AccessMyLibrary provides FREE access to millions of articles from top publications available through your library.
Original Source: FD (FAIR DISCLOSURE) WIRE
. Steven Horwitz, OmniVision Technologies, Inc., Investor Relations
. Shaw Hong, OmniVision Technologies, Inc., President and CEO . Peter Leigh, OmniVision Technologies, Inc., CFO . Ray Cisneros, OmniVision Technologies, Inc., VP of Sales . Bruce Weyer, OmniVision Technologies, Inc., VP of Marketing . Aaron Husock, Morgan Stanley, Analyst . Tayyib Shah, Longbow Research, Analyst . Tristan Gerra, Robert W. Baird, Analyst . Quinn Bolton, Needham & Company, Analyst . Paul Coster, JP Morgan, Analyst . Amit Kapur, Piper Jaffray, Analyst . Adam Benjamin, Jefferies & Company, Analyst . Hans Mosesmann, Raymond James, Analyst . Harsh Kumar, Morgan Keegan, Analyst
Co. reported 3Q08 revenue of $224.9m. 3Q08 GAAP net income was $22.5m or $0.40 per diluted share. 3Q08 non-GAAP diluted EPS was $0.55. Co. expects 4Q08 revenue to be $170-190m, GAAP diluted EPS to be $0.15-0.28 and non-GAAP diluted EPS to be $0.27-0.40.
A. Key Data From Call 1. 3Q08 revenue = $224.9m. 2. 3Q08 GAAP net income = $22.5m. 3. 3Q08 GAAP diluted EPS = $0.40. 4. 3Q08 non-GAAP diluted EPS = $0.55. 5. 3Q08-end DSO = 37. 6. Inventory at 01/31/08 = $121.7m. 7. Cash, cash equivalents and short-term investments at 3Q08-end = $363.3m. 8. Expected 4Q08 revenue = $170-190m. 9. Expected 4Q08 GAAP diluted EPS = $0.15-0.28. 10. Expected 4Q08 non-GAAP diluted EPS = $0.27-0.40.
S1. 3Q08 Business Review (S.H.) 1. Overview: 1. Revenue reached $225m. 2. GAAP earnings were $0.40 per diluted share. 3. Non-GAAP earnings were a record $0.55 per diluted share. 4. Cash and short-term investments remain strong totaling about $363m at 3Q08-end.
5. In 3Q08, sold a record 129m sensors vs. approx. 120m in 2Q08
and 66m in 3Q07. 6. Success depends above all on the three key elements of OVTI's strategy: 1. Technology. 2. Delivering. 3. Service. 2. Technology: 1. Technology is the most important factor in Co.'s continued success and market share growth. 2. As OVTI looks to build on its market leadership position and grow market share, Co. believes the following technology
advantages will enable to continue to deliver industry-leading
products. 3. OmniPixel3-HS or high sensitivity architecture, announced earlier this month. 1. Doubles the sensitivity of 1.75-micron pixel. 2. Dramatic increase in pixel performance significantly enhances image capture, under very low lighting conditions.
3. New pixel will enable a new generation of compact camera solutions with a handset, notebook, and other markets it requires exceptional image quality at higher resolutions, smaller form factors, and low light performance without the needful flash. 4. This technology is available on multiple products. 4. TrueFocus technology is a differentiator for OVTI. 1. Cameras equipped with TrueFocus technology provide two key advantages: 2. Expand the depth of field so that the image is in focus all the way from [20-centimeters] to infinity. 3. Eliminate the time required to focus the conventional
[trends]. 4. TrueFocus technology provides the first point-and-shoot
capability. 5. Recently introduced 1/4-Inch single chip 3-Megapixel product that incorporates TrueFocus technology. 5. System-on-chip solutions with high dynamic range (HDR) anti-shake and near infrared capabilities are industry leaders. 1. HDR allows the sensor to actually capture high and low light levels simultaneously.
2. HDR enables the sensor to adapt quickly to a rapid change in light levels. 3. This functionality is particularly useful in the automotive market. 6. Anti-shake technology compensates for the fact the user is not always able to hold their camera steady, especially in low light conditions image sensors need more exposure time. 7. Near infrared capability is an important feature in automotive and security systems. 1. Needs to operate equally well in the dark as they do in broad daylight.
8. Continues to make progress in the development of next generation pixel technology. 9. High performance 1.4-micron pixel will enable Co. to provide customers with 5-Megapixel solutions on 1/4-inch form factor and 8-Megapixel sensors on 1/3-inch form factor.
3. Delivery: 1. OVTI has constantly demonstrated the ability to deliver cost effective solutions to its customers. 1. Accomplished this in the following ways: 1. Continuously making key improvements throughout the supply chain. 2. Strategic alliance with TSMC has never been stronger. 3. New OmniPixel3-HS architecture represents a perfect sample of the close collaboration between the two companies. 4. Together OVTI evaluated over 100 pixel designs and over 100 process variations in developing this events picture.
2. Partnership with TSMC, OVTI has become one of their top
customers and intends to keep building on this success. 3. Relationship with TSMC includes the JV, VisEra. 1. VisEra is responsible for two critical steps in the manufacturing process. 1. Color filter that is put on top of each pixel in the micro-lens that goes on top of the theater. 2. VisEra new production facility is now operating. 3. Expects to complete transfer of existing equipments and products to the new facility in the July qtr. 4. This new facility allows for significant increase in production volumes. 4. Working closer with TSMC to increase production efficiency as XinTec, primary provider of chip-scale packaging (CSP). 1. Spending relationship with other CSP provider, WLCSP to ensure that Co. has plenty of capacity for this type of [capacity]. 5. Increased the number of automatic tester that Co. has in store in testing facility in Shanghai.
1. Continuing to add more of these instruments as throughput
increases. 1. This advance testing machine already demonstrated the value by enabling the Co. to more rapidly identify ways to
improve [years] at every stage of production. 2. Benefit of these efforts is the delivery of record shipments of 129m sensors this qtr. and continued progress in GM improvements. 4. Service & Support: 1. Ability to meet customers' performance requirements before, during, and after the design phase is a key strategic
advancement. 1. It is through serving large and growing markets such as mobile handsets and enabling new or potential emerging
markets that Co. has created demand for products. 2. Supports customers through offices in North America, Europe, and Asia.
3. It is the combination of technology delivering and service
that enable OVTI to achieve its goal to deliver the highest
quality cost effective image sensors. 1. By accomplishing this goal Co. can continue to increase its market share and deliver superior returns to stockholders. 4. Based on the new products and recent design wins, Co. believes it is better positioned today to achieve this goal than it has ever been. 5. Adoption rate of new technology in the business is accelerated. 1. This plan makes it harder to compete in this business. 2. Excited about the future that requires technology leadership such as OVTI's to effectively compete. 6. In support of …