OmniVision Reports Financial Results for First Quarter of Fiscal 2010

~ Company Guides To Profitability for its Fiscal 2010 Second Quarter ~

SANTA CLARA, Calif., Aug. 27 /PRNewswire-FirstCall/ -- OmniVision
Technologies, Inc. (Nasdaq: OVTI), a leading developer of advanced digital
imaging solutions, today reported financial results for the first quarter of
fiscal 2010 ended July 31, 2009.

Revenues for the first quarter of fiscal 2010 were $105.6 million, as compared
to $89.1 million in the fourth quarter of fiscal 2009, and $174.3 million in
the first quarter of fiscal 2009. GAAP net loss attributable to OmniVision
Technologies, Inc. in the first quarter of fiscal 2010 was $9.9 million, or
$0.19 per share, as compared to a net loss attributable to OmniVision
Technologies, Inc. of $20.1 million, or $0.40 per share in the fourth quarter
of fiscal 2009, and net income attributable to OmniVision Technologies, Inc.
of $6.2 million, or $0.12 per diluted share in the first quarter of fiscal
2009.

Non-GAAP net loss attributable to OmniVision Technologies, Inc. in the first
quarter of fiscal 2010, which excludes stock-based compensation expense and
the related tax effects under FAS 123(R), was $3.9 million, or $0.08 per
share. Non-GAAP net loss attributable to OmniVision Technologies, Inc. in the
fourth quarter of fiscal 2009, which excludes stock-based compensation expense
and the related tax effects under FAS 123(R), was $15.0 million, or $0.30 per
share. Non-GAAP net income attributable to OmniVision Technologies, Inc. in
the first quarter of fiscal 2009, which excludes stock-based compensation
expense and the related tax effects under FAS 123(R), was $12.8 million and
non-GAAP earnings were $0.25 per diluted share. Refer to the attached schedule
for a reconciliation of GAAP net income (loss) attributable to OmniVision
Technologies, Inc. to non-GAAP net income (loss) attributable to OmniVision
Technologies, Inc. for the three months ended July 31, 2009 and 2008 and for
the three months ended April 30, 2009.

Gross margin for the first quarter of fiscal 2010 was 22.4% as compared to
17.0% for the fourth quarter of fiscal 2009 and 25.2% for the first quarter of
fiscal 2009. The sequential increase in gross margin resulted primarily from
the shipment of fresh inventory at the completion of the Company's inventory
reduction effort, combined with an increase in average selling prices due to a
more favorable product mix.

The Company ended the period with cash, cash equivalents and short-term
investments totaling $309.0 million, an increase of $34.2 million from the
previous quarter. The increase primarily reflects cash provided by operations
during the quarter.

"We are very pleased with our first quarter results and our guidance for the
second quarter as we believe they are a reflection of our technology
leadership and strong market position. We are also encouraged that our
flagship OmniBSI(TM) and CameraCube(TM) products are both gaining momentum
with multiple Tier-1 customers globally," stated Shaw Hong, chief executive
officer of OmniVision Technologies, Inc.

"As the macroeconomic environment begins to improve, we are pleased with the
many new consumer product introductions which feature our image sensors. We
believe the current market demand for our products demonstrates that our
operating strategy is well aligned with the demands of the image sensor
market."

Outlook

Based on current trends, the Company expects fiscal second quarter 2010
revenues will be in the range of $155 million to $170 million and GAAP net
income per share attributable to OmniVision Technologies, Inc. common
stockholders will be between breakeven and $0.10 per diluted share. Excluding
the estimated expense and related tax effects associated with stock-based
compensation, the Company expects its non-GAAP net income per share
attributable to OmniVision Technologies, Inc. common stockholders will be
between $0.10 and $0.20 per diluted share. Refer to the table below for a
reconciliation of GAAP to non-GAAP net income.

Conference Call

OmniVision Technologies will host a conference call today at 2:00 p.m. Pacific
Time to discuss these results further. This conference call can be accessed
via a webcast at www.ovt.com. The call can also be accessed by dialing
800-299-7928 (domestic) or 617-614-3926 (international) and entering passcode
29366581.

A replay of the call will remain available at www.ovt.com for approximately
twelve months. A replay of the call will also be available for 48 hours
beginning approximately one hour after the call. To access the replay, dial
888-286-8010 (domestic) or 617-801-6888 (international) and enter passcode
64443910.

About OmniVision

OmniVision Technologies, Inc. designs and markets high-performance
semiconductor image sensors. Its CameraChip(TM) and CameraCube(TM) products
using CameraCube(TM), OmniBSI(TM), OmniPixel(R), OmniPixel2(TM),
OmniPixel3(TM) and OmniPixel3-HS(TM) technologies are highly integrated,
single-chip CMOS image sensors for mass-market consumer and commercial
applications such as mobile phones, notebooks, security and surveillance
systems, digital still cameras, automotive and medical imaging systems and
interactive video games. Additional information is available at www.ovt.com.

