Sun, Jan. 18, 1:32 PM
- Whereas the front cameras on smartphones have historically featured resolutions of 2MP and lower, CES saw the unveiling of a slew of phones with high-res front cameras (5MP-13MP) optimized for selfie shots. OEMs also rolled out (to some social media mockery) "selfie stick" accessories that make taking shots easier, and (in Lenovo's case) a $29 selfie flash that plugs into a phone's audio jack.
- Rosenblatt's Brian Blair observes image sensor vendor OmniVision (NASDAQ:OVTI) benefits from this trend, as more powerful front cameras bring with them higher sensor ASPs and gross margins. "We expect to initially see this [trend] at the high end of the market, but we anticipate the trend will quickly filter into mid-tier models as well."
- Blair, who recently launched coverage on OmniVision with a Buy rating, expects the company to post calendar 2015 revenue of $1.4B and EPS of $1.81, well above a consensus of $1.33B and $1.54. OmniVision closed on Friday at $27.40, and has over $10/share in net cash/investments.
- For its part, OmniVision used CES to show off: 1) Image sensors containing an advanced eye-tracking software platform (provided by partner SMI). 2) A solution that pairs a 23.8MP image sensor with a high-speed (MEMS-based) autofocus from startup Wavelens. 3) A partnership with 3D imaging processor firm Intuitive to create "a reference design for building compact modules that enable 3D imaging in consumer electronics."
Dec. 2, 2014, 5:37 PM
Dec. 2, 2014, 4:47 PM
- Though it beat FQ2 estimates, OmniVision (NASDAQ:OVTI) is guiding for FQ3 revenue of $275M-$305M, below a $331.7M consensus. EPS guidance ($0.22-$0.38) is stronger, but still below a $0.33 consensus at the midpoint.
- Gross margin rose to 22% in FQ2 from 21.7% in FQ1 and 18.8% a year earlier; OmniVision attributes the gains to a mix shift towards newer products, and the sales of previously written-down inventory.
- GAAP opex +14% Y/Y to $56.7M, with R&D accounting for $34.2M. The cash balance rose by $1M Q/Q to $525.2M (equal to 38% of OmniVision' market cap).
- "Our mobile phone and automotive products continue to be the drivers behind our strong results this quarter," says CEO Shaw Hong - strong iPhone-related orders likely helped. "We are pleased with our execution in China, and with the emergence of India as a key geography for us."
- FQ2 results, PR
Dec. 2, 2014, 4:24 PM| Comment!
Dec. 2, 2014, 2:19 PM
- Down sharply on Monday, OmniVision (OVTI +5.4%) has recovered a chunk of its losses today. FQ2 results arrive after the bell.
- Today's volume (1.1M shares) is well above a 3-month average of 630K. Though not far from their 52-week highs, shares remain 8% below the $29/share price attached to a "non-binding" August buyout offer from a Chinese investor group.
Dec. 1, 2014, 5:35 PM
Dec. 1, 2014, 2:31 PM
Nov. 26, 2014, 2:52 PM
- Chip stocks are outperforming after Analog Devices (ADI +5.2%) beat FQ4 estimates and offered in-line FQ1 guidance. The Philadelphia Semi Index (SOXX +1.9%) has made new highs.
- Notable gainers include many analog/mixed-signal and telecom IC firms: TXN +3%. LLTC +2.7%. SMTC +3.1%. ISIL +3.3%. SWKS +3.7%. AVGO +2.9%. OVTI +3.2%. FSL +3.1%. EZCH +2.5%. XLNX +2.3%. ALTR +2.1%. MX +4.3%. PMCS +2.7%. BRCM +2%.
- On its CC (transcript), ADI noted its telecom equipment chip sales are holding up well in spite of weak capex, aided by the fact its dollar content for 4G base stations is "at least 20% to 30% better" than for 3G base stations. The company also mentioned its lead times were stable in FQ4.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Aug. 28, 2014, 5:21 PM
- OmniVision (NASDAQ:OVTI) is guiding for FQ2 revenue of $360M-$390M and EPS of $0.43-$0.59, in-line with a consensus of $374.5M and $0.49.
