O2Micro Reports First Quarter Financial Results

May 5, 2010

GEORGE TOWN, Grand Cayman, May 5, 2010 (GLOBE NEWSWIRE) -- O2Micro® International Limited (Nasdaq:OIIM) reported its financial results today for the first quarter of fiscal 2010, ending March 31, 2010.

Financial Results for the First Quarter ending 3/31/2010:

O2Micro International Limited reported first quarter 2010 revenue of $34.9 million. Revenue increased by 5.2% sequentially and 50.8% versus the year-ago period. The corresponding GAAP gross margin was 61.6% in Q1 2010 versus 60.6% in Q4 2009 and 55.5% in Q1 2009.

GAAP operating expenses were $17.2 million in Q1 2010. The first quarter 2010 GAAP operating expenses included a total of $927,000 for stock-based compensation. These expenses were down from $19.0 million in Q4 2009 and slightly above the $16.8 million that was reported in Q1 2009. R&D expense comprised $8.4 million of total Q1 2010 operating expenses and SG&A expense accounted for the remaining $8.8 million. The GAAP operating margin was 12.2% in the first quarter of 2010. This compares favorably to the operating margins in both Q4 2009 and Q1 2009 when the company recorded margins of 3.4% and (17.1%), respectively.

Non-operating income was $227,000 in the first quarter of 2010 versus $170,000 in Q4 2009 and $920,000 in Q1 2009. Pre-tax Income was $4.5 million in Q1 2010, up from $1.3 million in Q4 2009 and also reversed a pretax loss of $3.0 million in Q1 2009.

GAAP net income was $4.1 million for the first quarter of fiscal 2010. This reflects an increase from net income of $1.0 million in the prior Q4 and also reversed a loss of $3.5 million in the year-ago period. GAAP net income per ADS was $0.11 in Q1 2010, compared to $0.03 in the prior quarter and a loss of $0.10 per ADS in the comparable year-ago quarter.

Supplementary Data:

The company ended the first quarter of 2010 with $111.2 million in unrestricted cash and short-term investments or $3.18 per ADS. The accounts receivable balance was $16.6 million and represented 40 days sales outstanding at the end of the Q1 2010. Inventory was $9.8 million and turned over 5.6 times during Q1 2010. As of March 31, 2010, the company had $119.5 million in working capital and the book value was $176.1 million, or $5.04 per ADS.

As of March 31, 2010, O2Micro International Limited counted 828 employees, including 523 engineers.

Management Commentary:

Sterling Du, Chairman and CEO, commented, "We are pleased that our business is delivering strong profitability. New design wins validate our technological leadership, while key customers are reaping the "green" benefits of our low power chips."

Conference Call: O2Micro will hold its first quarter conference call on May 5, 2010 at 7:00 a.m. PDT, 10:00 a.m. EDT. You may participate using the following dial-in information.

In the U.S. and CANADA: 888-572-7029, passcode #4797418

INTERNATIONAL participants: 719-325-2144, passcode #4797418

A replay of the call will be available by phone for one week following the live call. The replay can be accessed using the following dial-in information.

In the U.S. and CANADA:  888-203-1112, passcode #4797418

INTERNATIONAL participants:  719-457-0820, passcode #4797418

A live simulcast will also be available on the company website at www.o2micro.com, and an online replay will be available on the company's website for one week.

About O2Micro

Founded in April 1995, O2Micro develops and markets innovative power management and security components for the Computer, Consumer, Industrial, and Communications markets. Products include Intelligent Lighting, Battery Management, Power Management, and SmartCardBus® products.

O2Micro International maintains an extensive portfolio of intellectual property with 13,825 patent claims granted, and over 15,000 more pending. The company maintains offices worldwide. Additional company and product information can be found on the company website at www.o2micro.com.

O2Micro, the O2Micro logo, SmartCardBus, and combinations thereof are registered trademarks of O2Micro. All other trademarks are the property of their respective owners.

