Dallas, Texas 12/05/2014 (FINANCIALSTRENDS) – OmniVision Technologies, Inc. (NASDAQ:OVTI) recently reported 2Q15 and 1H15 financial results for period ended October 31, 2014. The company reported 6.61% and strong 48.6% YoY increase in its 2Q15 and 1H15 earnings to $28.04 million and $73.37 million, respectively. It translates to earnings of $0.47 per diluted share in 2Q15 and $1.25 per diluted share in 1H15.
The earnings growth is particularly significant given the decline in 2Q15 revenues and higher R&D investment. OmniVision reported 2Q15 revenues of $394.04 million as compared to $397.24 million in 2Q14 and $406.5 million in 1Q15. R&D expenses increased to $34.18 million in 2Q15 from $29.12 million in 2Q14 and $68.91 million in 1H15 from $56.82 million in 1H14.
Operational Highlights and Outlook
Shaw Hong, CEO of OmniVision Technologies, Inc. (NASDAQ:OVTI), expressed that the company’s mobile phone and automotive products led the strong growth through 2Q15. The company also launched high-performance PureCel-S products, which underscores its technology leadership. Mr. Hong also showed confidence in the company’s execution in China and opportunities in India, which is emerging as a key geography for OmniVision.
OmniVision expects 3Q15 revenues to remain in the range of $275 to $305 million and earnings of $0.09 to $0.25 per diluted share. However, the company expects its non-GAAP earnings to be between $0.22 and $0.38 per diluted share, excluding the estimated expense and related tax effects.
Other Financial Indicators
OmniVision Technologies, Inc. (NASDAQ:OVTI) reported non-GAAP net income of $36.9 million or $0.60 per diluted share in 2Q15. Gross margin improved significantly to 22% during 2Q15 from 18.8% in 2Q14. The company ended the period with cash and cash equivalents of $313.99 million as compared to $297.95 million as at April 30, 2014.
OmniVision outperformed the street expectations by significant margin. Analysts surveyed by Zacks Investment Research predicted revenues of $375.8 million and adjusted earnings of $0.5 per share on average.