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
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),
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
"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."
Based on current trends, the Company expects fiscal fourth quarter 2009
revenues will be in the range of
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.
A replay of the call will remain available at http://www.ovt.com for approximately twelve months. A replay of the call will also be available for 48 hours beginning approximately one hour after the call. To access the replay, dial 888-286-8010 or 617-801-6888 and enter passcode 92332445.
OmniVision Technologies, Inc. designs and markets high-performance semiconductor image sensors. Its CameraChip(TM) products using CameraCube(TM), OmniBSI(TM), OmniPixel(R), OmniPixel2(TM), OmniPixel3(TM) and OmniPixel3- HS(TM) technologies are highly integrated, single-chip CMOS image sensors for mass-market consumer and commercial applications such as mobile phones, notebooks, security and surveillance systems, digital still cameras, automotive and medical imaging systems and interactive video games. Additional information is available at http://www.ovt.com.
Safe Harbor Statement
Certain statements in this press release, including statements relating to the Company's expectations regarding revenues and earnings per share for the three months ending April 30, 2009 are forward-looking statements. These forward-looking statements are based on management's current expectations, and certain factors could cause actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the impact of general economic conditions; competition in current and emerging markets for image sensor products, including pricing pressures that could result from competition; fluctuations in sales mix and average selling prices; the Company's ability to obtain design wins from various image sensor device manufacturers including manufacturers of mobile phone, laptops and PCs, digital still cameras and automobile manufacturers; the market acceptance of products into which the Company's products are designed; fluctuations of wafer manufacturing yields and other manufacturing processes; the Company's ability to accurately forecast customer demand for its products; the development, production, introduction and marketing of new products and technology; the potential loss of one or more key customers or distributors; the continued growth and development of current markets and the emergence of new markets in which the Company sells, or may sell, its products; the acceptance of the Company's products in such current and new markets; the Company's strategic investments and relationships, and other risks detailed from time to time in the Company's Securities and Exchange Commission filings and reports, including, but not limited to, the Company's most recent Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q. The Company expressly disclaims any obligation to update information contained in any forward- looking statement.
Use of Non-GAAP Financial Information
To supplement the reader's overall understanding both of its reported results presented in accordance with U.S. generally accepted accounting principles ("GAAP") and its outlook, the Company also presents non-GAAP measures of net income (loss) and net income (loss) per share which are adjusted from results based on GAAP. In particular, the Company excludes stock-based compensation expense under FAS 123(R) and the related tax effects and the goodwill impairment charge recognized in the second quarter of fiscal 2009. The non-GAAP financial measures which the Company discloses also exclude the effects of FAS 123(R) on the number of basic and diluted common shares used in calculating non-GAAP basic and diluted net income (loss) per share. The Company provides these non-GAAP financial measures to enhance an investor's overall understanding of its current financial performance and to assess its prospects for the future. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with its GAAP results and the accompanying reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting the Company's business. The economic basis for the Company's decision to use non-GAAP financial measures is that the adjustments to net income did not reflect the on-going relative strength of the Company's performance. The Company's objective is to minimize any confusion in the financial markets by providing non-GAAP net income (loss) and non-GAAP net income (loss) per share measurements and disclosing the related components. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.
The Company uses non-GAAP financial measures for internal management purposes to conduct and evaluate its business, when publicly providing its business outlook and to facilitate period-to-period comparisons. The Company views non-GAAP net income (loss) per share as a primary indicator of the profitability of its underlying business. In addition, because stock-based compensation is a non-cash expense and is offset in full by a credit to paid- in capital, it has no effect on total stockholders' equity. As the calculation of non-GAAP financial measures differ between companies, the non-GAAP financial measures used by the Company may not be comparable to similarly titled measures used by other companies. Other than stock-based compensation, these differences may cause the Company's non-GAAP measures to not be directly comparable to other companies' non-GAAP measures. Although these non-GAAP financial measures adjust cost, expenses and basic and diluted share items to exclude the accounting treatment of stock-based compensation and goodwill impairment, they should not be viewed as a non-GAAP presentation reflecting the elimination of the underlying stock-based compensation programs. Thus, the Company's non-GAAP presentations are not intended to present, and should not be used, as a basis for assessing what its operating results might be if it were to eliminate its stock-based compensation programs. The Company compensates for these limitations by providing full disclosure of the net income and earnings per share on a basis prepared in accordance with GAAP to enable investors to consider net income (loss) and net income (loss) per share determined under GAAP as well as on an adjusted basis, and perform their own analysis, as appropriate. As a result of the foregoing limitations, the Company does not use, nor does the Company intend to use, the non-GAAP financial measures when assessing the Company's performance against that of other companies.
