Friday, February 27, 2009

Omnivision Reports Quarterly Earnings

Yahoo: For the three months ending Jan. 31, Omnivision reported a loss of $18.2M, compared with a profit of $22.5M a year ago. Revenue was $80M compared with $224.9M in the year-ago period. Gross margin for the last quarter was 22.4% as compared to 25.0% for the previous quarter and 27.1% for the year ago one.

The company expects next quarter revenues will be in the range of $60M to $70M and net loss will be between $22.2M and $26.8M.

Shaw Hong, OmniVision's CEO, said in a statement that the company is making targeted expense reductions that should let it grow in the long term.

In the Earnings Call transcript published by Seeking Alpha Omnivision denies losing any market share:

Unidentified Analyst

... do you see any kind of share loss or share gain in any particular resolutions or geographies?

Bruce Weyer, VP Marketing

... primary measurements for calendar 2008 would show we believe that we have retained our market share overall.

Unidentified Analyst

Okay. So, everything is just a reflection of the end market. It is not any share loss or anything like that?

Bruce Weyer

Yes. We would agree with that.

Doug Freedman - American Technology Research

... Can you talk a little bit about maybe the pricing pressures that you buy in market whether it is about pixel, megapixel VGA and other ratios still are holding up where if you could give us what those ratios are out in the past you have given them out.

Ray Cisneros, VP Sales

... The ratio is still remain the same roughly VGA and then 1 megapixel about 2X and 2 megapixels about two to three X and now 3 megapixel closer to 3X. The issue with the pricing pressure is really a reflection of the economy, and so as you may have noted in our average ASP coming down to $1.43.

On the positive side, it looks that the company won some first-tier design wins:

Ray Cisneros

During the quarter, we have multiple design wins for both our 1.4 micron and 1.7 micron BSI products. These wins included Tier-1 customers in multiple applications, multiple geographic regions and across all sense of resolutions. We are very enthusiastic about the reception we have seen for BSI and have received in-customer validation on our leadership and image quality. We believe that revenues from these BSI wins will begin to ramp in the first quarter of fiscal 2010.

As for our CameraCube products, we have locked down several design wins in Tier-1 OEM customers over several regions. CameraCube products will begin to contribute to revenue starting in April 2009 and ramp significantly thereafter.

7 comments:

  1. Geeez. Business goes to hell in a handbasket, and they say they're the market leader. If that's true, the rest of the industry is in deep dog dung.

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  2. the market leader?? well, OV indeed is the marketing leader

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  3. This comment has been removed by a blog administrator.

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  4. Guys, please try to avoid personal assaults. From now on I'll delete offending comments in this and other threads.

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  5. Sorry. That was my bad. No point in starting arguments here. I appreciated all your hard work on this blog.

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  6. The DRAM and Flash business is actually a lot worse. The fabs need to be state of the art to make competitive products and there's no profit starting the wafers with pricing where it is today. The CAPEX depreciation eats your lunch in memory.

    This isn't a new development either: it's been this bust / boom / bust bust bust cycle for a long time...

    At least with image sensors you can use depreciated fabs.

    -rc

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  7. Hi, with pixel size now at 1.4µm, using relatively advanced process, we cannot use depreciated fabs for new products. For 1.75µm pixel and below, yes but the 8MP cannot be done in 1.75µm pixel with a correct optical format for example, and as everybody wants more pixels on their phone...

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