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OmniVision Shares Surge 12% On Strong Outlook; But Q3 Profit Plunges

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2/23/2012 8:09 PM ET

Shares of OmniVision Technologies, Inc. (OVTI: Quote) surged nearly 12 percent in expended trading on Thursday after the semiconductor company provided earnings and revenue outlook for the fourth quarter, well above Street view.

The company also reported a profit for the third quarter that plunged from last year, reflecting lower margins and revenue decline. Adjusted earnings per share matched analysts' expectations, while quarterly revenues topped their estimates.

"For our third fiscal quarter, we are pleased to report revenues that exceeded the high-end of our guidance. We are also pleased with our latest sensor line-up and we believe we are well-positioned for the consumer product refresh cycle in 2012," CEO Shaw Hong said in a statement.

The Santa Clara, California-based company reported net income of $0.11 million or breakeven per share for the third quarter, sharply down from $44.72 million or $0.75 per share in the prior-year quarter.

Excluding stock-based compensation expenses and related tax effects, adjusted net income for the quarter plunged to $7.40 million or $0.13 per share from $50.99 million or $0.84 per share in the year-ago quarter.

On average, ten analysts polled by Thomson Reuters expected earnings of $0.13 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter dropped to $185.19 million from $265.68 million in the same quarter last year, but topped ten Wall Street analysts' consensus estimate of $175.90 million.

Gross margin for the quarter contracted 560 basis points to 24.2 percent from last year's 29.8 percent.

Looking ahead to the fourth quarter, the company expects adjusted earnings in a range of $0.15 to $0.28 per share, on anticipated revenues between $195 million and $215 million.

Analysts currently expect earnings of $0.10 per share, on revenues of $170.66 million for the fourth quarter.

OVTI closed Thursday's regular trading session at $16.08, up $0.02 or 0.12% on a volume of 4.16 million shares. The surged a further $1.92 or 11.94 in after-hours trading.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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Editors Pick
Chipmaker Advanced Micro Devices Inc. said Thursday after the markets closed that its first quarter loss narrowed from last year, helped by strong revenue growth in its graphics and visual solutions business. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. After trending higher over the past few sessions, stocks showed a lack of direction throughout the trading day on Thursday. The major averages spent the session bouncing back and forth across the unchanged line before ending the day mixed. While the major averages closed on opposite sides of the unchanged line, they all showed only modest moves. U.S. Secretary Of State John Kerry said Thursday that he and his counterparts from Russia, Ukraine and the European Union have reached an agreement on a preliminary plan for ending the ongoing crisis in Ukraine. Kerry was speaking at the end of the Ukraine contact group's first meeting, comprising the foreign ministers of Russia, Ukraine, the EU and the U.S., in the Swiss city of Geneva.
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