Estimating stock-based compensation expense and the related tax effects for a future period is subject to inherent risks and uncertainties, including but not limited to the price of the Company's stock and the number of option exercises and sales during the quarter.OMNIVISION TECHNOLOGIES, INC. RECONCILIATION OF GUIDANCE FOR GAAP NET LOSS PER SHARE TO PROJECTED NON-GAAP NET LOSS PER SHARE (unaudited) Three Months Ending April 30, 2009 GAAP Non-GAAP Range of Estimates Range of Estimates From To Adjustment From To Net loss per share $(0.53) $(0.44) $(0.13)(1) $(0.40) $(0.31) (1) Reflects estimated adjustment for expense and related tax effects associated with stock-based compensation in accordance with FAS123(R). OMNIVISION TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited) January 31, April 30, 2009 2008 ASSETS Current assets: Cash and cash equivalents $225,013 $217,340 Short-term investments 38,701 51,993 Accounts receivable, net of allowances for doubtful accounts and sales returns 46,464 105,338 Inventories 146,475 115,127 Deferred income taxes 2,803 2,823 Prepaid expenses and other current assets 8,957 7,430 Total current assets 468,413 500,051 Property, plant and equipment, net 118,870 92,451 Long-term investments 87,882 85,419 Goodwill - 7,541 Intangibles, net 9,029 13,928 Other long-term assets 20,680 18,956 Total assets $704,874 $718,346 LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $51,091 $57,760 Accrued expenses and other current liabilities 11,296 17,069 Income taxes payable 3,959 2,637 Deferred revenues, less cost of revenues 8,740 8,238 Current portion of long-term debt 3,570 651 Total current liabilities 78,656 86,355 Long-term liabilities: Long-term income taxes payable 77,521 78,031 Non-current portion of long-term debt 33,756 32,830 Other long-term liabilities 8,435 6,955 Total long-term liabilities 119,712 117,816 Total liabilities 198,368 204,171 Minority interest 3,617 4,444 Stockholders' equity: Common stock, $0.001 par value; 100,000 shares authorized; 62,579 issued and 50,038 outstanding at January 31, 2009 and 62,010 shares issued and 51,046 outstanding at April 30, 2008, respectively 63 62 Additional paid-in capital 397,214 373,024 Accumulated other comprehensive income 714 1,561 Treasury stock, 12,541 and 10,964 at January 31, 2009 and April 30, 2008, respectively (178,683) (165,768) Retained earnings 283,581 300,852 Total stockholders' equity 502,889 509,731 Total liabilities, minority interest and stockholders' equity $704,874 $718,346 OMNIVISION TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended Nine Months Ended January 31, January 31, 2009 2008 2009 2008 Revenues $80,046 $224,921 $418,260 $630,677 Cost of revenues 62,142 163,937 315,546 470,461 Gross profit 17,904 60,984 102,714 160,216 Operating expenses: Research, development and related 20,812 20,124 64,311 57,728 Selling, general and administrative 13,949 15,566 48,221 46,518 Goodwill impairment - - 7,541 - Total operating expenses 34,761 35,690 120,073 104,246 Income (loss) from operations (16,857) 25,294 (17,359) 55,970 Interest income, net 424 3,397 2,178 10,083 Other expense, net (2,914) (1,040) (3,719) (1,118) Income (loss) before income taxes and minority interest (19,347) 27,651 (18,900) 64,935 Provision for (benefit from) income taxes (921) 5,138 (1,002) 8,929 Minority interest (235) 50 (627) 56 Net income (loss) $(18,191) $22,463 $(17,271) $55,950 Net income (loss) per share: Basic $(0.36) $0.41 $(0.34) $1.02 Diluted $(0.36) $0.40 $(0.34) $1.01 Shares used in computing net income (loss) per share: Basic 50,036 55,386 50,682 55,041 Diluted 50,036 55,827 50,682 55,583 OMNIVISION TECHNOLOGIES, INC. RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS) (in thousands, except per share amounts) (unaudited) Three Months Three Months Ended Nine Months Ended Ended January 31, January 31, October 31, 2009 2008 2009 2008 2008 GAAP net income (loss) $(18,191) $22,463 $(17,271) $55,950 $(5,308) Add: Stock-based compensation in cost of revenues 777 936 2,366 2,858 716 Stock-based compensation in research, development and related expenses 2,976 3,607 9,075 9,302 3,183 Stock-based compensation in selling, general and administrative expenses 2,527 3,099 8,690 9,468 3,007 Goodwill impairment - - 7,541 - 7,541 Decrease in provision for income taxes without the effect of stock-based compensation 118 990 684 2,419 936 Non-GAAP net income (loss) $(11,793) $31,095 $11,085 $79,997 $10,075 Non-GAAP net income (loss) per share: Basic $(0.24) $0.56 $0.22 $1.45 $0.20 Diluted $(0.24) $0.55 $0.22 $1.41 $0.19 Shares used in computing non-GAAP net income (loss) per share: Basic 50,036 55,386 50,682 55,041 50,754 Diluted 50,036 56,491 51,487 56,675 51,675
SOURCE OmniVision Technologies, Inc.
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