O2Micro Reports Q4 2011 and Year-End Results
GEORGE TOWN, Grand Cayman, Feb. 1, 2012 (GLOBE NEWSWIRE) -- O2Micro® International Limited (Nasdaq:OIIM) reported its financial results today for the fourth quarter of 2011 and full fiscal year, ending December 31, 2011.
Financial Highlights for the Fourth Quarter ending December 31, 2011:
O2Micro International Limited reported Q4 2011 revenue of $28.7 million. Revenue was down 11% from the prior quarter and 5% below the comparable year-ago quarter. The gross margin was 56.1% in the recent quarter, up from 55.5% in Q3 2011 and below the 60.2% that was reported in Q4 2010. During the fourth quarter of 2011, the company incurred $16.5 million in GAAP operating expenses. Q4 2011 GAAP operating expenses were flat with Q3 2011 and slightly above the comparable year-ago period when operating expenses were $15.7 million. These results yielded a GAAP operating loss of $408,000 in Q4 2011, compared to operating income of $1.2 million and $2.5 million in the prior and comparable year-ago quarters, respectively. The corresponding GAAP operating margins for Q4 2011, Q3 2011, and Q4 2010 were (1.4%), 3.9%, and 8.2%, respectively. Pretax income from continuing operations was $2.0 million in the fourth quarter of 2011, compared to $1.8 million in the prior quarter and $2.9 million in Q4 2010. The recent quarter included a one-time gain of $1.6 million in non-operating income for the sale of a long-term investment. GAAP net income was $1.9 million in Q4 2011, up from $1.4 million in the third quarter of 2011 and reversed a loss of $636,000 from the comparable Q4 2010 period. In Q4 2010, the company recorded an after-tax loss of $3.5 million from discontinued operations with related after-tax gain of $49,000 and after-tax loss of $36,000 that were included in Q4 2011 and Q3 2011, respectively. The corresponding GAAP net income per ADS was $0.06 in the fourth quarter of 2011, $0.04 in the third quarter of 2011, and a net loss of $0.02 in the fourth quarter of 2010.
Financial Highlights for the Twelve Months ending December 31, 2011:
O2Micro International Limited produced revenue of $124.3 million in 2011. Revenue was down by 10% from 2010 when the company reported revenue of $137.8 million. The gross margin in 2011 was 57.1%, compared to 61.4% in 2010. GAAP operating expenses totaled $63.9 million and $62.1 million in 2011 and 2010, respectively. The 2011 operating expenses reflected a reduction of $850,000 in operating expenses from litigation income received during the year. The GAAP operating income was $7.1 million in 2011 and $22.4 million in 2010. The corresponding GAAP operating margins were 5.7% and 16.3% in 2011 and 2010, respectively. Pretax income from continuing operations was $10.5 million in 2011 and $23.4 million in 2010. In 2011, the company recorded a one-time gain of $1.6 million net of taxes that was related to the sale of a long-term investment. GAAP net income in 2011 and 2010 was $9.4 million and $12.2 million, respectively. In 2010, the company recorded an after-tax loss of $9.8 million from discontinued operations and a related after-tax gain of $9,000 that was included in the 2011 results. The corresponding GAAP net income per fully diluted ADS was $0.28 in 2011 and $0.35 in 2010.
The company ended the fourth quarter of 2011 with $125.6 million in unrestricted cash and short-term investments or $3.80 per outstanding ADS. The accounts receivable balance was $12.1 million and represented 41 days sales outstanding at the end of Q4 2011. Inventory was $7.9 million or 62 days and turned over 5.8 times during Q4 2011. As of December 31, 2011, the company had $132.5 million in working capital and the book value was $182.5 million, or $5.52 per outstanding ADS.
As of December 31, 2011, O2Micro International Limited counted 786 employees, including 427 engineers.
Sterling Du, Chairman and CEO, commented, "In 2011 we diversified our business with strong growth in power products and general lighting." Mr. Du continued, "As we look forward to 2012, we are excited about the market opportunity that is developing in general lighting and a continuation of our success in core power and backlighting markets."
Conference Call: O2Micro will hold its fourth quarter conference call on February 1, 2012 at 6:00 a.m. PST, 9:00 a.m. EST. You may participate using the following dial-in information.
|In the US and CANADA:||800-227-9428, passcode # 3477998|
|INTERNATIONAL participants:||785-830-1925, passcode # 3477998|
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 US and CANADA:||888-203-1112, passcode # 3477998|
|INTERNATIONAL participants:||719-457-0820, passcode # 3477998|
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.
Founded in April 1995, O2Micro develops and markets innovative power management and e-commerce components for the Computer, Consumer, Industrial, and Communications markets. Products include Intelligent Lighting, Battery Management, and Power Management.
O2Micro International maintains an extensive portfolio of intellectual property with 18,727 patent claims granted, and over 20,000 more pending. The company maintains offices worldwide. Additional company and product information can be found on the company website at www.o2micro.com.
