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OmniVision Technologies, Inc. Message Board

  • jomaxum jomaxum Jul 4, 2004 12:03 PM Flag

    OVTI advantage

    Competition in CMOS sensor markets is from large companies with a dedicated division to CMOS cameras such as Kodak and Samsung or smaller companies like Micron (only about 15% - 20% of their business) who bought into CMOS sensor market by acquiring PhotoBit.

    I believe OVTI is the only company 100% dedicated to this market. This means that they focus 100% of product innovation and design advances. The fact that no capital is tiedup in hard assets means they can change rapidly if needed without wasting those hard assets. They can react more quickly to changes in the market. This is always an advantage in new product markets. CMOS camera chips will replace the CCD camera uses in the future in many applications and create new uses not thought of today. Who would have thought that you could combine a camera and a phone 10 years ago? The key is in having a better mouse trap and innovative marketing. I think this will keep CMOS sensor chip tecnology from being a commodity, like memory chips have become, for many years to come.

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    • Research company iSuppli is projecting that the worldwide image-sensor market will grow to include 733 million units shipped in 2008, up from 253 million units in 2003, because of the popularity of camera phones and digital cameras.

      Additionally, the sensor market will shift from charge-couple devices, the basic type of sensor used today, to sensors made with complementary metal oxide semiconductor (CMOS) technology, the same basic method for making microprocessors, said Shyam Nagrani, an analyst with iSuppli. The proliferation of CMOS manufacturing makes it easier to reduce costs and improve the performance of chips. CMOS sensor sales will rise 40 percent each year from 2003 to 2008, the company predicted, compared with 12 percent for charge-couple devices

      • 2 Replies to healthystock2001
      • Research company iSuppli is projecting that the worldwide image-sensor market will grow to include 733 million units shipped in 2008, up from 253 million units in 2003, because of the popularity of camera phones and digital cameras.

        Additionally, the sensor market will shift from charge-couple devices, the basic type of sensor used today, to sensors made with complementary metal oxide semiconductor (CMOS) technology, the same basic method for making microprocessors, said Shyam Nagrani, an analyst with iSuppli. The proliferation of CMOS manufacturing makes it easier to reduce costs and improve the performance of chips. CMOS sensor sales will rise 40 percent each year from 2003 to 2008, the company predicted, compared with 12 percent for charge-couple devices

        ===============

        That's great news for Omnivision. At the last CC, Shaw said as much. Shaw thinks DSC sales will double this year as OEM's switch from CCD to CMOS. The reasons are 1) Picture quality is the same, 2) Cheaper to Build and integrate, 3) Use less battery power.

      • And you really think OVTI will dominate the market? You really think no one else noticed there will be a huge demand for camera's? OVTI got a head start in this business, because this is OVTI's historical core business. However, now it starts to be rewarding to be in the CMOS camera business, a stampede is coming on. The whole sector is rushing to get those MPixel cameras out themselves. And they are gaining ground very well, which isn't really a challenge if you know that current leading companies as OVTI have a quarterly R&D of only $ 3,000,000. In contrast, if one of the big guys get himself a new fab, it's about $ 6,000,000,000. You get the figures? OVTI is in a very good position, but it simply doesn't have the mass not to be crushed by the stampede. And while the margins on CMOS cameras disappear, because of the overinvestment-phase, OVTI will have no future anymore, since they don't have any other product to rely on. A one product company, that is pushed out of the market for this product is a company with no business anymore. For me it's ways too risky to bet on OVTI. Though it's your money, you do with it wat you want.

    • This is a very good example of why Wall Street does not like to company.

      all it's eggs in one basket. a one product company...

      • 1 Reply to orange_is_best
      • it is a big mistake to think OVTI is a one product company. the company is a CMOS producer into three key markets that will provide growth in the future. 1) Auto 2) Security and the 3) Toys. OVTI chips go into Sony Eyetoy and Playstation2. OVTI sells into 5 different markets. the phone camera market is just one and is very new. the phone camera has provide news for OVTI, both good at the beginning and now bad as they are considered a one product company. it is big mistake to consider OVTI with just one product. CMOS chips will be in short supply in future, the Christmas season will drive sales. it is just a matter of time. wonder why OVTI is more profitable and with income growing faster than 95% of public listed companies?

        even Needham said in august 2003 that OVTI sales of toy and video game chips will grow from $22 million to $250 million in 2005..... think about it...

    • OVTI already mentioned in their conference call afer earnings that SONY and Agilent stand as their most formidable competitors. And then there's still MU SSTI
      KODAK and Mitsushita

    • JO,

      Doesn't that also mean OVTI has all their eggs in one basket? What happens if this market (CMOS) takes a dump and they have no other pipelines. Personally, I prefer to invest heavily in companies with multiple technology pipelines. I do not consider that OVTI being the only company 100% dedicated to this to be an advantage.

      • 1 Reply to highwaystar92056
      • Hwy,

        Not necessarily. While it is common wisdom what you say about diversificatio, lately smany of the best performing stocks are one horse ponies like RIMM and TASR. Keep in mind that MU is diversifying becuase their stock has been one of the worst performers for the last 3-4 years but OVTI has been a high flkyer until recently, as a one horse pony. They also mentioned on the cc that they are moving toward a cip set package to diversify into other markets then camera phones. They are really well positioned and they know what they are doing. The one blimp, the accounting adjustment was WAY overblown and now the downward movement is more about trading than any fundementals I am sure we would agree.

 
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