Safe Harbor Statement

Certain statements in this press release, including statements relating to the
Company's expectations regarding revenues and earnings per share for the three
months ending October 31, 2009 are forward-looking statements. These
forward-looking statements are based on management's current expectations, and
certain factors could cause actual results to differ materially from those in
the forward-looking statements. These factors include, without limitation, the
impact of general economic conditions; competition in current and emerging
markets for image sensor products, including pricing pressures that could
result from competition; fluctuations in sales mix and average selling prices;
the Company's ability to obtain design wins from various image sensor device
manufacturers including manufacturers of mobile phone, laptops and PCs,
digital still cameras and automobile manufacturers; the market acceptance of
products into which the Company's products are designed; fluctuations of wafer
manufacturing yields and other manufacturing processes; the Company's ability
to accurately forecast customer demand for its products; the development,
production, introduction and marketing of new products and technology; the
potential loss of one or more key customers or distributors; the continued
growth and development of current markets and the emergence of new markets in
which the Company sells, or may sell, its products; the acceptance of the
Company's products in such current and new markets; the Company's strategic
investments and relationships, and other risks detailed from time to time in
the Company's Securities and Exchange Commission filings and reports,
including, but not limited to, the Company's most recent Annual Report on Form
10-K and recent Quarterly Reports on Form 10-Q. The Company expressly
disclaims any obligation to update information contained in any
forward-looking statement.

Use of Non-GAAP Financial Information

To supplement the reader's overall understanding both of its reported results
presented in accordance with U.S. generally accepted accounting principles
("GAAP") and its outlook, the Company also presents non-GAAP measures of net
income (loss) and net income (loss) per share which are adjusted from results
based on GAAP. In particular, the Company excludes stock-based compensation
expense under FAS 123(R) and the related tax effects. The non-GAAP financial
measures which the Company discloses also exclude the effects of FAS 123(R) on
the number of basic and diluted common shares used in calculating non-GAAP
basic and diluted net income (loss) per share. The Company provides these
non-GAAP financial measures to enhance an investor's overall understanding of
its current financial performance and to assess its prospects for the future.
These non-GAAP financial measures reflect an additional way of viewing aspects
of the Company's operations that, when viewed with its GAAP results and the
accompanying reconciliations to the corresponding GAAP financial measures,
provide a more complete understanding of factors and trends affecting the
Company's business. The economic basis for the Company's decision to use
non-GAAP financial measures is that the adjustments to net income did not
reflect the on-going relative strength of the Company's performance. The
Company's objective is to minimize any confusion in the financial markets by
providing non-GAAP net income (loss) and non-GAAP net income (loss) per share
measurements and disclosing the related components. These non-GAAP financial
measures should be considered as a supplement to, and not as a substitute for,
or superior to, the financial measures prepared in accordance with GAAP.

The Company uses non-GAAP financial measures for internal management purposes
to conduct and evaluate its business, when publicly providing its business
outlook and to facilitate period-to-period comparisons. The Company views
non-GAAP net income (loss) per share as a primary indicator of the
profitability of its underlying business. In addition, because stock-based
compensation is a non-cash expense and is offset in full by a credit to
paid-in capital, it has no effect on total stockholders' equity. As the
calculation of non-GAAP financial measures differ between companies, the
non-GAAP financial measures used by the Company may not be comparable to
similarly titled measures used by other companies. Other than stock-based
compensation, these differences may cause the Company's non-GAAP measures to
not be directly comparable to other companies' non-GAAP measures. Although
these non-GAAP financial measures adjust cost, expenses and basic and diluted
share items to exclude the accounting treatment of stock-based compensation
and goodwill impairment, they should not be viewed as a non-GAAP presentation
reflecting the elimination of the underlying stock-based compensation
programs. Thus, the Company's non-GAAP presentations are not intended to
present, and should not be used, as a basis for assessing what its operating
results might be if it were to eliminate its stock-based compensation
programs. The Company compensates for these limitations by providing full
disclosure of the net income (loss) attributable to OmniVision Technologies,
Inc. and net income (loss) per share attributable to OmniVision Technologies,
Inc. common stockholders on a basis prepared in accordance with GAAP to enable
investors to consider net income (loss) attributable to OmniVision
Technologies, Inc. and net income (loss) per share attributable to OmniVision
Technologies, Inc. common stockholders determined under GAAP as well as on an
adjusted basis, and perform their own analysis, as appropriate. As a result of
the foregoing limitations, the Company does not use, nor does the Company
intend to use, the non-GAAP financial measures when assessing the Company's
performance against that of other companies.

Estimating stock-based compensation expense and the related tax effects for a
future period is subject to inherent risks and uncertainties, including but
not limited to the price of the Company's stock and the number of option
exercises and sales during the quarter.

OMNIVISION TECHNOLOGIES, INC.

RECONCILIATION OF GUIDANCE FOR GAAP NET INCOME PER SHARE
TO PROJECTED NON-GAAP NET INCOME PER SHARE
(unaudited)

Three Months Ending October 31, 2009
GAAP Non-GAAP
Range of Estimates Range of Estimates
From To Adjustment From To
Net income per share
attributable to
OmniVision(1)
Technologies, Inc.
common stockholders $0.00 $0.10 $0.10(1) $0.10 $0.20
===== ===== ======= ===== =====

(1) Reflects estimated adjustment for expense and related tax effects
associated with stock-based compensation in accordance
with FAS123(R).

