On November 30th OmniVision Technologies, Inc., a provider of CMOS image sensors used in mobile phones and digital cameras, reported fiscal 2007 2nd quarter revenue of $137.7 million. This compares to revenue of $126.8 million in the fiscal 2nd quarter of 2006. On a Gaap basis, net income was $5.4 million or 10 cents per share. On an adjusted basis, which excludes stock option expense and a litigation settlement expense, net income was $15.7 million or 28 cents per share. Gross margins were 33% during the quarter. On an adjusted basis, operating margins were 15%.
     During the fiscal 2nd quarter 85% of revenue was derived from the mobile phone market. Also during the quarter OmniVision's largest customer accounted for 18% of revenue. Two distributors each accounted for 14% and 13% of revenue. Sales outside the U.S. accounted for 99% of revenue.
     For the 3rd fiscal quarter OmniVision expects revenue to be $135 - $145 million with earnings per share of 5-12 cents. On an adjusted basis the company expects earnings will be 16-23 cents per share. During the earnings conference call the company stated that it is well positioned to introduce new and technologically advanced products ahead of the competition.
     OmniVision has cash and investments worth $370.3 million or $6.77 per share. Book value is $8.02 per share and the company carries less than half a million dollars of debt. At the current level the stock has a price-to-sales ratio of just 1.3 and a price-to-book ratio of just 1.5.
     In the 2 year chart below you can see that the stock is testing the area where it found support in late 2005. Since that time the book value has increased by approximately 30%.