WR Hambrecht on Omnivision

WR Hambrecht started coverage on Omnivision with the following analysis:
"OmniVision has likely lost its leadership position in the CMOS image sensor market in CY:06E largely due to continued design losses at leading camera phone OEMs for its 1.3 megapixel (MP) and above image sensors. We believe the company is still trying to recover from its product miss-steps in late CY:04 with its 1.3MP and again in late CY:05 with its 2MP OmniPixel2. We believe that in order to regain market share, OmniVision will need to compete on price, resulting in Y/Y ASP declines of roughly 30+% in FY:07E and +15% in FY:08E, compared to the overall CMOS image sensor market ASP Y/Y declines of 14% Y/Y in CY:06E and less than 5% Y/Y in CY:07E."