OMNIVISION TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
(unaudited)

July 31, April 30,
2009 2009(1)
ASSETS
Current assets:
Cash and cash equivalents $258,928 $257,808
Short-term investments 50,076 16,973
Accounts receivable, net of allowances
for doubtful accounts and sales returns 48,367 43,978
Inventories 99,160 105,024
Deferred income taxes 1,171 1,092
Prepaid expenses and other current assets 7,620 7,779
----- -----
Total current assets 465,322 432,654
Property, plant and equipment, net 119,295 119,071
Long-term investments 84,950 85,469
Intangibles, net 5,763 7,396
Other long-term assets 23,065 22,341
------ ------
Total assets $698,395 $666,931
======== ========

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $56,723 $28,775
Accrued expenses and other current
liabilities 12,283 12,153
Income taxes payable 2,078 692
Deferred revenues, less cost of revenues 11,931 7,176
Current portion of long-term debt 3,554 3,555
----- -----
Total current liabilities 86,569 52,351
------ ------
Long-term liabilities:
Long-term income taxes payable 81,946 81,266
Non-current portion of long-term debt 31,979 32,867
Other long-term liabilities 6,747 8,109
----- -----
Total long-term liabilities 120,672 122,242
------- -------
Total liabilities 207,241 174,593
------- -------
Equity:
OmniVision Technologies, Inc.
stockholders' equity:
Common stock, $0.001 par value; 100,000
shares authorized; 63,224 issued and
50,683 outstanding at July 31, 2009
and 62,590 shares issued and 50,049
outstanding at April 30, 2009,
respectively 63 63
Additional paid-in capital 411,647 403,159
Accumulated other comprehensive income 818 773
Treasury stock, 12,541 at July 31, 2009
and April 30, 2009, respectively (178,683) (178,683)
Retained earnings 253,673 263,529
------- -------
Total OmniVision Technologies, Inc.
stockholders' equity 487,518 488,841
Noncontrolling interest 3,636 3,497
----- -----
Total equity 491,154 492,338
------- -------
Total liabilities and equity $698,395 $666,931
======== ========

(1) As adjusted due to the adoption of SFAS No. 160.

OMNIVISION TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

Three Months Ended
July 31,
2009 2008(1)

Revenues $105,560 $174,279
Cost of revenues 81,890 130,386
------ -------
Gross profit 23,670 43,893
------ ------

Operating expenses:
Research, development and related 18,432 20,300
Selling, general and administrative 14,160 17,382
------ ------
Total operating expenses 32,592 37,682
------ ------

Income (loss) from operations (8,922) 6,211
Interest income (expense), net (204) 1,276
Other income, net 568 49
--- ---
Income (loss) before income taxes (8,558) 7,536

Provision for income taxes 1,188 1,413
----- -----
Net income (loss) (9,746) 6,123
Net income (loss) attributable to noncontrolling
interest 110 (105)
--- -----
Net income (loss) attributable to OmniVision
Technologies, Inc $(9,856) $6,228
======= ======

Net income (loss) per share attributable to
OmniVision Technologies, Inc. common
stockholders:
Basic $(0.19) $0.12
====== =====
Diluted $(0.19) $0.12
====== =====

Shares used in computing net income (loss) per
share attributable to OmniVision Technologies,
Inc. common stockholders:
Basic 50,574 51,257
====== ======
Diluted 50,574 51,878
====== ======

(1) As adjusted due to the adoption of SFAS No. 160.

OMNIVISION TECHNOLOGIES, INC.

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS)
(in thousands, except per share amounts)
(unaudited)

Three Months
Three Months Ended Ended
July 31, April 30,
2009 2008 2009
GAAP net income (loss) attributable
to OmniVision Technologies, Inc. $(9,856) $6,228 $(20,052)
Add:
Stock-based compensation in cost of
revenues 808 873 691
Stock-based compensation in
research, development and related
expenses 2,453 2,916 2,918
Stock-based compensation in selling,
general and administrative expenses 2,837 3,156 2,547
Increase in provision for income
taxes without the effect of
stock-based compensation (179) (370) (1,117)
----- ----- -------
Non-GAAP net income (loss)
attributable to OmniVision
Technologies, Inc. $(3,937) $12,803 $(15,013)
======= ======= ========

Non-GAAP net income (loss) per share
attributable to OmniVision
Technologies, Inc. common
stockholders:
Basic $(0.08) $0.25 $(0.30)
====== ===== ======
Diluted $(0.08) $0.25 $(0.30)
====== ===== ======

Shares used in computing non-GAAP
net income (loss) per share
attributable to OmniVision
Technologies, Inc. common
stockholders:
Basic 50,574 51,257 50,044
====== ====== ======
Diluted 50,574 52,016 50,044
====== ====== ======

SOURCE OmniVision Technologies, Inc.

Chesha Gibbons, Investor Relations of OmniVision Technologies, Inc.,
+1-408-653-3263