OmniVision Technologies Inc.'s (OVTI) fiscal third-quarter
earnings plummeted on lower revenue and higher compensation costs,
though the digital-parts provider still issued a bullish forecast
for its current quarter.
Looking ahead, the company projected fourth-quarter earnings
between 15 cents and 28 cents a share on revenue of $195 million to
$215 million. Analysts polled by Thomson Reuters expected a 10-cent
per-share profit and $171 million in sales.
Shares jumped 12% to $18 after hours, building on a 31% rise so
far this year though Thursday's close.
OmniVision designs chips that convert an optical image to an
electrical signal and are used in digital cameras, videogames and
cellphones, including Apple Inc.'s (AAPL) popular iPhone.
Results have been volatile, however, as the company's top line
swings with the demands of consumer-oriented product markets.
For the quarter ended Jan. 31, the company posted a profit of
$111,000, essentially breakeven on a per-share basis, compared with
a year-earlier profit of $44.7 million, or 75 a share. Excluding
stock-based compensation costs, per-share earnings fell to 13 cents
from 84 cents. Revenue fell 30% to $185.2 million.
In November, the company's downbeat guidance predicted a profit
between 5 cents and 17 cents a share, with $160 million to $180
million in revenue.
Gross margin narrowed to 24.2% from 29.8%.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com