SANTA CLARA, Calif.,
Aug. 27, 2015 /PRNewswire/ -- OmniVision Technologies, Inc.
(Nasdaq: OVTI), a leading developer of advanced digital imaging
solutions, today reported financial results for the first quarter
of fiscal 2016 that ended on July 31, 2015.
Revenues for the first quarter of fiscal 2016 were
$329.9 million, as compared to
$285.9 million in the fourth
quarter of fiscal 2015, and $406.5 million in the first quarter of
fiscal 2015. GAAP net income in the first quarter of
fiscal 2016 was $18.2 million, or $0.31 per diluted share, as compared to net
income of $6.0 million, or
$0.10 per diluted share in the
fourth quarter of fiscal 2015, and $45.3 million, or $0.78 per diluted share in the first quarter
of fiscal 2015. For the first quarter of fiscal 2016, the
Company recorded a non-cash tax benefit of $3.1 million, as compared to $15.1 million for the first quarter of
fiscal 2015. These tax benefits reflected the lapses of
applicable statute of limitations in certain foreign
jurisdictions.
Non-GAAP net income in the first quarter of fiscal 2016 was
$28.6 million, or $0.46 per diluted share. Non-GAAP net income
in the fourth quarter of fiscal 2015 was $13.9 million, or $0.22 per diluted share. Non-GAAP net income
in the first quarter of fiscal 2015 was $54.4 million, or $0.91 per diluted share. Non-GAAP net income
excludes stock-based compensation expenses and the related tax
effects. Please refer to the attached schedule for a reconciliation
of GAAP net income to non-GAAP net income for the three months
ended July 31, 2015, July 31, 2014 and April 30,
2015.
GAAP gross margin for the first quarter of fiscal 2016 was
22.6%, as compared to 22.4% for the fourth quarter of
fiscal 2015 and 21.7% for the first quarter of
fiscal 2015. The sequential increase in the first quarter
gross margin reflected a decrease in allowance for excess and
obsolete inventories, largely offset by selling price erosions.
The Company ended the period with cash, cash equivalents and
short-term investments totaling $593.8 million, an increase of $69.6 million from the previous quarter. The
increase was primarily attributable to cash provided by operating
activities in the first quarter of fiscal 2016.
"We are pleased with our results for the first quarter. We are
encouraged by the sequential growth that we experienced in our
mobile phones and automotive markets," said Shaw Hong, chief
executive officer of OmniVision Technologies, Inc. "Nevertheless,
in the near-term, the business environment and demand from some of
our end-markets will remain volatile. We will continue to drive our
long-term business strategies as we aim to resume our growth
trajectory in the long-term."
Outlook
Based on current trends, the Company expects revenues for the
second quarter of fiscal 2016 will be in the range of
$300 million to $330 million and GAAP net income per
share will be between $0.12 and
$0.27 per diluted share.
Excluding the estimated expense and related tax effects associated
with stock-based compensation, the Company expects its non-GAAP net
income per share will be between $0.25 and $0.40 per diluted share. Refer to the table
below for a reconciliation of GAAP to non-GAAP net income.
Conference Call
OmniVision Technologies, Inc. will host a conference call today
at 5:00 p.m. Eastern time to discuss these results further.
This conference call can be accessed via a webcast at www.ovt.com.
The call can also be accessed by dialing
866-318-8613 (domestic) or 617-399-5132 (international)
and entering passcode 95117355.
A replay of the call will remain available at
www.ovt.com for approximately twelve months. A replay of the
call will also be available for one week beginning approximately
one hour after the conclusion of the call. To access the replay,
dial 888-286-8010 (domestic) or
617-801-6888 (international) and enter
passcode 46433816.
About OmniVision
OmniVision Technologies, Inc. is a leading developer of advanced
digital imaging solutions. Its CameraChip™ and CameraCubeChip™
products are highly integrated, single-chip CMOS image sensors for
consumer and commercial applications, including mobile phones,
tablets and entertainment devices, notebooks and webcams, security
and surveillance systems, digital still and video cameras,
automotive and medical imaging systems. Additional information is
available at www.ovt.com.
