Tuesday, October 19, 2010

NASDAQ on Omnivision

NASDAQ , Seeking Alpha published an article on Omnivision, mainly concentrating on financial side. Some interesting quotes:

"According to data from Techno Systems Research, the CMOS sensor market is expected to double in five years to 2.6 billion units. ... [Omnivision] boasts an industry-leading 28 percent market share for all CMOS sensors. OmniVision dominates the smartphone market, accounting for nearly 50 percent of business in this space.

The company is also seeing market share gains across a diversified product line. Unit demand for notebook computer cameras and webcams is expected to grow more than 65 percent by 2013.

Additionally, unit demand for its entertainment device segment is expected to nearly quadruple by 2013 on the back of robust sales of MP3 music players equipped with cameras.
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"[Omnivision is] exploring opportunities in India, the world's second fastest-growing emerging market. Gaining a foothold in the Indian market would provide OmniVision with another potential long-term growth opportunity."

5 comments:

  1. A great marcom company

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  2. well, you can not have a so huge incoming only by marcom. They should have something special.

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  3. Their marcom is among the worst I've ever seen.

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  4. From Seeking Alpha

    http://seekingalpha.com/article/231355-apple-still-attractive-even-at-these-levels?source=email

    ...The reduction in profits per device likely comes from the company’s push towards making its products more affordable for the mainstream. With the exception of its Mac line, the company’s products arguably dominate their respective product classes, whether it is a personal music player (iPod), smartphone (iPhone), or tablet computer (iPad) – which is essentially a market Apple just created. In its most recent report, unit sales of the devices were generally impressive. The company sold 14.1 million iPhones during the quarter at an average selling price of just over $600. This easily exceeded most analysts’ estimates which were in the neighborhood of 12 million (that, of course, would have been an impressive number too).. A On the conference call, Apple executives noted that they probably could have sold more if they were not held back by supply issues. Also adding to the bullish case for more iPhone sales ahead is that the phone has been welcomed with open arms by consumers in China (the device went on sale there during the last day of the reported quarter). iPhone continues to be such a success that it now accounts for 43 percent of company sales, and will likely continue to grow as it becomes increasingly available around the world and by more carriers (including reportedly Verizon here in the US)....

    The iPhone could be running at 18-20 mil units/qtr now and could get to 25 mil units/qtr with Verizon. Could the iPhone get to 100 mil units per year? 8-10% of total handset sales? The set of cameras has to be somewhere around $5-7 per phone today. Cost, based on die size, is probably $3-4. When Omnivision goes go to BSI-2 and 300mm wafers the cost will go to ~ $2. Will Apple pay $4/set for 100 mil sets? With increasing volume and decreasing prices and decreasing costs, the iPhone might generate a constant $400 mil in revenue to Omnivision with a maybe constant gross profit margin of 50%. Who is in a position to undercut the price and take the business? Sony? Not a chance. Samsung? With what, paper parts?
    A two camera iPod, iPad, Mac Air could add another $200 mil. Is Apple a $600 mil/per year camera revenue customer to Omnivision for several years?
    What is the rest of the smartphone business and feature phone business worth? Another $600 mil? All other markets worth $300 mil? Is Omnivision a $1.5 bil company in the immediate future? If so they will certainly earn 20% net after tax or $5+ per share.
    How many organic growth stories to match this are available in the stock market today?

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