SUNNYVALE, Calif. — December 13, 2004 — OmniVision Technologies, Inc. (Nasdaq: OVTI) is issuing this statement in response to questions from investors and from the media regarding the reference to an SEC inquiry in the Company’s most recent Form 10-Q for the three months ended October 31, 2004, filed on December 10, 2004. The Company is cooperating with the SEC’s ongoing inquiry, which is informal in nature.
On June 9, 2004, the Company announced that it was considering the restatement of financial results for certain prior periods and rescheduled the release of its results for the fourth quarter and the fiscal year ended April 30, 2004. On June 23, 2004, in conjunction with the release of its full-year results for the fiscal year ended April 30, 2004, the Company issued revised financial statements for the nine months ended January 31, 2004. The restatement principally corrected the timing of revenue recognition for certain sales. In the restatement, the Company reported higher revenues and higher earnings than it had originally reported for the nine-month period. The Company notes that the restatement did not lead to any downward revision of its forward-looking guidance.
Prior to the June 9 announcement, the Company contacted the SEC to advise it of the possible restatement and of an inquiry being conducted by OmniVision’s Audit Committee, assisted by independent counsel, in response to issues raised by an employee. The independent investigation concluded that there was no evidence of wrongdoing.
Since the restatement, the Company has put in place various internal-control policies and procedures which will, it believes, prevent similar financial-statement errors in the future.
At the present time, the Company believes that it is not appropriate for it to respond to questions which go beyond the information contained in this press release.
Statement The statement in this press release that the various internal-control policies and procedures that the Company has put in place will, it believes, prevent similar financial-statement errors in the future is a forward-looking statement that is subject to risks and uncertainties. These risks and uncertainties, which could cause the forward-looking statement to differ materially, include, without limitation, potential errors in the Company’s financial statements and the other risks and uncertainties detailed from time to time in OmniVision’s filings and reports with the United States Securities and Exchange Commission, including, but not limited to, OmniVision’s annual report filed on Form 10-K and its quarterly report filed on Form 10-Q. OmniVision expressly disclaims any obligation to update the information contained in any forward-looking statement.