The O2Micro International Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6567
O2Micro, the O2Micro logo, and combinations thereof are registered trademarks of O2Micro. All other trademarks or registered trademarks are the property of their respective owners.
Statements made in this release that are not historical, including statements regarding O2Micro's or management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Factors that could cause actual results to differ materially include risks and uncertainties such as reduced demand for products of electronic equipment manufacturers which include O2Micro's products due to adverse economic conditions in general or specifically affecting O2Micro's markets, technical difficulties and delays in the developments process, and errors in the products. You are also referred to the Form F-1 in connection with the company's initial public offering in August 2000, Form F-3 in connection with the company's public offering in November 2001, and the annual reports on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The company assumes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
|O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES|
|CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME|
|(In Thousand U.S. Dollars, Except Per Share Amounts)|
|Three Months Ended||Years Ended|
|December 31,||December 31,|
|NET SALES||$ 28,666||$ 30,187||$ 124,283||$ 137,789|
|COST OF SALES||12,577||12,006||53,273||53,205|
|OPERATING EXPENSES (INCOME)|
|Research and development (1)||8,545||8,135||33,591||31,055|
|Selling, general and administrative (1)||7,952||7,561||31,165||31,087|
|Total Operating Expenses||16,497||15,696||63,906||62,142|
|INCOME (LOSS) FROM OPERATIONS||(408)||2,485||7,104||22,442|
|Gain on sale of long-term investment||1,619||--||1,619||--|
|Foreign exchange gain (loss) — net||39||25||46||(150)|
|Other — net||329||162||451||151|
|Total Non-operating Income||2,366||392||3,378||928|
|INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX||1,958||2,877||10,482||23,370|
|INCOME TAX EXPENSE||121||54||1,063||1,325|
|NET INCOME FROM CONTINUING OPERATIONS||1,837||2,823||9,419||22,045|
|INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX (1)||49||(3,459)||9||(9,843)|
|NET INCOME (LOSS)||1,886||(636)||9,428||12,202|
|OTHER COMPREHENSIVE INCOME (LOSS)|
|Foreign currency translation adjustments||315||1,404||941||2,583|
|Unrealized gain (loss) on available-for-sale securities||(1,874)||(307)||(1,619)||1,687|
|Unrealized pension loss||(37)||(188)||(25)||(183)|
|Total Other Comprehensive Income (loss)||(1,596)||909||(703)||4,087|
|COMPREHENSIVE INCOME||$ 290||$ 273||$ 8,725||$ 16,289|
|BASIC EARNINGS (LOSS) PER ADS|
|Continuing operations||$ 0.06||$ 0.08||$ 0.28||$ 0.65|
|$ 0.06||$ (0.02)||$ 0.28||$ 0.36|
|DILUTED EARNINGS PER ADS|
|Continuing operations||$ 0.06||$ 0.08||$ 0.28||$ 0.63|
|$ 0.06||$ (0.02)||$ 0.28||$ 0.35|
|ADS UNITS USED IN EARNINGS (LOSS) PER ADS CALCULATION:|
|Basic (in thousands)||32,633||33,467||33,122||34,133|
|Diluted (in thousands)||33,182||33,467||33,886||35,057|
|(1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:|
|Research and development||$ 223||$ 216||$ 1,199||$ 923|
|Selling, general and administrative||$ 555||$ 725||$ 2,473||$ 2,905|
|Discontinued operations||$ --||$ 13||$ --||$ 66|
|O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS|
|(In Thousand U.S. Dollars, Except Share Amounts)|
|December 31,||December 31,|
|Cash and cash equivalents||$ 32,562||$ 42,277|
|Accounts receivable — net||12,062||13,239|
|Prepaid expenses and other current assets||2,228||2,434|
|Total Current Assets||147,963||140,923|
|PROPERTY AND EQUIPMENT — NET||28,330||29,739|
|Total Other Assets||6,179||6,296|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Notes and accounts payable||$ 6,641||$ 8,299|
|Income tax payable||606||494|
|Accrued expenses and other current liabilities||8,237||8,031|
|Total Current Liabilities||15,484||16,824|
|OTHER LONG-TERM LIABILITIES|
|Accrued pension liabilities||628||679|
|Long-term income tax liabilities||66||302|
|Total Other Long-Term Liabilities||823||1,110|
|COMMITMENTS AND CONTINGENCIES|
|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 — 1,653,265,600 and 1,675,021,100 shares as of December 31, 2011 and 2010, respectively||33||34|
|Additional paid-in capital||136,625||135,703|
|Accumulated other comprehensive income||6,899||7,602|
|Treasury stock — 47,990,100 and 5,000,000 shares as of December 31, 2011 and 2010, respectively||(4,111)||(576)|
|Total Shareholders' Equity||182,526||179,700|
|TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY||$198,833||$197,634|
CONTACT: Gary E. Abbott Director of Investor Relations, O2Micro Phone: 408.987.5920, x8888 Email: email@example.com