SANTA CLARA, Calif.,
Nov. 29, 2012 /PRNewswire/ -- OmniVision Technologies,
Inc. (Nasdaq: OVTI), a leading developer of advanced digital
imaging solutions, today reported financial results for the second
quarter of fiscal 2013 that ended on October 31, 2012.
Revenues for the second quarter of fiscal 2013 were
$390.1 million, as compared to
$258.1 million in the first
quarter of fiscal 2013, and $217.9 million in the second quarter of
fiscal 2012. GAAP net income in the second quarter of
fiscal 2013 was $10.3 million, or $0.19 per diluted share, as compared to net
income of $2.3 million, or
$0.04 per diluted share in the
first quarter of fiscal 2013, and $21.1 million, or $0.35 per diluted share in the second
quarter of fiscal 2012.
Non-GAAP net income in the second quarter of fiscal 2013
was $18.6 million, or
$0.33 per diluted share.
Non-GAAP net income in the first quarter of fiscal 2013 was
$11.6 million, or $0.21 per diluted share. Non-GAAP net income
in the second quarter of fiscal 2012 was $30.1 million, or $0.48 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 and six
months ended October 31, 2012 and 2011 and for the three
months ended July 31, 2012.
GAAP gross margin for the second quarter of fiscal 2013 was
16.6%, as compared to 19.1% for the first quarter of
fiscal 2013 and 30.6% for the second quarter of
fiscal 2012. The sequential decrease in second quarter gross
margin reflected an increase in shipment mix of our advanced
products that carried high manufacturing costs.
The Company ended the period with cash, cash equivalents and
short-term investments totaling $139.6 million, a decrease of $97.0 million from the previous quarter. The
decrease was caused by a $106.6 million increase in accounts
receivable, the result of a significant sequential increase in
revenues.
"Once again, I am pleased to report that OmniVision has achieved
the high end of its revenues guidance, and that the company remains
well-positioned to maintain its sales momentum into the third
fiscal quarter," said Shaw Hong, chief executive officer of
OmniVision Technologies, Inc. "We have taken, and will continue to
take, actions to improve our corporate gross margins."
"In addition, I am pleased to announce the addition of
Raymond Wu to OmniVision's
management team," continued Hong. "Raymond, one of our co-founders,
has agreed to re-join us as our President, effective
December 1, 2012. During his previous tenure, Raymond's
intellect, experience and influence extended to market development,
engineering and sales. We are enthused by his return, and with his
knowledge of our company and the industry, I expect Raymond to make
significant contributions to OmniVision's continued growth in the
years to come."
Outlook
Based on current trends, the Company expects
revenues for the third quarter of fiscal 2013 will be in the
range of $390 million to $425 million and GAAP net income
per share will be between $0.17 and $0.30 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 $0.33 and $0.46 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 866-202-4683 (domestic) or
617-213-8846 (international) and entering
passcode 90641132.
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 13057519.
About OmniVision
OmniVision Technologies, Inc. is a
leading developer of advanced digital imaging solutions. Its
CameraChip™ and CameraCubeChip™ products using CameraCubeChip™,
OmniBSI™, OmniBSI+™, OmniBSI-2™, OmniPixel®, OmniPixel2™,
OmniPixel3™ and OmniPixel3-HS™ technologies are highly integrated,
single-chip CMOS image sensors for consumer and commercial
applications including mobile phones, notebooks, tablets and
webcams, entertainment devices, 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 relating to
our expectations regarding revenues and earnings per share for the
three months ending January 31, 2013 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 and increase sales to current
key customers and end-users of our products; fluctuations of wafer
manufacturing costs, manufacturing yields, manufacturing capacity
and other manufacturing processes and the impact on gross margins;
the potential loss or reduction of orders from one or more key
customers or distributors; the continued growth and development of
current markets and the emergence of new markets in which the
Company sells, or may sell, its products; fluctuations in sales mix
and average selling prices; our ability to timely complete the
product development cycle for new sensors; the Company's ability to
obtain design wins from various image sensor device manufacturers
including manufacturers of mobile phones, tablets and other
entertainment devices, laptops and personal computers, digital
still cameras and automobile manufacturers; competition in current
and emerging markets for image sensor products, including pricing
pressures that could result from competition; the impact of general
economic conditions on orders from the end-user customers of our
products; the Company's ability to accurately forecast customer
demand for its products; the market acceptance of products into
which the Company's products are designed; the development,
production, introduction and marketing of new products and
technology; the acceptance of the Company's products in such
current and new markets; the Company's strategic investments and
relationships, and other risks detailed from time to time in the
Company's Securities and Exchange Commission filings and reports,
including, but not limited to, the Company's most recent Annual
Report on Form 10-K and recent Quarterly Reports on
Form 10-Q. The Company expressly disclaims 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 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 January 31, 2013
|
|
GAAP
Range
of Estimates
|
|
Non-GAAP
Range
of Estimates
|
|
From
|
To
|
Adjustment
|
From
|
To
|
Net income
per share
|
$ 0.17
|
$ 0.30
|
$
0.16 (1)
|
$ 0.33
|
$ 0.46
|
|
|
(1)
|
Reflects
estimated adjustment for expense and related tax effects associated
with stock-based compensation.
