Bloomberg News

OmniVision Declines After FBR Reports Missed IPhone Deadline

July 06, 2011

(Updates with closing shares in second paragraph.)

July 6 (Bloomberg) -- OmniVision Technologies Inc., a maker of image sensors for camera phones, declined in U.S. trading after FBR Capital Markets said the company may have missed a deadline to supply an iPhone component to Apple Inc.

The shares of Santa Clara, California-based OmniVision lost $1.26, or 3.6 percent, to $33.41 at 4 p.m. New York time on the Nasdaq Stock Market. OmniVision has gained 13 percent this year.

Chief Executive Officer Shaw Hong is counting on surging demand for smartphones with multiple cameras to boost sales of his imaging technology, he said in a May 26 conference call with investors. OmniVision may lose market share to rival Sony Corp. if the company missed a deadline to provide iPhone equipment to Apple, said Craig Berger, an analyst with FBR in New York.

“Many believed that OmniVision would capture as much as a 90 percent share of iPhone production, which may turn out not to be the case,” Berger said in a note to clients today.

Brian Dunn, a spokesman for OmniVision, didn’t return calls for comment.

--Editors: Lisa Rapaport, Ville Heiskanen

To contact the reporter on this story: Zachary Tracer in New York at ztracer1@bloomberg.net.

To contact the editor responsible for this story: Tom Giles at tgiles@bloomberg.net.


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