0001104659-14-014190.txt : 20140227 0001104659-14-014190.hdr.sgml : 20140227 20140227163501 ACCESSION NUMBER: 0001104659-14-014190 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20140227 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20140227 DATE AS OF CHANGE: 20140227 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OMNIVISION TECHNOLOGIES INC CENTRAL INDEX KEY: 0001106851 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 770401990 STATE OF INCORPORATION: DE FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-29939 FILM NUMBER: 14649518 BUSINESS ADDRESS: STREET 1: 4275 BURTON DRIVE CITY: SANTA CLARA STATE: CA ZIP: 95054-1512 BUSINESS PHONE: 4085673000 MAIL ADDRESS: STREET 1: 4275 BURTON DRIVE CITY: SANTA CLARA STATE: CA ZIP: 95054-1512 8-K 1 a14-6963_18k.htm 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 


 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)

February 27, 2014

 


 

OMNIVISION TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

 

000-29939

 

77-0401990

(State or other jurisdiction of
incorporation)

 

(Commission File Number)

 

(IRS Employer
Identification No.)

 

4275 Burton Drive

Santa Clara, California 95054

(Address of principal executive offices, including zip code)

 

(408) 567-3000

(Registrant’s telephone number, including area code)

 

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Section 2 — Financial Information

 

Item 2.02                                           Results of Operations and Financial Condition.

 

The following information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition.”  This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

On February 27, 2014 OmniVision Technologies, Inc. issued a press release announcing its financial results for the third fiscal quarter ended January 31, 2014. The full text of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

Section 9 — Financial Statements and Exhibits

 

Item 9.01.  Financial Statements and Exhibits.

 

(d)   Exhibits.

 

The following exhibit is furnished herewith:

 

Exhibit No.

 

Description

99.1

 

Press Release, dated February 27, 2014 of OmniVision Technologies, Inc. announcing its financial results for its third fiscal quarter ended January 31, 2014.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

OMNIVISION TECHNOLOGIES, INC.

 

 

 

 

By:

/s/ Shaw Hong

 

 

Shaw Hong
Chief Executive Officer

 

Date:  February 27, 2014

 

3



 

EXHIBIT INDEX

 

Exhibit No.

 

Description

 

 

 

99.1

 

Press Release, dated February 27, 2014 of OmniVision Technologies, Inc. announcing its financial results for its third fiscal quarter ended January 31, 2014.

 

4


EX-99.1 2 a14-6963_1ex99d1.htm EX-99.1

Exhibit 99.1

GRAPHIC

OMNIVISION REPORTS FINANCIAL RESULTS

FOR THE THIRD QUARTER OF FISCAL 2014

 

SANTA CLARA, Calif., — February 27, 2014 — OmniVision Technologies, Inc. (Nasdaq: OVTI), a leading developer of advanced digital imaging solutions, today reported financial results for the third quarter of fiscal 2014 that ended on January 31, 2014.

 

Revenues for the third quarter of fiscal 2014 were $352.0 million, as compared to $397.2 million in the second quarter of fiscal 2014, and $423.5 million in the third quarter of fiscal 2013. GAAP net income in the third quarter of fiscal 2014 was $30.6 million, or $0.54 per diluted share, as compared to net income of $26.3 million, or $0.47 per diluted share in the second quarter of fiscal 2014, and $21.3 million, or $0.40 per diluted share in the third quarter of fiscal 2013.

 

For the third quarter of fiscal 2014, the Company recorded a one-time after-tax benefit of approximately $15.9 million, or $0.28 per diluted share, related to the initial public offering (“IPO”) of its equity investee, China WLCSP Limited (“WLCSP”). The one-time benefit comprised a step-up in the book value of the Company’s investment in WLCSP, as well as a gain realized by the Company when it sold a portion of its WLCSP equity interest. Since the sale occurred at the end of the third fiscal quarter, the Company’s cash, cash equivalents and short-term investments as of January 31, 2014 did not include the associated sales proceeds.

 

Non-GAAP net income in the third quarter of fiscal 2014 was $40.4 million, or $0.69 per diluted share. Non-GAAP net income in the second quarter of fiscal 2014 was $34.9 million, or $0.60 per diluted share. Non-GAAP net income in the third quarter of fiscal 2013 was $31.5 million, or $0.56 per diluted share. Non-GAAP net income excludes stock-based compensation expenses and the related tax effects. Please refer to the attached schedule for a reconciliation of GAAP net income to non-GAAP net income for the three and nine months ended January 31, 2014 and 2013 and for the three months ended October 31, 2013.

