O2Micro Sets New Q2 Earnings Record
GEORGE TOWN, Grand Cayman, Aug. 4, 2010 (GLOBE NEWSWIRE) -- O2Micro® International Limited (Nasdaq:OIIM) reported its financial results today for the second quarter of fiscal 2010, ending June 30, 2010.
Financial Results for the Second Quarter ending 6/30/2010:
Revenue was $39.9 million in the second quarter of fiscal 2010. This was up 14% sequentially and 15% versus the year-ago period. Gross margin was 61.7% in the second quarter. This was approximately flat with 61.6% in the prior quarter and up from 58.8% in the year-ago period.
Total Q2 operating expenses were $17.3 million, versus $17.2 million in the first quarter, and $20.5 million in the second quarter of 2009. These results yielded a GAAP operating margin of 18.3% in the second quarter of 2010, compared to 12.2% in the first quarter of 2010, and (0.3)% in the second quarter of 2009.
Pretax income was $7.5 million in Q2, which was up from $4.5 in Q1, and reversed a pretax loss of $158,000 in the year-ago quarter. Net income was $7.1 million in Q2, up from $4.1 million in Q1, and up from a net loss of $505,000 in the year-ago quarter. GAAP net income per fully diluted ADS was $0.20 in Q2 2010, versus $0.11 in Q1 2010, and improved over a net loss per ADS of $0.01 in Q2 2009.
Financial Results for the Six Months ending 6/30/2010:
Revenue for the first half of 2010 was $74.7 million. This compares favorably to $57.7 million in the first half of 2009. The gross margin in the six months ending June 30, 2010 was 61.7%, up from 57.5% in the comparable half-year. GAAP operating expenses declined to $34.5 million in the first half of 2010 from $37.2 million in the first half of 2009. The corresponding GAAP operating margins for the six month periods were 15.4% and (7.0)% in the respective halves of 2010 and 2009. Pretax income was $12.0 million in the first half of 2010 and reversed a pretax loss of $3.2 million in the first half of 2009. After taxes, GAAP net income was $11.2 million in the first half of 2010, compared to a GAAP net loss of $4.0 million in the first half of 2009. The corresponding GAAP net income per fully diluted ADS was $0.31 in the first half of 2010, which also compares favorably to a GAAP net loss per ADS of $0.11 in the first half of 2009.
The company ended the second quarter of 2010 with $106.1 million in unrestricted cash and short-term investments, or $3.02 per outstanding ADS. The ending cash balance comes after the repurchase of more than 1.1 million ADS units in the second quarter for approximately $7.8 million. The accounts receivable balance was $18.8 million and represented 40 days sales outstanding at the end of the Q2 2010. Inventory was $13.0 million. Inventory stood at 67 days at the end of the second quarter and turned over 5.4 times during Q2 2010. As of June 30, 2010, the company had $116.9 million in working capital and the book value was $176.0 million, or $5.01 per outstanding ADS.
As of June 30, 2010, O2Micro International Limited counted 827 employees, including 518 engineers.
Sterling Du, Chairman and CEO, commented, "We set a new Q2 earnings record with high margins and solid sequential and year-to-year revenue growth. These financial accomplishments are the fruits of our ongoing R&D investment." Mr. Du continued, "Our financial success comes from market leading customers who value the superior power efficiency of our 'green' semiconductor chips, including our LED Driver, Battery, DC/DC, Charger, and Security offerings."
