that this or any other transaction may be consummated. • We are focused on operating our business. • We do not intend to provide updates with respect to this or any other transaction, except as required by applicable law. • I'm satisfied with the performance of the company in fiscal Q2. • Despite the intense competitive dynamic in our markets, our results exceeded the high end of our expectation on all metrics. • Our core mobile phone market experienced strong demand from Asia-based OEMs, especially in the China region. • And India has become a key geography for us. • Our automotive business is continuing on a strong growth trajectory, and our security business is poised to become our next significant end market. • OmniVision's long-term goal is to drive profitable revenue growth from diverse applications, products and end markets. In order to achieve our goal we must: • First, continue to innovate it so that we can develop new products and applications; • Second, expand our market opportunity; third, continue to work with our supply channel to optimize cost and increase capacity to better support our customers' need. • First, focus on technology and new application development. • We have continued to focus on technology innovation as the basis for our success. • Designed on an advanced semiconductor process, we have successfully launched our PureCel technology. • Currently, we have ramped into production an array of our flagship PureCel sensors targeted across all the major segments of the mobile market. • PureCel sensors provide superior image quality, light sensitivity and power efficiency. • We are currently shipping multiple PureCel sensors that cover all the resolution from 1080p, 5-megapixel, 8-megapixel as well 13-megapixel in high volumes to multiple OEMs. • We have also extended our PureCel technology with our next-generation technology called PureCel-S. • PureCel-S is based on a stacked-die concept to further drive our imaging performance leadership. • Die stacking is attractive to OEMs since it improves camera performance, processing speed, and allows a thinner form factor for consumer devices. • In addition to performance and the form factor benefits, die stacking also enables different manufacturing processes to be used for different layers, which allows for a more efficient supply chain. • We have assembled the first four members of our high-resolution stacked die sensor family, the 13-megapixel, 16-megapixel, 21-megapixel, and 23-megapixel PureCel-S sensors. • OmniVision has continued to innovate on other technologies. We have launched into mass production companion technologies, such as ISPs, ASICs, as well as compact camera modules called CCC. • Our goal is to enable our customers' time to market and develop new applications for cameras. • Given that OEMs have expressed significant interest in next-generation camera technologies to further differentiate their flagship devices, OmniVision has an entire suite of technologies to enable new applications with our image sensors. • We are working with multiple partners on applications such as computational imaging to enable multiple-camera systems as well as machine vision to enable human interface systems such as gesture recognition, eye tracking and iris recognition, et cetera. • The average selling price in our second quarter was $1.60 as compared to $1.63 in our prior quarter. • The slight downward step in ASP was due to strong competition leading to general price erosion in the consumer space, offset partially by a mix shift to higher resolutions. • Our fiscal 2015 second quarter gross margin was 22% compared with the 21.7% that we reported in our prior quarter.
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Posted In: EarningsNews
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