 

GAAP gross margin for the third quarter of fiscal 2014 was 19.6%, as compared to 18.8% for the second quarter of fiscal 2014 and 16.9% for the third quarter of fiscal 2013. The sequential increase in third quarter gross margin was primarily attributable to continued reduction in the Company’s overall production costs.

 

The Company ended the period with cash, cash equivalents and short-term investments totaling $393.0 million, an increase of $127.4 million from the previous quarter. The increase was primarily attributable to cash provided by operating activities in the third quarter of fiscal 2014.

 



 

“Our third quarter performance was better than we expected, and we continued to report improvements on multiple financial metrics, including gross margin and cash position,” said Shaw Hong, chief executive officer of OmniVision Technologies, Inc. “Our flagship PureCel sensors are gaining traction in the market. PureCel sensors have significantly better pixel performance, lower power consumption, and an attractive cost structure. We are very excited about our new product lineup.”

 

Outlook

 

Based on current trends, the Company expects revenues for the fourth quarter of fiscal 2014 will be in the range of $275 million to $305 million and GAAP net income per share will be between $0.05 and $0.21 per diluted share. Excluding the estimated expense and related tax effects associated with stock-based compensation, the Company expects its non-GAAP net income per share will be between $0.19 and $0.35 per diluted share. Refer to the table below for a reconciliation of GAAP to non-GAAP net income.

 

Conference Call

 

OmniVision Technologies, Inc. will host a conference call today at 5:00 p.m. Eastern time to discuss these results further. This conference call can be accessed via a webcast at www.ovt.com. The call can also be accessed by dialing 866-515-2910 (domestic) or 617-399-5124 (international) and entering passcode 49688021.

 

A replay of the call will remain available at www.ovt.com for approximately twelve months. A replay of the call will also be available for ten days beginning approximately three hours after the conclusion of the call. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international) and enter passcode 26599973.

 

About OmniVision

 

OmniVision Technologies, Inc. is a leading developer of advanced digital imaging solutions. Its CameraChip™ and CameraCubeChip™ products are highly integrated, single-chip CMOS image sensors for consumer and commercial applications, including mobile phones, tablets and entertainment devices, notebooks and webcams, security and surveillance systems, digital still and video cameras, automotive and medical imaging systems. Additional information is available at www.ovt.com.

 



 

Safe Harbor Statement

 

Certain statements in this press release, including statements regarding our expectations regarding revenues and earnings per share for the three months ending April 30, 2014 are forward-looking statements. These forward-looking statements are based on management’s current expectations, and certain factors could cause actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, our ability to maintain or increase sales to current key customers and end-users of our products; competition in current and emerging markets for image sensor products, including pricing pressures that could result from competition; our ability to increase the average selling prices or lower the costs associated with the development and manufacture of our new, complex products and technologies; fluctuations of wafer manufacturing costs, manufacturing yields, manufacturing capacity and other manufacturing processes and the impact on gross margins; the continued growth and development of current markets and the emergence of new markets in which we sell, or may sell, our products; fluctuations in sales mix and average selling prices; our ability to timely complete the product development cycle for new sensors; our ability to obtain design wins from various image sensor device manufacturers including manufacturers of mobile phones, tablets and entertainment devices, notebooks and webcams, security and surveillance systems, digital still and video cameras, automotive and medical imaging systems; our dependence on third party wafer foundries and their ability to manufacture our wafers in the required quantities, at acceptable quality, yields and costs, and in a timely manner; our ability to accurately forecast customer demand for our products; the impact of general economic conditions on orders from the end-user customers of our products; the market acceptance of products into which our products are designed; the development, production, introduction and marketing of new products and technology; the occurrence of litigation regarding intellectual property or indemnification claims from our suppliers or customers relating to our intellectual property; our strategic investments and relationships, and other risks detailed from time to time in our Securities and Exchange Commission filings and reports, including, but not limited to, our most recent Annual Report on Form 10-K and recent Quarterly Reports on Form 10-Q. We expressly disclaim any obligation to update information contained in any forward-looking statement.

 

Use of Non-GAAP Financial Information

 

To supplement the reader’s overall understanding of both its reported results presented in accordance with U.S. generally accepted accounting principles (“GAAP”) and its outlook, the Company also presents non-GAAP measures of net income and net income per share which are adjusted from results based on GAAP. In particular, the Company excludes stock-based compensation expenses and the related tax effects. The non-GAAP financial measures which the Company discloses also exclude the effects of stock-based compensation on the number of basic and diluted common shares used in calculating non-GAAP basic and diluted net income per share. The Company provides these non-GAAP financial measures to enhance an investor’s overall understanding of its current financial performance and to assess its prospects for the future. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s operations that, when viewed with its GAAP results and the accompanying reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting the Company’s business. The economic basis for the Company’s decision to use non-GAAP financial measures is that the adjustments to net income did not reflect the on-going relative strength of the Company’s performance.