Safe Harbor Statement
Certain statements in this press release, including statements
regarding our focus in developing our technologies and growing our
business, and statements regarding our expectations regarding
revenues and earnings per share for the three months ending
October 31, 2015 are forward-looking statements. These
forward-looking statements are based on management's current
expectations, and certain factors could cause actual results to
differ materially from those in the forward-looking statements.
These factors include, without limitation, our ability to maintain
or increase sales to current key and new customers and end-users of
our products; competition in current and emerging markets for image
sensor products, including pricing pressures that could result from
competition and unfavorable exchange rate movements; the potential
for a slowdown in sales in the near term due to general economic
conditions and market volatility, which can reduce visibility and
thus orders from the end-user customers of our products; our
ability to increase the average selling prices or lower the costs
associated with the development and manufacture of our new, complex
products and technologies; fluctuations of wafer manufacturing
costs, manufacturing yields, manufacturing capacity and other
manufacturing processes and the impact on gross margins;
uncertainties for our customers, foundries, vendors, employees, or
others with whom we do business that may be created by our recently
announced merger agreement which uncertainties could adversely
affect our business; the continued growth and development of
current markets and the emergence of new markets in which we sell,
or may sell, our products; fluctuations in sales mix and average
selling prices; our ability to timely complete the product
development cycle for new sensors; our ability to obtain design
wins from various image sensor device manufacturers including
manufacturers of mobile phones, tablets and entertainment devices,
notebooks and webcams, security and surveillance systems, digital
still and video cameras, automotive and medical imaging systems;
our dependence on third party wafer foundries and their ability to
manufacture our wafers in the required quantities, at acceptable
quality, yields and costs, and in a timely manner; our ability to
accurately forecast customer demand for our products; the market
acceptance of products into which our products are designed; the
development, production, introduction and marketing of new products
and technology; the occurrence of litigation regarding intellectual
property or indemnification claims from our suppliers or customers
relating to our intellectual property; our strategic investments
and relationships, and other risks detailed from time to time in
our Securities and Exchange Commission filings and reports,
including, but not limited to, our most recent Annual Report on
Form 10-K and recent Quarterly Reports on Form 10-Q. We
expressly disclaim any obligation to update information contained
in any forward-looking statement.
Use of Non-GAAP Financial Information
To supplement the reader's overall understanding of both its
reported results presented in accordance with U.S. generally
accepted accounting principles ("GAAP") and its outlook, the
Company also presents non-GAAP measures of net income and net
income per share which are adjusted from results based on GAAP. In
particular, the Company excludes stock-based compensation expenses
and the related tax effects. The non-GAAP financial measures which
the Company discloses also exclude the effects of stock-based
compensation on the number of basic and diluted common shares used
in calculating non-GAAP basic and diluted net income per share. The
Company provides these non-GAAP financial measures to enhance an
investor's overall understanding of its current financial
performance and to assess its prospects for the future. These
non-GAAP financial measures reflect an additional way of viewing
aspects of the Company's operations that, when viewed with its GAAP
results and the accompanying reconciliations to the corresponding
GAAP financial measures, provide a more complete understanding of
factors and trends affecting the Company's business. The economic
basis for the Company's decision to use non-GAAP financial measures
is that the adjustments to net income did not reflect the on-going
relative strength of the Company's performance. The Company's
objective is to minimize any confusion in the financial markets by
providing non-GAAP net income and non-GAAP net income per share
measurements and disclosing the related components. These non-GAAP
financial measures should be considered as a supplement to, and not
as a substitute for, or superior to, the financial measures
prepared in accordance with GAAP.
