Image-sensor devices provider OmniVision Technologies
Let's take a look at what happened in the quarter and how the company may perform for the rest of the year.
Revenues for the quarter jumped 43% to $276.1 million from the year-ago period. The top line went northward as the company continued its trend of strong shipments, shipping more than 170 million image sensors in the quarter. OmniVision supplies image sensors to Apple
Growth in sales resulted in operating income of $40.6 million, a whopping 169% jump from the year-ago period.
The company's balance sheet shows an impressive cash position of $506.1 million and almost no debt, which will stand it in good stead as it strives to improve its offerings and supply cutting-edge sensors to its customers.
The future in focus
Despite having all of these positives in the bag, however, OmniVision forecast second-quarter revenues below Street estimates. The company said it sees sales for the quarter to be in the range of $255 million to $275 million, well below Street estimates of $306.4 million. Although the company didn't provide much insight into why it saw flat revenue growth for the quarter, speculation was rife that Sony
OmniVision supplies its sensors to smartphone makers such as HTC and Motorola Mobility
The Foolish takeaway
OmniVision's earnings announcement was a case of one big potential negative outweighing all the positives. The company has performed well over the previous quarters, but its prospects now depend on whether it loses the Apple contract and how well it can manage without it. Until then, you can keep track about the latest developments at the company by adding it to My Watchlist.
Fool contributor Harsh Chauhan doesn't own any shares in the companies mentioned in this article. The Motley Fool owns shares of Google and Apple. Motley Fool newsletter services have recommended buying shares of Google and Apple, as well as creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.