I've followed the ups and downs of OmniVision Technologies (OVTI)
for about a decade now, and the company has never managed to break out
of an intensely cyclical pattern driven by product launches and
competitive pressures. I have no expectation that that will change, as Sony (SNE)
has proved a fierce competitor on the high end while a bevy of Chinese
rivals compete for the low-end of the CMOS image sensor market.
If
investors can accept OmniVision for what it is, there may yet be
trading opportunities to consider. As of this writing, the shares lie
ever so slightly below tangible book value and this is a company that
has generated positive net free cash flow and returns on assets over the
past decade. Investors who can stomach the risk of a decline back to
the $12 to $13 range may want to take a closer look, as even a discount
to past price/book multiples suggests a fair value in the $18 to $20
range.
Read the full article here:
Does The OmniVision Roller Coaster Have Another Climb Left In It?
Showing posts with label OmniVision. Show all posts
Showing posts with label OmniVision. Show all posts
Tuesday, February 18, 2014
Friday, August 30, 2013
Investopedia: OmniVision Technologies - The Beat(ing) Goes On
I've followed OmniVision Technologies (Nasdaq:OVTI)
for quite a while now, but I've never owned the shares. In a nutshell,
OmniVision seems to fit into that “it's more trouble than it's worth”
category of stocks where severe operational volatility (that I don't
believe the company really can or could do much to control) leads to big
swings in the price. That may be fine for investors/traders who like
active names that produce multiple trading opportunities for buy/sell
moves within a year, but it is much less attractive to those of us who
pursue an investment path of “enlightened torpor”.
With that, OmniVision's fiscal first quarter (and guidance for the second quarter) was really just more of what I've learned to expect from this company. While I do believe OmniVision has good technology and a solid market position relative to the likes of Sony (NYSE:SNE) and Samsung, it's just such a difficult market to prosper in, particularly with the turbulence in the handset market right now.
Read the full article at Investopedia:
http://www.investopedia.com/stock-analysis/083013/omnivision-technologies-beating-goes-ovti-sne-atml-avgo-brcm-aapl.aspx
With that, OmniVision's fiscal first quarter (and guidance for the second quarter) was really just more of what I've learned to expect from this company. While I do believe OmniVision has good technology and a solid market position relative to the likes of Sony (NYSE:SNE) and Samsung, it's just such a difficult market to prosper in, particularly with the turbulence in the handset market right now.
Read the full article at Investopedia:
http://www.investopedia.com/stock-analysis/083013/omnivision-technologies-beating-goes-ovti-sne-atml-avgo-brcm-aapl.aspx
Monday, June 3, 2013
Investopedia: OmniVision Showing Much-Needed Signs Of Improvement
The “up again, down again” story at OmniVision Technologies (Nasdaq:OVTI)
rolls on, with the latest installment showing a sharp upward turn as
the company's revenue and margins continue to show meaningful
improvement. While OmniVision remains one of the market share leaders in
the CMOS image sensor industry, that leadership has never meant
stability or predictability and it probably never will. That makes this a
tricky stock to recommend at almost any level – although these shares
too look cheap, and may well ride the momentum of this positive quarter
for a while, it's hard to believe that the market will ever fully reward
the potential of this company.
To read more about OmniVision, please continue here:
http://www.investopedia.com/stock-analysis/053113/omnivision-showing-muchneeded-signs-improvement-ovti-sne-tsm-aapl-atml.aspx
To read more about OmniVision, please continue here:
http://www.investopedia.com/stock-analysis/053113/omnivision-showing-muchneeded-signs-improvement-ovti-sne-tsm-aapl-atml.aspx
Saturday, December 1, 2012
Investopedia: For OmniVision, Weird Is Just Its Version Of Normal
It
seems like nothing is ever normal with CMOS image sensor company,
OmniVision Technologies (Nasdaq:OVTI).
Accept that and it can be an intriguingly volatile trading
opportunity. While the stock has often been batted around on rumors,
worries and hopes tied to adoption from key customers like Apple
(Nasdaq:AAPL),
now margins have become another big variable. Consequently, while
very strong revenue guidance for the next quarter really jumps, so to
does the possibility of ongoing margin pressure. Not surprisingly,
that continues to make this a very difficult company to model and a
difficult stock to recommend or own.
Read the full article here:
http://www.investopedia.com/
Wednesday, September 5, 2012
Investopedia: OmniVision Looks Fueled Up For Another Run
CMOS sensor company Omnivistion Technologies (Nasdaq:OVTI)
has a crazy stock. Pull up a long-term chart, and you're basically
looking at a map of the Tetons or some such. That chart also says a lot
about the business. While Omnivision has long been at the edge of
technology in the space, the company has been unable to establish a
steady revenue and profit growth trajectory. While I don't expect that
basic pattern of volatility to change much, investors may want to
consider this stock for the potential sales and profit growth that could
be reported with the next major Apple (Nasdaq:AAPL) phone launch.
