OmniVision's Earnings Report Leaked Early

Never mind that nobody's quite sure where OmniVision's (OVTI) forecast of a 30% to 38% increase in fiscal first quarter revenues will come from. Or, better yet, what it'll do for an encore the following quarter. A bigger question, right now, is what analysts were doing getting the fourth-quarter earnings release at 3:36 p.m. ET -- or 19 minutes before the release hit the wires at 3:55 p.m., which contrary to tradition, was before the market closed. Whoever got the release early didn't waste time checking looking at the good news in the headline and bidding up the stock to $15.26 to $16.22 before it was halted at 6:50 p.m.

The company blames the early release on a "sever programming error," which it says caused the release to be "posted to the company's website prior to the release crossing the wire. As soon as we became aware of this, we took the appropriate action including accelerating the release and contacting the NASDAQ. We are taking immediate action to ensure that this won't happen again."

As I noted previously, however, the earnings report was also sent to analysts prematurely -- not just posted on a website. I've asked the spokesman about that; haven't heard back yet.

P.S. and for what it's worth: Had OmniVision's fourth quarter revenue of $119 million been more in line with original Street expectations of $130 million, which was sliced in March after the company issued disappointing guidance, the projected increase next quarter would be more like 19% -- not 30% to 38%.

OVTI 5/31/07:

Comments

[Tom Leuchtner:]

The past couple years you have implied the folks at Omnivision are pulling a fast one; you very well know they are just bumbling, not mal-intentioned, executives. You are intentionally misleading your audience by interpreting incompetence as conspiracy. Shame on you for trying to invent scandal and pump it as 'news'.

I have no position in OVTI.

2007 Jun 01 02:32 PM

[bernard_k50:]

How about writing a piece about naked shorting, Herb? I am sure you must know all the in and outs, being part of the plot?

2007 Jul 06 05:05 PM