OmniVision shares rise as it beats the analysts estimated revenue target

OmniVision Technologies saw a rise in its shares on Friday as it announced the quarterly report to the public late Thurday.

According to the report, the company beat analysts’ views on the revenues and boosted confidence among investors. In the first fiscal quarter ended July 31, the company reported revenues of $258.1 Million that were down 14 percent from the same period a year-earlier but beat consensus of the analysts at $243.8 Million.

However, it missed on the expected 22-cent profit per share minus items by a cent, which was 72 percent down from year-earlier quarter.

The upbeat was that despite the slow economy and low demand in the market, OmniVision  kept the loop moving. The company specializes in the manufacturing of image sensors for electronic equipments like smartphones, tablets, digital cameras, laptops and nearly every other device that has a camera lens attached to it.

It is also believed that OmniVision is Apple’s main supplier of such components in the manufacturing of iPhones, iPads and other devices that boast cameras. However, the company denies to confirm the alliance and Apple never reveals its suppliers or does not talk about them much. But it is believed that the upcoming new iPhone will have OmniVision’s image sensors in them.

That could have been one of the factors why the company raised its next quarter revenues. OmniVision expects the revenues to rise to $355 Million to $390 Million during the quarter ending October 31, which is far more than the estimated $269 Million by the Street. Its estimated profit per share ranges from 21 to 37 cents minus items.

“Demand growth from smartphone and tablet applications continues to accelerate,” OmniVision CEO Shaw Hong told analysts on a conference call late Thursday. “We believe our participation in the mobile phone market and the entertainment market will continue to be the major driver for our top line performance in fiscal 2013.”

Analyst Bobby Burleson stated that the company’s confidence in expected a higher revenue in the next quarter means that it is working on the higher end of business circle. However, it still might have something to do with Apple and its upcoming release of the next-gen iPhone.

Short URL: https://www.newspakistan.pk/?p=32049

Posted by Usman Khalid on Sep 3 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.