Omnivision Reports Strong Earnings, Profits

PR Newswire: Omnivision reported revenues for last quarter to be $258.3M, as compared to $265.7M in the previous quarter, and $157.2M y year ago. GAAP net income in the last quarter was $34.0M, as compared to $44.7 million in the previous quarter, and $3.5M a year ago.

Gross margin for the quarter was 30.7%, as compared to 29.8% for the previous quarter and 24.9% a year ago. The sequential increase in gross margin reflected the favorable impact of an increase in the proportion of sales of premium products within each product resolution category.

Revenues for the fiscal year ended April 30, 2011 were $956.5M, as compared to $603.0M in fiscal 2010. GAAP net income for fiscal 2011 was $124.5M, as compared to net income for fiscal 2010 of $6.7M.

Based on current trends, the company expects next quarter revenues will be in the range of $265M to $285M.

Yahoo: While both profit and revenue came in ahead of analyst estimates and OmniVision issued a solid forecast for the current quarter, investors appeared disappointed that the outlook wasn't stronger.

Update: SeekingAlpha published Omnivision's earning call transcript. An interesting Q&A on Kodak patent portfolio:

Paul Coster – J.P. Morgan:

And then on the Kodak acquisition, very interesting but can you explain first what the near, medium and long term benefits are of acquiring that in terms of customer margins, defensibility, etcetera. And for that matter even pricing.

Anson Chan - CFO:

Okay. Shaw had a comment on obviously you know if anything it’s, what, 800 or 900 degrees of additional freedom was to innovate and operate. That is definitely a near time benefit. Longer term that may translate into better designs, better products while comparative products, so to speak. Now whether or not we will do anything further with the portfolio for instance any plan to monetize it or not, it’s still early for us to discuss those things. Obviously in due time when we have formulated a plan we will discuss it on our calls.