(Reuters) - Image sensor maker OmniVision Technologies Inc OVTI.O reported a quarterly profit that missed Wall Street expectations and forecast weak earnings for the current quarter, as inventory write-downs dented its gross margins.
OmniVision shares were down 5 percent at $15.40 in after-market trade, after closing at $16.18 on Thursday on the Nasdaq.
The company — which makes back-lit image sensors for most Apple Inc (AAPL.O) products and for Motorola’s Droid series of handsets — has faced intensifying competition in recent times as several companies, including Sony Corp (6758.T), launched similar sensors.
OmniVision’s stock price has halved since last July as it lost a major contract to supply image sensors for Apple Inc’s (AAPL.O) latest phone iPhone 4s to Sony.
The company — which pioneered imaging sensors that use both sides of a chip to deliver better quality in a smaller-sized camera — forecast first-quarter adjusted earnings of 16 cents to 27 cents per share.
Analysts on average were expecting 29 cents per share, according to Thomson Reuters I/B/E/S.
The company expects first-quarter revenue of $235 million to $255 million, while analysts are expecting $219.2 million.
OmniVision’s net income for the fourth quarter was $2.7 million, or 5 cents per share, compared with $34 million, or 56 cents a share, a year earlier.
Excluding items, the company earned 20 cents per share.
Revenue fell 15 percent to $218.5 million.
Analysts expected earnings of 22 cents a share, on revenue of $205.4 million.
Gross margin for the fourth quarter fell to 22.5 percent, from 30.7 percent a year earlier.
Reporting by Chandni Doulatramani in Bangalore; Editing by Viraj Nair