Bloomberg, Forbes quote Robert W. Baird's analyst Tristan Gerra writing in a note to clients "Our field research points to Omnivision having lost significant share in PCs as well as in China late last year due to its focus on Apple, while its new 8 MP sensor may not be ready for the initial iPhone 5 launch, suggesting Sony could win all of initial iPhone 5 procurement orders."
A more detailed digest of Gerra's note in Wall Street Pit also mentions that Samsung is now sampling sensors to Apple for potential future products.
Barron's quotes Hans Mosesmann of Raymond James questioning the logic of Gerra’s report. By Mosesmann’s reckoning, Gerra is suggesting both that Omnivision is capacity constrained in producing the BSI-2, but also that it is loosing market share, which he suggests may be contradictory statements.
“We believe OmniVision is constrained becasue demand is stronger than expected. This is ordinarily a good thing, and, in this instance, we believe a good thing.” While Sony may get some Apple business this year, Mosesmann doesn’t think Apple will give all of it to Sony, as they’re a competitor and it’s not proven Sony can deliver parts Apple needs in volume.
Motley Fool quotes an analyst at FBR issuing a report earlier this week saying the iPhone 5 launch may be delayed until September (versus expectations of July) and that its image sensor is "most likely going to Omnivision exclusively, but with some potential for [Sony] to split that socket."
As long as OV make profit, these news doesn't matter. Also this is the good time if someone wants to go public.
ReplyDeletecapacity restrained and losing market share are not contrary statements if the capacity restraint results from poor yield, then they are consistent statements.
ReplyDeletemaybe ovt changed its process to avoid continuing allegations of infringement on ziptronix bsi bonding patent and this caused a decrease in yields.
from the length of time i have been hearing about capacity constraints (since before october), i'd assume the poor yields relate to both bsi-1 and 2.
maybe instead of bringing its bsi to market early, ovt should have anticipated the poor yield and worked this out on the drawing board. but then they may have lost the first mover position on the phone cam market.
i believe using tsv's would have provided better yields as would have the use of soi over bulk, but you get what you pay for, right? note that use of tsv's or soi would have avoided any claims of patent infringement by ziptronix. incidentally, i'm surprised zip has not asked the court to prohibit the sale of in, or import in to, the united states of any devce (such as an iphone) that contains a part that may infringe on zip's patent.
Wow, what a quarter out of OVTI. These guys beat earnings estimates by 50% and raised 4th quarter estimates 50%. This is the biggest beat and raise out of any semi stock this quarter. Also, OVTI has $500mln in cash and market cap of only $1.3bln. At a very minimum, this stock should be up 10% just to reflect the cash generation (>$100mln) for the quarter. 2012 earnings look close to $3.00 - at 15x this stock is $45 (this includes $10 in cash)!!!
ReplyDeleteOVTI is riding the Smartphone wave, seeing margins expand and is a major supplier to Apple. This stock is going to run - time to get in!
OV now seems to have all theirs in Apple. Not that iPhone will become Razr anytime soon, but what if Apple picks Sony or Aptina or Samsung down the road? Poof!
ReplyDeletePoof.
ReplyDelete