The Motley Fool investment advice Web site says camera phone CMOS chipset company Omnivision Technologies is worth considering as an investment despite the company's restatement of its financial statements for the first, second and third fiscal quarters of 2004 and sales of stock by company insiders.
The article notes that although OmniVision faces competition in the imaging chipset environment from such companies as Agilent, Micron and STMicroelectronics, OmniVision has advantages because of its specialization, outsourcing of fabrication and smaller size that makes it more flexible in responding to market conditions.
The company supplies imaging chipsets to four of the five major handset vendors, with Nokia being the major exception, the Motley Fool says.
Good financials
The Motley Fool article says OmniVision's internal review and restatement of its financial situation "have increased 2004 net income by $2.7 million to $58.7 million. However, the damage has already been done. Attorneys have been quick to hit the lawsuit button, suing Omnivision for stock fraud."
The bad publicity notwithstanding, the article says OmniVision is the market leader in camera phone chipsets and is "perfectly positioned" to take advantage of the expanding market.
The article explains, "It has $200 million cash in the bank and no debt. Its P/E (TTM) ratio of 18 is a good value for a tech company that experienced triple-digit percentage growth in both revenue and income between 2003 and 2004."
Comments