OmniVision Profit Tops Street, Outlook Strong; Stock Jumps - Update

(RTTNews) - Digital imaging solutions provider OmniVision Technologies Inc (OVTI), Thursday reported an increase in fourth-quarter profit, helped by expanded margins that offset some softness in sales, with results topping Wall Street estimates.

The company provided a strong guidance for the second quarter, with its shares surging 18 percent in after-hours trade on the Nasdaq.

OmniVision has diversified its business into multiple geographies, especially in Asia, and is seeing growth in emerging automotive and security markets. The company is also working on products that have long-term potential.

Santa Clara, California-based OmniVision posted fourth-quarter net earnings of $15 million or $0.26 per share, compared with a profit of $9 million or $0.17 per share last year.

Excluding items, adjusted earnings for the quarter were $23.9 million or $0.40 per share, compared with $17.5 million or $0.31 per share a year ago. On average, 11 analysts polled by Thomson Reuters estimated earnings of $0.27 per share for the quarter. Analysts' estimates typically exclude special items.

OmniVision's key products include CameraChip and CameraCubeChip, which are integrated, single-chip CMOS image sensors for consumer and commercial applications, including mobile phones and tablets, surveillance systems, medical imaging systems, among others.

The company reported quarterly revenues of $331 million, compared with $336.2 million in the prior year. Ten analysts had a consensus revenue estimate of $292.1 million for the quarter.

Results were mainly helped by gross margin that expanded to 20.1 percent from 17.5 percent last year. Also there was a benefit of $3 million from acquisition of production operations from VisEra, the company said.

For the second quarter, OmniVision expects net earnings of $0.29 to $0.49 per share, adjusted earnings of $0.43 to $0.63 per share and revenues of $360 million to $400 million. Analysts currently expect earnings of $0.29 per share on revenues of $304.9 million.

OmniVision closed Thursday at $20.14, down $0.24 or 1.18%, on a volume of 1.2 million shares. In after hours, the stock gained $3.53 or 17.53%, trading at $23.67.