OmniVision (OVTI) shares jumped after the bell Wednesday as the company restated three of the last four quarters of financial reports, adding $8.9 million in sales to the previous tallies.
The digital camera chip maker, which
blindsided investors earlier this month when it announced it was investigating revenue timing issues, also cut its fourth-quarter guidance to the low end of expectations.
But Omnivision said Wednesday that an internal audit related to its restatement revealed no wrongdoing. The company cut previously reported sales for its third quarter ended Jan. 31 by nearly $1 million and added $10 million to the previous quarter ended Oct. 31. In total, the restatements add $8.9 million in revenue and bump up net income by $2.7 million, or 4 cents a share, over previous totals.
Shares of the Sunnyvale, Calif. camera-on-a-chip maker rose $1.52, or 9%, to $17.58 in aftermarket trading Wednesday.
The company said on June 9 that it expected the restatement to add $5 million in revenue for the July, October and January quarters in 2003. Investors dumped the stock that day, sending the price down as much as $7.74, or 30% to $17.73 on word of the investigation and a tepid outlook.
For the most recent quarter ended April 30, Omnivision posted a net income of 34 cents a share on $99 million in sales. That compares to 10 cents a share on sales of $40 million in the year-ago period. Analysts surveyed by Reuters Research had expected a profit of 32 cents on $101 million in revenue.
OmniVision was a big Nasdaq winner in 2003, with a stock gain of 280% for the year. But the ranks of skeptics started to grow early this year as competitive pressure and heavy insider selling caught some investors' attention.
With the runaway success of camera phones, big competitors like
have introduced chips for phones. This is likely to threaten OmniVision's dominant position.