the Battery issue sure seems to be holding up production……….if WFC does NOT ramp, OVTI is toast in a commodity firefight and Samsung and Micron Bigger and more firepower………..IF WFC Works, Omnivision Wins………
Skibare
maybe this is why OmniVision Guidance was so low going forward………
Micron really hits the lower end of the market making components in mass at lower prices stealing market share………..its the Micron Way of War………..Micron down 11% today…….maybe killing everyone is NOT a successful Biz Model Micron might want to learn something!
IF WFC ramps and Works, this game is OVER for Micron!
Skibare
imagine a world where “”LIVE VIDEO CONTENT ‘’ meets your mobile Cellular Device????? Watch Level3 and OmniVision team up for the one =Two knock out punch…………….wifi/wimax cellular video content two ways mobile to mobile???????? Could be an interesting Ten Years Play…………..
LVLT announces Earnings October 24th………….too bad ski season aint open yet!!!! OVTI awaiting Micron’s earnings today……….I am guessing Micron does well in CMOS sales as Micron is still ramping up production………..OVTI is rolling out NEW LINE UP of products…………..how will Samsung and Micron REACT to OVTI new Wave Front Coding??????
skibare
well, the story is OUT in the open now………..OVTi stock price took a BEATING before the company finally openned its mouth about WFC ………..Micron comes out with Earnings today and I am SURE Micron will have some stellar CMOS numbers…………..there is serious competition out there whether any LONG shareholder of OVTI wants to admit………..the numbers dont lie nor have opinions!!! Qwest buying back 2 billion of its own stock………..got my SEASON PASS activated at Winter Park so what really matters????????? S N O W!!!!!!!!!!!
Skibare
what does Level3 have to do with OmniVision????????
Which is a better buy for ski season??????? for Long Term????
Google may have some NEWS which makes Level3 the better investment……….but, WFC can and will change ALOT in Camera phones……….Google, Level3 and Skibare on OVTI Crack………..
skibare
OmniVision just inked a 5 year sweet heart deal with one of its Packaging Divisions to implement Camera Phone Packaging into the OVTI flow chart for the next five years…………OVTI rolling out Wave Front Coding and INVESTING 100 million into packaging with XinTec, I would DEDUCT and GUESS that Ovti is planning something VERY VERY BIG with Wave Front Coding!!!
XinTec secures 5-year order from OmniVision
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Ingrid Lee, Taipei; Rodney Chan, DigiTimes.com [Tuesday 12 September 2006]
Taiwan-based XinTec has signed a five-year contract providing OmniVision Technologies with wafer level chip size packaging (WLCSP) service. Under the contract, the image sensor specialist will have one of its subsidiaries purchase packaging equipment which will be placed at XinTec’s plant, and XinTec will in turn use the equipment to fulfill OmniVision’s orders.
XinTec said such a deal can strengthen its relationship with the client, and can reduce risks in equipment investments while increasing profits.
OmniVision orders accounted for 71% of XinTec’s revenues in 2005, and about 30% of the world’s cameraphones adopt image sensors packaged by XinTec, according to industry sources.
Apple is set to unleash the biggest GADGET ever made and ever announced……….a cell phone video camera mp3………..will it be an OmniVision (OVTI) camera using Wave Front coding for a clear picture????
Just for tommie to help in his BUY Decision:::::::
OmniVision underrated?
Our first disappointment this week is OmniVision Technologies (Nasdaq: OVTI), a maker of digital camera sensor chips. The company reported quarterly sales of $137 million and pro forma earnings of $0.39 per diluted share — lagging estimates on both counts. The analyst community had hoped for $152 million in gross revenues and earnings at $0.44 per share. That’s 42.7% sales growth year-over-year, but only 10.4% growth on the bottom line.
OmniVision is a heavily shorted stock, to the tune of more than a quarter of all shares outstanding. It doesn’t look like an overvaluation situation, since the P/E ratio of just 9.6 is well below the industry average among camera chip makers, which stands at roughly 27 times trailing earnings. One might be tempted to think of this one as a bargain.
As for business opportunities, OmniVision mostly caters to cameraphones and consumer-level digital cameras, and I don’t see those markets cooling down anytime soon. It’s true that OmniVision is competing in a crowded market, with rivals ranging from tiny Pixelplus to giants like Samsung and Matsushita (NYSE: MC). However, a promising new product scheduled for debut this month could make a real difference in this highly commoditized industry.
Dubbed OmniFocus, the chip results from a $30 million acquisition finalized in the spring of 2005. It promises to replace the mechanical autofocus functions of today’s cameras with digital image processing techniques performed by the sensor chipset. Fewer moving parts should lead to cost savings and more reliable end products, and the technology is unique to this company. If OmniVision does indeed deliver on its promises, it should end up with all the customers it can handle.
