Accounting & Tax

Investors Punish OmniVision for Restatement

Company will put off this year's fiscal fourth quarter and annual results.
Stephen TaubJune 10, 2004

OmniVision Technologies, Inc. stunned investors Wednesday when it announced that it may restate its results for certain quarters of fiscal 2004 and, possibly, fiscal 2003, following an internal review and an independent investigation.

As a result, it will delay the release of its fiscal 2004 fourth-quarter and year-end results to June 23. The news arguably led to a nearly one-third decrease of the market capitalization of the specialty semiconductor company, whose major product captures and converts images for digital cameras and video phones.

The company explained that the investigation includes a review of “cut-off issues” and has not yet reached definitive conclusions.

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The company, however, believes that a restatement could result in the increase of revenue by about $5 million and an undisclosed increase in net income for the nine months ended January 31, 2004.