When a company goes from bad to worse and then another step further, what do you call that? Whatever word investors in OmniVision Technologies (Nasdaq:OVTI) may choose, and most of them would likely be unprintable, it is clear that this specialty chip company is indeed in trouble. Although much will be made of the company's share losses to Apple (Nasdaq:AAPL), this is increasingly looking like a broader sector issue as well.
A Bad Quarter
OmniVision told investors a little while ago that this fiscal second quarter was going to be bad, and it was. Although revenue actually slightly exceeded the company's most recent guidance range, it still represented around a 9% year-on-year decline and approximately a 21% decline in sales. OmniVision took a one-two punch on the top line, as shipments fell about 11% sequentially and average selling price fell a similar amount. Notably, higher-end products (two megapixels and up) made up a significantly smaller share of total sales in the quarter. (For related reading, see A Primer On Investing In The Tech Industry.)
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