Please click here for more:
http://www.investopedia.com/
Please click here for more:
http://www.investopedia.com/
Monday, February 27, 2012
Investopedia: The Wild Ride Continues For OmniVision Technologies
For those investors who bought into the worst of the OmniVision (Nasdaq:OVTI) news in late November, I salute your bravery. I was definitely tempted to take a flier on this stock, but chose not to and missed out on the subsequent 80% jump in the shares. As this most recent quarter demonstrates, though, conditions remain volatile and murky for this imaging sensor company.
A Surprising (Partial) Rebound
OmniVision warned investors a little while ago that financial performance was going to be down as the company worked through lower demand and higher inventory. That said, the company managed to deliver better performance than it had expected.
Please click here for more:
http://stocks.investopedia.
Wednesday, November 30, 2011
Investopedia: What Comes After "Worse" For OmniVision Technologies?
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.)
Please continue here:
http://stocks.investopedia.
Wednesday, November 9, 2011
Investopedia: Smoke Starting To Billow From The OmniVision Story
For some time now, I have thought that the bears had it wrong on OmniVision (NASDAQ:OVTI) and that even if the company was losing some of its technological lead over Sony (NYSE:SNE), Aptina and STMicroelectronics (NYSE:STM), the stock was still too cheap relative to its prospects and cash on the balance sheet. As it turns out, though, those wisps on the horizon weren't just clouds, but actual smoke, and it seems like OmniVision may have a very real problem on its hands.
The News Is Getting Worse
OmniVision didn't exactly have investors excited with its last earnings report in August. At that point, the company talked about some product delays and revised revenue guidance lower - due supposedly to problems with tablet customers.
As it turns out, the company did not go nearly far enough. OmniVision announced on November 7, 2011 that it was once again revising guidance lower, taking the numbers for the next quarter down another 20% or so to a range of $212 million to $217 million, a steep fall indeed from the $300-million-plus level of not so long ago. Making matters worse, the company was fairly cryptic about the reason - simply referring to "unexpected cutback in orders for certain key projects."
Read more below:
http://stocks.investopedia.
The News Is Getting Worse
OmniVision didn't exactly have investors excited with its last earnings report in August. At that point, the company talked about some product delays and revised revenue guidance lower - due supposedly to problems with tablet customers.
As it turns out, the company did not go nearly far enough. OmniVision announced on November 7, 2011 that it was once again revising guidance lower, taking the numbers for the next quarter down another 20% or so to a range of $212 million to $217 million, a steep fall indeed from the $300-million-plus level of not so long ago. Making matters worse, the company was fairly cryptic about the reason - simply referring to "unexpected cutback in orders for certain key projects."
Read more below:
http://stocks.investopedia.
Sunday, August 28, 2011
Investopedia: OmniVision Feeds The Bears
Sometimes where there's smoke there's fire. Imaging chip developer OmniVision Technologies (Nasdaq:OVTI) has been an uncommonly controversial stock for most of its history, with recent worries focusing on whether the company was facing share loss to Sony (NYSE:SNE) and Toshiba at Apple (Nasdaq:AAPL). Now that the company has given very disappointing guidance for the next quarter, those worries have ratcheted up to a fever pitch. OmniVision shares are almost certain to be punished too far, but it will take a patient and aggressive investor to step up and fight the tide.
A Few Blurry Spots in First Quarter Results
Although OmniVision met expectations for the first quarter (and earnings actually beat by a bit), it wasn't a uniformly clean quarter. Revenue did jump 43% from last year's level, with sequential growth coming in at 7%. Shipments climbed about 1% sequentially, with ASPs up about 5%. Given that laptop/notebook computer shipments haven't been all that strong, it seems fair to assume that OmniVision's growth is coming from other product categories like phones, tablets and gaming devices.
To read the complete article, click below:
http://stocks.investopedia.
Tuesday, May 31, 2011
Investopedia: It's Always Something With OmniVision
I've been writing about the markets and individual stocks for a while now, and it always seems like there's something wrong with OmniVision (Nasdaq:OVTI). I remember widespread beliefs that the image sensors that OmniVision makes were destined to become commodities and the company would face ever-shrinking average selling prices (ASPs), margins and earnings.
Well, as it turns out, industry-leading innovation and the lateral spread of a product into new markets and applications is a pretty good remedy to commoditization. Not only has OmniVision become a leader in the chip sensor business, it has benefited from the introduction of new products like smartphones and tablets as well as deeper penetration into older markets like laptops and webcams. (For more, see Omnivision Hosts A Bear Roast.)
With still more markets yet to penetrate (automotive, security and healthcare), will OmniVision get a little love at last?
