SANTA CLARA, Calif., — December 3, 2013 — OMNIVISION Technologies, Inc. (Nasdaq: OVTI), a leading developer of advanced digital imaging solutions, today reported financial results for the second quarter of fiscal 2014 that ended on October 31, 2013.
Revenues for the second quarter of fiscal 2014 were $397.2 million, as compared to $373.7 million in the first quarter of fiscal 2014, and $390.1 million in the second quarter of fiscal 2013. GAAP net income in the second quarter of fiscal 2014 was $26.3 million, or $0.47 per diluted share, as compared to net income of $23.1 million, or $0.42 per diluted share in the first quarter of fiscal 2014, and $10.3 million, or $0.19 per diluted share in the second quarter of fiscal 2013.
Non-GAAP net income in the second quarter of fiscal 2014 was $34.9 million, or $0.60 per diluted share. Non-GAAP net income in the first quarter of fiscal 2014 was $31.7 million, or $0.55 per diluted share. Non-GAAP net income in the second quarter of fiscal 2013 was $18.6 million, or $0.33 per diluted share. Non-GAAP net income excludes stock-based compensation expenses and the related tax effects. Please refer to the attached schedule for a reconciliation of GAAP net income to non-GAAP net income for the three and six months ended October 31, 2013 and 2012 and for the three months ended July 31, 2013.
GAAP gross margin for the second quarter of fiscal 2014 was 18.8%, as compared to 17.4% for the first quarter of fiscal 2014 and 16.6% for the second quarter of fiscal 2013. The sequential increase in second quarter gross margin reflected production cost improvements in some of our high-volume devices, coupled by a decrease in allowance for excess and obsolete inventories and an increase in revenues recorded on the sale of previously written-down inventory.
The Company ended the period with cash, cash equivalents and short-term investments totaling $265.6 million, an increase of $25.1 million from the previous quarter. The increase was primarily attributable to cash provided by operating activities in the second quarter of fiscal 2014.
“In the second quarter of fiscal 2014, OMNIVISION grew revenues in the midst of a slowing smartphone market and intensifying competition. We are happy to report sequential improvements in our gross margin, cash, as well as inventory turns,” said Shaw Hong, chief executive officer of OMNIVISION Technologies, Inc. “We are also excited about the recent launch of our next generation PureCel® sensors. While end-market demand remains volatile, our scale, technology and product portfolio should position us well to weather such volatility over the coming years.”
Outlook
Based on current trends, the Company expects revenues for the third quarter of fiscal 2014 will be in the range of $310 million to $340 million and GAAP net income per share will be between $0.14 and $0.30 per diluted share. Excluding the estimated expense and related tax effects associated with stock-based compensation, the Company expects its non-GAAP net income per share will be between $0.28 and $0.44 per diluted share. Refer to the table below for a reconciliation of GAAP to non-GAAP net income.
Conference Call
OMNIVISION Technologies, Inc. will host a conference call today at 5:00 p.m. Eastern time to discuss these results further. This conference call can be accessed via a webcast at www.ovt.com. The call can also be accessed by dialing 866-271-5140 (domestic) or 617-213-8893 (international) and entering passcode 42196270.
A replay of the call will remain available at www.ovt.com for approximately twelve months. A replay of the call will also be available for one week beginning approximately one hour after the conclusion of the call. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international) and enter passcode 18027390.