|
|
|
OMNIVISION TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in
thousands, except per share amounts)
(unaudited)
|
|
|
|
|
October 31,
|
April 30,
|
|
2012
|
2012
|
ASSETS
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
115,511
|
$
290,492
|
Short-term
investments
|
24,096
|
40,515
|
Accounts receivable,
net of allowances for doubtful accounts and sales
returns
|
249,283
|
107,793
|
Inventories
|
398,694
|
291,340
|
Prepaid and deferred
income taxes
|
4,717
|
4,083
|
Prepaid expenses and
other current assets
|
9,405
|
8,542
|
Total current assets
|
801,706
|
742,765
|
Property,
plant and equipment, net
|
154,045
|
144,792
|
Long-term
investments
|
127,178
|
128,940
|
Goodwill
|
10,227
|
10,227
|
Intangibles, net
|
63,300
|
69,028
|
Other
long-term assets
|
16,951
|
7,205
|
Total assets
|
$ 1,173,407
|
$ 1,102,957
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$
193,608
|
$
159,860
|
Accrued expenses and
other current liabilities
|
40,367
|
35,416
|
Income tax
payable
|
—
|
987
|
Deferred revenues,
less cost of revenues
|
14,094
|
10,115
|
Current portion of
long-term debt
|
2,141
|
3,146
|
Total current liabilities
|
250,210
|
209,524
|
Long-term
liabilities:
|
|
|
Long-term income taxes
payable
|
85,143
|
88,159
|
Non-current portion of
long-term debt
|
39,008
|
39,337
|
Other long-term
liabilities
|
5,003
|
5,058
|
Total long-term liabilities
|
129,154
|
132,554
|
Total liabilities
|
379,364
|
342,078
|
|
|
|
Stockholders' equity:
|
|
|
Common stock, $0.001
par value; 100,000 shares authorized; 74,141 shares
issued and 53,542 outstanding at October 31, 2012 and
72,964 shares issued and 52,365 outstanding at
April 30, 2012, respectively
|
74
|
73
|
Additional paid-in
capital
|
596,643
|
575,935
|
Accumulated other
comprehensive income
|
2,753
|
2,970
|
Treasury stock, 20,599
at October 31, 2012 and April 30, 2012,
respectively
|
(278,683)
|
(278,683)
|
Retained
earnings
|
473,256
|
460,584
|
Total stockholders' equity
|
794,043
|
760,879
|
Total liabilities and stockholders' equity
|
$ 1,173,407
|
$ 1,102,957
|
|
OMNIVISION TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(in
thousands, except per share amounts)
(unaudited)
|
|
|
|
|
Three
Months Ended
|
Six
Months Ended
|
|
October 31,
|
October 31,
|
|
2012
|
2011
|
2012
|
2011
|
Revenues
|
$
390,137
|
$
217,919
|
$
648,201
|
$
493,990
|
Cost of
revenues
|
325,453
|
151,258
|
534,302
|
339,936
|
Gross
profit
|
64,684
|
66,661
|
113,899
|
154,054
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Research, development
and related
|
30,361
|
29,027
|
59,209
|
57,372
|
Selling, general and
administrative
|
