SUNNYVALE, Calif. – June 11, 2003 – OmniVision Technologies, Inc. (Nasdaq: OVTI) reported that in the fourth quarter of its fiscal year ended April 30, 2003, it earned $6.1 million, or $0.24 per diluted share, on revenues of $39.9 million, compared to net income of $1.6 million, or $0.07 per diluted share, on revenues of $13.1 million in the fourth quarter of fiscal 2002.
For its fiscal year 2003, OmniVision reported net income of $15.3 million, or $0.61 per diluted share, on revenues of $109.0 million, compared to a net loss of $1.3 million, or $0.06 per basic share, on revenues of $46.5 million in fiscal 2002. Fiscal 2002 results reflected a second-quarter charge of $3.5 million related to a litigation settlement.
For the three months ended April 30, 2003, gross profit was $15.4 million, or 38.4% of revenues, and included approximately $1.1 million from the sale of previously written off inventory; without the sale of previously written-off inventory, gross margin would have been 36.8%, and net income would have been approximately $5.3 million, or $0.21 per diluted share. In the comparable period a year ago, gross profit was $6.6 million, or 50.2% of revenues, and included approximately $1.7 million from the sale of previously written-off inventory; without the sale of previously written-off inventory, fourth-quarter 2002 gross margin would have been 42.7%, and the net loss would have been approximately $0.1 million, or $0.01 per basic share.
Because profits in fiscal year ended April 30, 2003 exceeded expectations, the tax rate for the three months ended April 30, 2003 increased to 33% from 19% in the prior quarter, to produce a blended tax rate of 24% for the four quarters of fiscal year ended April 30, 2003.
For the fiscal year ended April 30, 2003, gross profit was $42.1 million, or 38.6% of revenues, and included approximately $3.2 million from the sale of previously writtenoff inventory; without the sale of previously written-off inventory, gross margin for the year would have been 36.8%, and net income would have been $12.9 million, or $0.51 per diluted share.
Direct sales to original equipment manufacturers and value-added resellers accounted for approximately 61% of revenues, with the balance of approximately 39% coming from sales through the Company’s distributors. Research and development expenses were $3.3 million, or 8.3% of revenues, compared to $3.1 million, or 10.3% of revenues, in the prior quarter. Selling, marketing, general and administrative expenses were $3.1 million, or 7.8% of revenues, compared to $2.9 million, or 9.4% of revenues, in the prior quarter.
As of April 30, 2003, the Company had $60.7 million in cash and short-term investments, $80.9 million in working capital, no debt, and stockholders’ equity of $96.5 million.
For the quarter ending July 31, 2003, the Company currently expects to report earnings in a range of $0.18 to $0.19 per diluted share, on revenues of $41 to $43 million; these expectations do not presume the sale of any previously written-off inventory.
Safe Harbor
Certain statements in this press release, including statements relating to the Company’s expectations regarding revenues and earnings for the quarter ending July 31, 2003, are forward-looking statements that are subject to risks and uncertainties. These risks and uncertainties, which could cause the forward looking statements and OmniVision’s results to differ materially, include, without limitation: the degree to which intense competition might affect the Company’s ability to compete successfully in its current markets and in emerging markets; the failure to obtain design wins from camera and cell phone manufacturers, which could inhibit the Company’s ability to diversify its customer base; problems with wafer manufacturing yields, which could result in higher operating costs and adversely affect the Company’s revenues and earnings; the Company’s dependence upon a few key customers, which could adversely affect its revenues and earnings; a decline in the average selling price of the Company’s products, which could result in a decline in its gross margins; the failure of demand for the Company’s products in current markets and emerging markets to meet the Company’s expectations, which could result in lower revenues and earnings; and the other risks detailed from time to time in OmniVision’s Securities and Exchange Commission filings and reports, including, but not limited to, OmniVision’s quarterly reports filed on Form 10-Q. OmniVision disclaims any obligation to update information contained in any forward-looking statement.
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OmniVision Reports Fourth-Quarter and Fiscal-Year 2003 Results
June 11, 2003
OMNIVISION TECHNOLOGIES, INC.
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