Image-sensor devices provider OmniVision Technologies (Nasdaq: OVTI) reported estimate-topping quarterly numbers, but its shares plunged more than 30% after the company's tepid outlook for the second quarter disappointed the Street.

Let's take a look at what happened in the quarter and how the company may perform for the rest of the year.

Cashing in
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 (Nasdaq: AAPL) for the iPhone, and the company cashed in on the boom in sales of the smartphone.

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 (NYSE: SNE) may push Apple out of OmniVision's customer portfolio for the next iPhone model. Loss of one of its most illustrious customers would hurt, but it remains to be seen if these speculations hold water.

OmniVision supplies its sensors to smartphone makers such as HTC and Motorola Mobility (NYSE: MMI). Google's (Nasdaq: GOOG) recent acquisition of Motorola is expected to provide the company further mileage as Android-based smartphones have been recording huge sales. Loss of Apple's order, if it happens, would hurt revenues and put OmniVision's profitability on the back of Motorola's Android phones.

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.