OmniVision – Rebound Ahead ?

Suffrage paraders: Mrs. McLennan, Mrs. Althea ...

Suffrage paraders: Mrs. McLennan, Mrs. Althea Taft, Mrs. Lew Bridges, Mrs. Burleson, Alberta Hill, Miss Ragsdale (LOC) (Photo credit: The Library of Congress)

OVTI

NASDAQ : US$13.61

Disappointing revenue guidance sent shares of Omnivision lower on Friday, but Canaccord Technology Analyst Bobby Burleson expects a rebound considering:

1) design wins are strong with Chinese smartphone OEMs, who are likely to grow global market share;

2) OVTI’s Apple (AAPL) smartphone prospects were already dim; and

3) valuation is compelling even with a number cut.

OVTI reported Q4 Revenues and EPS of $423.5 million and $0.56, compared to consensus estimates of $411 million/$0.41 and Burleson’s estimates of $410 million/$0.41. Management guided Q1/C13 (Apr) to be down sequentially 25% Q/Q at the mid-point, with revenues expected to be $300-330 million and EPS is expected to be $0.14-0.29. This compared to consensus estimates of $371 million/$0.32 and Burleson’s estimate of $375 million/$0.36.

On the weak guidance, Burleson revised his estimates for the company, now seeing Q1 revenue coming in at $315 million (down from $375
million) and full-year revenue being $1.415 billion (down from $1.587 billion). On the earnings front, he sees Q1 EPS of $020 (down from $0.36) and for the full year, he sees $1.62 (down from $1.24).

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