Camera phone sensor vendor OmniVision purchases CDM Optics

OmniVision Technologies, a leader in producing CMOS sensors for camera phones, has purchased CDM Optics for $30 million, the press release says.  CDM offers technology "that substantially increases the performance of a camera system by increasing the depth of field and/or correcting optical aberrations of a photographic image, according to the release.

Explaining CDM's technology, tbe press release says, "The technology, known as Wavefront Coding, uses novel optics and innovative algorithms to transform the essential task of focusing a lens from an opto-mechanical process to one of optical encoding and signal processing.

"By merging optics design and digital signal processing, Wavefront Coding can, for example, significantly expand the depth of field of an image, meaning that the image is in focus over a much wider range of distances from the lens than is possible using conventional focusing systems.

"By eliminating motors and actuators, the technology significantly reduces the size and complexity of the auto-focus function on a camera module."

Motley Fool article

A post on the Motley Fool Web site -- the doesn't discuss the CDM purchase -- presents a detailed discussion of OmniVision.  All such posts should be carefully evaluated, but it's interesting reading if you care about the camera phone sensor market.

The post notes, "Camera phones remain the company's bread and butter.  OVTI has deals with 4 of the 5 major phone producers (the lone holdout being Nokia...and there are rumors that Nokia will come on board). 

"The company reportedly sold some 60-70M units last year (various models), for about a 50% share of the market. This year, the total market for camera phones is expected to increase to 200M units, and in 06, the market is expected to increase to 300M units.

"If OVTI maintains a 50% share, the future is amazingly bright."

Negatives

The author, while bullish on OmniVision, also discusses the company's problems, including a Securities and Exchange Commission investigation, relatively high inventory, weak forward guidance and the opinion the company is in a commodity business (that the author disputes).

Comments

[john]

i want to be a networkengineer.

[hotone_ten]

When considering the future of OVTI, the acquisition of CDM Optics is a MAJOR factor. Just ponder on this fact:

10 years ago, OVTI saw the potential of a new technology, brought it to market and they became the market leader of a multi-billion dollar industry.

Now they are going to do the same for wavefront coding. This is nothing short of revolutionising the imaging industry!

Buying CDM Optics is sheer genius! Overcoming the limitations of phone optical lens systems will spur the demand for higher megapixel camerachips. Not only that, this technology could even mean that the image quality of tomorrow's phone camera can surpass the quality of many of today's DSCs! The whole imaging market will change. Phone cameras (with OVTI exclusive patented technology) will take over consumer camera market. DSCs will only be limited to the (by toiday's standards) very high-end and professional segment.

Even in that high-end segment, OVTI will play an important role. So far, the CCD competition has restricted OVTI to the lower end imaging market. However, wavefront coding is such a breakthrough, that it will be probably be used in all future high-end cameras! OVTI will finally break into the premium market and the Japanese vertical manufacturers will not be able to stop it! They will have to play ball and buy from OVTI.

OVTI has a monopoly on the future of low to high end digital imaging!