OmniVision's guidance disappoints, shares -13.7% AH

|About: OmniVision Technologies, Inc. (OVTI)|By:, SA News Editor

Though OmniVision's (OVTI) FQ2 results beat estimates, the image sensor vendor is guiding for FQ3 revenue of $310M-$340M and EPS of $0.28-$0.44. That's largely below a consensus of $399.9M and $0.43. (PR)

OmniVision notes its saw slowing smartphone market growth in FQ2 - IDC estimates calendar Q3 shipments rose 39% Y/Y, albeit with a mix shift towards cheaper phones - as well as "intensifying competition." The company has been battling not only with age-old rival Sony (Apple's other iPhone image sensor supplier), but also Samsung and low-end upstarts such as Himax (HIMX - previous).

FQ2 gross margin was 18.8%, +140 bps Q/Q and +220 bps Y/Y. In addition, cost controls resulted in opex falling 2% Y/Y to $49.9M (12.5% of revenue).

OmniVision's cash balance rose by $25.1M Q/Q to $265.6M.(equal to 35% of its current market cap). With shares depressed, could the company end up deploying some of that cash in a new buyback? OmniVision hasn't announced one since 2011.

CC at 5PM ET. FQ2 results, PR.