Revenues for the first quarter of fiscal 2010 were $105.6 million, as compared to $89.1 million in the fourth quarter of fiscal 2009, and $174.3 million in the first quarter of fiscal 2009. GAAP net loss attributable to OmniVision Technologies, Inc. in the first quarter of fiscal 2010 was $9.9 million, or $0.19 per share, as compared to a net loss attributable to OmniVision Technologies, Inc. of $20.1 million, or $0.40 per share in the fourth quarter of fiscal 2009, and net income attributable to OmniVision Technologies, Inc. of $6.2 million, or $0.12 per diluted share in the first quarter of fiscal 2009.

Non-GAAP net loss attributable to OmniVision Technologies, Inc. in the first quarter of fiscal 2010, which excludes stock-based compensation expense and the related tax effects under FAS 123(R), was $3.9 million, or $0.08 per share. Non-GAAP net loss attributable to OmniVision Technologies, Inc. in the fourth quarter of fiscal 2009, which excludes stock-based compensation expense and the related tax effects under FAS 123(R), was $15.0 million, or $0.30 per share. Non-GAAP net income attributable to OmniVision Technologies, Inc. in the first quarter of fiscal 2009, which excludes stock-based compensation expense and the related tax effects under FAS 123(R), was $12.8 million and non-GAAP earnings were $0.25 per diluted share. Refer to the attached schedule for a reconciliation of GAAP net income (loss) attributable to OmniVision Technologies, Inc. to non-GAAP net income (loss) attributable to OmniVision Technologies, Inc. for the three months ended July 31, 2009 and 2008 and for the three months ended April 30, 2009.

Gross margin for the first quarter of fiscal 2010 was 22.4% as compared to 17.0% for the fourth quarter of fiscal 2009 and 25.2% for the first quarter of fiscal 2009. The sequential increase in gross margin resulted primarily from the shipment of fresh inventory at the completion of the Company's inventory reduction effort, combined with an increase in average selling prices due to a more favorable product mix.

The Company ended the period with cash, cash equivalents and short-term investments totaling $309.0 million, an increase of $34.2 million from the previous quarter. The increase primarily reflects cash provided by operations during the quarter.

"We are very pleased with our first quarter results and our guidance for the second quarter as we believe they are a reflection of our technology leadership and strong market position. We are also encouraged that our flagship OmniBSI(TM) and CameraCube(TM) products are both gaining momentum with multiple Tier-1 customers globally," stated Shaw Hong, chief executive officer of OmniVision Technologies, Inc.

"As the macroeconomic environment begins to improve, we are pleased with the many new consumer product introductions which feature our image sensors. We believe the current market demand for our products demonstrates that our operating strategy is well aligned with the demands of the image sensor market."

Outlook

Based on current trends, the Company expects fiscal second quarter 2010 revenues will be in the range of $155 million to $170 million and GAAP net income per share attributable to OmniVision Technologies, Inc. common stockholders will be between breakeven and $0.10 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 attributable to OmniVision Technologies, Inc. common stockholders will be between $0.10 and $0.20 per diluted share. Refer to the table below for a reconciliation of GAAP to non-GAAP net income.

Conference Call

OmniVision Technologies will host a conference call today at 2:00 p.m. Pacific Time to discuss these results further. This conference call can be accessed via a webcast at http://www.ovt.com/. The call can also be accessed by dialing 800-299-7928 (domestic) or 617-614-3926 (international) and entering passcode 29366581.

A replay of the call will remain available at http://www.ovt.com/ for approximately twelve months. A replay of the call will also be available for 48 hours beginning approximately one hour after the call. To access the replay, dial 888-286-8010 (domestic) or 617-801-6888 (international) and enter passcode 64443910.

About OmniVision

OmniVision Technologies, Inc. designs and markets high-performance semiconductor image sensors. Its CameraChip(TM) and CameraCube(TM) products using CameraCube(TM), OmniBSI(TM), OmniPixel , OmniPixel2(TM), OmniPixel3(TM) and OmniPixel3-HS(TM) technologies are highly integrated, single-chip CMOS image sensors for mass-market consumer and commercial applications such as mobile phones, notebooks, security and surveillance systems, digital still cameras, automotive and medical imaging systems and interactive video games. Additional information is available at http://www.ovt.com/.

Safe Harbor Statement

Certain statements in this press release, including statements relating to the Company's expectations regarding revenues and earnings per share for the three months ending October 31, 2009 are forward-looking statements. These forward-looking statements are based on management's current expectations, and certain factors could cause actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the impact of general economic conditions; competition in current and emerging markets for image sensor products, including pricing pressures that could result from competition; fluctuations in sales mix and average selling prices; the Company's ability to obtain design wins from various image sensor device manufacturers including manufacturers of mobile phone, laptops and PCs, digital still cameras and automobile manufacturers; the market acceptance of products into which the Company's products are designed; fluctuations of wafer manufacturing yields and other manufacturing processes; the Company's ability to accurately forecast customer demand for its products; the development, production, introduction and marketing of new products and technology; the potential loss of one or more key customers or distributors; the continued growth and development of current markets and the emergence of new markets in which the Company sells, or may sell, its products; the acceptance of the Company's products in such current and new markets; the Company's strategic investments and relationships, and other risks detailed from time to time in the Company's Securities and Exchange Commission filings and reports, including, but not limited to, the Company's most recent Annual Report on Form 10-K and recent Quarterly Reports on Form 10-Q. The Company expressly disclaims any obligation to update information contained in any forward-looking statement.