Ahead of the Bell: OmniVision up on 4Q earnings

NEW YORK (AP) — OmniVision Technologies Inc. shares rose in premarket trading Friday after the chip maker reported a smaller quarterly loss than analysts anticipated and offered a better-than-expected forecast.

Shares jumped $1.27, or 12 percent, to $11.85. The stock has more than doubled in 2009.

The Santa Clara, Calif.-based company reported an adjusted loss of 30 cents per share late Thursday, 3 cents less than analysts expected. Sales were $89.1 million, down 47 percent year-over-year, but well ahead of the $68.2 million analysts projected.

In a client note Friday, Morgan Keegan analyst Harsh Kumar said the sales surprise was driven largely by improvement in areas such as webcams and laptop and "netbook" computers. Netbooks, smaller and cheaper than most laptops, have been gaining in popularity during the recession.

OmniVision's first-quarter guidance also exceeded expectations. It expects an adjusted loss of between 7 cents and 16 cents per share on sales of $90 million to $100 million.

Analysts anticipated a loss of 23 cents on revenue of $74.4 million.

Kumar said the company's management offered few other specifics for the current period, but did say the OmniVision expects better gross margin as "the company burned off some of its high-cost inventory in the April quarter."

Kumar said he would "remain on the sidelines" with his "Market Perform" rating until OmniVision returns to a profit. But he said, "We like the progress the company is making."