CMOS IMAGE SENSORS; AN EMERGING TECHNOLOGY
OmniVision Technologies, Inc. (OVTI), which recently IPO'd, claims their main product is the CMOS image sensor. Their business appears to be explosive. OVTI's most recent fiscal year revenues totaled $40.3 million, up from $5.2 million.
Tower Semiconductor, which also specializes in CMOS image sensors, has similarly seen improved business growth...TSEM's revenues last quarter were up 73% year-over year, with total revenues of $88.6 million in the last 12 months.
Interestingly, while TSEM's revenues are over 2x those of OVTI, Tower's Market Cap is currently 1/2 that of OVTI's.
Nonetheless, the race is not always to the swift. Recently filed SEC documents could portend a chilling future for OVTI:
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From Form S-1/A for OMNIVISION TECHNOLOGIES INC filed with the Securities and Exchange Commission on July 5, 2000
Registration No. 333-31926
edgar-online.com
In March 1999, we received a written notice from Photobit Corporation in
which Photobit claimed to have patent rights in certain image sensor
technology. Photobit requested that we review our products in light of one of
their issued patents U.S. Patent No. 5,841,126. We have reviewed Photobit's
patent and based on an opinion from our patent counsel, we do not believe there
is a valid claim against us under this patent. In June 2000, we received a
second written notice from Photobit, in which Photobit reiterated their claim
on U.S. Patent No. 5,841,126 and further alleged that we infringed upon U.S.
Patent No. 5,886,659, U.S. Patent No. 5,990,506, U.S. Patent No. 6,005,619 and
U.S. Patent No. 6,021,172 related to various aspects of color image sensors.
Photobit did not indicate which of our products nor the manner in which any of
our products might infringe on its patents. We have reviewed these additional
patents and based on an opinion from our patent counsel, we do not believe
there is a valid claim against us under any of these patents. We plan to
vigorously defend ourselves against any claim arising from these notices.
Photobit or other companies may pursue litigation with respect to these or
other claims. The results of any litigation are inherently uncertain. In the
event of an adverse result in any litigation with respect to intellectual
property rights relevant to our products that could arise in the future, we
could be required to obtain licenses to the infringing technology, pay
substantial damages under applicable law, including treble damages if we are
held to have willfully infringed, cease the manufacture, use and sale of
infringing products or to expend significant resources to develop noninfringing
technology. Litigation frequently involves substantial expenditures and can
require significant management attention, even if we ultimately prevail.
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Without question, Photobit is the leader in CMOS image sensors, with three broad patents covering its technology, 13 patents issued, and more than 70 pending.
TSEM Longs can take solace in the fact that Tower is allied with Photobit. (http://www.siliconinvestor.com/readmsg.aspx?msgid=14148608) |
