If you read the 10-Q's and 10-K's filed by Omnivision, read the earnings releases or listen to the cc's, you will notice that there are a number of line items which obfuscate the true picture on Omnivision's margins. What's particularly disturbing is that in the pro forma numbers, Omnivision adds back-in to income the stock-based compensation and one-off expenses such as litigation settlements, yet it does not back-out the sales attributable to previously written-off inventory or payments from suppliers over quality issues. For example, in the latest earnings release dated 11/30/06, I note that the Pro Forma income statement reconciliation did not back-out the benefits of the $1.6M received from a supplier or the impact of sales of $4.1M in previously written-off inventory.
Just another example of shorts grasping for straws. I was really surprised by the Fool allowing that article out. I actually laughed at it. It shows a complete lack of understanding of what a pro-forma must show/report. The fact insiders ate the majority of the pie is not news to anyone, long or short.
I suppose shorts should question the motives of the author/Fool. Most longs here are savey enough to grasp the nieve viewpoint expressed in the article. Probably the article was actually aimed at the little shorts, to give them courage to stay short while the pros get covered.
Now don't everybody crowd the door at once this afternoon. And remember, Santa knows who's being naughty or nice.
Motley Fool has traditional been a supporter. They used to refute Herb's allegations of improper accounting at OVTI. I never thought I would see the day that they are now doing the accusation while Herb remains quiet!! This stock is going DOWN!