SANTA CLARA, Calif., — August 29, 2013 — OMNIVISION Technologies, Inc. (Nasdaq: OVTI), a leading developer of advanced digital imaging solutions, today reported financial results for the first quarter of fiscal 2014 that ended on July 31, 2013.
Revenues for the first quarter of fiscal 2014 were $373.7 million, as compared to $336.2 million in the fourth quarter of fiscal 2013, and $258.1 million in the first quarter of fiscal 2013. GAAP net income in the first quarter of fiscal 2014 was $23.1 million, or $0.42 per diluted share, as compared to net income of $8.9 million, or $0.17 per diluted share in the fourth quarter of fiscal 2013, and $2.3 million, or $0.04 per diluted share in the first quarter of fiscal 2013. For the first quarter of fiscal 2014, the Company recorded a non-cash tax benefit of approximately $8.9 million that resulted from the lapse of applicable statutes of limitations in certain foreign jurisdictions.
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 fourth quarter of fiscal 2013 was $17.5 million, or $0.31 per diluted share. Non-GAAP net income in the first quarter of fiscal 2013 was $11.6 million, or $0.21 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 months ended July 31, 2013, July 31, 2012 and April 30, 2013.
GAAP gross margin for the first quarter of fiscal 2014 was 17.4%, as compared to 17.5% for the fourth quarter of fiscal 2013 and 19.1% for the first quarter of fiscal 2013. The sequential decrease in first quarter gross margin reflected an increase in allowance for excess and obsolete inventories, partially offset by incremental production cost improvements.
The Company ended the period with cash, cash equivalents and short-term investments totaling $240.5 million, an increase of $28.2 million from the previous quarter. The increase was primarily attributable to cash provided by operating activities in the first quarter of fiscal 2014.
“For the first quarter of fiscal 2014, we are excited to report strong sequential revenue growth in spite of a slowdown in the smartphone market during the second half of the quarter. Nonetheless, as competition intensified in response to the market slowdown, the forecasts for some of our products were negatively affected and we did not see a sequential improvement in gross margin,” said Shaw Hong, chief executive officer of OMNIVISION Technologies, Inc. “We continue to pursue cost reductions across our supply chain, and market diversifications into potential growth areas such as automotive.”
Outlook
Based on current trends, the Company expects revenues for the second quarter of fiscal 2014 will be in the range of $375 million to $410 million and GAAP net income per share will be between $0.21 and $0.38 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 $0.36 and $0.53 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 866-953-6860 (domestic) or 617-399-3484 (international) and entering passcode 19013062.
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 78596760.