Is OmniVision Technologies a Buy Today?

Shares of OmniVision Technologies (NASDAQ: OVTI  ) dropped as much as 10% in today's trading after the company announced earnings yesterday after the bell. The second-quarter numbers came in above analysts' expectations, but according to tech and telecom bureau chief Evan Niu, the key problem was lowered guidance for the third quarter. Headwinds in the smartphone market were partly to blame for the guidance, as 60% of OmniVision's sales come from the mobile phone market. Between slower sales and heavy competition from Sony and Samsung, Evan thinks that OmniVision will have a lot of trouble going forward, and he doesn't think it's a good investment right now.

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  • Report this Comment On December 04, 2013, at 5:49 PM, Suzaane wrote:

    OmniVision cites lower shipments of HD sensors and a slowdown in the automotive sector over the holiday season as reasons for its lowered guidance. To some degree, the pessimism is well founded. The automotive market, which currently accounts for less than 10% of the company’s revenues, is experienceing a slowdown in Europe, and with automotive OEMs in Europe closed during the Christmas season, there will be further pressure on OmniVision during the fourth quarter of FY14.

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