EXHIBIT 99.1
[OMNIVISION LOGO]
OMNIVISION REPORTS FIRST QUARTER FISCAL 2005 RESULTS--
DILUTED EARNINGS PER SHARE EXCEED TARGET RANGE
SUNNYVALE, CALIF. - AUGUST 24, 2004 - OMNIVISION TECHNOLOGIES, INC.
(NASDAQ:OVTI) today reported financial results for its first quarter of fiscal
2005, ended July 31, 2004.
OmniVision reported revenue of $98.8 million for the first quarter of fiscal
2005, compared to $46.8 million for the first quarter of fiscal 2004 and $99.7
million for the fourth quarter of fiscal 2004. On a year-over-year basis,
revenue grew by 111 percent. Revenue for the first quarter of fiscal 2005 was in
the upper half of OmniVision's target range of $95 million to $100 million,
provided on June 23, 2004.
Diluted earnings per share for the first quarter of fiscal 2005 were $0.32,
compared to $0.12 for the first quarter of fiscal 2004 and $0.34 for the fourth
quarter of fiscal 2004. On a year-over-year basis, diluted earnings per share
grew by 167 percent. Diluted earnings per share for the first quarter of fiscal
2005 exceeded OmniVision's target range of $0.29 to $0.31, also provided on June
23, 2004.
Net income for the first quarter of fiscal 2005 was $19.9 million, compared to
$6.2 million for the first quarter of fiscal 2004 and $20.8 million for the
fourth quarter of fiscal 2004. On a year-over-year basis, net income grew by 219
percent.
"Although our revenue declined by 1 percent quarter to quarter, reflecting a
decrease in demand from the digital camera market, we benefited from continued
growth in shipments for cameraphones, driven by increased demand for our
1.3-megapixel CameraChipTM," said Shaw Hong, president and chief executive
officer. "Our objective is to ramp production and shipment of our new
OmniPixelTM generation of sensors during the October and January quarters. We
believe that the combination of our established CameraChip technology and our
new OmniPixel technology gives OmniVision strong product offerings for all of
our key markets."
Gross profit for the first quarter of fiscal 2005 was $39.7 million, or 40.2
percent of revenue, compared to $17.4 million, or 37.1 percent of revenue for
the first quarter of fiscal 2004 and $40.1 million, or 40.3 percent of revenue
for the fourth quarter of fiscal 2004. Direct sales to original-equipment
manufacturers and value-added resellers accounted for 82 percent of revenue for
the first quarter of fiscal 2005, with the balance of 18 percent coming from
sales through distributors.
Total cash, cash equivalents and short-term investments increased by $32.5
million during the quarter, to $247.7 million. Stockholders' equity increased by
$20.9 million, to $320.9 million.
FINANCIAL TARGETS
To manage the challenges of product transition during the second quarter of
fiscal 2005, the Company plans to reduce production and shipment of established
CameraChip products, while ramping production and shipment of new OmniPixel
products. For the second quarter of fiscal 2005, ending October 31, 2004, the
Company announced target ranges of $80 million to $90 million for revenue and
$0.20 to $0.25 for diluted earnings per share. The Company believes that revenue
and diluted earnings per share will increase quarter to quarter in the third
quarter of fiscal 2005, ending January 31, 2005, as it increases production of
new products.
TELECONFERENCE
At 1:30 p.m. PDT (4:30 p.m. EDT) today, August 24, 2004, the Company will hold a
teleconference to discuss financial results and future plans and prospects. To
participate in the teleconference, please call (toll free) 877-523-2171
approximately 10 minutes prior to the start time. For international callers, the
dial-in number is 706-634-1478. You may also listen live via the Internet at the
Company's website, www.ovt.com, or at www.FullDisclosure.com.
These websites will host an archive of the teleconference. Additionally, a
playback of the call will be available for 48 hours beginning today at 4:30 p.m.
PDT. You may access the playback by calling 800-642-1687, or for international
callers 706-645-9291, and providing Conference ID number 9256791.
ABOUT OMNIVISION
OmniVision Technologies designs, develops and markets high-performance, low-cost
semiconductor image sensors called CameraChips. OmniVision's products are used
to electronically capture analog and digital images in mass-market products such
as cameraphones, digital still and video cameras, security systems, interactive
video games, toys, personal computer cameras, personal digital assistants and
automotive imaging systems. The Company believes that its new OmniPixel
technology enables its new generation of image sensors to deliver the light
sensitivity, resolution, color fidelity and low noise of advanced CCD products,
while also providing the proven advantages that designers have come to expect
from OmniVision's CMOS solutions: low cost, high integration, low power
consumption, wide dynamic range and switchable still-image or video capture.