OmniVision isn’t even on the list of tech companies under investigation for stock option problems. I have to say that I’m mystified by the low valuation here. It might be fair to drop the price a bit with a missed earnings target, but not when the shares were so inexpensive to begin with. OmniVision goes on my watch list for further investigation.
rumor has it that APPLE is finally coming out with a cell phone camera……….could it be true that the Wave Front Coding new Camera Omnivision is bringing out in two weeks is the same one Apple is sampling for down the road holiday sales??????/
Apple iPOD and a Video Camera on a cell phone with 3.2mp digital Quality…………who would have Thunk It???????
Skibare
OmniVision reported July quarter results of $0.39 on revenues of $136.9 million versus street expectations of $0.40 on
$139.8 million and April quarter results of $0.39 on $131.8 million. The continued strength of VGA and its impact on
ASPs drove the slight miss during the quarter. Units grew 21% to 58 million and ASPs declined 14% to $2.35. VGA
sensors comprised greater than 50% of unit volume with 1.3 MP and the recently introduced 2.0 MP making up the
remainder. Management guided for October quarter revenues to be flat to slightly up at $135-145 million. Backend
capacity constraints and VGA remaining a significant part of mix should result in lower gross margin during the October
quarter. Management gave earnings guidance of $0.26-0.34 versus street expectations of $0.42. The company spent
$17 million this quarter and intends to spend another $33 million to alleviate current backend capacity constraints around
December. While the implied margin guidance was disappointing, we think the company may be nearing a low from a
fundamental standpoint. The 2.0 MP sensors are expected to ramp to 10-15% of unit volume and a significantly greater
percentage of revenues as the company exits this calendar year, helping support ASPs. Capacity constraints should also
clear up as the company exits 2006. Given a compelling valuation and expanding markets for image sensors, these
shares appear attractive. We maintain our Outperform rating.
Revenues from end markets were roughly as follows: cell phones 70%, digital cameras 10%, and advanced products
20%. OEM sales represented 68% of revenues and distributors 32%. The company shipped 58 million sensors in the
July quarter, which was up 21% from the April quarter. Over 50% of the unit volume was VGA, with the remainder
comprised of 1.3 MP and the 2.0 MP sensors that began shipping at the end of June. Management expects 2.0 MP to
ramp to 10-15% of unit volume by the end of the calendar year and represent a significantly larger percentage of
revenues as a result of its higher ASP. The company already has design wins into dozens of cell phone models with 2.0
MP that should continue to ramp into next year. OmniVision also expects to begin sampling a 3.0 MP sensor in
September that utilizes its proprietary wavefront coding technology to focus high resolution images without the use of a
motorized lens. This product should begin to generate revenues in the first half of calendar 2007 and contribute
significant amounts in the second half of the year.
Gross margin during the July quarter increased 20 bps to 37.0% on a reported basis. Gross margin would have been
34.2%, had the company’s results been adjusted for a positive net impact of $1.6 million from obsolete inventory sales
and a $2.2 million beneficial payment from suppliers for quality issues experienced in prior periods. That represents a
440 bps decline from a similarly adjusted gross margin of 38.6% in the April period. Management spent $17 million in the
July quarter and plans to spend another $33 million over the next two quarters to increase chip scale packaging capacity
and alleviate the production constraints that held back October quarter guidance. They also intend to spend a similar
amount of money next year to increase capacity for color processing.
Our estimate for the year ending April 2007 has been reduced to $1.51 from $1.75 on a lower outlook for gross margin
and revenues. We believe OVTI may currently be seeing the worst of it, with VGA remaining a significant component of
mix for now and capacity constraints limiting growth. The ramp of 2.0 MP should be very important for ASPs going
forward, which along with capacity investments should help alleviate gross margin and growth issues around the end of
calendar 2006. We believe the stock is attractive given a valuation of 11.0x our estimate of $1.51 for the year ending
April 2007 and a multiple of 7.6x when net cash per share of $6.67 and related interest income are excluded.
We maintain our Outperform rating on OmniVision.
OmniVision is a heavily shorted stock, to the tune of more than a quarter of all shares outstanding. It doesn’t look like an overvaluation situation, since the P/E ratio of just 9.6 is well below the industry average among camera chip makers, which stands at roughly 27 times trailing earnings. One might be tempted to think of this one as a bargain.
As for business opportunities, OmniVision mostly caters to cameraphones and consumer-level digital cameras, and I don’t see those markets cooling down anytime soon. It’s true that OmniVision is competing in a crowded market, with rivals ranging from tiny Pixelplus to giants like Samsung and Matsushita (NYSE: MC). However, a promising new product scheduled for debut this month could make a real difference in this highly commoditized industry.
Dubbed OmniFocus, the chip results from a $30 million acquisition finalized in the spring of 2005. It promises to replace the mechanical autofocus functions of today’s cameras with digital image processing techniques performed by the sensor chipset. Fewer moving parts should lead to cost savings and more reliable end products, and the technology is unique to this company. If OmniVision does indeed deliver on its promises, it should end up with all the customers it can handle.
