During the earnings webcast, OVTI management said that they would off-set any weakness in PC and notebooks sales by their sales in the auto industry.
At the time I didn't realize that OVTI has 50% market share of CMOS imaging in the auto industry, which is becoming a huge growth story in emerging markets:
"According to leading third-party market research firm Techno Systems Research (TSR), the percentage of integrated vehicle cameras using CMOS sensors is projected to increase from around 20 percent in 2008 to more than 70 percent in 2013.
OmniVision Technologies (OVT) is the leading provider of CMOS imaging solutions to the automotive industry with over 50 percent market share* and a proven track record in delivering innovative solutions specifically designed to serve the unique requirements of the automotive industry.
At the forefront of innovation and industry expertise, OmniVision's rich portfolio of AutoVision solutions provides today's automotive designers with the industry's broadest selection of sensors, evaluation kits, and development platforms, enabling faster time-to-market and substantially reduced system costs for both display based and machine vision applications."
had a little tear well up in my eye. Tear of joy from the profits I made ignoring their pleas to try to get me to sell. ;-)
You made a big difference posting. Everyone should follow your posting on OVTI as you seem to know the real story and the story behind the story. Many thanks for your timely and informative factual posts.
Here's info on OVTI's medical imaging sensors:
"OmniVision is the world's largest supplier of CMOS image sensors with over 25 percent of unit shipments in 2008. The company is rapidly expanding into emerging markets, with non-mobile products expected to account for more than 35 percent of sales by 2010. Committed to developing the most cutting-edge digital imaging technologies for the rapidly evolving medical device market, OmniVision is well positioned for leadership as CMOS image sensors are expected to surpass CCD shipments by 2011.
OmniVision's proprietary OmniPixel3-HS technology has enabled the design and development of ultra small medical sensors (1.8 mm) with best-in-class low light performance of 3300 mV/lux-second. Currently, no other CMOS image sensor on the market can claim such high performance and sensitivity in such a small form factor, making OmniPixel3-HS a very compelling solution for the medical devices such as endoscopes and other applications where there is no natural light source to assist with the image capture.
On the backend, OmniVision's CameraCube technology offers an extremely attractive complete camera solution including image sensor, embedded ISP and wafer-level optics, enabling customers to develop very small, disposable cameras that improve patient comfort and care providers' ease of use as well as diagnostic accuracy.
OmniVision offers the broadest portfolio of CMOS image sensors on the market, from sub-VGA to 9-megapixel solutions, available in the industry's broadest selection of package options. Package customization is available to meet specific market needs and all products are delivered with evaluation kits, software and development platforms."
I forogt to add that September is the time to buy tech, so we're in the last day or two of shaking out the weak hands.
Also, if you compare OVTI's stats to SWKS, for example, you'll see that OVTI is way undervalued (i.e., OVTI has about 1/3 of SWKS's share count, OVTI has higher earnings per share and a couple more billion dollars cash on hand than SWKS does (>$8 per share compared to SWKS $1.66 per share).
But even better is OVTI's more diverse portfolio of products, less competitive pressure, and monster growth projected in its smartphone, tablet, auto, and medical sectors.
OVTI will be a monster growth story for the next several years. It has cameras in everything from mobile devices and tablets to autos, security and surveillance, entertainment, and medical devices (it's the company with the disposable cameras for endoscopies).
OVTI--which is the leading camera maker (with up to 14 megapixel HD) and is expanding into India, China, Japan, Korea, and Taiwan--recently put out a press release that say it expects to nearly double the production of its 5 megapixel camera within the next three years (see below).
Based on the recent earnings webcast, OVTI's 8 megapixel camera, which is being ramped for production this quarter, will be an even bigger success. (The ramping for the 8 megapixel is why guidance was lowered. Everytime OVTI's ramps a new product this happens--just as it happens with other companies such as CRUS and SWKS. Creep bears are making a big deal out of this and starting fake rumors in order to scare folks into selling so that the big boys can buy shares on the cheap.) OVTI is a takeout target, and everyone knows it.
Here's part of the recent press release about the 5 megapixel HD camera:
SANTA CLARA, Calif., — August 24, 2011 — OmniVision Technologies, Inc. (NASDAQ: OVTI), a leading developer of advanced digital imaging solutions, today introduced the OV5680, the first 5-megapixel CameraChip™ sensor using OmniVision’s new 1.75-micron OmniBSI-2 pixel. The OV5680 combines best-in-class image quality and sensitivity with high frame rate 1080p high definition (HD) video, making it the highest performance 5-megapixel sensor for mobile applications.
“With the rise of video-centric smartphones, we have experienced a steep ramp in 5-megapixel sensor demand in the past 18 months, and we are continuing to see strong growth forecasts into 2012, and reports are projecting 5-megapixel production to nearly double within the next three years as smartphones have now overtaken feature phones in the US market,” commented Vinoo Margasahayam, product marketing manager at OmniVision, “The OV5680 is designed to meet and exceed the expectations of this highly video-centric market, bridging the quality and performance gaps between mobile phone cameras and dedicated digital video cameras.”
I agree it's size (about 1500 employees), 1 Bil in sales, 500M in cash, low float, 74 yr old CEO all numbers that to me scream buy out.
Compared to STM with 53K employees much easier take out, and a specialty sector niche that a large co. would love to add to its portfolio.