A piece of last November's old news,
and a not very significant key word "Wafer-Level Chip Size Packaging (WLCSP)" together made a big picture much more clear behind the scene.
If you have read my previous post
you can see I have been working on to give a plausible explanation on why OVTI is turning around right here right now without revenue from new products like TrueFocus, HDR etc. and also the biggest reason why it lost marketshare to MU in 2006.
My educated guess is sometime in the last year they have successfully solved their yield problem in their current production process which plagued them since late 2005 into 2006, and the company gave out hints about this information in a very low key way in their 10Q (I have to do a detective kind of job to figure that out) and also they started to murmur about previous yield issue in the later investor conference very quietly, which is understandable, no company would like to brag its previous mistakes too loud which has cost a lot of pain to its shareholders.
The key for OVTI's future is actually to further improve its production yield in its future manufacturing process. check my posts : ChinaCSP, Pre-ER
Once it finishes installing and starting volume production, it can gain the vast cost advantage over other competitors because of much improved yield from WLCSP.
And now we all know WLCSP and WLO(Wafer Level Optio) from TSRA will play a critical role in OVTI's coming back. and TrueFocus will further fuel the process of regaining its market dominance, however that will be in year 2008 not year 2007.
Later in 2007 we will hear more and more about WLCSP and WLO. For every OVTI sharesholder, those two words will sound as significant as TrueFocus very soon.