OmniVision: Plans for $100 Million Buyback

Camera sensor maker OmniVision (OVTI) continues to struggle with a fiercely competitive market. The company reported revenue for the fiscal third quarter ended January 31 of $134.4 million, short of the Street consensus of $138.66 million. EPS was 7 cents GAAP, 20 cents non-GAAP; the Street had expected 19 cents non-GAAP.

The real issue was the outlook. For the fiscal fourth quarter ending April, the company now sees revenue of $100 million to $110 million, with non-GAAP profits net ranging from a loss of 6 cents a share to a profit of 2 cents. The Street has been at $130.3 million in revenue and 16 cents a share in non-GAAP profits.

The company also announced plans to buy back up to $100 million of stock.

OmniVision said its gross margin in the quarter plunged to 24.9% from 33.1% one quarter earlier, due to continued pricing pressures.

The company asserted that “it can already see the demand environment for our products improving in the July fiscal quarter.”

Well, we’ll see. After hours, OmniVision shares are down 63 cents at $12.42.

OVTI 1-yr chart