- FQ1 gross margin was 21.7%, up from 20.1% in FQ4 and 17.4% a year ago. GAAP opex +17% Y/Y to $56.3M. Cash/short-term investments rose by $73.2M Q/Q to $524.2M (compares with a market cap of $1.6B).
- Both mobile and automotive demand fueled the FQ1 beat. OmniVision says it's "ramping up multiple members" of its high-end PureCel image sensors for mobile clients.
- No update is given in the earnings release on OmniVision's review of a $29/share non-binding offer from a Chinese group led by Hua Capital. Shares are at $27.73 AH.
- FQ1 results, PR
Aug. 28, 2014, 4:24 PM| 2 Comments
Aug. 27, 2014, 5:35 PM
Aug. 15, 2014, 9:54 AM
- Baird has downgraded OmniVision (OVTI -1.8%) to Neutral a day after the company received a non-binding $29/share buyout offer from a Chinese investor group led by Hua Capital. The firm doesn't think OmniVision, which now trades at $27.67, will see a premium to Hua's offer.
- Yesterday, Needham hiked its target by $5 to $32 in response to the bid. The firm observes chip companies recently acquired by state-owned Chinese entities have seen "an average 5-10% bump from the initial bid." It also thinks a competing offer from a U.S. firm or Chinese entity is possible.
Aug. 14, 2014, 10:21 AM
Aug. 14, 2014, 9:07 AM
- China's Hua Capital has made a "non-binding" offer to acquire OmniVision (NASDAQ:OVTI) for $29/share in cash. The price represents an 18% premium to yesterday's close, and translates into a $1.7B valuation.
- The image sensor vendor says its board is reviewing Hua's proposal, and has made no decision yet.
- Shares are halted.
Jul. 15, 2014, 1:14 PM
- Baird's checks suggest OmniVision (OVTI +1.2%) is regaining lost Chinese smartphone image sensor share.
- The firm adds it sees strong design win activity for OmniVision's high-end PureCel sensors, which the chipmaker asserts offer better low-light performance and lower power draw than prior-gen solutions.
- OmniVision has been battling for Chinese design wins with both traditional rival Sony (ramping image sensor output) and low-end rivals (such as Himax) who are pricing aggressively. Meanwhile, Chinese OEMs have been rapidly grabbing Android phone share.
- Shares are trading higher in spite of a tech selloff.
Jun. 27, 2014, 6:44 PM
- Google (GOOG) is working with LG to bring a tablet supporting Project Tango to market in 2015. Google adds Tango, which use 3D vision to track motion, create visual maps, and enable augmented reality apps, will support the Unreal and Unity game engines, and Qualcomm's Vuforia AR platform.
- Nvidia's (NVDA) Tegra K1 processor (heavy on GPU power) will power the LG tablet. OmniVision (OVTI) should supply the sensors enabling 3D vision. Ahead of the LG launch, Google will provide developers with a $1,024 reference tablet to start building apps. (video)
- Google managed to show a working prototype (of sorts) at I/O for Project Ara, which seeks to enable modular phones whose parts can be mixed and matched on the fly.
- Two near-term challenges: Cutting the amount of space taken up by the parts that enable modularity, and building drivers that can support a wide array of 3rd-party modules. Google previously forecast Ara phones would arrive next January.
- Though it's no Oculus Rift, Google did hand out a cheap virtual reality headset prototype fittingly called Cardboard. The goal of Carboard, which has a companion app, is to get developers to start working on Android VR projects (and thus build a rival ecosystem to Oculus').
- While plenty of products were launched and updated at I/O, two frequently-hyped platforms, Glass and Google+, received scant attention. Google was reported in April to be narrowing Google+'s ambitions. Glass, which just got a small hardware update, is working through PR/image issues ahead of a full commercial launch.
- Google I/O product coverage: I, II, III
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