 |
 |
Date Announced: 07 Nov 2011
Image sensor specialist slashes sales expectations by 20%; also announces a $100 million stock buyback program.
SANTA CLARA, Calif., Nov. 7, 2011 /PRNewswire/ -- OmniVision Technologies, Inc. (Nasdaq:OVTI - News), a leading developer of advanced digital imaging solutions, today revised its revenues outlook for the fiscal second quarter, which ended on October 31, 2011.
The company currently projects net revenues for the second quarter of fiscal 2012 to be in the range of $212 million to $217 million. This compares to the revenues forecast of $255 million to $275 million announced on August 25, 2011. This revised outlook reflects an unexpected cutback in orders for certain key projects that are currently in production. This has reduced the unit sales of OmniBSI™ and OmniPixel3-HS™ based products. The company expects the business environment to remain volatile, especially in consumer-oriented product markets. As such, the company is expecting a more cautionary outlook for its third fiscal quarter.
Separately, towards the end of the second fiscal quarter, the company started to ship in very limited quantities the OV8830, the company's 8-megapixel OmniBSI-2™ based product. The company will continue to promote this product to key customers, and successful engagement in new projects may in the longer term provide growth opportunities.
Stock buy-back
OmniVision today announced that its Board of Directors authorized a program to repurchase up to $100 million of the company's outstanding common stock, effective immediately. The exact amount, method and timing of any purchases under the stock repurchase program will be subject to market conditions, legal requirements, management's judgment, as well as other factors. The program does not obligate the company to acquire any particular amount of stock and purchases under the program may be commenced or suspended at any time, or from time to time, without prior notice. The company noted that the stock repurchase program may be modified, extended, or terminated by the Board of Directors at any time.
"We are disappointed by the recent demand falloff that has impacted our second quarter revenues. However we believe our stock represents an attractive investment for OmniVision and its investors and that this action attests to our strong confidence in the long-term strength and viability of the company, its technology and its broad market and product portfolios. We also believe that the stock repurchase program is in the best interest of our stockholders and demonstrates our commitment to increase stockholder value," said Shaw Hong, Chief Executive Officer of OmniVision Technologies, Inc.
OmniVision acknowledges that its anticipated results are preliminary, based on the best information currently available and subject to completion of the financial statements and its quarter-end financial results. OmniVision will not be providing additional financial guidance for its fiscal second quarter at this time, and no conference call will be held in conjunction with this business update. The company anticipates reporting its fiscal second quarter financial results on Tuesday, November 29, 2011. Details of the conference call will be provided at a later date.
Source: OmniVision
E-mail: via web site
Web Site: www.ovt.com/
| © 2024 SPIE Europe |
|