 



 

The Company’s objective is to minimize any confusion in the financial markets by providing non-GAAP net income and non-GAAP net income per share measurements and disclosing the related components. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

 

The Company uses non-GAAP financial measures for internal management purposes to conduct and evaluate its business, when publicly providing its business outlook and to facilitate period-to-period comparisons. The Company views non-GAAP net income per share as a primary indicator of the profitability of its underlying business. In addition, because stock-based compensation is a non-cash expense and is offset in full by a credit to additional paid-in capital, it has no effect on total stockholders’ equity. As the calculation of non-GAAP financial measures differs between companies, the non-GAAP financial measures used by the Company may not be comparable to similarly titled measures used by other companies. Other than stock-based compensation and the related tax effects, these differences may cause the Company’s non-GAAP measures to not be directly comparable to other companies’ non-GAAP measures. Although these non-GAAP financial measures adjust cost, expenses and basic and diluted share items to exclude the accounting treatment of stock-based compensation, they should not be viewed as a non-GAAP presentation reflecting the elimination of the underlying stock-based compensation programs. Thus, the Company’s non-GAAP presentations are not intended to present, and should not be used, as a basis for assessing what its operating results might be if it were to eliminate its stock-based compensation programs. The Company compensates for these limitations by providing full disclosure of the net income and net income per share on a basis prepared in accordance with GAAP to enable investors to consider net income and net income per share determined under GAAP as well as on an adjusted basis, and perform their own analysis, as appropriate. As a result of the foregoing limitations, the Company does not use, nor does the Company intend to use, the non-GAAP financial measures when assessing the Company’s performance against that of other companies.

 

Estimating stock-based compensation expenses and the related tax effects for a future period is subject to inherent risks and uncertainties, including but not limited to the price of the Company’s stock, stock market volatility, expected option life, risk-free interest rates, and the number of option exercises and sales during the quarter.

 

OMNIVISION TECHNOLOGIES, INC.

 

RECONCILIATION OF GUIDANCE FOR GAAP NET INCOME PER DILUTED SHARE

TO PROJECTED NON-GAAP NET INCOME PER DILUTED SHARE

(unaudited)

 

 

 

Three Months Ending April 30, 2014

 

 

 

GAAP
Range of Estimates

 

 

 

Non-GAAP
Range of Estimates

 

 

 

From

 

To

 

Adjustment

 

From

 

To

 

Net income per share

 

$

0.05

 

$

0.21

 

$

0.14

(1)

$

0.19

 

$

0.35

 

 


 (1)      Reflects estimated adjustment for expenses and related tax effects associated with stock-based compensation.

 



 

OMNIVISION TECHNOLOGIES, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

(unaudited)

 

 

 

January 31,

 

April 30,

 

 

 

2014

 

2013

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

308,927

 

$

190,171

 

Short-term investments

 

84,113

 

22,164

 

Accounts receivable, net

 

134,706

 

166,517

 

Inventories

 

342,153

 

430,315

 

Deferred income taxes

 

3,981

 

4,028

 

Prepaid expenses and other current assets

 

21,809

 

11,982

 

Total current assets

 

895,689

 

825,177

 

Property, plant and equipment, net

 

156,208

 

158,394

 

Long-term investments

 

154,044

 

139,746

 

Goodwill

 

10,227

 

10,227

 

Intangibles, net

 

69,730

 

56,804

 

Other long-term assets

 

32,964

 

36,666

 

Total assets

 

$

1,318,862

 

$

1,227,014

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

149,016

 

$

188,261

 

Accrued expenses and other current liabilities

 

58,418

 

40,274

 

Income tax payable

 

1,461

 

2,904

 

Deferred revenues, less cost of revenues

 

20,252

 

15,493

 

Current portion of long-term debt

 

3,830

 

3,769

 

Total current liabilities

 

232,977

 

250,701

 

Long-term liabilities:

 

 

 

 

 

Long-term income taxes payable

 

83,609

 

90,777

 

Non-current portion of long-term debt

 

32,246

 

35,709

 

Other long-term liabilities

 

6,755

 

4,618

 