To read the full article, please click the link:
http://stocks.investopedia.
Well, as it turns out, industry-leading innovation and the lateral spread of a product into new markets and applications is a pretty good remedy to commoditization. Not only has OmniVision become a leader in the chip sensor business, it has benefited from the introduction of new products like smartphones and tablets as well as deeper penetration into older markets like laptops and webcams. (For more, see Omnivision Hosts A Bear Roast.)
With still more markets yet to penetrate (automotive, security and healthcare), will OmniVision get a little love at last?
To read the full article, please click the link:
http://stocks.investopedia.
Tuesday, March 1, 2011
Investopedia: OmniVision Hosts A Bear Roast
Whether it is rumors of competitors taking share, products not working as advertised, or financial shenanigans, it seems like there has always been a bear story out there on OmniVision Technologies (Nasdaq:OVTI). Although this company now produces more than five times as much revenue in a single quarter as it did in an entire year in the early 2000s, the stock has constantly chopped up and down - nimble longs and shorts have both made money, but long-term shareholders dating back to 2004 or 2006 are probably wondering whether this stock will ever break out above the $30 share range.
With OmniVision's latest quarter, and the subsequent barbecuing of the shorts' ribs, maybe the company finally has the momentum on hand to break out.
A Surprisingly Strong Quarter
With a decent string of earnings beats in its recent past, it is not all that surprising that OmniVision reported a good fiscal third quarter. That said, a beat of this magnitude is always a bit startling. Analysts ratcheted up estimates after this company last reported earnings, but did not go quite far enough.
For the quarter, OVTI reported that sales jumped 69% to almost $266 million - handily dusting the Street-high estimate of $248 million. On a sequential basis, the company saw volumes shipped rise almost 5%, while the ASP jumped 6%. The company's mix was also favorable with respect to higher-end products representing a larger share of the pie, though this is not always as favorable as it might sound as lower-end products can actually be quite profitable.
Please read the full article at Investopedia:
http://stocks.investopedia.
With OmniVision's latest quarter, and the subsequent barbecuing of the shorts' ribs, maybe the company finally has the momentum on hand to break out.
A Surprisingly Strong Quarter
With a decent string of earnings beats in its recent past, it is not all that surprising that OmniVision reported a good fiscal third quarter. That said, a beat of this magnitude is always a bit startling. Analysts ratcheted up estimates after this company last reported earnings, but did not go quite far enough.
For the quarter, OVTI reported that sales jumped 69% to almost $266 million - handily dusting the Street-high estimate of $248 million. On a sequential basis, the company saw volumes shipped rise almost 5%, while the ASP jumped 6%. The company's mix was also favorable with respect to higher-end products representing a larger share of the pie, though this is not always as favorable as it might sound as lower-end products can actually be quite profitable.
Please read the full article at Investopedia:
http://stocks.investopedia.
Thursday, February 10, 2011
FinancialEdge: The Apple Ecosystem
No company is an island; even the most integrated manufacturer or service provider relies upon a cooperative ecosystem of other companies. In the case of Apple (Nasdaq:AAPL) and its multi-billion dollar successes, the iPhone and the iPad, there is a long list of companies that are involved in the process. Consider the fact that Apple logged over $16 billion in costs of goods sold for the December quarter - an amount that on an annualized basis is larger than the GDP of Ecuador. (We look at a retailer's inventory turnaround times, its receivables as well as its collection period. See Measuring Company Efficiency.)
That is a large amount of money by any measure, and a sign of the value of being tapped as a supplier to Apple. As Apple shows no sign of slowing down anytime soon, it is worth examining who else directly benefits from Apple's successes. Here is a quick rundown of the Apple ecosystem.
Readers should note, though, that Apple's ecosystem is not static - the company sources certain components from multiple suppliers and will occasionally replace suppliers when price and performance dictate a change. Once such change has taken place relatively recently, as Linear Technology (Nasdaq:LLTC) no longer supplies the DC/DC converter or USB controller for the iPad2.
Please read the full piece here:
http://financialedge.investopedia.com/financial-edge/0211/The-Apple-Ecosystem.aspx
That is a large amount of money by any measure, and a sign of the value of being tapped as a supplier to Apple. As Apple shows no sign of slowing down anytime soon, it is worth examining who else directly benefits from Apple's successes. Here is a quick rundown of the Apple ecosystem.
Readers should note, though, that Apple's ecosystem is not static - the company sources certain components from multiple suppliers and will occasionally replace suppliers when price and performance dictate a change. Once such change has taken place relatively recently, as Linear Technology (Nasdaq:LLTC) no longer supplies the DC/DC converter or USB controller for the iPad2.
