OmniVision Technologies Q1 Profit Rises - Update

(RTTNews) - Digital imaging solutions provider OmniVision Technologies Inc (OVTI), Thursday reported an increase in first-quarter profit, driven largely by growth in revenues and stronger gross margins. Both earnings and revenues for the quarter trounced Wall Street analysts' estimates.

Santa Clara, California-based OmniVision's first-quarter profit rose to $45.3 million or $0.78 per share from $23.1 million or $0.42 per share last year.

Excluding items, adjusted earnings for the quarter rose to $54.4 million or $0.91 per share from $31.7 million or $0.55 per share a year ago. On average, eleven analysts polled by Thomson Reuters estimated earnings of $0.53 per share for the quarter. Analysts' estimates typically exclude special items.

OmniVision's revenue for the three-month period grew to $406.5 million from $373.7 million last year. Ten analysts had a consensus revenue estimate of $382.83 million for the quarter.

Gross margin for the quarter advanced to 21.7 percent from 17.4 percent last year.

"We are pleased with our strong results for the first quarter, driven primarily by our mobile phones and automotive businesses. In addition, we continued to see improvements on multiple financial metrics, including gross margin and cash balance," said CEO Shaw Hong said.

OmniVision has diversified its business into multiple geographies, especially in Asia, and is seeing growth in emerging automotive and security markets. The company is also working on products that have long-term potential.

Looking forward to the second quarter, the company expects adjusted earnings of $0.43 to $0.59 per share with revenues of $360 million to $390 million. Analysts currently expect earnings of $0.49 per share on revenues of $374.53 million for the quarter.

OVTI closed Thursday's trading at $27.18, down $0.01 or 0.04%, on the Nasdaq. The stock, however, gained $0.47 or 1.73%, in after-hours trade.