Seeking Alpha

OmniVision's guidance disappoints, shares -13.7% AH

  • 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.
Comments (5)
  • berniespear
    , contributor
    Comments (234) | Send Message
     
    HIMX gettin' some of that OmniVision pie.
    3 Dec 2013, 05:04 PM Reply Like
  • ejmcga
    , contributor
    Comments (18) | Send Message
     
    HIMX will be getting more and more of that pie!
    3 Dec 2013, 09:00 PM Reply Like
  • haschultz
    , contributor
    Comments (656) | Send Message
     
    For those really following HIMX, they not only came out with an 8 Megapixel CMOS but they filed a patent on the use of their LCOS for an array which will take this even further and negate the need for lens to improve resolution.

     

    See the recent article on HIMX here on SA as I post two quite lengthy replies detailing much of HIMX business prospects.
    3 Dec 2013, 09:27 PM Reply Like
  • haschultz
    , contributor
    Comments (656) | Send Message
     
    There is news that Baidu (Chinese search engine similar to Google) is developing a wearable display with HIMX. You can find it if you Google 'Wedge Baidu". This is reported in the last 24 hours.

     

    Here are two short articles I found:

     

    From Street Insider: "Himax Technologies, Inc. (Nasdaq: HIMX) may win a contract with Baidu (Nasdaq: BIDU) for its wearable device 'Baidu Eye' according to analysts at Wedge Partners. Baidu Eye is not as far along as Google Glass and is only in the prototype phase. The product is expected to be introduced in mid-2014. Production is expected to total 2 million units."

     

    From theflyonthewall: "Himax potential design win with Baidu Eye, says Wedge Partners
    Wedge Partners said Baidu has been working on the Baidu Eye since early this year and believes it will lead to a design win for Himax (HIMX) and create positive sentiment in the name."
    6 Dec 2013, 12:02 AM Reply Like
  • berniespear
    , contributor
    Comments (234) | Send Message
     
    Crazy. Wonder who the competitor(s) are for the Baidu Glass? Probably could make some spec money on them.
    6 Dec 2013, 01:39 AM Reply Like
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