Conference Call: O2Micro will hold its second quarter conference call on August 4, 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:||877-852-6575, passcode #7861418|
|INTERNATIONAL participants:||719-325-4915, passcode #7861418|
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 #7861418|
|INTERNATIONAL participants:||719-457-0820, passcode #7861418|
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 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 14,483 patent claims granted, and over 16,000 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, SmartCardBus, and combinations thereof are registered trademarks of O2Micro. All other trademarks are the property of their respective owners.
|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|
|Six Months Ended|
|NET SALES||$ 39,854||$ 34,605||$ 74,707||$ 57,715|
|COST OF SALES||15,249||14,247||28,647||24,533|
|Research and development (1)||8,483||7,998||16,859||15,982|
|Selling, general and administrative (1)||8,836||12,469||17,672||21,252|
|Total Operating Expenses||17,319||20,467||34,531||37,234|
|INCOME (LOSS) FROM OPERATIONS||7,286||(109 )||11,529||(4,052 )|
|NON-OPERATING INCOME (LOSS)|
|Foreign exchange gain (loss)||(7 )||(405 )||(8 )||82|
|Other – net||3||(28 )||(26 )||(39 )|
|Total Non-operating Income (Loss)||226||(49 )||453||871|
|INCOME (LOSS) BEFORE INCOME TAX||7,512||(158 )||11,982||(3,181 )|
|INCOME TAX EXPENSE||456||347||832||865|
|NET INCOME (LOSS)||7,056||(505 )||11,150||(4,046 )|
|OTHER COMPREHENSIVE INCOME (LOSS)|
|Foreign currency translation adjustments||4||555||116||(89 )|
|Unrealized gain (loss) on available-for-sale securities||(530 )||(751 )||1,254||752|
|Unrealized pension gain||1||2||3||3|
|Total Other Comprehensive Income (Loss)||(525 )||(194 )||1,373||666|
|COMPREHENSIVE INCOME (LOSS)||$ 6,531||$ (699 )||$ 12,523||$ (3,380 )|
|EARNINGS (LOSS) PER SHARE:|
|Basic||$ 0.0042||$(0.0003)||$ 0.0064||$ (0.0022)|
|Diluted||$ 0.0040||NA||$ 0.0063||NA|
|EARNINGS (LOSS) PER ADS|
|Basic||$ 0.21||$ (0.01 )||$ 0.32||$ (0.11 )|
|Diluted||$ 0.20||NA||$ 0.31||NA|
SHARES USED IN EARNINGS (LOSS) PER |
|Basic (in thousands)||1,695,983||1,846,359||1,737,260||1,842,521|
|Diluted (in thousands)||1,744,127||NA||1,783,874||NA|
ADS UNITS USED IN EARNINGS (LOSS) PER |
|Basic (in thousands)||33,920||36,927||34,745||36,850|
|Diluted (in thousands)||34,883||NA||35,677||NA|
(1) INCLUDES STOCK-BASED COMPENSATION |
CHARGE AS FOLLOWS:
|Research and development||$ 238||$ 334||$ 513||$ 616|
|Selling, general and administrative||$ 730||$ 620||$ 1,382||$ 1,109|
|O2Micro International Limited and Subsidiaries|
|Consolidated Balance Sheets|
|(In Thousand U.S. Dollars, Except Share Amounts)|
|Cash and cash equivalents||$ 35,025||$ 38,831|
|Accounts receivable, net||18,801||14,556|
|Prepaid expenses and other current assets||1,979||3,342|
|Total Current Assets||140,017||140,924|
|PROPERTY AND EQUIPMENT, NET||29,468||30,570|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Notes and accounts payable||$ 11,944||$ 8,760|
|Income tax payable||483||411|
|Accrued expenses and other current liabilities||10,653||7,731|
|Total Current Liabilities||23,080||16,902|
|OTHER LONG-TERM LIABILITIES|
|Accrued pension liabilities||467||498|
|Long-term income tax payable||335||341|
|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 – 1,754,594,750 and 1,809,461,200 shares as of June 30, 2010 and |
December 31, 2009, respectively
|Additional paid-in capital||139,498||142,679|
|Accumulated other comprehensive income||4,888||3,515|
Treasury stock – 68,538,500 shares and nil as of June 30, 2010 and |
December 31, 2009, respectively
|Total Shareholders' Equity||175,980||179,444|
|TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY||$199,991||$197,314|
CONTACT: O2Micro International Limited Gary E. Abbott, Director of Investor Relations 408.987.5920, x8888 firstname.lastname@example.org
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