O2Micro Reports Second Quarter 2022 Financial Results

Jul 29, 2022

GEORGE TOWN, Grand Cayman, July 29, 2022 (GLOBE NEWSWIRE) --

Operational Highlights:

  • 2022 Q2 revenue was $22.1 million.

  • Revenue increased 2% compared to prior quarter.

  • O2Micro expects the third quarter 2022 revenue to be in the range of $17.0 million to $19.0 million.

O2Micro® International Limited (NASDAQ: OIIM)(O2Micro), a global leader in the design, development and marketing of high-performance integrated circuits and solutions, reported its financial results today for the second quarter ending June 30, 2022.

Financial Highlights for the Second Quarter ending June 30, 2022:
O2Micro reported the second quarter 2022 revenue of $22.1 million within the guidance announced on May 6, 2022. Revenue was down 15.8% from the same quarter in the previous year. The gross margin in the second quarter of 2022 was 52.6 %, which was up from 51.5% in the same quarter of 2021. During the second quarter of 2022, the Company recorded total GAAP operating expenses of $11.1 million and was up from $10.2 million in the same quarter of 2021. The GAAP operating margins for the second quarter of 2022 was 2.1% compared to 12.5% in the same quarter of 2021. The Company reported 2022 Q2 GAAP net income of $555,000, or $0.02 per fully diluted ADS, compared to a GAAP net income of $3.2 million or $0.10 per fully diluted ADS in the comparable quarter of 2021.

Supplementary Data:
The Company ended the second quarter of 2022 with $49.5 million in unrestricted cash and short-term investments or $1.70 per outstanding ADS, along with 324 employees worldwide of which 184 are engineers.

Management Commentary:
“O2Micro’s increasing active design wins with new technologies show strong acceptance by our customers in both LCD backlighting and battery products. It shows the long-term growth drivers continue its momentum despite current inventory correction headwind. The growth drivers include vacuum cleaners, E Bikes, televisions, and high-end monitors, power tools and energy storage system,” said Sterling Du, O2Micro’s Chairman and CEO “Our rich global patent portfolio highlights our commitment to designing leading edge technologies for our customers. These along with continued management of operational costs, are leading O2Micro into sustainable long-term profitability.”

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME follows conference call information below

Conference Call:
O2Micro will hold its second quarter conference call on July 29th, 2022, at 6:00AM. Pacific, 9:00AM Eastern. You may participate using the following dial-in information.

O2Micro International Limited (NASDAQ Global: OIIM) earnings call
Participants, Int'l Toll: 1-412-317-6060
Participants, US/CAN: 1-866-652-5200
Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=Yci0pImJ

A live webcast will also be available on the Company's website at http://ir.o2micro.com, and an online replay will be available following the call from July 29, 2022, at 12:00PM Eastern Time (US & Canada) through August 05, at 12:00PM Eastern Time (US & Canada) https://services.choruscall.com/ccforms/replay.html   Replay access code: 9160803

About O2Micro:
Founded in April 1995, O2Micro develops and markets innovative power management components for the Computer, Consumer, Industrial, and Automotive markets. Products include Backlighting, and Battery Power Management. 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, 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 or its 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 and other Federal Securities Laws. Such statements involve risks, speculation and uncertainties that may cause actual results to differ materially from those set forth in these statements or from management's current views and expectations. Risks and uncertainties in this release may include, without limitation, any one or combination of the following: the effect of competitive and economic factors; real property value fluctuations and market demand; legal changes in any relevant rules and regulations pertaining to O2Micro's business; changes in technology and industry standards, and O2Micro's reaction to those factors; consumer and business buying decisions with respect to our customers' products incorporating O2Micro's products; continued competitive pressures in the marketplace; the ability of O2Micro to deliver to the marketplace, and stimulate customer demand therein, for new products and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on O2Micro's gross margins; the inventory risk associated with O2Micro's need to order, or commit to order, product components and product capacity in advance of forecast customer orders; the continued availability of acceptable terms of certain components and services essential to O2Micro's business which are currently obtained by the Company from sole or limited sources; the effect that O2Micro's dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity, availability or cost of products manufactured or services rendered; risks associated with O2Micro's international operations; the potential impact of a finding that O2Micro has infringed on the intellectual property rights of others, or that any third party may have infringed on O2Micro's intellectual property that may negatively affect O2Micro's business; O2Micro's legal classifications with governmental and regulatory agencies; O2Micro's dependency on the performance of distributors, carriers, independent sales representatives, and other resellers of O2Micro's products; the effect that product and service quality problems could have on O2Micro's sales ability and operating profits; the ability of O2Micro to deliver its products in a timely fashion to its customers, and the possible negative ramifications if such is not possible; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. Actual results may differ materially due to numerous risk factors. Such risk factors are more fully enumerated in O2Micro's 20-F Annual Filings, Annual Report(s), 6-K's, the Form F-1 filed in connection with the Company's initial public offering in August 2000, information posted on our website at www.o2micro.com, and other documents filed with the SEC, NASDAQ or any other public agency from time to time. The statements herein are based on dated information on the dates mentioned herein, which is subject to change. O2Micro assumes no obligation to update or revise the information provided on today, or any other forward-looking information, whether as a result of new information, future events or any other information that may arise. This information only speaks to the respective dates mentioned in said information.