The Company uses non-GAAP financial measures for internal
management purposes to conduct and evaluate its business, when
publicly providing its business outlook and to facilitate
period-to-period comparisons. The Company views non-GAAP net income
per share as a primary indicator of the profitability of its
underlying business. In addition, because stock-based compensation
is a non-cash expense and is offset in full by a credit to
additional paid-in capital, it has no effect on total stockholders'
equity. As the calculation of non-GAAP financial measures differs
between companies, the non-GAAP financial measures used by the
Company may not be comparable to similarly titled measures used by
other companies. Other than stock-based compensation and the
related tax effects, these differences may cause the Company's
non-GAAP measures to not be directly comparable to other companies'
non-GAAP measures. Although these non-GAAP financial measures
adjust cost, expenses and basic and diluted share items to exclude
the accounting treatment of stock-based compensation, they should
not be viewed as a non-GAAP presentation reflecting the elimination
of the underlying stock-based compensation programs. Thus, the
Company's non-GAAP presentations are not intended to present, and
should not be used, as a basis for assessing what its operating
results might be if it were to eliminate its stock-based
compensation programs. The Company compensates for these
limitations by providing full disclosure of the net income and net
income per share on a basis prepared in accordance with GAAP to
enable investors to consider net income and net income per share
determined under GAAP as well as on an adjusted basis, and perform
their own analysis, as appropriate. As a result of the foregoing
limitations, the Company does not use, nor does the Company intend
to use, the non-GAAP financial measures when assessing the
Company's performance against that of other companies.
Estimating stock-based compensation expenses and the related tax
effects for a future period is subject to inherent risks and
uncertainties, including but not limited to the price of the
Company's stock, stock market volatility, expected option life,
risk-free interest rates, and the number of option exercises and
sales during the quarter.
OMNIVISION
TECHNOLOGIES, INC
|
|
RECONCILIATION OF
GUIDANCE FOR GAAP NET INCOME PER DILUTED SHARE
|
TO PROJECTED
NON-GAAP NET INCOME PER DILUTED SHARE
|
(unaudited)
|
|
|
Three Months
Ending October 31, 2015
|
|
GAAP Range of
Estimates
|
|
Non-GAAP Range of
Estimates
|
|
From
|
To
|
Adjustment
|
From
|
To
|
Net income per
share
|
$
0.12
|
$
0.27
|
$ 0.13(1)
|
$
0.25
|
$
0.40
|
________________
|
|
(1)
|
Reflects estimated
adjustment for expenses and related tax effects associated with
stock-based compensation.
|
OMNIVISION
TECHNOLOGIES, INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
except per share amounts)
|
(unaudited)
|
|
|
|
|
July 31,
|
April 30,
|
|
2015
|
2015
|
ASSETS
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$ 434,376
|
$ 318,892
|
Short-term
investments
|
159,433
|
205,271
|
Accounts receivable,
net
|
147,468
|
151,086
|
Inventories
|
320,598
|
343,966
|
Prepaid and deferred
income taxes
|
4,171
|
7,149
|
Prepaid expenses and
other current assets
|
20,729
|
5,628
|
Recoverable insurance
proceeds
|
—
|
12,500
|
Total current assets
|
1,086,775
|
1,044,492
|
Property, plant and
equipment, net
|
143,735
|
145,214
|
Long-term
investments
|
151,634
|
192,021
|
Goodwill
|
10,227
|
10,227
|
Intangibles,
net
|
49,127
|
52,287
|
Other long-term
assets
|
28,480
|
24,155
|
Total assets
|
$
1,469,978
|
$
1,468,396
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$ 121,486
|
$ 118,796
