Has anyone seen this upcoming Monday's IBD? There is an article/interview with Tessera CEO about the camera chip packaging market. The new product is called OptiML WLC ("WLC/Wafer Layer Camera") They are unveiling it Monday and it sounds like a watershed event. This could be HUGE for ovti one way or the other. If we are in partnership with them, GREAT,,,If not, this could hurt us? I think it's probably positive since this is what OVTI has been working on for quite some time. Should make for an intersting Monday...
OVTI is ahead of the game in Chip Scale Packeging or CSP, which is what the article is talking about. They discussed it in their last earning cc if you traders pay attention to anything beside technicals. OVTI will be able to reduce cost and increase margins in the coming quarters in part because of the CSP
The guy from TSRA didn't know that OVTI already using WLCSP (Wafer Level Chip Scale packaging). OVTI not only uses the technology, but also invested $22 MM in the technology. Now a small company like TSRA sees the light. OVTI is a leader as usual. By the way, TSRA is way overpriced compare to OVTI. Or OVTI is way underpriced.
TSRA has less cash than OVTI (2/3 cash of OVTI), less book value (OVTI = $8.9/shr , TSRA $6.8/shr), 3 times market value of OVTI while its revenue is only 1/3 of OVTI. TSRA income is not stable but it had higher income than OVTI(25% higher for last year) OVTI income was affected by Q4. If OVTI Q4 was the same as previous Quarters then it could match TSRA. TSRA PPS is almost 3 time OVTI. That makes OVTI very inexpensive and TSRA very expensive.
"A description of the product can get complex. But Tessera says Opti-ML WLC will reduce the space needed by camera phone chips by as much as half, giving handset makers more space more to use for other cell phone features. The company also says it will cut the average cost of a lower-end camera lens for cell phones from about $1.50 to $1."
"Makers of camera phone chips...have typically stacked camera lenses together in a plastic container. They would put that on top of an image sensor-the chip that does the computing work in cell phone cameras. It would then go into a cell phone. Tessera has found a way to bond together three or four lenses, depending on the type of camera phone, thus simplifying one of the complex technological challenges in making a camera phone."