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Advanced digital imaging solutions provider, OmniVision Technologies, Inc. (OVTI - Analyst Report) launched an 8-megapixel CameraChip sensor, OV8865 for smartphones and tablets.

OmniVision’s latest offering, OV8865 comes with an enhanced 1.4-micron OmniBSI-2TM pixel. The OV8865 operates at 30 frames per second (FPS) for high-speed photography. It is also capable of taking 1080p high definition (HD) video. Its post-binning resampling filter reduces spatial and image artifacts around the edges to offer clear images.

The new image sensor is almost half the size of its predecessor and comfortably fits into thinner smart devices. The OV8865 consumes less power and thus extends the battery life of these devices.  Manufacturers of smartphones and tablets are likely to benefit from such a power-efficient solution.

Currently, image sensors are gaining popularity due to the rapid adoption of smart devices. The latest range of smartphones and tablets support higher megapixel camera sensors so that consumers can enjoy better picture quality while capturing videos and photos on the move.

According to IDC, smartphones may witness 95.9% growth within a span of four years i.e. 2012-2016. Its shipments may reach 1.405 billion units in 2016. Further, tablets may see a 131.2% jump in the same time period to touch 282.7 million units. The solid growth prospects in these two markets coupled with OmniVision’s market position will likely boost sales of its 8MP solutions.

OmniVision is one of the largest suppliers of CMOS image sensors to multiple end markets, particularly the handset, DSC, DVC, notebook, webcam, security and medical markets, and has a significant share of the total image sensor market. The company has consistently delivered new, technologically advanced products.

OmniVision reported revenues of $336.2 million in the fourth quarter of fiscal 2013, down 20.6% sequentially but up 53.8% over the prior year period. Revenues exceeded management’s guidance range of $300–$330 million. The camera phone market was OmniVision’s largest revenue contributor, bringing in 65% of total revenue. OmniVision saw strength in mobile handsets in the Chinese market, which was offset by seasonal weakness in other geographic regions.

OmniVision shares carry a Zacks Rank #1 (Strong Buy).  Other semiconductor stocks such as Amkor Tech Inc. (AMKR), Formfactor Inc. (FORM - Analyst Report)and Atmel Corp. (ATML - Analyst Report), all have  a Zacks Rank #2 (Buy), and are also worth considering at current levels.

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