18,131
|
15,771
|
36,859
|
31,874
|
Amortization of
acquired patent portfolio
|
2,322
|
2,322
|
4,643
|
4,643
|
Total operating expenses
|
50,814
|
47,120
|
100,711
|
93,889
|
|
|
|
|
|
Income
from operations
|
13,870
|
19,541
|
13,188
|
60,165
|
Benefit
from acquisition of production operations
from
VisEra
|
—
|
8,626
|
—
|
8,626
|
Equity in
earnings of investees, net
|
1,192
|
677
|
2,332
|
1,694
|
Interest
expense, net
|
(728)
|
(247)
|
(1,486)
|
(469)
|
Other
income (expense), net
|
222
|
(888)
|
316
|
(1,138)
|
Income
before income taxes
|
14,556
|
27,709
|
14,350
|
68,878
|
|
|
|
|
|
Provision
for income taxes
|
4,211
|
6,624
|
1,678
|
5,821
|
Net
income
|
$ 10,345
|
$ 21,085
|
$ 12,672
|
$ 63,057
|
|
|
|
|
|
Net income
per share:
|
|
|
|
|
Basic
|
$ 0.19
|
$ 0.35
|
$ 0.24
|
$ 1.07
|
Diluted
|
$ 0.19
|
$ 0.35
|
$ 0.24
|
$ 1.03
|
|
|
|
|
|
Shares
used in computing net income per share:
|
|
|
|
|
Basic
|
53,514
|
59,612
|
53,172
|
59,131
|
Diluted
|
53,675
|
60,207
|
53,310
|
60,984
|
|
OMNIVISION TECHNOLOGIES, INC.
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET
INCOME
(in
thousands, except per share amounts)
(unaudited)
|
|
|
|
|
|
Three
Months Ended
|
Six
Months Ended
|
Three
Months Ended
|
|
October 31,
|
October 31,
|
July 31,
|
|
2012
|
2011
|
2012
|
2011
|
2012
|
GAAP net
income
|
$
10,345
|
$
21,085
|
$
12,672
|
$
63,057
|
$
2,327
|
Add:
|
|
|
|
|
|
Stock-based
compensation in cost of revenues
|
977
|
712
|
2,037
|
1,176
|
1,060
|
Stock-based
compensation in research, development and related
expenses
|
4,113
|
3,249
|
8,865
|
5,853
|
4,752
|
Stock-based
compensation in selling, general and administrative
expenses
|
3,344
|
2,788
|
7,060
|
5,005
|
3,716
|
(Increase)
decrease in provision for income taxes without the effect of
stock-based compensation
|
(228)
|
2,224
|
(522)
|
2,154
|
(294)
|
Non-GAAP
net income
|
$ 18,551
|
$ 30,058
|
$ 30,112
|
$ 77,245
|
$ 11,561
|
|
|
|
|
|
|
GAAP
provision for income taxes
|
$
4,211
|
$
6,624
|
$
1,678
|
$
5,821
|
$
(2,533)
|
(Increase)
decrease in provision for income taxes without the effect of
stock-based compensation
|
(228)
|
2,224
|
(522)
|
2,154
|
(294)
|
Non-GAAP
provision for income taxes
|
$ 4,439
|
$ 4,400
|
$ 2,200
|
$ 3,667
|
$ (2,239)
|
|
|
|
|
|
|
Non-GAAP
net income per share:
|
|
|
|
|
|
Basic
|
$ 0.35
|
$ 0.50
|
$ 0.57
|
$ 1.31
|
$ 0.22
|
Diluted
|
$ 0.33
|
$ 0.48
|
$ 0.54
|
$ 1.24
|
$ 0.21
|
|
|
|
|
|
|
Shares
used in computing non-GAAP net income per share:
|
|
|
|
|
|
Basic
|
53,514
|
59,612
|
53,172
|
59,131
|
52,830
|
Diluted
|
56,211
|
62,544
|
55,695
|
62,469
|
55,186
|
SOURCE OmniVision Technologies, Inc.