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OmniVision Technologies, Inc. Message Board

  • wobatus wobatus Feb 28, 2013 5:36 PM Flag

    The analysts are #$%$


    Amir mentions the lumpiness and says looks like they don't have visibility. The company never gives guidance out beyond quarter, so he has no idea what their visibility is, and why should they guess. Same with Coster's question why they don't give guidance out 2 quarters. The analysts are just #$%$ that it isn't smooth and managed growth. The business doesn't work like that and never has.

    Revenues for the year ending April 2013 will be up 54.5% at the mid-point. And so they went for the revenue opportunity, and so the inventory cost money to build up. It came down some and will take more time. A/R came down too.

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    • as far as I can remember the company hasn't reported a 25% "seasonality" revenue drop from the December quarter so analysts have every right to be frustrated here. They tried to give management a second chance by asking for some general colour about how the year might progress but management declined every further comment due to zero visibility.

      Almost equally disappointing were the gross margin trends as improvements were just marginal despite record revenues. Company is still sitting on boatloads of expensive inventory which will need a couple of quarters more to be sold.

      the one and only bright spot was the cash balance which was up signifcantly as customers paid their bills

      with no revenue visibility going forward and gross margins to stay depressed for an extended time frame the shares remain nothing short of a gamble here. Would expect renewed selling pressure amidst very negative analyst commentary tomorrow. Stock should be sold.

      • 3 Replies to hageneriksson
      • Yes, that's what Peter said too (he has a short memory). This completely ignores the massive sales the last 2 quarters, which obviously drew forward some sales. Someone (duh) wanted massive supplies available to it and said YOU (ovti) have to keep it on your books but available to us. It's pretty damn obvious that this is what's causing the lower margins, the expense of building this supply and making it available versus the price per unit they are getting. So lower margins and lumpy but massive sales, and, overall, bigger profits. The analysts don't like it because it makes them look incompetent, but the company is and will be making more and more money. Did anyone notice the $80 million in extra cash in 3 months?

      • erickarr Feb 28, 2013 10:09 PM Flag

        yes, record revenues are more than offset by near record low margins. i hate it when they give away margin to get revenues. i wish betsy had specifically asked about 12 inch wafer costs still causing high cost structure for supply when it comes to bsi-2. at least the execs said that yeld was optimal so that shouldn't be an excuse for lame margins.

      • The stock is 14 not 34?? It already reflects uncertainty. APPL needs a new refresh. Weak guidance into the weak qtr is not surprising in today's economy. Many companies now refuse to give any guidance! Guidance reflects customer's inventory builds. No surprise in a global recession.

        Anyway world economy is bad news so OVTI doing well considering. Revenue exceeding market cap makes it cheap. Companies usually get sold at 2 times revenue even with no profit. I still think stock is a buy the dip stock at these levels. Any global pick up and earnings will soar.

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