OmniVision believes that its products enable manufacturers to build camera
products that are smaller, less complex, more reliable, lower cost and more
power efficient than cameras using traditional CCDs or multiple-chip CMOS image
sensors. OmniVision Technologies is headquartered at 1341 Orleans Drive,
Sunnyvale, CA 94089. Additional information is available at www.ovt.com.
OmniVision, CameraChip and OmniPixel are trademarks of OmniVision Technologies,
Inc.
SAFE-HARBOR STATEMENT
Certain statements in this press release, including statements relating to the
Company's expectations regarding revenue and earnings per share for the quarter
ending October 31, 2004 and the quarter ending January 31, 2005 and the
Company's belief that the combination of established CameraChip technology and
new OmniPixel technology gives OmniVision strong product offerings for all of
its key markets are "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are
based on management's current expectations, and as a result of certain risks and
uncertainties actual results may differ materially from those projected. These
risks and uncertainties include, without limitation, the following: the degree
to which intense competition might affect the Company's ability to compete
successfully in current and emerging markets for image sensor products; risks
associated with the Company's ability to obtain design wins from camera, mobile
phone and other image sensor device manufacturers, which could inhibit the
Company's ability to sustain and grow its business; risks associated with wafer
manufacturing yields and other manufacturing processes, which could materially
and adversely affect the Company's revenue and earnings and its ability to
satisfy customer demand; risks associated with the Company's planned
streamlining and consolidation of manufacturing processes, which could adversely
affect the Company's operating expenses and its ability to sustain and expand
its business; risks associated with the development of current and emerging
markets for CMOS image sensor products, generally, and the Company's products,
specifically, which could result in lower revenue and earnings and adversely
affect the Company's business and prospects; risks associated with the Company's
ability to accurately forecast customer demand for its products, which could
impair the Company's ability to meet customer demand for CameraChip products and
could also result in excess inventory; risks associated with the development and
production of new products, which would adversely affect the Company's ability
to compete successfully in the CMOS image sensor market; the Company's
dependence upon a few key customers, the loss of one or more of which could
materially and adversely affect the Company's business and results of
operations; uncertainties associated with the Company's decision to restate
certain of its fiscal 2004 quarterly results of operation; a decline in the
average selling price of the Company's products, which could result in a decline
in the Company's revenue and gross margins; and the other risks detailed from
time to time in the Company's Securities and Exchange Commission filings and
reports, including, but not limited to, the Company's most recent annual report
filed on Form 10-K, as amended. The Company disclaims any obligation to update
information contained in any forward-looking statement.
Contact:
OmniVision Technologies, Inc.
John T. Rossi, 408-542-3000
Silverman Heller Associates
Philip Bourdillon/Gene Heller, 310-208-2550
(financial tables follow)
OMNIVISION TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED
JULY 31, JULY 31,
2004 2003
-------- --------
Revenues $ 98,807 $ 46,839
Cost of revenues 59,068 29,460
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Gross profit 39,739 17,379
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Operating expenses:
Research and development 5,164 3,580
Selling, general and administrative 7,122 4,490
Stock-based compensation charge 203 101
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Total operating expenses 12,489 8,171
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Income from operations 27,250 9,208
Interest income, net 660 222
Other income (loss) (338) --
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Income before income taxes 27,572 9,430
Provision for income taxes 7,720 3,206
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Net income $ 19,852 $ 6,224
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Net income per share:
Basic $ 0.35 $ 0.13
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Diluted $ 0.32 $ 0.12
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Shares used in computing net income per share:
Basic 56,315 47,696
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Diluted 61,131 53,638
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OMNIVISION TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
JULY 31, APRIL 30,
2004 2004
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ASSETS
Current assets:
Cash and cash equivalents $ 194,087 $ 198,053
Short-term investments 53,655 17,158
Restricted cash 1,075 1,072
Accounts receivable, net 56,112 53,513
Inventories 24,137 38,802
Refundable and deferred income taxes 6,518 6,518
Prepaid expenses and other assets 1,882 2,626
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Total current assets 337,466 317,742
Property, plant and equipment, net 20,941 20,622
Long-term investments 8,234 7,110
Other non-current assets 1,461 362
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Total assets $ 368,102 $ 345,836
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 19,514 $ 25,923
Accrued expenses and other liabilities 19,420 11,100
Deferred revenue 8,268 8,800
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Total current liabilities 47,202 45,823
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Stockholders' equity:
Common stock, $0.001 par value; 100,000 shares authorized; 56,376 and
56,212 shares issued and outstanding
56 56
Additional paid-in capital 250,504 249,405
Deferred compensation related to stock options (2) (20)
Accumulated other comprehensive loss (86) (4)
Retained earnings 70,428 50,576
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Total stockholders' equity 320,900 300,013
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Total liabilities and stockholders' equity $ 368,102 $ 345,836
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