"The headline-grabbing iPhone 4 from Apple has generated a lot of buzz, including a wave of interest in Omnivision Technologies (OVTI)," says growth stock specialist Mike Cintolo.

The editor of Cabot Top Ten Report explains, "The company is a designer and manufacturer of tiny cameras that turn smart phones into image recorders. As iPhone sales soar, so does OmniVision, which has been confirmed as the maker of the phone's five-megapixel sensor.

OmniVision Technologies (OVTI) shuffled into the earnings spotlight Monday night, and the stock is getting punished as a result. While the company managed to exceed analysts' second-quarter earnings expectations, traders seem utterly dismayed by OmniVision's soft revenue guidance for the current quarter.

Specifically, the maker of semiconductor image sensors banked a second-quarter profit of $8.1 million, or 16 cents per share, reversing its year-ago loss of $5.3 million, or 10 cents per share. Excluding items, earnings arrived at 27 cents per share, compared to Wall Street's consensus forecast for a profit of 16 cents per share. Revenue for the second quarter jumped 12% to $183.3 million, easily outpacing analysts' expectations for $163.9 million.

OmniVision Technologies, Inc. (NASDAQ: OVTI) stepped into the earnings spotlight last night, with the company reporting a fourth-quarter loss of $20.1 million, or 40 cents per share.

Excluding items, the quarterly loss would have been 30 cents per share. Revenue for the period fell 47% to $89.1 million, while gross margin contracted from 27.2% to 17%. Analysts were expecting a wider loss of 46 cents per share on slimmer revenue of $68.3 million.

Looking ahead, OVTI expects a fiscal first-quarter adjusted loss of seven cents to 16 cents per share, with revenue ranging between $90 million and $100 million. The forecast was unexpectedly upbeat; analysts surveyed by Thomson Reuters are expecting a first-quarter loss of 23 cents per share on $74 million in revenue.

Even the technically challenged among us know that digital cameras use no film. Instead, such devices record pictures on solid-state silicon chips called image sensors. One of the best known manufacturers of such chips is headquartered in Sunnyvale, California.

OmniVision Technologies (NASDAQ: OVTI) makes semiconductor image sensor devices called CameraChips. These capture and convert images for such consumer instruments as cameras, surveillance systems, games, videophones and medical imaging units. The firm's customer list includes Sony (NYSE: SNE) and Motorola (NYSE: MOT).

The company pleased investors last week, when it reported Q1 EPS of 23 cents and revenues of $173.1 million. Analysts had been looking for 8 cents and $160.2 million. Management attributed the solid results to a shift in market demand toward its higher-resolution sensors. The firm also guided Q2 EPS to 19-31 cents (13 cent consensus) and Q2 revenues to $210-230 million ($170.88 million consensus). Needham subsequently reiterated its "buy" recommendation on the issue and boosted its price target to $26.

As most of us have now come to realize, there is no film in digital cameras. In fact, such devices record pictures on solid-state silicon chips called image sensors. One of the best known manufacturers of such chips is headquartered in Sunnyvale, California.

OmniVision Technologies (NASDAQ: OVTI) makes semiconductor image sensors called CameraChips. These capture and convert images for such consumer instruments as cameras, surveillance systems, games, videophones and medical imaging units. The firm's customer list includes Sony (NYSE: SNE) and Motorola (NYSE: MOT).

The company pleased investors last week, when it reported Q4 EPS of six cents and revenues of $119.2 million. Analysts had been looking for a loss of a penny and $105.2 million. Management noted that customer demand strengthened as the quarter progressed and guided Q1 EPS to 13-21 cents (6 cent consensus) and Q1 revenues to $155-$165 million ($117.17M consensus). Merriman Curhan Ford and Am Tech/JSA Research subsequently upgraded the issue to "buy." OVTI shares popped into a bullish "flag" consolidation pattern on the news. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with three "buys," twelve "holds" and a "sell." Analysts expect a 30% growth rate, through the next year. The OVTI P/E ratio (19.62), PEG ratio (1.31), Price to Sales ratio (1.68), Price to Book ratio (1.87) and Price to Cash Flow ratio (13.40) compare favorably with industry, sector and S&P 500 averages.

Institutional investors hold about 92% of the outstanding shares. Over the past 52 weeks, the stock has traded between $11.00 and $29.63. A stop-loss of $13.75 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.