OmniVision Technologies Inc. (OVTI, Financial) filed Quarterly Report for the period ended 2008-10-31.
OmniVision Technologies Inc. designs develops and markets highperformance high quality and cost efficient semiconductor imaging devices for computing communications and consumer electronics applications. The company's product an image sensor is used to capture an image in cameras and camera related products such as personal computer cameras digital still cameras personal digital assistant cameras and mobile phone cameras. The company has developed image sensors using the standard semiconductor manufacturing process used for modern integrated circuits. OmniVision Technologies Inc. has a market cap of $230.76 million; its shares were traded at around $4.54 with a P/E ratio of 6.08 and P/S ratio of 0.29.
Sales of our image-sensor products for mobile phones account for a large portion of our revenues, and any decline in sales to the mobile phone market or failure of this market to continue to grow as expected could adversely affect our results of operations. Sales to the mobile phone market account for a large portion of our revenues. Although we can only estimate the percentages of our products that are used in the mobile phone market due to the significant number of our image-sensor products that are sold to module makers or through distributors and VARs, we believe that the mobile phone market accounted for approximately 70% of our revenues in fiscal 2008 and 64% in the six months ended October 31, 2008, respectively. We expect that revenues from sales of our image-sensor products to the mobile phone market will continue to account for a significant portion of our revenues during fiscal 2009 and beyond. Any factors adversely affecting the demand for our image sensors in this market could cause our business to suffer and adversely affect our operating results. The digital image sensor market for mobile phones is extremely competitive, and we expect to face increased competition in this market in the future. In addition, we believe the market for mobile phones is also relatively concentrated and the top five producers account for more than 80% of the annual sales of these products. If we do not continue to achieve design wins with key mobile phone manufacturers, our market share or revenues could decrease. The mobile phone image-sensor market is also subject to rapid technological change. In order to compete successfully in this market, we will have to correctly forecast customer demand for technological improvements and be able to deliver such products on a timely basis at competitive prices. If we fail to do this, our results of operations, business and prospects would be materially and adversely affected. In the past, we have experienced problems accurately forecasting customer demand in other markets. In addition, current domestic and global economic conditions could negatively
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OmniVision Technologies Inc. designs develops and markets highperformance high quality and cost efficient semiconductor imaging devices for computing communications and consumer electronics applications. The company's product an image sensor is used to capture an image in cameras and camera related products such as personal computer cameras digital still cameras personal digital assistant cameras and mobile phone cameras. The company has developed image sensors using the standard semiconductor manufacturing process used for modern integrated circuits. OmniVision Technologies Inc. has a market cap of $230.76 million; its shares were traded at around $4.54 with a P/E ratio of 6.08 and P/S ratio of 0.29.
Highlight of Business Operations:
drew down $6.0 million under a term loan. Concurrent with the term loan, we also entered into an interest rate swap with a notional amount that approximates the principal outstanding under the term loan. We are the fixed rate payer under the swap with a fixed rate of 4.26%. In July 2008, in connection with the Term Loan we entered into a second interest rate swap with the bank to effectively convert the variable interest rate described above to a fixed rate. This second swap is for a period of four years. We are the fixed rate payer and the rate is fixed at 4.3% per annum and the effective rate on the Term Loan is fixed at approximately 5.5%. Consequently, although we are required to mark the value of the swaps to market at each balance sheet date and record the associated non-cash cost or benefit as part of Other income (expense), net, a hypothetical 10% change in LIBOR would not have a material effect on our annual interest expense.Sales of our image-sensor products for mobile phones account for a large portion of our revenues, and any decline in sales to the mobile phone market or failure of this market to continue to grow as expected could adversely affect our results of operations. Sales to the mobile phone market account for a large portion of our revenues. Although we can only estimate the percentages of our products that are used in the mobile phone market due to the significant number of our image-sensor products that are sold to module makers or through distributors and VARs, we believe that the mobile phone market accounted for approximately 70% of our revenues in fiscal 2008 and 64% in the six months ended October 31, 2008, respectively. We expect that revenues from sales of our image-sensor products to the mobile phone market will continue to account for a significant portion of our revenues during fiscal 2009 and beyond. Any factors adversely affecting the demand for our image sensors in this market could cause our business to suffer and adversely affect our operating results. The digital image sensor market for mobile phones is extremely competitive, and we expect to face increased competition in this market in the future. In addition, we believe the market for mobile phones is also relatively concentrated and the top five producers account for more than 80% of the annual sales of these products. If we do not continue to achieve design wins with key mobile phone manufacturers, our market share or revenues could decrease. The mobile phone image-sensor market is also subject to rapid technological change. In order to compete successfully in this market, we will have to correctly forecast customer demand for technological improvements and be able to deliver such products on a timely basis at competitive prices. If we fail to do this, our results of operations, business and prospects would be materially and adversely affected. In the past, we have experienced problems accurately forecasting customer demand in other markets. In addition, current domestic and global economic conditions could negatively
Read the The complete Report
Gurus who own OVTI
OVTI is in the portfolios of John Hussman, John Hussman.More on OVTI:
Gurus buys and sells of OVTI
10-year financial history of OVTI.
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