Omnivision (NASDAQ:OVTI) left investors with a black eye on June 9 when it plummeted 30% on news that it would be delaying fiscal year 2004 results due to a restatement, and lowering estimates for the first quarter of 2005 below Wall Street's consensus. This news, combined with the fact that seven high-ranking insiders sold $11.1 million worth of shares in March, has raised doubts about the previously high-flying company.

Semiconductor companies are rarely sexy, but Omnivision has been a flashy exception. Its primary product, an image sensor called CameraChip, is used to power digital cameras and mobile camera phones, two devices that have seen dramatic sales growth in the past year. Nokia (NYSE:NOK) has projected global camera phone sales to hit at least 100 million units in 2004 and 300 million units in 2007.

Such a hot market is rarely left alone for long. Agilent (NYSE:A), Micron (NYSE:MU), and STMicroelectronics (NYSE:STM), among others, have begun producing camera chips for phones. However, Omnivision's specialization in the field and market leader status give it a tremendous advantage. Its smaller size and outsourcing of fabrication makes Omnivision more flexible to changing market trends. Omnivision has certainly cut out a niche for itself -- it supplies four out of the five major cell-phone suppliers (beleaguered Nokia being the only exception).

Ultimately, Omnivision's internal review and restatement of results have increased 2004 net income by $2.7 million to $58.7 million. However, the damage has already been done. Attorneys have been quick to hit the lawsuit button, suing Omnivision for stock fraud.

These troubles obscure the fact that Omnivision has great financials that are worth framing up. It has $200 million cash in the bank and no debt. Its P/E (TTM) ratio of 18 is a good value for a tech company that experienced triple-digit percentage growth in both revenue and income between 2003 and 2004. As the market leader in image sensors for the cell-phone market, Omnivision is perfectly positioned to take advantage of this profitable trend.

With such photogenic fundamentals, Omnivision is still a stock to consider despite its current case of bad exposure.

Fool contributor Tim Goh owns a camera phone, but he does not take photos with it. He doesn't own stock in any of the companies mentioned.