Shares of camera sensor maker OmniVision Technologies (OVTI) are down $2.36, or almost 14%, at $14.95, recovering from a decline of as much as 19% after the company this morning warned its fiscal Q2, which ended last month, will miss analysts’ revenue estimates, citing reduced orders for some “key projects.”
Revenue is expected in a range of $212 million to $217 million, down from a prior forecast of $255 million to $275 million offered back on August 25th. Analysts have been modeling $260.41 million this quarter.
Sales of the company’s “OmniBSI” and “OmniPixel3-HS” sensors have fallen thanks to “an unexpected cutback in orders,” the company said.
“The company expects the business environment to remain volatile, especially in consumer-oriented product markets. As such, the company is expecting a more cautionary outlook for its third fiscal quarter.” Analysts have been modeling $259.8 million this quarter.
OmniVision also said its board of directors approved $100 million worth of share repurchases, to take place over an unspecified time period.
OmniVision shares tumbled October 14th, the day Apple’s (AAPL) iPhone 4S went on sale, after tech research firm Chipworks reported their examination of the device revealed a Sony camera sensor used for the 4S’s rear camera in place of OmniVision’s. Despite that report, there has been hope that Apple would use OmniVision’s sensors in some builds of the 4S.
A follow-up report showing OmniVision’s part being used for the front-facing camera in the 4S helped buoy the shares a week later.
CEO Shaw Hong said he was “disappointed” by the falloff, “However we believe our stock represents an attractive investment for OmniVision and its investors and that this action attests to our strong confidence in the long-term strength and viability of the company, its technology and its broad market and product portfolios.”
OmniVision expects to report full results on November 29th.
In a note to clients this morning, RW Baird & Co.’s Tristan Gerra, who maintains a Neutral rating on the stock, cut his price target to $13 from $18.
The key issue for OmniVision is “share loss at non-Apple customers, which is becoming apparent as new smartphone models (where Omnivision has been displaced) are ramping for the holidays while older models with Omnivision inside are being phased out.” Apple remains the company’s last best hope, he writes, given there seems little traction in other smartphones.
No comments:
Post a Comment