OmniVision Technologies, Inc. (OVTI)
F1Q2011 Earnings Call Transcript
August 26, 2010 5:00 pm ET
Brian Dunn – IR
Shaw Hong – President and CEO
Ray Cisneros – VP, Worldwide Sales
Bruce Weyer – VP, Worldwide Marketing
Anson Chan – VP, Finance and CFO
Raj Gill – Needham & Company
Paul Coster – JP Morgan
Betsy Van Hees – Wedbush
Yair Reiner – Oppenheimer & Company
Harsh Kumar – Morgan Keegan
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Good day, ladies and gentlemen, and welcome to the OmniVision Technologies earnings conference call for the first quarter of fiscal 2011. My name is Regina, and I will be your coordinator for today's call. This conference call will include time for questions later in today’s session and all participants are in listen-only mode at this time. (Operator instructions) As a reminder, this conference is being recorded for replay purposes. I would now like to turn our presentation over to your host, Mr. Brian Dunn. Please proceed, sir.
Thank you very much. Good afternoon, everyone, and welcome to our fiscal 2011 first quarter earnings conference call. Just after the close of market today, OmniVision issued an earnings release reporting our financial results for our first fiscal quarter ended July 31, 2010. You can access this release from the Investor Relations section of our website at ovt.com. Please be advised that this call is being webcast live and is also being recorded for playback purposes. Both the live webcast and replay can also be accessed from the Investor Relations section of our website.
Before we begin, we wish to remind you that certain information discussed in this call, in particular, our revenues, earnings targets and our forward-looking product plans, is based on information as of today, August 26, 2010, and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set forth in such statements.
During the call today, we will present important factors related to our business, which may potentially affect these forward-looking statements. As a result, we caution you against placing undue reliance on these forward-looking statements. For a discussion of these risks and uncertainties, you should review the forward-looking statements disclosure in the earnings release we issued today as well as OmniVision’s SEC filings, including our annual report on Form 10-K for fiscal 2010 and our quarterly reports on Form 10-Q and other reports filed with the SEC from time to time. And as a reminder, we disclaim any obligation to update information contained in any forward-looking statement.
During this call today, we will discuss certain GAAP and non-GAAP financial measures, the latter of which excludes stock-based compensation expenses and related tax effects, which management does not consider to be directly related to our core operating performance. A reconciliation between the two is available in our earnings release posted on our website.
With that, I will now turn the call over to OmniVision's President and Chief Executive Officer, Mr. Shaw Hong. Shaw?
Thank you, Brian. I would also like to welcome everyone who is participating in our call today. Joining me today are Anson Chan, our CFO; Ray Cisneros, our VP of Sales; and Bruce Weyer, our VP of Marketing. I will begin the call with an overview of our results for the quarter followed by highlighting our corporate and operational focus in technologies development, markets and the customers’ expectation fulfillment, and global performance and delivery.
I will ask Ray to present an overview of our recent accomplishments and current sales results, followed by Bruce with his comments on our broadening strategic posture within the emerging video-centric world. Finally, Anson will discuss in detail our financial results for the first fiscal quarter. Anson will also provide our outlook for the second quarter of fiscal 2011. We will conclude as usual by answering as many of your questions as time permits.
We reported today our fiscal 2011 first quarter revenues of $193 million, up sharply from the $157 million we reported in our prior fiscal quarter. Gross margin also improved sequentially to 26.9% from 24.9% in the fourth quarter of fiscal 2010. This revenue results were fairly consistent with our expectations and with the first quarter revenue guidance that we provided in our last earnings conference call.
We recorded GAAP net income of approximately $16.9 million or $0.30 per diluted share, also up sharply from the $3.5 million or $0.07 per diluted share we reported last quarter. Our non-GAAP net income for the first quarter totaled $22.4 million or $0.39 per diluted share as compared to $10 million or $0.18 per diluted share last quarter. We maintain our strong financial position with $349 million in cash and short-term investments at quarter-end.
We are again pleased with our reported results this quarter, which reflect our persistent focus of the following. First, being the front runner in imaging sensing technologies development; second, fulfilling markets and customers’ expectations and needs; and third, delivering quality performances with global operations. Continuous innovation and commitment to the advancement of imaging technologies is the engine that drives our entire organization in achieving our strategic goals.
When we entered fiscal 2010, we faced difficult economic background. However, our commitment and execution to expand our leading technologies have not slowed down. And in fact, we are being continuously talking and making announcements about our backside illumination, BSI, CameraCube and OmniPixel3-HS technologies.
First, let me share with you our commitment with BSI technologies development. Our commitment to the advancement of BSI technologies is second to none. As the first company to commercialize the use of this technology, our first generation OmniBSI pixel is already in mass production and has begun to ramp significantly in fiscal 2011 and serves as the basic for our entire 5-megapixel product line.