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To: microhoogle! who wrote (74821)	1/7/2008 1:41:06 PM
From: microhoogle!	Respond to of 77397

OVTI downgrade:: AP Out of the Gate: OmniVision Falls Monday January 7, 10:19 am ET OmniVision Shares Fall After Analyst Downgrades to "Hold" on Competition, Overbooking NEW YORK (AP) -- Shares of OmniVision Technologies Inc. fell Monday after a Needham & Co. analyst downgraded the image sensor maker to "Hold" from "Buy," citing slowing business and increased competition. ADVERTISEMENT Shares fell 90 cents, or 6.7 percent, to $12.82 after the opening bell. "Based on industry contacts, we believe OmniVision will likely experience a reduction in order rates soon if it has not already due to overbooking last fall in the China handset market," analyst N. Quinn Bolton said in a client note. In October, OmniVision shipped more then 120 million image sensors to clients, a rate that cannot be sustained this period, Bolton said. He lowered his third-quarter shipping estimate to 106 million from 121 million. Prices should also come under increased pressure as competitor Dongbu gains market share, constricting OmniVision's gross margins, Bolton said. And as the DRAM, or dynamic random access memory, market continues to lag, Bolton said big players in that field, such as Samsung Group and Hynix Semiconductor Inc., could move into the image sensor market, further constricting OmniVision's growth. "Were this to happen, we believe OmniVision could face additional downside risk to unit shipments and average selling price," Bolton said in a client note. biz.yahoo.com