NEW YORK (AP) -- Shares of OmniVision Technologies dropped more than 5 percent by midday Friday as its second-quarter gross margin, a key performance metric, fell sharply.
THE SPARK: The digital sensor maker reported on Thursday that its gross margin declined to 16.6 percent from 30.6 percent in the prior-year period. It was also below the 19.1 percent gross margin in the first quarter. Gross margin is the amount of each dollar in revenue that a company actually keeps.
OmniVision Technologies Inc. said that the weaker gross margin accounts for more advanced product shipments with high manufacturing costs.
OmniVision also reported fiscal second-quarter adjusted earnings of 33 cents per share on revenue of $390.1 million. That topped expectations of analysts polled by FactSet who forecast earnings of 31 cents per share on revenue of $374.6 million.
SHARE ACTION: OmniVision's stock fell 85 cents, or 5.4 percent, to $15.04 in midday trading. The shares have traded in a 52-week range of $10.64 to $21.11. For the year to date, the stock is up 27 percent.