OmniVision Technologies, Inc. (OVTI)
F3Q10 (Qtr End 01/31/10) Earnings Call Transcript
February 25, 2010 5:00 pm ET
Brian Dunn – IR
Shaw Hong – President and CEO
Ray Cisneros – VP, Worldwide Sales
Bruce Weyer – VP, Worldwide Marketing
Anson Chan – VP, Finance and CFO
Quinn Bolton – Needham & Company
Harsh Kumar – Morgan Keegan
Tristan Gerra – Robert Baird
Paul Coster – JP Morgan
Yair Reiner – Oppenheimer
Betsy Van Hees – Wedbush Securities
Doug Freedman – Broadpoint
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I would now like to turn the presentation over to your host, Mr Brian Dunn. Please proceed sir.
Thank you very much. Good afternoon everyone and welcome to our fiscal 2010 third quarter earnings conference call.
Just after the close of market today, OmniVision issued an earnings release reporting our financial results for our third fiscal quarter. You can access this release from the Investor Relations section of our Web site at ovt.com. Please be advised that this call is being webcast live and is also being recorded for playback purposes. Both the live webcast and replay can also be accessed from the Investor Relations section of our Web site.
Before we begin, we wish to remind you that certain information discussed in this call, in particular, our revenues, earnings targets and our forward-looking product plans is based on information as of today February 25, 2010 and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those set forth in such statements. During the presentation today, we will discuss important factors related to our business, which may potentially affect those forward-looking statements. As a result, we caution you against placing undue reliance on these forward-looking statements, which reflect our opinion only as of today’s date.
For a discussion of these risks and uncertainties, you should review the forward-looking statements disclosure in the earnings release we issued today as well as OmniVision’s SEC filings including our Annual Report on Form 10-K for fiscal 2009 and our quarterly reports on Form 10-Q and other reports filed with the SEC from time to time. And as a reminder, we disclaim any obligation to update information contained in any forward-looking statement.
During this call today we will discuss certain GAAP and non-GAAP financial measures, the latter of which excludes stock-based compensation expenses and other charges that are driven primarily by discrete events that management does not consider to be directly related to our core operating performance such as a goodwill impairment charge in fiscal 2009. A reconciliation between the two is available in our earnings release posted on our Web site.
With that, I will now turn the call over to OmniVision’s President and Chief Executive Officer, Mr Shaw Hong. Shaw?
Thank you, Brian. I would also like to welcome everyone who is participating in our call today. Joining me today are Anson Chan, our CFO; Ray Cisneros our VP of Sales; and Bruce Weyer our VP of Marketing.
Before I discuss the current quarter, I first want to mention that I am pleased that our Board of Directors has appointed Henry Yang, our VP of Engineering to the Board. Henry has been with OmniVision for over ten years. He has been an extremely important contributor to the success of OmniVision, leading the company’s research and engineering efforts for many years. As we move forward, Henry will continue to be a key contributor to the strategic development and business operations of OmniVision.
I will begin the call with an overview of our results for the quarter and then comment on our overall cause [ph] and strategy and (inaudible) of our strategy with our most recent technological advantage and new product introductions. I will ask Ray to begin an overview of our current sales efforts and the recent accomplishments followed by Bruce with his comments on our recent technological and product introductions, and a relationship to our strategic positioning within key markets. Finally, Anson will discuss in detail our financial results for the third fiscal quarter. Anson will also provide our outlook for the fourth quarter of fiscal 2010. We will conclude as usual by answering as many of your questions as time permits.
We reported today our fiscal 2010 third quarter revenues of $157 million as compared to $183 million last quarter. Gross margin improved sequentially to 24.6% for the current quarter from 24% in the second fiscal quarter. We recorded GAAP net income of approximately $5 million or $0.09 per diluted share while our non-GAAP net income totalled $10.8 million or $0.20 per diluted share.
Our financial position remained strong in the cash and short-term investments at quarter end totalling $243 million as consumer expectations and our sophisticated electronic products continues to increase and our customers continued to demand improve image centre technologies and solutions to enhance better performance and to produce innovative products. We are committed to the call of meeting those demands. I believe we have well positioned ourselves across all market segments with our long-term development strategy of expensive product portfolios based on our advanced technologies.