OmniVision Technologies Inc. (OVTI) Thursday said its second-quarter profit halved from last year, despite higher revenues, as bottom line was hurt by weak margins and increased expenses. Nevertheless, the digital imaging solutions company's earnings and revenues came in ahead of Wall Street estimates. OmniVision also detailed an outlook for the third quarter, which is expected to beat current expectations.
OmniVision, whose image sensor are used in Apple Inc.'s (AAPL) iPhones and iPads, said second-quarter revenues grew to $390.1 million from $217.92 million last year. Ten analysts polled by Thomson Reuters estimated revenues of $374.98 million for the quarter.
Gross margin, or percentage of revenues left after deducting production costs, dropped sharply to 16.6 percent from 30.6 percent last year.
Total operating costs for the three-month period increased to $50.8 million from $47.1 million last year.
Santa Clara, California-based OmniVision's second-quarter profit dropped to $10.3 million or $0.19 per share from $21.0 million or $0.35 per share in the same period prior year. Adjusted earnings slipped to $0.33 per share from $0.48 per share last year. Analysts expected earnings of $0.31 per share for the quarter. Analysts' estimates typically exclude one-time items.
Looking forward to the third quarter, the company expects earnings of $0.17 to $0.30 per share, adjusted earnings of $0.33 to $0.46 per share, and revenues of $390 million to $425 million. Analysts currently expect earnings of $0.35 per share on revenues of $365.24 million for the third quarter.
OVTI closed Thursday's trading at $15.89, up $0.21 or 1.34%, on a volume of 2.9 million shares, on the Nasdaq. In after hours, the stock gained $0.02 or 0.13%.
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