OmniVision Technologies, Inc. Q3 2009 Earnings Call Transcript

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2009-02-26 20:30:33.0

Tags: Analyst, Inventory, Call Transcript, Earnings, Market, Cellular Phones, Advertising & Promotion, Consumer Electronics, Personal Technology, Marketing, Seeking Alpha, OmniVision Technologies

Question-and-Answer Session

Operator

(Operator instructions) Your first question comes from the line of Mike.

Unidentified Analyst

Actually, this is Mike calling for [40.32]. My first question is, maybe, could you provide us an update on the competitive landscape? I mean do you see any kind of share loss or share gain in any particular resolutions or geographies?

Bruce Weyer

Yes. This is Bruce Weyer, the Vice President of Marketing. We are the leader in the market and primary measurements for calendar 2008 would show we believe that we have retained our market share overall. Certainly, you have seen a one competitor this past year remove themselves from the market. So, there are competitive pressures for those people or those companies that are not as strong in the marketplace. We feel strongly about our technology that we have developed between OmniBSI and CameraCube and we feel very comfortable with our market position going forward.

Unidentified Analyst

Okay. So, everything is just a reflection of the end market. It is not any share loss or anything like that?

Bruce Weyer

Yes. We would agree with that.

Unidentified Analyst

Okay. Just a couple real quick, did you mention how much one megapixel was as percentage of revenue or units?

Shaw Hong

No. We do not breakout the megapixel as usual. We broke out just the 2 megapixel and above category versus VJ and below.

Unidentified Analyst

Okay. About the inventory, could you provide some kind of trends of the mix or whether it is weighted towards one resolution more than the other or??

Anson Chan

Yes. I can comment a little bit on that. This is Anson Chan. As I mentioned in the prepared commentary, the investment and inventory are mostly in the high run rate parts with really low obsolescence risks. This pretty much implies that these are in the lower resolution, high volume parts that are used primarily in the value mobile handset arena.

Operator

Your next question comes from the line of Doug Freedman.

Doug Freedman - American Technology Research

If I could just build on the statement that you just made about the inventory that you have, would I not be correct in assuming that the CameraCube product is one that is really targeted for the low end of the market and is there any risk of those products obsolescing some of the inventory that you have on hand to go after the VGA market.

 

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