SANTA CLARA, Calif., — August 27, 2015 — OMNIVISION Technologies, Inc. (Nasdaq: OVTI), a leading developer of advanced digital imaging solutions, today reported financial results for the first quarter of fiscal 2016 that ended on July 31, 2015.
Revenues for the first quarter of fiscal 2016 were $329.9 million, as compared to $285.9 million in the fourth quarter of fiscal 2015, and $406.5 million in the first quarter of fiscal 2015. GAAP net income in the first quarter of fiscal 2016 was $18.2 million, or $0.31 per diluted share, as compared to net income of $6.0 million, or $0.10 per diluted share in the fourth quarter of fiscal 2015, and $45.3 million, or $0.78 per diluted share in the first quarter of fiscal 2015. For the first quarter of fiscal 2016, the Company recorded a non-cash tax benefit of $3.1 million, as compared to $15.1 million for the first quarter of fiscal 2015. These tax benefits reflected the lapses of applicable statute of limitations in certain foreign jurisdictions.
Non-GAAP net income in the first quarter of fiscal 2016 was $28.6 million, or $0.46 per diluted share. Non-GAAP net income in the fourth quarter of fiscal 2015 was $13.9 million, or $0.22 per diluted share. Non-GAAP net income in the first quarter of fiscal 2015 was $54.4 million, or $0.91 per diluted share. Non-GAAP net income excludes stock-based compensation expenses and the related tax effects. Please refer to the attached schedule for a reconciliation of GAAP net income to non-GAAP net income for the three months ended July 31, 2015, July 31, 2014 and April 30, 2015.
GAAP gross margin for the first quarter of fiscal 2016 was 22.6%, as compared to 22.4% for the fourth quarter of fiscal 2015 and 21.7% for the first quarter of fiscal 2015. The sequential increase in the first quarter gross margin reflected a decrease in allowance for excess and obsolete inventories, largely offset by selling price erosions.
The Company ended the period with cash, cash equivalents and short-term investments totaling $593.8 million, an increase of $69.6 million from the previous quarter. The increase was primarily attributable to cash provided by operating activities in the first quarter of fiscal 2016.
“We are pleased with our results for the first quarter. We are encouraged by the sequential growth that we experienced in our mobile phones and automotive markets,” said Shaw Hong, chief executive officer of OMNIVISION Technologies, Inc. “Nevertheless, in the near-term, the business environment and demand from some of our end-markets will remain volatile. We will continue to drive our long-term business strategies as we aim to resume our growth trajectory in the long-term.”
Based on current trends, the Company expects revenues for the second quarter of fiscal 2016 will be in the range of $300 million to $330 million and GAAP net income per share will be between $0.12 and $0.27 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 will be between $0.25 and $0.40 per diluted share. Refer to the table below for a reconciliation of GAAP to non-GAAP net income.
OMNIVISION Technologies, Inc. will host a conference call today at 5:00 p.m. Eastern 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 866-318-8613 (domestic) or 617-399-5132 (international) and entering passcode 95117355.
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 one week beginning approximately one hour after the conclusion of the call. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international) and enter passcode 46433816.