The O2Micro International Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6567

 
O2Micro International Limited and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income (Unaudited)
(In Thousand U.S. Dollars, Except Per Share Amounts)
  
  
  Three Months Ended
March 31,
 20102009
   
NET SALES $ 34,853 $ 23,110
   
COST OF SALES  13,398  10,286
   
GROSS PROFIT  21,455  12,824
   
OPERATING EXPENSES  
Research and development (1) 8,376  7,984 
Selling, general and administrative (1)  8,836  8,783
Total Operating Expenses  17,212  16,767
   
INCOME (LOSS) FROM OPERATIONS  4,243  (3,943)
   
NON-OPERATING INCOME  
Interest income 257 444
Foreign exchange gain (loss) (1) 487 
Other, net  (29)  (11)
Total Non-operating Income  227  920
   
INCOME (LOSS) BEFORE INCOME TAX 4,470 (3,023)
   
INCOME TAX EXPENSE  376  518
   
NET INCOME (LOSS) 4,094 (3,541)
   
OTHER COMPREHENSIVE INCOME (LOSS)  
Foreign currency translation adjustments 112 (644)
Unrealized gain on available-for-sale securities 1,784 1,503
Unrealized pension gain  2  1
Total Other Comprehensive Income  1,898  860
   
COMPREHENSIVE INCOME (LOSS) $ 5,992 $ (2,681)
   
EARNINGS (LOSS) PER SHARE:  
Basic $ 0.0023 $(0.0019)
Diluted $ 0.0022  NA
   
EARNINGS (LOSS) PER ADS  
Basic $ 0.12 $ (0.10)
Diluted $ 0.11  NA
   
SHARES USED IN EARNINGS (LOSS) PER SHARE CALCULATION:  
Basic (in thousands) 1,778,537 1,838,683
Diluted (in thousands) 1,823,620  NA
   
ADS UNITS USED IN EARNINGS (LOSS) PER ADS CALCULATION:  
Basic (in thousands)  35,571  36,774
Diluted (in thousands)  36,472  NA
   
(1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:  
Research and development $ 275 $ 282
Selling, general and administrative $ 652 $ 489

 

O2Micro International Limited and Subsidiaries
Consolidated Balance Sheets
(In Thousand U.S. Dollars, Except Share Amounts)
   
 March 31,
2010
December 31,
2009
ASSETS(Unaudited)(Audited)
   
CURRENT ASSETS  
Cash and cash equivalents $ 27,427 $ 38,831
Restricted cash   161   236
Short-term investments   83,800   74,502
Accounts receivable, net   16,571   14,556
Inventories   9,804   9,457
Prepaid expenses and other current assets   3,047   3,342
Total Current Assets   140,810   140,924
   
LONG-TERM INVESTMENTS   16,962   15,190
   
PROPERTY AND EQUIPMENT, NET  30,186  30,570
   
OTHER ASSETS  
Restricted assets  1,451  1,443
Intangible assets 4,100 4,266
Other Assets  4,865  4,921
   10,416  10,630
   
TOTAL ASSETS  $198,374  $197,314
   
LIABILITIES AND SHAREHOLDERS' EQUITY  
   
CURRENT LIABILITIES  
Notes and accounts payable  $ 11,698  $ 8,760
Income tax payable   583   411
Accrued expenses and other current liabilities   9,015   7,731
Total Current Liabilities   21,296   16,902
   
OTHER LONG-TERM LIABILITIES  
Accrued pension liabilities 486 498
Long-term income tax payable 344 341
Other liabilities  129  129
   959  968
   
Total Liabilities   22,255   17,870
   
COMMITMENTS AND CONTINGENCIES  
   
SHAREHOLDERS' EQUITY  
Preference shares at $0.00002 par value per share  
Authorized – 250,000,000 shares   --   --
Ordinary shares at $0.00002 par value per share  
Authorized – 4,750,000,000 shares  
Issued – 1,748,332,200 and 1,809,461,200 shares as of March 31, 2010
and December 31, 2009, respectively
   35   36
Additional paid-in capital  138,401  142,679
Retained earnings 33,721 33,214
Accumulated other comprehensive income 5,413 3,515
Treasury stock – 213,224 shares and nil as of March 31, 2010 and
December 31, 2009, respectively
  (1,451)  --
Total Shareholders' Equity   176,119   179,444
   
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $198,374  $197,314
CONTACT:  O2Micro International Limited
          Gary E. Abbott, Director of Investor Relations
          408.987.5920, x8888
          gary.abbott@o2micro.com

(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.