Great article and good information for newbies who might think a 1-2 dollar gain is plenty here. This stock has fallen a long way in a short time for no good reason. The future is still bright here. They're the market leader in camera phone CMOS chips and they're going to make a run at the higher end market now dominated by CCD chips. They're making higher powered CMOS chips (5.1 megapixel), which are cheaper than CCD chips...........they are staying ahead of the pack and that's becoming obvious. Just like Dell stayed ahead of Cpq, Hwp, GTW, and others, OVTI will continue to lead their space.
OmniVision makes CMOS chips, and holds a 32% share of the market for camera phones and a 15% share of the market for digital cameras. (About 70% of digital cameras are based on CCD technology.) Its sales in the past year total $318 million, of which 60% came from camera phones, 20% from digital cameras, 9% each from security cameras and games (for example, Sony's (SNE) PlayStation 2 Eye Toy, which allows users to ditch their control pads and start throwing karate chops to control a digitized image of themselves) and 1% each from car and PC cameras. The company's chips range in picture-quality capability from 100,000 pixels (PC cam) to 3.1 million pixels (decent digital still camera). It hopes to ship new chips capable of recording five million pixels within the next few months.
OmniVision's stock woes began when, instead of reporting fiscal 2004 fourth-quarter and year-end results on June 9, the company announced on that day that it would reschedule the release to June 23, and would likely be restating past results. Management in the release tried to put on a happy face � "Could Upwardly Revise Prior Sales and Net Income" sounded almost like a plus � but nervous investors bailed, sending shares to $16 from $25 within a week.