The good news for investors in OmniVision Technologies
Several factors pushed OmniVision's sales lower than expected, including manufacturing trouble with the company's latest backside illumination camera sensors, "slight push-outs" of new product by some key customers, and generally weak demand for entry-level camera phones across Asia.
OmniVision's management views all of these issues as temporary. Main manufacturing partner Taiwan Semiconductor Manufacturing
Most of this may very well be true. The BSI chip architecture sets OmniVision apart from every other competitor, including Sony
Now the company has a few years of manufacturing experience that nobody else can match, not to mention an attractive all-digital autofocus feature. When rumors arose earlier this summer about Apple
Still, indications from elsewhere in the semiconductor and gadget-building industries don't exactly line up with this rosy view of the future. I wouldn't be surprised to see OmniVision's next quarter fall short of expectations again. The stock is sniffing around at three-year highs these days, and the fall from grace may be hard, fast, and painful.
My advice? There will be better times to buy this stock, once we know what's going on with the global market for camera-equipped trinkets. Stay tuned and in focus.
Will momentum override uncertainty and drive OmniVision's stock to even greater heights? Give Anders what-for in the comments below.