With their fiscal fourth quarter earnings, OmniVision announced that their earnings fell 92% as the digigtal provider suffered through weakened margins and revenues. Initially, OmniVision projected first quarter earnings of between $0.16 and $0.27, also below the mean analyst estimate of $0.29. On the other hand, they announced first quarter revenue of $235 million to $255 million, above analyst projections of $219 million. For the quarter ended April 30, OmniVision reported a profit of $2.7 million, or 5 cents a share, down from $34 million, or 56 cents a share. Gross margin narrowed to 22.5% from 30.7% and operating expenses were up 5.3% as research-and-development expenses jumped 12%. OmniVision designs chips that convert optical images to an electrical signal in digital cameras and videogames. Finally, OmniVision was rumored to be the iPhone 5 camera supplier, so look for a jump in the price if the rumor proves to be true.
Thomas Doherty is a student at Villanova University majoring in Finance and Economics. All questions and comments can be sent to Thomas@KeeneOnTheMarket.com
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