|
Accrued expenses and
other current liabilities
|
32,960
|
37,112
|
Litigation settlement
accrual
|
—
|
12,500
|
Income taxes
payable
|
888
|
3,444
|
Deferred revenues,
less cost of revenues
|
42,833
|
22,621
|
Current portion of
long-term debt
|
9,545
|
7,096
|
Total current liabilities
|
207,712
|
201,569
|
Long-term
liabilities:
|
|
|
Long-term income taxes
payable
|
53,451
|
55,150
|
Non-current portion of
long-term debt
|
22,407
|
24,999
|
Other long-term
liabilities
|
18,363
|
23,898
|
Total long-term liabilities
|
94,221
|
104,047
|
Total liabilities
|
301,933
|
305,616
|
|
|
|
Stockholders'
equity:
|
|
|
Common stock, $0.001 par value; 100,000 shares authorized;
80,185 shares issued and 59,586 outstanding at
July 31, 2015 and 78,734 shares issued and
58,135 outstanding at April 30, 2015,
respectively
|
80
|
79
|
Additional paid-in capital
|
719,261
|
709,442
|
Accumulated other comprehensive income
|
17,272
|
40,069
|
Treasury stock, 20,599 shares at July 31, 2015 and
April 30, 2015, respectively
|
(278,683)
|
(278,683)
|
Retained earnings
|
710,115
|
691,873
|
Total stockholders' equity
|
1,168,045
|
1,162,780
|
Total liabilities and stockholders' equity
|
$
1,469,978
|
$
1,468,396
|
OMNIVISION
TECHNOLOGIES, INC
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(in thousands,
except per share amounts)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
July 31,
|
|
2015
|
2014
|
Revenues
|
$ 329,891
|
$ 406,536
|
Cost of
revenues
|
255,354
|
318,116
|
Gross
profit
|
74,537
|
88,420
|
|
|
|
Operating
expenses:
|
|
|
Research, development
and related
|
36,114
|
34,732
|
Selling, general and
administrative
|
21,147
|
19,210
|
Amortization of
acquired patent portfolio
|
2,321
|
2,321
|
Total operating expenses
|
59,582
|
56,263
|
|
|
|
Income from
operations
|
14,955
|
32,157
|
Equity in earnings of
investee
|
373
|
935
|
Interest expense,
net
|
(233)
|
(455)
|
Other income,
net
|
1,109
|
1,045
|
Income before income
taxes
|
16,204
|
33,682
|
|
|
|
Benefit from income
taxes
|
(2,038)
|
(11,645)
|
Net income
|
$
18,242
|
$
45,327
|
|
|
|
Net income per
share:
|
|
|
Basic
|
$
0.31
|
$
0.80
|
Diluted
|
$
0.31
|
$
0.78
|
|
|
|
Shares used in
computing net income per share:
|
|
|
Basic
|
58,584
|
56,583
|
Diluted
|
59,739
|
58,158
|
OMNIVISION
TECHNOLOGIES, INC
|
|
RECONCILIATION OF
GAAP NET INCOME TO NON-GAAP NET INCOME
|
(in thousands,
except per share amounts)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
July 31,
|
|
April 30,
|
|
2015
|
2014
|
|
2015
|
GAAP net
income
|
$ 18,242
|
$ 45,327
|
|
$ 5,996
|
Add:
|
|
|
|
|
Stock-based
compensation in cost of revenues
|
1,343
|
985
|
|
1,063
|
Stock-based
compensation in research, development and related
expenses
|
4,790
|
4,260
|
|
3,939
|
Stock-based
compensation in selling, general and administrative
expenses
|
3,739
|
3,204
|
|
3,326
|
Decrease (increase) in
provision for (benefit from) income taxes without the effect of
stock-based compensation
|
461
|
602
|
|
(473)
|
Non-GAAP net
income
|
$
28,575
|
$
54,378
|
|
$
13,851
|
|
|
|
|
|
GAAP provision for
(benefit from) income taxes
|
$ (2,038)
|
$ (11,645)
|
|
$
798
|
Decrease (increase) in
provision for (benefit from) income taxes without the effect of
stock-based compensation
|
461
|
602
|
|
(473)
|
Non-GAAP provision for
(benefit from) income taxes
|
$
(2,499)
|
$
(12,247)
|
|
$
1,271
|
|
|
|
|
|
Non-GAAP net income per
share:
|
|
|
|
|
Basic
|
$
0.49
|
$
0.96
|
|
$
0.24
|
Diluted
|
$
0.46
|
$
0.91
|
|
$
0.22
|
|
|
|
|
|
Shares used in
computing non-GAAP net income per share:
|
|
|
|
|
Basic
|
58,584
|
56,583
|
|
58,104
|
Diluted
|
62,124
|
60,081
|
|
62,145
|
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SOURCE OmniVision Technologies, Inc.