Total long-term liabilities

 

122,610

 

131,104

 

Total liabilities

 

355,587

 

381,805

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, $0.001 par value; 100,000 shares authorized; 76,623 shares issued and 56,024 outstanding at January 31, 2014 and 74,574 shares issued and 53,975 outstanding at April 30, 2013, respectively

 

77

 

75

 

Additional paid-in capital

 

655,902

 

616,379

 

Accumulated other comprehensive income

 

2,569

 

3,952

 

Treasury stock, 20,599 at January 31, 2014 and April 30, 2013, respectively

 

(278,683

)

(278,683

)

Retained earnings

 

583,410

 

503,486

 

Total stockholders’ equity

 

963,275

 

845,209

 

Total liabilities and stockholders’ equity

 

$

1,318,862

 

$

1,227,014

 

 



 

OMNIVISION TECHNOLOGIES, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)

(unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

January 31,

 

January 31,

 

 

 

2014

 

2013

 

2014

 

2013

 

Revenues

 

$

352,023

 

$

423,513

 

$

1,122,960

 

$

1,071,714

 

Cost of revenues

 

282,891

 

352,027

 

913,801

 

886,329

 

Gross profit

 

69,132

 

71,486

 

209,159

 

185,385

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research, development and related

 

30,936

 

27,380

 

87,761

 

86,589

 

Selling, general and administrative

 

18,028

 

18,221

 

54,684

 

55,080

 

Amortization of acquired patent portfolio

 

2,321

 

2,321

 

6,964

 

6,964

 

Total operating expenses

 

51,285

 

47,922

 

149,409

 

148,633

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

17,847

 

23,564

 

59,750

 

36,752

 

Equity in earnings of investee

 

837

 

923

 

3,264

 

3,255

 

Interest expense, net

 

(466

)

(715

)

(1,542

)

(2,201

)

Other income (expense), net

 

24,038

 

(5

)

25,206

 

311

 

Income before income taxes

 

42,256

 

23,767

 

86,678

 

38,117

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

11,696

 

2,459

 

6,754

 

4,137

 

Net income

 

$

30,560

 

$

21,308

 

$

79,924

 

$

33,980

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.55

 

$

0.40

 

$

1.44

 

$

0.64

 

Diluted

 

$

0.54

 

$

0.40

 

$

1.42

 

$

0.64

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

55,913

 

53,830

 

55,369

 

53,391

 

Diluted

 

56,186

 

53,930

 

56,472

 

53,497

 

 



 

OMNIVISION TECHNOLOGIES, INC.

 

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME

(in thousands, except per share amounts)

(unaudited)

 

 

 

Three Months Ended

 

Nine Months Ended

 

Three Months
Ended

 

 

 

January 31,

 

January 31,

 

October 31,

 

 

 

2014

 

2013

 

2014

 

2013

 

2013

 

GAAP net income

 

$

30,560

 

$

21,308

 

$

79,924

 

$

33,980

 

$

26,303

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation in cost of revenues

 

999

 

914

 

2,956

 

2,951

 

985

 

Stock-based compensation in research, development and related expenses

 

4,276

 

3,668

 

12,006

 

12,533

 

3,936

 

Stock-based compensation in selling, general and administrative expenses

 

3,668

 

3,206

 

10,950

 

10,266

 

3,552

 

Decrease in provision for income taxes without the effect of stock-based compensation

 

922

 

2,362

 

1,251

 

1,840

 

159

 

Non-GAAP net income

 

$

40,425

 

$

31,458

 

$

107,087

 

$

61,570

 

$

34,935

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP provision for income taxes

 

$

11,696

 

$

2,459

 

$

6,754

 

$

4,137

 

$

1,789

 

Decrease in provision for income taxes without the effect of stock-based compensation

 

922

 

2,362

 

1,251

 

1,840

 

159

 

Non-GAAP provision for income taxes

 

$

10,774

 

$

97

 

$

5,503

 

$

2,297

 

$

1,630

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.72

 

$

0.58

 

$

1.93

 

$

1.15

 

$

0.63

 

Diluted

 

$

0.69

 

$

0.56

 

$

1.83

 

$

1.10

 

$

0.60

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing non-GAAP net income per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

55,913

 

53,830

 

55,369

 

53,391

 

55,584

 

Diluted

 

58,936

 

56,453

 

58,373

 

55,947

 

58,649

 

 

Contact Information

Investor Relations:

Arnab Chanda

OmniVision Technologies, Inc.

408.653.3144

invest@ovt.com

 


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