O2Micro Reports Third Quarter Financial Results
GEORGE TOWN, Grand Cayman, Nov. 2, 2011 (GLOBE NEWSWIRE) -- O2Micro® International Limited (Nasdaq:OIIM) reported its financial results today for the third quarter of fiscal 2011, ending September 30, 2011.
Financial Highlights for the Third Quarter ending September 30, 2011:
O2Micro International Limited reported revenue of $32.0 million for the third quarter of 2011. Revenue was down 1% from the prior Q2 period. The gross margin was 55.5% in Q3 2011 and it was 175 basis points lower than Q2 2011. GAAP operating expenses rose from $15.6 million in Q2 2011 to $16.5 million in Q3 2011. The corresponding GAAP operating margins for the respective quarters were 9% and 4%. These results from operations yielded GAAP net income that declined from $3.0 million in Q2 2011 to $1.4 million in Q3 2011. The corresponding GAAP net income per fully diluted ADS was $0.09 and $0.04 for the respective Q2 and Q3 2011 periods.
Financial Highlights for the Nine Months ending September 30, 2011:
O2Micro International Limited produced revenue of $95.6 million for the nine months ending September 30, 2011. Revenue was down 11% from the comparable nine months of 2010. The gross margin was 57.4% for the first nine months of 2011 and 61.7% for the corresponding period of 2010. GAAP operating expenses were $47.4 million during the first nine months of 2011 and $46.4 million through the first nine months of 2010. Corresponding GAAP operating margins were 8% and 19%, respectively. The GAAP net income was $7.5 million during the first nine months of 2011 and $12.8 million through the first nine months of 2010. Corresponding net income per fully diluted ADS was $0.22 and $0.36, respectively.
The company ended the third quarter of 2011 with $119.1 million in unrestricted cash and short-term investments or $3.60 per outstanding ADS. The accounts receivable balance was $14.0 million and represented 41 days sales outstanding at the end of Q3 2011. Inventory was $9.3 million or 66 days and turned over 5.5 times during Q3 2011. As of September 30, 2011, the company had $130.8 million in working capital and the book value was $185.4 million, or $5.60 per outstanding ADS.
As of September 30, 2011, O2Micro International Limited counted 765 employees, including 422 engineers.
Sterling Du, Chairman and CEO, commented, "We are successfully diversifying our business. We continue to be a leader in backlighting, our DC/DC products are gaining market acceptance, and our investment in general lighting is showing great promise."
Conference Call: O2Micro will hold its third quarter conference call today, November 2, 2011, at 7:00 a.m. PDT, 10:00 a.m. EDT. You may participate using the following dial-in information.
|In the US and CANADA:||800-227-9428, passcode # 9100437|
|INTERNATIONAL participants:||785-830-1925, passcode # 9100437|
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 # 9100437|
|INTERNATIONAL participants:||719-457-0820, passcode # 9100437|
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 17,633 patent claims granted, and over 18,000 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 development 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 (UNAUDITED)|
|(In Thousand U.S. Dollars, Except Per Share Amounts)|
|Three Months Ended||Nine Months Ended|
|September 30,||September 30,|
|COST OF SALES||14,265||12,857||40,696||41,199|
|OPERATING EXPENSES (INCOME)|
|Research and development (1)||8,452||7,734||25,046||22,920|
|Selling, general and administrative (1)||8,094||7,740||23,213||23,526|
|Total Operating Expenses||16,546||15,474||47,409||46,446|
|INCOME FROM OPERATIONS||1,235||5,444||7,512||19,957|
|Foreign exchange gain (loss) — net||207||(184)||7||(175)|
|Other — net||(12)||16||122||(11)|
|Total Non-operating Income||515||73||1,012||536|
|INCOME FROM CONTINUING OPERATIONS BEFORE||1,750||5,517||8,524||20,493|
|INCOME TAX EXPENSE||279||449||942||1,271|
|NET INCOME FROM CONTINUING OPERATIONS||1,471||5,068||7,582||19,222|
|LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX (1)||36||3,380||40||6,384|
|OTHER COMPREHENSIVE INCOME|
|Foreign currency translation adjustments||(449)||1,063||626||1,179|
|Unrealized gain on available-for-sale securities||622||740||255||1,994|
|Unrealized pension gain||4||2||12||5|
|Total Other Comprehensive Income||177||1,805||893||3,178|
|BASIC EARNINGS (LOSS) PER ADS|
|DILUTED EARNINGS (LOSS) PER ADS|
|ADS UNITS USED IN EARNINGS (LOSS) PER ADS CALCULATION:|
|Basic (in thousands)||33,070||33,576||33,285||34,355|
|Diluted (in thousands)||33,678||34,491||34,121||35,282|
|(1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:|
|Research and development||$236||$232||$976||$707|
|Selling, general and administrative||$614||$798||$1,918||$2,180|
|Discontinued operations||$ --||$15||$ --||$53|
|O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS|
|(In Thousand U.S. Dollars, Except Share Amounts)|
|September 30,||December 31,|
|Cash and cash equivalents||$29,805||$42,277|
|Accounts receivable — net||14,036||13,239|
|Prepaid expenses and other current assets||2,040||2,434|
|Total Current Assets||144,654||140,923|
|PROPERTY AND EQUIPMENT — NET||28,271||29,739|
|Total Other Assets||6,410||6,296|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Notes and accounts payable||$5,855||$8,299|
|Income tax payable||583||494|
|Accrued expenses and other current liabilities||7,401||8,031|
|Total Current Liabilities||13,839||16,824|
|OTHER LONG-TERM LIABILITIES|
|Accrued pension liabilities||592||679|
|Long-term income tax liabilities||302||302|
|Total Other Long-Term Liabilities||1,023||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 — 1,655,496,600 and 1,675,021,100 shares as of September 30, 2011 and December 31, 2010, respectively||33||34|
|Additional paid-in capital||136,018||135,703|
|Accumulated other comprehensive income||8,495||7,602|
|Treasury stock — 4,282,500 and 5,000,000 shares as of September 30, 2011 and December 31,||(407)||(576)|
|Total Shareholders' Equity||185,421||179,700|
|TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY||$200,283||$197,634|
CONTACT: Gary E. Abbott Director of Investor Relations, O2Micro Phone: 408.987.5920, x8888 Email: email@example.com