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
  June 30, June 30,
    2022     2021     2022     2021  
       
OPERATING REVENUES $ 22,058   $ 26,205   $ 43,683   $ 49,441  
         
COST OF REVENUES   10,447     12,718     20,704     23,964  
         
GROSS PROFIT   11,611     13,487     22,979     25,477  
         
OPERATING EXPENSES        
Research and development (1)   4,918     4,741     9,888     9,307  
Selling, general and administrative (1)   6,224     5,465     11,789     10,521  
         
Total Operating Expenses   11,142     10,206     21,677     19,828  
         
INCOME FROM OPERATIONS   469     3,281     1,302     5,649  
         
NON-OPERATING INCOME        
Interest income   80     62     140     138  
Foreign exchange gain (loss) – net   38     (70 )   140     (28 )
Government grants   75     28     86     138  
Other – net   125     113     237     243  
Total Non-operating Income   318     133     603     491  
         
INCOME BEFORE INCOME TAX   787     3,414     1,905     6,140  
         
INCOME TAX EXPENSE   232     253     435     497  
         
NET INCOME   555     3,161     1,470     5,643  
         
OTHER COMPREHENSIVE (LOSS) INCOME        
Foreign currency translation adjustments   (1,066 )   384     (1,279 )   184  
Unrealized pension gain                           1                             1                             2                             1  
Total Other Comprehensive (Loss) Income                           (1,065 )                           385                             (1,277 )                           185  
         
COMPREHENSIVE (LOSS) INCOME $                         (510 ) $                         3,546   $                         193   $                         5,828  
         
EARNINGS PER ADS        
Basic $                         0.02   $                         0.11   $                         0.05   $                         0.20  
Diluted $                         0.02   $                         0.10   $                         0.05   $                         0.18  
         
ADS UNITS USED IN EARNINGS PER ADS CALCULATION:        
Basic (in thousands)                           29,151                             28,435                             29,057                             28,245  
Diluted (in thousands)                           30,396                             31,063                             30,502                             31,323  
         
(1) INCLUDES STOCK-BASED COMPENSATION CHARGE AS FOLLOWS:        
Research and development $                         210   $                         105   $                         417   $                         196  
Selling, general and administrative $                         376   $                         337   $                         743   $                         651  


O2MICRO INTERNATIONAL LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In Thousand U.S. Dollars, Except Share Amounts)

  June 30, December 31,
            2022                       2021            
ASSETS (Unaudited) (Audited)
     
CURRENT ASSETS    
Cash and cash equivalents $                         27,526   $                         20,780  
Restricted cash                           36                             39  
Short-term investments                           21,935                             29,186  
Accounts receivable – net                           17,187                             18,784  
Inventories                           21,559                             19,523  
Prepaid expenses and other current assets                           1,728                             2,087  
Total Current Assets                           89,971                             90,399  
     
LONG-TERM INVESTMENTS                           992                             992  
     
PROPERTY AND EQUIPMENT – NET                           22,968                             23,611  
     
OTHER ASSETS                           4,237                             3,340  
     
TOTAL ASSETS $                         118,168   $                         118,342  
     
LIABILITIES AND SHAREHOLDERS’ EQUITY    
     
CURRENT LIABILITIES    
Accounts payable $                         6,860   $                         9,175  
Income tax payable                           183                             307  
Lease liabilities                           1,128                             1,076  
Accrued expenses and other current liabilities                           6,331                             5,773  
Total Current Liabilities                           14,502                             16,331  
     
OTHER LONG-TERM LIABILITIES    
Accrued pension liabilities                           123                             147  
Deferred income tax liabilities                           672                             537  
Lease liabilities                           1,637                             1,775  
Other liabilities                           66                             68  
Total Other Long-Term Liabilities                           2,498                             2,527  
     
Total Liabilities                           17,000                             18,858  
     
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 – 1,669,036,600 shares as of June 30, 2022 and December 31, 2021
Outstanding – 1,457,751,050 and 1,424,760,750 shares as of June 30, 2022 and
December 31, 2021, respectively
                          33                             33  
Additional paid-in capital                           143,377                     143,540  
Accumulated deficits                           (33,924 )                           (35,158 )
Accumulated other comprehensive income                           4,596                             5,873  
Treasury stock – 211,285,550 and 244,275,850 shares as of June 30, 2022 and
        December 31, 2021, respectively
                          (12,914 )                           (14,804 )
Total Shareholders’ Equity                           101,168                             99,484  
     
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $                         118,168   $                         118,342  

O2MicroDaniel Meyberg
Investor Relations
ir@o2micro.com

Gregory Communications FCA
Joe Hassett
joeh@gregoryfca.com

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Source: O2Micro, Inc.