OmniVision Q3 Results Top Estimates - Update

(RTTNews) - OmniVision Technologies Inc. (OVTI), a developer of advanced digital imaging solutions, Thursday reported third-quarter results that exceeded Wall Street expectations. The stock surged over 15 percent in the extended trade.

Net income for the third quarter increased to $30.6 million or $0.54 per share from $21.3 million or $0.40 per share in the same quarter last year.

The company recorded a one-time benefit of $0.28 per share in the latest results, related to the initial public offering of its equity investee China WLCSP Limited.

Adjusted earnings were $0.69 per share, while it was $0.56 per share in the prior year quarter. On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.35 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues declined to $352.02 million from $423.51 million. Analysts expected revenues of $326.96 million.

Shaw Hong, CEO, said, "Our third quarter performance was better than we expected...Our flagship PureCel sensors are gaining traction in the market. PureCel sensors have significantly better pixel performance, lower power consumption, and an attractive cost structure. We are very excited about our new product lineup."

Looking ahead to the fourth quarter, the company forecast earnings in the range of $0.05 to $0.21 per share and adjusted earnings between $0.19 and $0.35 per share.

Revenues are estimated in a range of $275 million to $305 million. Analysts currently expect the company to earn $0.22 per share on revenues of $284.34 million for the fourth quarter.

OVTI closed up 2.8 percent at $16.20 and surged 15.12 percent in the extended trade.