Please read the full piece here:
http://financialedge.investopedia.com/financial-edge/0211/The-Apple-Ecosystem.aspx
Thursday, January 27, 2011
Investopedia: Texas Instruments Suggests A Soft Landing In The Works
Figuring out the semiconductor industry is a little like playing one of those games where you are supposed to guess at what the image is as it is revealed a piece at a time. While Linear Technology (Nasdaq:LLTC) started the reporting cycle with a sour note, Maxim (Nasdaq:MXIM) seemed incremental better, and so too now does Texas Instruments (NYSE:TXN). If Texas Instruments is more indicative of the "real" state of the industry than Linear, perhaps the worst of the mid-cycle correction is over.
A Mixed End to a Rebound Year
As is so often the case, the strength of Texas Instruments' quarterly results depends very much on the frame of revenue. After all, 17% year-on-year revenue growth sounds good - up to the point when it translates into a 7% decline in sequential performance. Analog is TI's biggest segment, and revenue here was up 20% annually and down 4% sequentially, while embedded processing saw a 31% annual increase and 7% sequential decrease. Wireless was comparatively boring, up 1% from last year and flat relative to the third quarter.
Profitability was not quite as positive for TI. Due at least in part to higher capacity and lower utilization, gross margin fell 150 basis points from last year. Although the company did do a solid job of holding the line on operating expenses, the decline in gross margin led operating margin to contract about 200bp on a sequential basis, while rising 170bp from last year after adjusting for a divestiture gain. (For more, see The Bottom Line On Margins.)
Orders fell 4% from last year and 9% from the third quarter, leading to a 0.89 book-to-bill ratio. While management did say that lead times were back to normal (suggesting that the book-to-bill should have bottomed), it is worth noting that inventory did climb almost $100 million on a sequential basis and stands (on a days sales basis) at a pretty high historical level.
Continue on to the full story:
http://stocks.investopedia.
A Mixed End to a Rebound Year
As is so often the case, the strength of Texas Instruments' quarterly results depends very much on the frame of revenue. After all, 17% year-on-year revenue growth sounds good - up to the point when it translates into a 7% decline in sequential performance. Analog is TI's biggest segment, and revenue here was up 20% annually and down 4% sequentially, while embedded processing saw a 31% annual increase and 7% sequential decrease. Wireless was comparatively boring, up 1% from last year and flat relative to the third quarter.
Profitability was not quite as positive for TI. Due at least in part to higher capacity and lower utilization, gross margin fell 150 basis points from last year. Although the company did do a solid job of holding the line on operating expenses, the decline in gross margin led operating margin to contract about 200bp on a sequential basis, while rising 170bp from last year after adjusting for a divestiture gain. (For more, see The Bottom Line On Margins.)
Orders fell 4% from last year and 9% from the third quarter, leading to a 0.89 book-to-bill ratio. While management did say that lead times were back to normal (suggesting that the book-to-bill should have bottomed), it is worth noting that inventory did climb almost $100 million on a sequential basis and stands (on a days sales basis) at a pretty high historical level.
Continue on to the full story:
http://stocks.investopedia.
Friday, December 3, 2010
OmniVision Still In Sharp Focus
OmniVision (Nasdaq:OVTI) has had its bouts of controversy over the years, but the company is still standing. In fact, the company is not only standing but seems to be thriving as a leading provider of the sensors that enable camera phones, webcams and other imaging devices. That is a good lesson for over-sensitive investors who bristle at the criticisms directed at the companies in their portfolio - for better or worse, ultimately performance tells the story.
Another Strong Quarter
OmniVision has a good track record of outperforming analyst expectations and this quarter was no exception. Revenue jumped 30% from the year-ago quarter and 25% on a sequential basis, topping the high end of the analyst's range.
Within that figure, unit shipments jumped 38% while ASPs dropped 10% on a shift in the product mix. This is a good news/bad news aspect of the OmniVision story - while the company's backside illumination technology is first rate, there is always going to be quarter-to-quarter turbulence. That, in turn, may be read by institutional investors as a sign of weakness or business decline, but may be an opportunity for more patient investors to pick up shares. (For more, see Strategies For Quarterly Earnings Season.)
Please follow the link for the full article:
http://stocks.investopedia.
Another Strong Quarter
OmniVision has a good track record of outperforming analyst expectations and this quarter was no exception. Revenue jumped 30% from the year-ago quarter and 25% on a sequential basis, topping the high end of the analyst's range.
Within that figure, unit shipments jumped 38% while ASPs dropped 10% on a shift in the product mix. This is a good news/bad news aspect of the OmniVision story - while the company's backside illumination technology is first rate, there is always going to be quarter-to-quarter turbulence. That, in turn, may be read by institutional investors as a sign of weakness or business decline, but may be an opportunity for more patient investors to pick up shares. (For more, see Strategies For Quarterly Earnings Season.)
Please follow the link for the full article:
http://stocks.investopedia.
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