OmniVision Reports Financial Results for Third Quarter of Fiscal 2009

SANTA CLARA, Calif. , Feb. 26 /PRNewswire-FirstCall/ -- OmniVision Technologies, Inc. (Nasdaq: OVTI), a leading developer of advanced digital imaging solutions, today reported financial results for the third fiscal quarter ended January 31, 2009...


SANTA CLARA, Calif. , Feb. 26 /PRNewswire-FirstCall/ -- OmniVision Technologies, Inc. (Nasdaq: OVTI), a leading developer of advanced digital imaging solutions, today reported financial results for the third fiscal quarter ended January 31, 2009 .

Revenues for the third quarter of fiscal 2009 were $80.0 million, as compared to $163.9 million in the second quarter of fiscal 2009, and $224.9 million in the third quarter of fiscal 2008. GAAP net loss in the third quarter of fiscal 2009 was $18.2 million, or $0.36 per share, as compared to a net loss of $5.3 million, or $0.10 per share in the second quarter of fiscal 2009, and net income of $22.5 million, or $0.40 per diluted share in the third quarter of fiscal 2008.

Non-GAAP net loss in the third quarter of fiscal 2009, which excludes stock-based compensation expense and the related tax effects under FAS 123(R), was $11.8 million, or $0.24 per share. Non-GAAP net income in the second quarter of fiscal 2009, which excludes stock-based compensation expense and the related tax effects under FAS 123(R) and goodwill impairment, was $10.1 million, or $0.19 per diluted share. Non-GAAP net income in the third quarter of fiscal 2008, which excludes stock-based compensation expense and the related tax effects, was $31.1 million, or $0.55 per diluted share. Refer to the attached schedule for a reconciliation of GAAP net income (loss) to non- GAAP net income (loss) for the three and nine months ended January 31, 2009 and 2008 and for the three months ended October 31, 2008 .

Gross margin for the third quarter of fiscal 2009 was 22.4% as compared to 25.0% for the second quarter of fiscal 2009 and 27.1% for the third quarter of fiscal 2008. The sequential decrease in gross margin resulted primarily from a decrease in average selling prices and the recording of a proportionately larger allowance for excess and obsolete inventories than in the second quarter of fiscal 2009.

The Company ended the period with cash, cash equivalents and short-term investments totaling $263.7 million, a decrease of $19.0 million from the previous quarter. The decrease primarily reflects the use of cash in operations during the quarter.

"Despite the current overall economic downturn which is impacting our near-term results, we are confident that our strategy and operations are sound," said Mr. Shaw Hong, CEO of OmniVision Technologies. "This is illustrated by our market share and increased customer interest. In addition, we are making targeted expense reductions which will serve our needs today while still allowing for us to grow in the long-term."

"As anticipated in the guidance we gave in December 2008 , our third quarter results are a reflection of the very difficult current market environment," continued Mr. Hong. "However, we are still optimistic about the long-term growth of the image sensor market and believe that with our technology and fabless operating model, we are well positioned for success when market growth returns."

Outlook

Based on current trends, the Company expects fiscal fourth quarter 2009 revenues will be in the range of $60 million to $70 million and GAAP net loss will be between $0.53 and $0.44 per share. Excluding the estimated expense and related tax effects associated with stock-based compensation, the Company expects its non-GAAP net loss will be between $0.40 and $0.31 per share. Refer to the table below for a reconciliation of GAAP to non-GAAP net loss.

Conference Call

OmniVision Technologies will host a conference call today at 2:00 p.m. Pacific Time to discuss these results further. This conference call can be accessed via a webcast at http://www.ovt.com. The call can also be accessed by dialing 800-573-4842 or 617-224-4327 and enter passcode 68458069.

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